Increased competition for survival of the fittest in agricultural machinery circulation enterprises

[ China Agricultural Machinery Industry News ] Under the strong promotion of the policy of benefiting farmers, the output value of agricultural machinery circulation sales in China has maintained a growth rate of around 20% in recent years, showing a steady development trend and providing strong support for the healthy development of the agricultural machinery market.

China's agricultural machinery industry transformation, product upgrade pace has steadily advanced, quality capabilities continue to improve, is facing a new round of golden opportunities development period. The competition for the survival of the fittest in agricultural machinery circulation enterprises has intensified, and the speed of quantitative change to qualitative change has accelerated, facing a higher level of competition.

Growth of industrial transformation under the support of development

China's agricultural machinery market is still a global competitive market. Driven by the policy of benefiting farmers, China's agricultural machinery industry has made remarkable achievements in development, showing the development trend of industrial transformation, quality improvement and demand upgrading, and is in a critical period of factor development and innovation drive.

Industrial transformation is progressing in an orderly manner. In 2016, the agricultural machinery industry achieved a revenue of 474.53 billion yuan, a year-on-year increase of 5.2%. China is currently able to produce more than 3,500 kinds of agricultural machinery and equipment, which can basically meet the mechanized equipment needs of China's agriculture. Traditional host agricultural machinery enterprises have entered the agricultural machinery industry, constantly improving and extending the industrial chain, strengthening unit coordination, enriching the industrial spectrum of farming and management, and actively providing users with a complete set of agricultural equipment solutions. The main agricultural machinery enterprises carry out industrial development, and the traditional cultivating and land-making manufacturing enterprises develop into industrial fields such as planting machines, plant protection machinery, large and medium-sized tractors, harvesting machinery, etc.; plant protection machinery manufacturing enterprises extend to industrial fields such as ploughing and harvesting machinery, industrial structure and development. The ability is further enhanced. The products of spare parts supporting enterprises have been steadily upgraded, and the product quality has been greatly improved, which has strongly supported the upgrading of the host products.

The quality improvement has developed steadily. Agricultural machinery enterprises actively promote product manufacturing strength and product research and development capabilities. Guosan products have dominated market demand, and the market share of power shift tractor products, vertical axial flow harvesting machinery products, large-scale composite agricultural machinery and other products has been continuously improved, and global competition The power and voice of the voice continue to increase. The MTBF value (mean time between failures) of major agricultural machinery products in China has narrowed the gap with similar foreign advanced products, which has improved the quality assurance level of products. Relying on innovation to drive the overall construction of core competitiveness, relying on "Internet +" to promote the development of quality chain to higher links, is forming a new pattern and a new format. With the upgrading of the industry and the adjustment of the competitive landscape, the backward and repetitive production capacity has been gradually upgraded or eliminated, and the agricultural machinery industry has entered a new stage of quality-oriented and rational development.

Supply and demand upgrades and coordinated development. Agricultural machinery enterprises actively implement channel sinking, improve system solutions to understand terminal needs and meet terminal needs. Circulating enterprises have become an important platform for customer management. Through the construction and operation of customer databases and big data, we have strengthened customer relationship management, and implemented multi-density symposiums, experience meetings, on-site visits, market detection, etc. to deliver corporate image and product value. Optimize channel construction, speed up the franchise stores, specialty stores, flagship stores, and hierarchical maintenance and management. Customer structure adjustment and upgrading, family farms, agricultural machinery cooperatives, large grain growers, large agricultural machinery, etc. become the new force of the demand for medium agricultural machinery. The northeast region, the Xinjiang region, and the winter wheat region continue to maintain rigid demand for large and medium-sized agricultural machinery, and the integration of agricultural machinery and agronomy in paddy fields has been further developed.

Limited growth space under the constraints of challenges

It should be noted that the development of China's agricultural machinery industry faces the challenge of overlapping multiple difficulties and overlapping risks. The structural problems of the agricultural machinery industry are outstanding, the supply of medium-sized products is insufficient, and the overcapacity of low-end products is serious. Under the circumstance of market demand, product supply factors, structural factors and cyclical factors superimposed on each other, the downward pressure on the development of the agricultural machinery industry has increased. Considering and carefully analyzing, the development of agricultural machinery circulation still faces some subjective and objective constraints.

The overall downward pressure on the market has increased. In 2017, the market for agricultural machinery and other large and medium-sized tractors and their supporting agricultural machinery, corn harvesters, and wheat harvesters are still expected to decline in stages. The first is the adjustment of state-funded funds. In 2017, the funds allocated for agricultural machinery purchase subsidies were reduced to 18.6 billion yuan, and the subsidy funds were reduced by about 5.1 billion yuan. At the same time, the subsidy funds are issued to the provinces at one time. In the areas where the use of funds in the previous year was less than half, the funds for the current year were no longer arranged. The agricultural machinery market has a strong dependence on the subsidy policy. The total amount of subsidized state subsidies is reduced, and the reduction of some single-model subsidies will have a certain impact on market demand. Second, the weakening of demand and overdraft coexist. In the second half of the year, the demand for wheat seeders and corn harvesters for the main sales models will be affected. In the region where the use of subsidized funds in the previous year was less than half, the market demand will be greatly reduced this year. In 2016, the agricultural machinery enterprises inspected the inventory of the second country, promoted products with high intensity and high density, and overdrafted some of the 2017 market. Third, users wait and see the color is strong. The implementation of the country's three product switching, tractor power shifting, harvester vertical axis flow technology upgrade, users have a wait-and-see attitude towards the service capacity of circulation enterprises, restricting some of the demand.

User purchasing power is reduced. Users are faced with the contradiction between the demand reduction and the increase of purchase cost, and the phenomenon of meager profit of agricultural machinery users and the loss of some grain farmers. In 2016, the comprehensive mechanization level of farming and harvesting in China reached 65%, the technical level of agricultural material equipment was significantly improved, and the demand for comprehensive production capacity of major agricultural products was basically satisfied. In some regions, market demand is saturated, and operating income is decreasing. The price cuts of major food crops such as corn and wheat, and the decrease in user income have caused users to purchase enthusiasm and reduce purchasing power. Since 2017, agricultural machinery manufacturing has been affected by rising prices of major raw materials, logistics and product upgrades, and the overall cost of agricultural machinery manufacturing has increased. The transportation vehicle management factor increases the logistics cost between the agricultural machinery enterprises and the circulation enterprises. The upgrade of Guosan's products brought about a corresponding increase in manufacturing costs and an increase in sales prices. The discretionary power of government guidance is reduced, and the user's autonomy of choice under market resource allocation needs increases. In order to compete for effective market share, competition will further intensify.

Traditional sales models are under pressure. Faced with the strategic objectives of agricultural machinery enterprises, the transmission of competition modes, the requirements of channel construction standards upgrading and sales tasks, the traditional circulation model faces multi-dimensional development shortcomings. First, there is a common phenomenon of multi-products and multi-products. Second, a variety of factors have caused the circulation of enterprises to run their own funds. The third is the impact of traditional marketing models. Despite the large number of circulation enterprises, due to factors such as strategic positioning, operational capability, marketing model, and scale of operations, it is difficult for some circulation enterprises to effectively optimize resources and improve their capabilities, and sales targets cannot meet market competition requirements.

Innovation-driven development goals can be expected

It is an urgent task to upgrade the innovation-driven channels and adapt to the requirements of enterprise industrial transformation. Accurately grasp the new situation, new demands and new tasks faced by the innovation of circulation enterprises, accelerate the construction of an innovative marketing system in line with competition, and effectively transform the demand dynamics of sustainable development into system innovation.

Constantly strengthen the construction of the marketing system. The system is built and the foundation is built. Affected by market factors, the survival of the fittest and the two-way choice between agricultural machinery enterprises and circulation enterprises have become normalized. Strengthening the construction of the marketing system is a key measure for the agricultural machinery channel to gather superior resources, improve development capacity, and achieve competitiveness. First, channel strategy, combing the two-way resources of the channel, lack of search ability, and comprehensively upgrade the marketing elements from product competition to full-scale competition plan, price competition to value competition, terminal channel to terminal channel competition, stage promotion to system value transfer. Set development model, development path and development goals, optimize organization, upgrade resources, improve ability, use system to ensure closed-loop management, avoid the phenomenon of experience and lessons, and continuously improve the endogenous development momentum of circulation enterprises. Second, in the channel campaign, adhere to the process norms, concentrate the superior energy, and cultivate the ability to have a first-mover advantage over the target object. Construct a competitive route and a competitive map to form a continuous competition; dynamically adjust performance, grasp the initiative of competition, and expand market share and coverage. The third is the channel tactics, the establishment of problem-oriented, inventory management, and the result of the work force promotion mechanism.

Effectively cultivate channel competition. Channel development, things are artificial. Agricultural machinery circulation enterprises should speed up the construction of strategic goals and ensure the realization of business objectives. The first is to comprehensively improve the basic quality of employees. Agricultural machinery circulation enterprises should strengthen the construction of high-quality talents such as personnel market research, product sales, channel management, and after-sales service to meet the needs of high-intensity competition. Through external recruitment and internal training, we will strengthen the cultivation and introduction of talents in marketing core technologies, key support, and weak links. Synchronize with market competition, customer management, information management, and service support to improve the execution ability of the team to fulfill its goals. Strengthen performance management, reuse marketers, promote channel development and control, and strive to increase channel sales.

The second is to establish and improve the development system. Continue to promote advanced technology and advanced experience in the management of domestic and foreign circulation enterprises. Curing, rigidening and optimizing channel management systems and processes, transforming from personal wisdom to group wisdom, from accidental opportunities to inevitable success, and building a new competitive management model. Active service, hierarchical delivery, from demand management to first-line service, and continuously improve market competition and consistency according to market competition. The third is to actively promote value transmission. Establish strategic alliances with companies with the same values, continue to output value for users, and win the initiative in competition. Establish a long-term development mechanism for agricultural machinery enterprises and agricultural machinery circulation enterprises, gradually form core channels, achieve competition for traders, and continuously improve operational capabilities. Use value guidance to replace price competition, gain insight into user needs and preferences, and comprehensively strengthen customer management, product experience, and value channels, from differential sales to full sales, from the single needs of users to meet the needs of users in various future needs. Providing agricultural equipment to provide system solutions to achieve product value transfer and spillover.

Fully build a channel development platform. The big waves are sanding, and the jade is self-evident. In the face of fierce competition among enterprises in circulation, it is necessary to build a new development platform and support the goal. The first is the multi-dimensional market platform layout. Optimize regional sales, build platform advantages, and gain competitive advantage. Implementation of advantageous areas, weak areas, blank areas and traditional products, emerging products, strategic layout of potential products and development route design, forming new platform combination advantages, gradually forming a consolidation of core markets, development of key products, reduction of weak markets, development of blank markets The competitive landscape. We will increase the management of key customers such as terminal agricultural industrialization organizations, agricultural machinery cooperatives, large grain growers, and family farms, strengthen two-way construction, and establish a solid cooperation platform. The second is to dynamically implement platform interaction. According to the development goals of circulation enterprises, establish and improve the information platform shared by manufacturers, dynamically grasp the market situation, and achieve synergy between sales, promotion and strategy. Increase benchmarking of benchmarking channels, grasp market competition trends, track channel marketing strategies, and avoid corresponding competition risks. Promote the integration of agricultural machinery and agronomy, monitor the integration of product quality, reliability and working conditions, and timely feedback the corresponding improvements and research and development recommendations. The third is the innovation of multi-polarized platform. Focusing on the ecological upgrading of marketing competition, we will focus on the demand side and the supply side to build a new sales model.