How to develop overseas market in the hottest cons

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How to develop the overseas market in the Construction Machinery Industry Guide: in the past five years, the pace of Chinese enterprises' going global has been accelerating, and the cumulative foreign direct investment has reached US $220billion. The global ranking has jumped from 18th to 5th, and Chinese enterprises have appeared in more and more places. Why are construction machinery enterprises optimistic about the overseas market? The interview found that made in China

in the past five years, the pace of Chinese enterprises' going global has been accelerating. The cumulative foreign direct investment has reached US $220billion, and the global ranking has jumped from 18th to 5th. Chinese enterprises have appeared in more and more places. Why are construction machinery enterprises optimistic about the overseas market? The interview found that the salary of Chinese manufacturing workers is much lower than that of American manufacturing workers, and the salary in China is usually only one tenth of that in the United States. According to a report of Boston Consulting (BCG), the wage cost of China's manufacturing industry is estimated to rise by 17% annually in the next five years, while the wage increase in the U.S. manufacturing industry will be only 3% "It is an inevitable trend for construction machinery enterprises to set up factories overseas. Setting up factories overseas with independent brands and employing local workers can not only effectively reduce labor costs, but also improve relations with local governments and achieve localized production." Hu Chi, deputy director of the China Association of entrepreneurs and the China Enterprise Federation, said, "with the continuous appreciation of the RMB, localized production can effectively avoid the loss of profits caused by the change of the exchange rate. For every one percentage point appreciation, the enterprise's profits will be reduced by one percentage point. In the fierce market competition, if the RMB continues to strengthen, the export of the construction machinery industry will be seriously affected." A person who has been engaged in the import and export business of construction machinery for a long time told me

Recently, Sany Heavy Industry announced that the company plans to reach an investment intention with the Ministry of industry of the Republic of Indonesia to invest US $200million in the country to build Sany Indonesia Industrial Park, with a registered capital of US $50million in the first phase. As one of the largest construction machinery manufacturers in China, Sany group has established production bases in four overseas countries so far. In fact, the overseas construction of Sany Heavy Industry is only the tip of the iceberg of overseas investment in the construction machinery industry. Since this year, many construction machinery enterprises have targeted overseas markets and accelerated the pace of opening up overseas markets. Earlier in March, taoyongsheng, deputy chief engineer of XCMG machinery technology branch, revealed to the media that XCMG would soon establish its own manufacturing base of road construction machinery products in Brazil to develop the local international market, which would be XCMG's first production and manufacturing base overseas. In addition to Sany Heavy Industry, XCMG machinery and other large enterprises, Shantui also plans to build factories overseas. Wang Wenchao, deputy general manager of Shantui, revealed that Shantui would establish branches in Brazil, Russia and South Africa

in fact, building factories overseas is also an important strategy for enterprises to adjust their layout and avoid market risks. In recent years, the foreign trade friction of the construction machinery industry has been escalating, and the direct export mode has been subject to more and more restrictions such as anti-dumping, technical barriers and green barriers. It is understood that the European Commission has implemented phase IIB emission standards since January this year for diesel engines with a power range of 130kW to 560kw for non road machinery. The EU Ⅲ B phase Emission Standard imposes stricter restrictions on the emission particles of engines with only machine operation sound at their ears, from 0.2g/kwh to 0.025g/kwh To meet this limit, diesel engines must be equipped with particulate filters to solve this problem. Wang Jiner, director of the general office of China Construction Machinery Industry Association, said in China star that the continuous improvement of foreign emission standards will further raise the export threshold of China's construction machinery. Liugong's secretary Wang Zuguang said that since domestic engines could not meet the export requirements, Liugong could only purchase engines of foreign brands

insiders believe that whether Chinese construction machinery products can enter the international market in large quantities is the key to deal with trade barriers. During the 2011 Las Vegas International Construction Machinery Exhibition, hewenjin, vice president of Zoomlion and general manager of overseas branches, publicly said that Zoomlion's going abroad is a firm strategy, not to compete for position in China, but only for China in the global market

Davies, Minister of industry and trade of South Africa, said that African countries including South Africa must vigorously develop manufacturing industry, and China, a world-class manufacturing power without accommodation costs, has set an example for African countries in developing their own manufacturing industry. At present, the products exported by Africa are mainly concentrated in the field of primary raw materials and mineral resources, and the commodities exported by Africa lack diversity. Therefore, Africa needs to learn from China, take a new path of industrialization, enhance innovation capacity, improve the status of manufacturing industry in the international division of labor, accelerate the development of equipment manufacturing industry, pay attention to the regional optimization of industrial layout, and guide the development of industrial clusters. In this way, the construction machinery enterprises' overseas construction is not only good for their own development, but also a promotion for the manufacturing industry of overseas countries, especially backward countries such as Africa. "However, it is not entirely plain sailing for construction machinery enterprises to go to sea. When formulating overseas expansion strategies, they must be rational and easy to handle." Hu Chi said so. During the two sessions this year, Feng Jun, member of the National Committee of the Chinese people's Political Consultative Conference and President of Huaqi Information, also said that Chinese enterprises should not casually go overseas to build factories. They must be cautious when building factories. It is best to build offices and go overseas to do services, brands and reputation

he Zhenlin, vice president of Sany Heavy Industry, recently said that at this stage, Sany still believes that the cost of establishing factories overseas by enterprises located at the middle end of the industrial chain is lower than the cost of mergers and acquisitions and integration, so Sany will still adhere to the development model of establishing factories overseas to expand its overseas business. Zoomlion believes that Chinese enterprises are going overseas. As far as the current situation is concerned, there is still a certain gap with European and American enterprises in terms of brand awareness, and most domestic enterprises can only adopt differentiation strategies. Therefore, it is particularly necessary to strengthen the construction of after-sales service base, including the construction of accessories base. "It's not just about building new production capacity in overseas markets. The entire production and operation mode and operation system should be organically integrated into each other's socio-economic system and legal system." Insiders generally believe that when domestic enterprises go abroad to build factories, they should fully understand the risks of investment, and their own strength must be combined with the local political, economic and cultural environment, investment environment, foreign exchange policies, laws and regulations, market demand and potential, labor costs, purchasing power, resource advantages and many other aspects. Only in this way can we remain invincible

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