Excavator Industry: It's Hard to Hide Agents Behind the Prosperity

According to a survey conducted by the China Construction Machinery Business Network, China's major excavator manufacturers shipped 74,200 units in the first quarter of 2011, an increase of 58% year-on-year. Excavator sales exceeded the loader for the first time, making it the largest sub-machine in terms of sales of construction machinery. At this point, both in terms of sales revenue and number of sales, the excavator has truly achieved the "crown crown" status of construction machinery, and this advantage continues to expand. Behind this brilliance, there is a group that is indeed a little embarrassed in the excitement of the entire industry, that is, agents.


Excavator Industry: It's Hard to Hide Agents Behind the Prosperity

First of all, to comb out the entire chain of excavator sales: manufacturers ship to agents, agents with the assistance of financial leasing companies to sell to end users. Despite the existence of a few other sales forms such as full payment, installment, mortgage, etc., finance leases account for most of the share, and the share continues to rise. In the sales chain, there are mainly three participating entities: manufacturers, agents, and users. Financing leasing companies play a supporting role as service providers. At present, the status quo of China's excavator market is that there is a great disparity between the strengths of agents and manufacturers. Agents are passive recipients most of the time and are followers of manufacturers' strategies.

Judging from the current situation, the vendor strategy is surprisingly consistent, expanding, expanding and expanding. Because quantifying the matching of production from the demand side is undoubtedly a task that cannot be accomplished. Moreover, each company is imagining that it will seize a larger share from competitors. Therefore, in the face of the following set of data, more manufacturers' managements are perplexed to respond to the continuous expansion of production capacity.

36 million sets of affordable housing construction in the next 5 years

To invest 3.5 trillion yuan in railway construction in the next five years

To invest 5 trillion yuan in the construction of transportation facilities such as roads and airports in the next five years

Investment of nearly 4 trillion yuan in water conservancy construction in the next 10 years

Urbanization progresses by 1 percentage point each year.

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