Depth Analysis: Ten Opportunities for Agricultural Machinery Distribution Enterprises in the Future

Compared with the agricultural machinery manufacturing industry, the agricultural machinery circulation industry appears to be "weak." Domestic agricultural machinery manufacturing enterprises already have nearly 30 billion yuan in output value, and the largest sales volume of agricultural machinery circulation enterprises reached more than 5 billion yuan in 2011, which is different from the construction machinery industry and the automotive industry. Ten billion-dollar circulation enterprises exist. In addition, the degree of concentration of the agricultural machinery manufacturing industry has begun to take shape, and the circulation industry is still scattered. The inefficiency caused by regional monopolies is still a major issue in the industry. Therefore, the agricultural machinery industry still belongs to the “manufacturing-driven” industry. At the stage, the production-driven industry is an inefficient industry. As the supply and demand relationship of agricultural machinery in China goes from "shortage" to "surplus", the era of oversupply under the control of manufacturing companies is coming to an end, and the "circulation-led" era driven by demand will soon come.

At the same time, the development of the domestic agricultural machinery industry in depth, the gradual improvement and continuous adjustment of the national agricultural machinery subsidy policy, the deep changes in the user structure caused by the land reform, and the rapid confrontation between multinational companies and the accelerated deployment of multinational companies will cause fierce confrontations between foreign brands and independent brands. Affecting the future direction and competitive landscape of the agricultural machinery circulation industry, meanwhile, the changes and turmoil of the industry will also bring rare development opportunities for the agricultural machinery circulation enterprises. This paper analyzes the development of the agricultural machinery industry and predicts the market opportunities of the agricultural machinery circulation enterprises in the future.

I. The opportunity brought by the GSP subsidy The purchase of subsidies for the GSP has been a secret topic. Considering the immature timing and the difficulty of implementation, the Ministry of Agriculture and relevant authorities rarely mentioned this topic, but the pace of rapid development of agricultural machinery purchase subsidies has clearly exceeded the expectations of many people. A welcome change this year is some conditions. The better provinces have already begun to try to implement the generalized system in some regions. For example, Hunan Province requires unlimited supply of subsonic machines and rice transplanters. Inner Mongolia requires all regions to provide unrestricted subsidies for corn harvesters. The bold attempt in these places has already led the GSP to the front and behind the scenes, with the “first crab”, the scope of implementation of the GSP will expand next year.

Needless to say, the era of GSP for agricultural machinery subsidies is approaching, but the time will depend on the country's wishes, the market's urgent need, and the determination and courage of local governments in promoting agricultural modernization. But no matter what, the GSP system will eventually be the advanced stage of China's agricultural machinery subsidy policy, and it is also the ultimate destination.

Under the GSP model, the “visible hand” will gradually reduce the impact on supply and demand, policies will gradually give way to market demand, direct dialogue between supply and demand, and agricultural machinery terminal circulation will be reactivated. Circulation companies will change their focus on government project resources from a “one mind” to explore the needs of users. The return of market awareness will also undergo a period of “painful” transformation, because the agricultural machinery sector is relatively easy to “balance” relative to the complex and ever-changing market. In the process of transition, the market foundation is better, the network is built, and users With a solid foundation, circulation companies with strong end-to-end interception capabilities will be rejuvenated. However, the “relationship marketing” circulation enterprises that are originally speculative in nature and do not have channel distribution capabilities will be eliminated.

This year's market has seen clues. After Hunan and other places started purchasing full-price products and direct subsidies, users no longer listened to the "guidance" of the agricultural machinery promotion department and began to purchase agricultural machinery and tools according to their own wishes. The brand has a high reputation and a well-recognized agricultural machinery. Product sales increase, while users are also willing to complete the product range, good service stores to buy, in turn, well-known brand companies are also considering how to better the strength of the market-based distribution companies with good cooperation.

II. Opportunities brought by the post-market era It is estimated that by 2015, there will be more than 5.5 million domestic large and medium-sized wheel trailers, more than 2 million combine harvesters, 1 million high-speed rice transplanters, and 500,000 large-scale domestic and imported multi-purpose work tools. Taiwan sets, other economic crops, specialty crop equipment products will also increase the number of possession, as these products enter the overhaul period after the end of the Three Guarantees period, agricultural machinery products will inevitably come after the era of the market.

According to foreign experience, the proportion of profit before and after the market for automobiles, construction machinery, agricultural machinery and other equipment is 3:7 or 4:6. In mature agricultural machinery markets abroad, manufacturers and distribution companies earn the first pen from the first sales of products. In addition to profit, after the sale, the remaining 6 to 70% will be earned through the provision of financial services, training, maintenance and repairs, accessories sales, decoration, beauty, remanufacturing, recirculation, recycling and dismantling of used cars. The profit, so from the perspective of market profit before and after the agricultural machinery is entirely a "gold mine."

When supply falls short of supply, companies are most concerned about sales of new products. Through the sale of new products, considerable gains can be obtained. With the increase in the number of farm machinery, the market's demand for new products will be reduced, and the company's revenue from new products will be reduced. With the increase in the number of possessions, the demand for various services during the service period will increase rapidly. At this time, the agricultural machinery market will shift from the former market to the latter.

In fact, the domestic market after the agricultural machinery business has already begun to appear. As the subsidy funds increase year by year, the sales volume of agricultural machinery products has grown too fast, and the agricultural machinery service capacity is far behind the growth rate of sales volume. The contradiction between service shortages has begun to emerge. According to the social division of labor, the agricultural machinery circulation enterprises bear most of the service functions, so the advent of the post-market era will create a rare business opportunity for the agricultural machinery circulation enterprises, and the profit implied by this business opportunity will be 2 to 3 that simply sells new products. Times, according to experts, at present, China's agricultural machinery market system is still in its infancy. It does not have a certain brand and scale, and faces the opportunity of “who seizes the opportunity to dig the first barrel of gold”.

Third, the opportunity brought by the re-circulation of used equipment In the mature agricultural machinery industry, the new product market and the used equipment market should be co-exist, and support each other and promote each other. The sales of new products provided the material basis for the used equipment market, and the used equipment circulation market solved the worries for users. If the used agricultural machinery circulation market is sound and the circulation is barrier-free, it will promote the sales of new machinery, otherwise it will form a "thrombus" in the circulation, prevent the circulation of new products and affect the normal development of the enterprise.

According to the author's observation of the mature agricultural machinery market abroad, there are almost all secondary agricultural machinery showrooms or trading centers for the supermarkets with strong overseas agricultural machinery dealers and dealers.

At present, the circulation of used agricultural machinery and equipment in China is far from forming a market and there is no mature mode of operation. The market is still in its infancy. From the point of view of manufacturing companies, companies only pay attention to the sales of new products, and few people consider the issue of secondary product recycling, remanufacturing, and recirculation. Therefore, the use of used equipment is not considered in marketing strategies and process design. The main energy of distribution companies is still Putting on the communication with the national agricultural machinery promotion department, winning more indicators and recovering project funds in time is the most concern for them. At present, it is not worth considering the second-hand equipment circulation business.

In fact, the development of second-hand agricultural machinery circulation is conducive to the construction of an environment-friendly, conservation-oriented society, the development of circular economy and the promotion of the rational and effective use of social resources. What is more important is that the circulation of second-hand agricultural machinery can bring additional benefits to circulation enterprises.

After 50 years of development, especially after the state implemented a subsidy policy for agricultural machinery in 2004, the social possession of agricultural machinery such as tractors, combine harvesters, and high-speed rice transplanters increased rapidly, providing a material basis for the remanufacturing of agricultural machinery. Harvesting machines and other large-scale, high value-added agricultural machinery and equipment to maintain a rapid increase in the number of these machines into the replacement phase out, the second-hand business opportunities for agricultural machinery will gradually emerge.

In addition, the promotion of agricultural machinery product remanufacturing projects promoted by the state and the agricultural machinery replacement businesses that have been successively launched throughout the country will also provide a rich source of equipment for the used farm machinery market. With a steady source of equipment, the physical market for second-hand agricultural machinery circulation will soon form. scale.

For agricultural machinery circulation enterprises, they can obtain secondary benefits from the recycling, sales, service, and financial guarantees of second-hand agricultural machinery, and the most important thing is that if agricultural machinery circulation enterprises have perfect secondary agricultural machinery sales business, they can enrich the company’s The second is to establish a responsible image in the eyes of users and facilitate the sales of products.

4. Opportunities brought by the industrial transfer of multinational companies The domestic agricultural machinery industry already has the characteristics of “domestic competition internationalization and international competition domestication”. At present, internationally renowned agricultural machinery manufacturers have almost fully entered the domestic agricultural machinery market, but the output value of domestic The scale of operations is still very small, so the current Chinese market is only a bridgehead for the development of foreign brands, not its core market, equivalent to the assembly shop of multinational companies, and from a product point of view, multinational companies take “discrimination against the domestic market”. "The policy, its latest products and advanced technologies have not been introduced into China. The technologies they use in China and the products they promote are often at the end of the last century."

With the in-depth development of global economic integration, the strengthening of China’s economic strength, the upgrading of the domestic demand structure for agricultural machinery, and the adaptation to the demand environment in China’s market, multinational companies will surely develop R&D centers, supporting industrial chains, marketing centers, financial centers, and services. The central and other links will be transferred to the domestic market. By then, the Chinese market will truly become a business operation center for multinational corporations, and the Chinese market will also become the core market for multinational corporations.

After a multinational company transfers its main business to China, it will inevitably choose the most powerful agent or distributor in China to assume the circulation of its products. Compared with its own brands, foreign brands have reliable quality, strong brand appeal, and profits. Appreciably, it is very attractive to domestic circulation enterprises. Who can win the national agency qualification of these brands will mean relatively easy marketing and high profit returns. Therefore, the transfer of foreign brands will be the domestic circulation. Enterprises provide opportunities for take-off, but the vision of foreign brands must not be low. Only the top-notch distribution companies in the country have the opportunity to cooperate with them. “It is necessary to fight for iron itself,” in order to eat foreign brands to represent the “copper peas”. Have a good mouth.

V. Opportunities for large customer marketing era In 2011, the domestic land transfer rate reached 16%. It is expected that by the end of the “Twelfth Five-year Plan”, the domestic land transfer rate will reach 30-40%. Under the current strong push from the government, the land is Amazing speed quickly transferred to a few people. According to reports, agricultural cooperatives with an area of ​​60,000 mu have already been established in some places, and there are numerous cooperatives with a total area of ​​1,000 mu. These agricultural cooperatives, together with the agricultural cooperatives that provide farm operation services, have initially possessed the basic characteristics of large clients. These large customers have similarities with the domestic demand characteristics of the farming system, the Corps, and the farm.

Compared with individual users, large customers belong to professional users, with bulk procurement, a large number of extensive, professional purchase, strong bargaining power, personalized needs, custom product features.

As the power of large customers grows, the supply and demand forces of the agricultural machinery market will undergo radical changes in the future. Agricultural cooperatives, agricultural cooperatives, and large grain producers will gradually grow into major forces in the agricultural machinery market along with large customers such as farms, soldiers, and farming systems. . The circulation enterprises will shift from the former “mass marketing” model to the “big customer marketing” model. Faced with this development trend, distribution companies may completely change the existing sales model and channel distribution model, and adopt expert-style tracking services. The characteristics of the needs of these users, closely follow the development of their needs, according to the needs of large customers to provide order-based products and services.

VI. Opportunities Brought by Manufacturing Integration As the agricultural machinery market grows from the acceleration of “shortage times” to the “equilibrium growth of supply” or growth stagnation, and the attractiveness of the market is reduced, new enterprises will no longer choose to enter the market. The 8,000 manufacturing companies will become "unacceptable" for the industry, and the integration of resources between manufacturing industries will come early.

In the process of industry consolidation, due to severe oversupply, there will be several or dozens of manufacturing companies “chasing” strong circulation companies.

With more right to speak, circulation companies' bargaining power will increase, which means that the scale of industry profits will be tilted toward circulation enterprises. After the arrival of the circulation-dominated era, the spring of development of the circulation industry will not be far off.

The leading age of circulation means that demand dominates the development direction of the industry, and the inflection point of industrial upgrading and structural adjustment of the domestic agricultural machinery industry will also come. In the demand-led market, manufacturing companies will rely on the demand information of circulation companies to feedback from the market for R&D and production. ready. Market orientation will reduce business blindness, reduce waste of resources, and increase operating efficiency.

VII. Opportunities Brought by Circulation Industry Integration With the advent of circulation-led era, domestic circulation resources will be transformed from regional monopolies and fragmentation into market conglomerates and resource aggregation. Chain stores led by circulation companies, 4S stores, agricultural supermarkets, and brand-oriented stores, specialty stores, and experience stores will become the main channels for circulation.

Integrated manufacturing enterprises and distribution companies with strong distribution capabilities will form strategic alliances and jointly initiate the integration of distribution channel resources. This will provide resource consolidation opportunities for those companies with a solid user base and network construction. Sexual, speculative and weak service forces will be eliminated. After increasing the concentration of resources in the circulation industry, the national agricultural circulation enterprises will emerge, and the industry structure of “small, scattered, chaotic, weak, and lacking” will be improved, the circulation industry will enter the track of sound development, and the circulation industry will develop healthily. In turn, it will also promote the orderly development of the manufacturing industry.

VIII. Opportunities brought by new forms of business From the history of the development of the circulation industry, we have successively passed the exchange of goods, natural markets, shops, department stores, large shopping malls, and supermarkets. Regardless of how these circulation modes change, the fundamental reason why the new format replaces the old model is that the new format can make it easier for users to shop, save users' time, and allow users to enjoy better services.

The circulation of agricultural machinery is the same. Under the planned economy, the state-run promotion station was the only sales channel. Later, with the disintegration of the planned economy, the market began to open and invigorate. When the market size is small, the husband and wife shop has become the main force of circulation of agricultural machinery, but In recent years, with the rapid growth in sales, some emerging industries have introduced agricultural machinery circulation, and have shown rapid growth, such as agricultural machinery chain stores, franchised stores, brand stores, hypermarkets, and agricultural supermarkets. These new formats are not good or bad, as long as they can meet the shopping needs of users, can provide users with cheap products, reduce the cost of user choice, provide quality services, there will be reasons for its reasonable existence.

Agricultural machinery distribution companies need to adapt to new circulation patterns and try to expand their business through new business models. Second, they must keep up with the times, grasp the changes in market demand and consumer trends to innovate the circulation model, and seek for better business conditions to attract More users come to spend.

Nine, the opportunities brought by online sales The rapid development of e-commerce has created opportunities for the circulation enterprises in various industries, and the same has caused a huge impact on the traditional business models that enterprises are familiar with. In the circulation field, the traffic volume of traditional department stores, large-scale shopping malls, hypermarkets, and large-scale supermarkets has increased in recent years, but the effective trading volume has been declining. The main reason is that users use these traditional stores as experience stores. Real transactions are conducted online.

At present, China has formed a number of professional e-commerce websites for online sales. With digital products for buyers, netizens will choose Jingdong Mall to guarantee authentic and lowest prices. Buying sports goods on Xijie.com guarantees that they cannot buy fake products. The original book Dangdang.com bought daily items on Taobao Mall. It was worthwhile to write a book. Last year, Taobao launched a private small plane online shopping business.

The ease of online sales, ease of communication, and low transaction costs determine that it will eventually replace most of the traditional sales models.

It is believed that the era of network sales of agricultural machinery products will also come earlier. Compared with automobiles and construction machinery products, the users of agricultural machinery products are more dispersed and the prices of agricultural machinery products are lower, so they are more suitable for online sales.

The rapid development of rural informatization is very fast. Many networks of urban and rural areas have become popular. Many young people in rural areas are accustomed to online shopping. Therefore, in order to cater to the consumption habits of the younger generation, online sales of agricultural products should be urgently considered by circulation companies. problem.

For the network sales of agricultural machinery products, experts in the industry suggest that the sale of agricultural machinery parts and small agricultural machinery and equipment be conducted on the Internet first, and the user's shopping habits should be cultivated in the early stage. After the majority of people can accept the online purchase of agricultural machinery, large-scale agricultural machinery equipment or a complete set The sale of agricultural machinery products on the Internet is a wise move in the early stages of the development of agricultural products.

The author believes that the network sales of agricultural machinery products should be planned early, prepared early, and made early layouts. It is possible to combine physical stores with virtual online stores. The physical store may allow users to experience it for free, and virtual shops can promote product promotion for physical stores. Promotional promotion can also achieve true network sales.

At present, large home appliances, especially refrigerators, color TVs, and other home appliances have been able to realize real transactions on the Internet. It is believed that agricultural machinery products can also be traded on the Internet. The agricultural machinery industry does not need to wait for automobiles, construction machinery and other products to achieve online sales. Imitation and follow-up, by that time, for many circulation companies, chances may have long been missed.

X. Opportunities Brought by Information Management Technology In the information society, the impact of information on people's lives and work is ubiquitous. For agricultural machinery distribution companies, if they can make good use of CRM, information management systems, customer management systems, sales and service management systems and other management software and information systems, can improve the management level, improve user satisfaction, and be proficient in the application of these technologies Can form the core competitiveness of enterprises, create opportunities for the development of enterprises.

Speaking of this, from the author's observation, compared with other industries, the degree of informatization of the agricultural machinery industry is the lowest, and the level of informatization of agricultural machinery manufacturing enterprises lags far behind that of automobiles, machine tools, construction machinery, household appliances and other industries, and agricultural machinery distribution enterprises It is still far behind the agricultural machinery manufacturing enterprises.

Compared with the circulation enterprises, the agricultural machinery manufacturing enterprises have a more reasonable structure of talents, higher levels of employees' culture, and some companies have specialized information promotion departments. The circulation enterprises from manager to employees have a low level of general education, or are older. Therefore, it is difficult to implement information management. From the management level, most circulation companies are still in the original management stage.

For example, many circulation companies still use manual books, computers are rarely used, there is no user's file, there is no record of after-sales service, user satisfaction cannot be counted, and the product odds, service frequency, etc. cannot be systematically provided.

The backwardness of information management has made it impossible for circulation companies to keep up with the pace of development of manufacturing companies, which in turn has affected the development of manufacturing companies. Therefore, some small-scale circulation enterprises have been eliminated from the distribution list by manufacturing companies.

Therefore, distribution companies should introduce talents for information management, introduce advanced information management technologies, and upgrade management to seize market opportunities in the era of circulation.

The prospects are bright and opportunities are omnipresent. As the agricultural machinery circulation industry in the Chaoyang industry, the future will become the engine for the agricultural machinery industry to take off. Therefore, distribution companies should closely follow the pulse of the development of the national agricultural machinery industry and take a forward-looking vision to grasp the development of the circulation industry. Opportunity, strive to become the industry leader.