How far is the Chinese construction machinery company from the world brand?

The construction machinery industry in China has shown rapid and strong development momentum in the past ten years, especially in the past five to six years. At present, China's construction machinery enterprises have initially possessed strong R&D and manufacturing capabilities, and have strong economic strength and material basis. From the past, the introduction, digestion, and absorption of main products have been transformed into the current integrated innovation and independent innovation. , and began to move toward original innovation, is changing from "domestic demand type" to "international type", from "scale increase" to "core ability", from "product" to "brand", from "manufacturing power" to " Making a Powerful Country". The impressive performance of China's construction machinery industry has played out Guo Wei. Its important road to success for Chinese companies, especially equipment manufacturing, is that they must take the road of independent innovation.

Going out is the only way to become a world brand. "Sitting in China's office, we will never know the actual needs of American customers."

This is a statement made by Wang Min, Chairman of XCMG Group, at a news conference held in Beijing in the recent “Xugong Crane Value Enhancement Project”. He said that we have had profound lessons in this regard. In the late 1980s and early 1990s, Xu Gong placed more than 20 offices in the international market, sent more than 100 people and invested a lot of money. A few years later, the office couldn’t mix up, people couldn’t find it, and money couldn’t be collected. Later, we realized that to go out to adopt a localization strategy, to manage this market, it is necessary to combine with powerful local distributors and service providers. After that, we succeeded. During the “Eleventh Five-Year Plan” period, we invested 2.6 billion U.S. dollars, and Xugong and local agents formed a coalition to use their funds, their wisdom, and their influence to operate locally. In the past, our bad debts all appeared in the international market. Now that bad debts are not scored in the international market, this is a big improvement. We have already passed the path of failure. We have reached today, so the world is 100. Many dealers, agents, service providers are local. We only do one thing is management. This is the first step. The second step is to fully implement the localization strategy when working abroad. To cooperate with local investors and directly list on the local market, XCMG is no longer the A share price, where is the company's place on the market, so that the local People recognize that this enterprise is not only China but also the world.

Wang Min pointed out that to bring China's R&D into line with the world, the first is the idea that the advanced technology means is compatible with the concept of the user, and it should be close to the user to meet the individual needs of the user, the need for safety and reliability, So it's impossible to be close to the user and sit at home and design what the Americans need. The second is to go out. This is to go out, it is our personnel to go out, at the same time we have to establish R & D institutions overseas, we must also acquire high-level manufacturing companies abroad to do the platform and learn advanced technology. The last one is the way. A good way is a weapon for success. I think good ideas plus going out, plus some good ideas, will enable Chinese companies' research and development to be in line with the world.

Become a world brand domestic enterprises already have the strength Wang Min pointed out that in the past, the Chinese construction machinery industry surprised the world with its huge market; now, we are surprised that the world is no longer a scale, but our understanding of the industry. Especially in product and technology innovation and creativity.

Wang Min believes that China’s construction machinery companies as a whole are more competitive internationally than Chinese cars and cars. Because China's construction machinery companies go out of their own brand, their own technology. Since today, we have been able to enter the world’s top 50 companies. There are many Chinese companies, indicating that China’s construction machinery companies have made rapid progress since the reform and opening up, especially in recent years, and now go overseas, including our major overseas bids. Winning it also reflects the increased competitiveness of China's construction machinery companies.

Looking at China’s auto industry, this industry was initially supported and protected by national policies. After liberalization, most companies followed a joint venture or a joint venture and then proceeded to a sole proprietorship. The original idea was to "use the market for technology," but the result of this move was "no return of the market for income." Nowadays, China's auto market is dominated by foreign brands, and its own brand is very few, and it is in a non-mainstream low-grade position. This is a bitter pill swallowed by the Chinese auto industry.

Wang Min emphasized that compared with joint ventures, the construction machinery industry is more optimistic about cooperation with foreign countries, especially technical cooperation. Many companies carry out "high grafting and secondary innovation" on the basis of introducing foreign technology. Through establishing research and development branches and scientific and technological information networks in developed countries such as the United Kingdom, Germany, the United States, Japan, and South Korea, they have grasped the development trend of international technology and enhanced the forward-looking nature of secondary innovations by bringing in foreign peer experts to “come in”. Some companies employ foreign experts throughout the year to participate in research and development and product design. Some companies have begun to look more into the international market. They have started and already set up R&D institutions, production bases and sales networks abroad.

There is still a lot of homework to do to become a world brand. Wang Min said that although XCMG has entered the top seven of the world's engineering machinery, we are in front of Caterpillar and other companies, both in terms of the size and strength of the company and the influence of the brand. There is a big gap in many aspects such as force and R&D capability, especially in terms of durability, reliability, and product performance. Even if we can enter the top three in the next five years, I think we must learn from them in many aspects and we must strive to catch up and create.

China’s construction machinery companies are all excellent. Xu’s work is at the top of the list. In the future international market, talents, capital, R&D, and markets must make full use of the international market as a channel for future success. Depending on the layout of the international market, Xugong still has a long way to go. Therefore, in the international construction machinery industry, we must have the confidence and determination to be self-reliant, and we must also have a calm and modest attitude. We must also have pragmatic and solid work styles. Only in this way can we really be technically and product-oriented. All have become international customers recognized international brands.

Among the top 100 brands in the world, there is not a single Chinese brand. I think the most important reason for this is the lack of understanding of users. Among the brands that create their own brands, enterprises are still eager for quick success and gain, and there is still a gap in cultural philosophy. Chinese enterprises have developed rapidly, but we must look back and look at our many basic things that haven't kept up. This requires a great deal of effort. At the same time, it also shows that it is really a long road to make an international brand recognized by global users. Therefore, even if the scale goes up and ranks up in the future, whether it can stand forever or not is still a question worth considering.