Amongst worldwide“top players”on the stage of BAUMA, XCMG holds the “speaker”. On April 11, the largest engineering machinery exhibition - Germany Munich BAUMA unveils magnificently. XCMG strikes a pose on the stage with 9 new products, and hundreds and thousands of visitors from all over the world witness the glorious exhibition of XCMG. It is the eighth attendance of XCMG in BAUMA exhibition as the leading enterprise representing China’s engineering machinery industry, since its first debut in 1992.
At Munich local time 10:45 AM, Qi Jun, the President of China Construction Machinery Association, Yu Dongke, the Head of Engineering Agriculture Machinery Branch of China Import & Export Chamber of Commerce of Mechanical and Electrical Products, Collin Davis, the Head of Munich International Fair Group, Albert Cervero, the Vice President of US Equipment Manufacturers Association, David Stowe, the global sales directors of UK KHL Group, Li Suoyun, the General Manager of XCMG, Sun Jianzhong, the Vice President of XCMG and the President of the XCMG Import & Export, and Liu Jiansen, Assistant President of XCMG and the General Manager of the XCMG Import & Export, jointly presses the button of the opening ceremony, and officially launches the XCMG’s all-terrain crane XCA100-E, heave-duty loader LW1100K and tailless hydraulic excavator XE35U initially and globally, and displays new products introduction videos on the site, helping clients more clearly understand performance advantages of the products and R & D capacities.
After the opening ceremony, XE35U tailless hydraulic excavator performs“threading a needle” and “ink drawing and splashing” on the site, and plays “Ping-Pong” with site personnel in high spirit, attracting large quantities of clients. Besides, RT55E off-the-road tyres crane, LW800K and LW180K loaders, XR220DII rotary drilling rig, XE210C excavator, SQZ200K lorry-mounted crane, which are specifically designed for high-end markets in Europe and US, also draws high attraction with their brand new styles, superior performance and quality. On the site of the launch event, XCMG and Sinopec jointly enter into a strategic cooperation agreement for exploiting the international market. German local mainstream medias, Rhine-Main TV, Savo TV, Dusseldorf TV, CCTV, People’s Daily Germany Station, Xinhua News Agency Germany Branch, etc., and 8 industrial medias witness the historical moment on the site.
Relying on strong brand influence and sophisticated manufacturing capacity in the global engineering machinery market, on the morning of April 11, the exhibition stall of XCMG comes out another report of a success: a Thai client signs a purchase order of RT55E off-the-road tyres crane and XCA100_E all-terrain crane on the site, and the ordered machinery are granted in the delivery ceremony held on the site. More inspiringly, on the evening of the same day, XCMG signs batch export orders on the site with clients from Belgium, Poland and Ireland, which demonstrates high attention and wide recognition of clients that XCMG has attained in the global market, in particular, the European market.
On the evening of April 12, the fourth convention of XCMG Overseas Market Strategic Consultation Commission is convened. In the convention, the Vice President of XCMG and President of the XCMG Import & Export, Mr.Sun Jianzhong address an oration; the President Assistance of XCMG and General Manager of the XCMG Import & Export, Mr.Liu Jiansen introduce the overseas market marking strategies and measures of XCMG to attended consulting members in 2016. Following the above, it is the Top Ten overseas dealers awarding and prize presentation for 2015. In the convention, XCMG specialized oil products are also introduced. Besides, XCMG also releases the whole new enterprise culture philosophy to overseas dealers and consulting members, which enhances deepening awareness and convergence with overseas dealers on cultural level.
From “shabbiness” to “holding the speaker”, XCMG wins the world with quality
“We are the first enterprise in China to attend an international engineering machinery exhibition. At that time in 1992, there was no exhibition booth, but a 5 m2 small single room. There wasn’t any physical exhibition either, we had to hang pictures on walls and place several tables, which was a shabby debut”, says Zhang Jingming, one of the early attending members of XCMG in Germany BAUMA and the European Division Director of XCMG’s Import & Export Company, describing the first exhibition experience.
However, the first exhibition denotes unprecedented historical meanings: it is the first time that a Chinese engineering machinery enterprise to “go abroad”, the five-star flag has risen in the Munich BAUMA Fair for the first time, inaugurating the precedent “going global” of the industry.
In 1993, XCMG attended for the first time another and one of the three major fairs in the world - the Las Vegas Fair, representing the first engineering machinery enterprise in China for a second time.
In 1995, XCMG attended the 27th Germany BAUMA, with a 20 m2 exhibition booth;
When in 1998 for the same exhibition, the exhibition booth area became 60 m2; in 2001, 80 m2; 2004, 120m2; 2013, 1,080m2, with a step increase of XCMG’s exhibition booth area and expanding product series!
Now, XCMG attends Germany Munich Fair for the eighth time, in particular, all equipment attending the fair pass CE certification, conforming to Euro III and Euro IV standards, of which many are specially designed and developed for the European market and debut globally. “The 100-ton all-terrain crane displayed in the Fair has been certified by the most rigorous road vehicle regulations in the world, which is unique in domestic China; and the light-weighting and the performance weight ratio of the our finished all cranes are leading in the world, 5% to 10% higher than the Liebher’s.” says Shan Zenghai, the Deputy General Manager of XCMG Crane Business Division, being proud of the XCA100_E all-terrain crane displayed in the exhibition.
From simple assembly, to manufacturing, then to research & development, it’s a qualitative change. From simple marketing orientation in the past, to active adaptability improvement according to market demand now, the “customer orientation” of XCMG has attained higher competitiveness! “Our 35U tailless minor excavator can operate in narrow spaces, wherever machine is accessible. Currently, clients in North America market supplement thumb pliers to excavators in order to grasp circular pipes and wooden sticks, for which we made improvement after surveying. And the clients in North America immediately accept our products. Recently, we just signed a batch excavators cooperation agreement with the fourth Leasing Company in US！”, says complementally Zhang Hong, the Deputy General Manager of XCMG Excavating Machinery Division.
The Assistant President of XCMG Construction Machinery Inc. and General Manager of the XCMG Import & Export, Liu Jianseng introduce:“Before, clients not only looked down upon products made in China, but also the manufacturers, and even the dealers of Chinese products distributed, they despised them - they thought we were incapable. However, after 20 years’ efforts, XCMG proves to the world with capability: Made in China can compete with first-tier brands such as Caterpillar on the same stage. Now, many of our European clients tell me: your products are excellent, I want one more. They are almost equivalent to those made by Komatsu and Volvo, they are even more efficient!”
A Turkish dealer tells us:“With mere sixteen years of cooperation with XCMG and distribution of your products, we’ve gained success and respect.” “While we were attending the BAUMA Fair for the first time, visitors were surprised of us, goggling at our ‘shabbiness’, like we were cavemen in a modern world! But now, foreign peers feel nervous when coming up to view our exhibition. From looking up to the giant, to competing face to face, our confidence not only exists in the face, but also in products! It indicates that XCMG’s products have made broad channels in the high-end market in Europe.” says Liu Jiansen, the General Manager with deep feelings.
Relying on “localization”, orientated to the globe, XCMG sails the ship of “made in China”
Due to diversified climate environment, geographical features and economic social forms between countries, the difference is huge, thus the strategy of “localization” is more and more becoming a significant factor in the internalization strategy of engineering machinery enterprises.
In the progress of expanding overseas markets, XCMG pays highly attention to establishing localized R & D capacities. Following persistent “going global”, we have to “go local” and “go upwards”. In this regards, the President Wang Min emphasized many times: “Localization of R & D is necessary to XCMB that means R & D is leveraged on clients.” Therefore, XCMG has established R & D Centers in US, Europe, Brazil, etc., relying technical resources of the R & D Institute of XCMG and various major divisions, so as to deal with fundamental research, application research, testing and experiment research in overseas local, so that more adaptable products realized to local operating conditions can be researched and developed.
In September 2007, XCMG made the first attempt in Poland for overseas layout and industrialization. Over one year of construction, XCMG Poland Assembly Plant was put into production in March 2009, which realized great marketing radiation to surrounding countries. Now, XCMG Poland Company has become an internationalized company true to its name.
In the following year, XCMG expedited steps of “localization” in Europe. Firstly, it wholly acquired Holland AMAC Company, then wholly acquired German FT Company of, set out the first step of global resources integration. In 2012, associating with German established magnate - Sewing, it set up a joint venture holding company, fully controlling Sewing, which significantly facilitated the overall internalization process of XCMG. In 2013, it invested to set up XCMG Europe GmbH. Almost simultaneously, it established XCMG Europe Co., Ltd. and XCMG Europe Procurement Center. Besides, XCMG realized powerful strategic coordination of R & D and operation in European markets, and true integration of R & D, procurement and marketing in Europe.
In June 2014, the first batch of products was released from the production line in Brazil Manufacturing Base, signaling the official project completion of the first overseas greenbelt plant of XCMG. From blanking and forming of parts to welding, machining, painting of structural elements and to assembly and testing of finished product, the whole set of production were realized independently in Brazil. It is the the best example of the “localization” integration of XCMG. The Vice President of XCMG, Wang Yancong says: “to invest in plant establishment in Brazil, XCMG not only input capital and equipment, but also brought along internationalized talents, culture and management experience that lead XCMG to success. The merging with local government and people and local dealers and end users will bear win-win results for people both in Baoso and Xuzhou!” In 2005, in contrast to overall downturn of Brazilian market and constant declining of competitors’ sales, XCMG Brazil Company’s sales tendency is increased anti-trendily and achieves 8% of sales, and has become the most recognized Chinese equipment manufacturing enterprise in local Brazil.
“Serving the globe, building beautiful lives of humans” is a prolonged pursuing of XCMG. By now, XCMG has built five major overseas R & D Centers in Europe, North America, Russia, Brazil and India, and establishment of production bases in Germany, US, Brazil, India, Austria, Poland, etc., having 280 primary dealers overseas, covering 174 countries and regions, export value topping the domestic industry for successive years. The internationalization layout has becoming more and more perfect, with successive establishment of 8 overseas companies in Russia and Chile, etc., and 30 overseas offices in Angola and South Africa, etc., and 40 spare parts service centers in Algeria and India etc., achieving localization of marketing, service ant talents. Looking closely to “One Belt, One Road” strategic implementation conditions, XCMG plans the layout in advance and occupies market opportunities ahead of the others.
Taking advantage of “informatization”, enhancing “serviceability”, forging new images of the world-class brand
As from the first day of going global, XCMG understood that, the delivery is not limited in products, nor XCMG itself, but also the image of Made-in-China. In order to converge the “points” of each dealer, manufacturing plant and R & D Center located in different regions, XCMG expedited construction of local operation centers and informatization systems. Establishing comprehensive regional operation centers in UAE, Singapore, and many other countries integrated products exhibition, purchasing supply, training and warehouse logistics and others functions to provide comprehensive and high-quality service capacities.
In terms of convergence of“Internet+” and conventional construction machinery, XCMG constantly explores and innovates to continually improve deepened application of cross-border e-commerce, and cooperates with Alibaba International to establish XCMG Alibaba e-commerce platform, realizing“one-stop” marketing of finished products and parts online, which is the first application in domestic construction machinery industry, based on which a major breakthrough of cross-border e-commerce sales was achieved in 2015. Establishing overseas spare parts coordinated management platform, achieves interconnection and resources sharing between plants, XCMG Import & Export, overseas spare parts centers and spare parts warehouses; through global “400” and overseas regional service lines, so as to promote the networking and modernization of comprehensive service systems and high effectiveness and multi-channelization of spare parts marketing.
The philosophy of“focusing on sales volume, and more on life-cycle services” enables not only simple sales of finished new products, but also “a package of” sales of finished products, services, training, re-manufacturing, leasing, etc., construction processes and means, etc., and satisfies diversified customer demand through overseas financial lease, operating lease and used products exporting business. Meanwhile, fully taking advantage of packaged products, XCMG enhances communication and merging with construction enterprises in terms of construction processes and means, and continually optimizes packaged solutions for mines, oils, gases and infrastructure engineering projects with orientation to the market. “Our sales staffs never sell only products directly, but sell products in combination with advanced construction means; equipments are important and packaged engineering and services are more important. All must be in place, otherwise, even one link missing, we may lose a client. We are not only talking about after-sale service, but also pre-sales, medium-sales and after-sales.” says Zhang Zhonghai, the Deputy Manager of Xuzhou Xugong Foundation Company.
Therefore, XCMG surveys customers’ demand, enhances pre-sales service functionality of R & D, and formulates design solutions specific to customers’ individualized requirement responsively, so as to form individualized customization differentiation advantage. Strengthening service training along with overseas dealers so as to enable XCMG “branding” and “systemaltization” of XCMG’s overseas services; strengthening timeliness and accuracy of services through measures of “service global trip” and “global operator caring” so as to enable real experience of values marketing and services.
To contribute to China’s development, to build a beautiful world! In the future, adhering to the core values of “Undertaking major missions, Forwarding great paths, Building glorious business”, XCMG will persistently climb the peak of dreams, aiming to become the Top 3 enterprise in the industry in the next 5 years globally and an entrusted world-class enterprise with unique creativity of value.
