Look by the China Construction Machinery Equipment Manufacturing how to enter the Latin American market

Over the past few years, many of China's equipment manufacturing enterprises began to enter the Latin American market, seeking to docking with the local market. In this paper, construction machinery enterprises as samples, observe Chinese equipment, "the Latin American mind." These enterprises to enter the Latin American market time has been late to seek a path docking vary, but are in a "pull capacity butt" vision has taken firm steps.

Latin America is an attractive market --34 countries, nearly 600 million people. Compared with Europe, there are huge infrastructure needs; and Africa than there is a huge resource and relatively more money; this is a difficult market - legal complexity, high tax, the language barrier, labor disputes high, trade protectionism serious.

To go or not? How to? Go significance? For a long time, these problems have been hovering in the equipment of many Chinese people aiming at Latin America's mind.

If you could not find the answer, it might be time ruler stretched in the longer dimension in consideration of: 100 years ago, the world's machinery industry's largest three countries are the United States, Germany and Britain. In 1913, the three countries share of global machinery industry output value reached 82.4%, of which the United States alone machinery industry output value accounted for half of the world; and 100 years later, China's share of global industrial production equipment 1/3, China's equipment manufacturing industry exports in 2014 amounted to 2.1 trillion yuan.

What this bleak autumn, a changed world. When the "Chinese equipment" to be a presence can not be ignored, "going out" has become a necessity, docking also arises - the domestic economy is to upgrade the quality and efficiency, there is great demand in foreign markets.

Sany: Service to achieve "slow disease such as hatred"

Road to Latin America began in 2007 Sany offices located in Brazil started earlier. At that time the Latin American crane market is dominated by US and Japanese companies; US companies Caterpillar in Brazil 60 years, Japanese companies Komatsu 40 years in Brazil, leaving very little space for Trinity market.

The first two years, the three one day is very difficult. Xiao Hua, director of the Foreign Trinity Brazilian companies, eight years ago, Xiao Hua running different clients every day to sell Trinity (SANY), customers ask, is Japan's Sony (SONY) it? An invoice book 50, with the two years left more than 10 sheets. He recalls those days, "when I first came no experience, more liberal threshold agent when the election results 10 agents have eight bad faith delinquent, delayed two to three years we probably."

Complicated tax and other laws and policies, trade unions broke out from time to time, negotiations inefficient, these are a problem every Latin American market of Chinese enterprises will encounter entered. "For example, the two sides discussed a contract, the views of the Palestinian side does not once mention the end, today a change of punctuation, word has also changed a few days in the country able to do two or three months, in Brazil for a 4-6 months . "Xiao Hua said.

After the change agents, negotiations with trade unions patience, studying a variety of legal and policy ...... 8 years, lifting equipment Trinity has occupied 40% market share in Brazil, one month out of the invoice Xiao Hua had more than 100. Looking back eight years, "thanks to the achievements of many aspects, such as high-quality, cost-effective products to meet customer demand, but the most noteworthy is efficient after sales service." Latin America region, general manager of Trinity Xu said.

In the pre-financing, for example, difficulties in financing equipment enterprises to enter every problem faced by the Brazilian inevitable. "Brazilians spending habits so unique, installments are very common, sold a piece of equipment in other countries, or is paid immediately, or no later than a year will pay, but in Brazil, frequently is 3--5 years it paid off. "

Installments requires financial support, but most of Brazil's domestic banks are not interested in financing the equipment, even providing financing, the annual interest rate is often 18% -20%. Although the Brazilian National Development Bank will provide an annual interest rate of only 6% -8% of the low-interest loans, but in order to protect domestic industries, this low-interest loans are offered only to realize the localization of products in Brazil, such as Caterpillar, and the three Even after a set up factories in Brazil, but also in the local assembly, still fails to meet the requirements of the use of low-interest loans.

"We want to compete and Caterpillar, how do? Interest difference is so big, in order from Caterpillar to cut a piece of cake, you have the interest and the difference between our local businesses down." Xiao Hua said, Trinity To this end to take the discount quality customer service, "Profit let out at least 15% -20%."

Then service as an example, the sale of the equipment industry how important? The answer is that all the money every minute. "For such a large crane equipment, every day stoppage would mean a huge loss, but large equipment components are often expensive, users will not be ready in advance spare parts, if there are problems only help the manufacturer's service . "service early moment, the machine will resume production early moment, the loss is reduced by one point.

From 2007-2009, the Trinity was just the little brother, the hands of customers in the Brazilian machinery and equipment industry, but two or three. But for this very few customers, Trinity sent three service personnel from China, the city resident customers, tracking equipment operation, a problem at any time to follow up. "The ratio of staff and customers, and we compare them in other overseas markets, is quite a luxury."

Customer service is one such customer to do together. Trinity subverts the service standards of international engineering machinery industry, not only the establishment of a world-class call service system, GPS positioning system and remote diagnostics, but also created the "everything for the customer", "slow disease such as hatred," the idea, the doctor patient care care mechanism, similar to the automotive industry "6S shop" service model introduced in the industry. Trinity is now about 48 hours in the aftermarket response speed throughout Brazil, "belongs to a pretty quick."

June 8 this year, Mato Grosso and other three state governors held in the capital of Rondonia Porto Velho meeting and signed letters of intent to support initiatives to build "two-ocean railway" in. Xu said: "I hope thirty-one full line of products with high quality and value for money and good service, has become a strong competitor in the project."

In Chile, five years ago, a world famous rescue operations, one of the three devices and services into the center of media attention. In the rescue of 33 miners in action, one of three 400 tons a crawler crane was selected to participate in the Chilean government rescue, heavy rescue machinery to become the only site from China. In order to meet relief needs, three engineers from China a day and night guard at the scene, three charter flights a headquarters also sent a crane components may be required.

"Ten World Cup stadiums have 8 using a device built three", a Sao Paulo business for additional orders to buy more than 100 Trinity device, the Rio Olympic venue construction will occur the same data Trinity figure ...... display from the Trinity , excavators and other earthmoving market share rose to 6 percent from 3 percent, while the lifting equipment market share of around 40%.

"Latin America economies are highly complementary. Latin America is rich in natural resources, China has a mature industrial technology and improve independent economic system, manufacturing capacity has been increasing, and many countries in Latin America are not a complete industrial system, China can help them build their industrial system. "Sany President Xiang Wenbo.