Are you the coyote of the farm machinery industry? Analysis of Agricultural Machinery Industry at Home and Abroad

Guide reading

In the highly competitive field of China's agricultural machinery industry, there are thousands of agricultural machinery enterprises, large and small, with different systems. Have you ever thought about the types of these enterprises? What kind of business do you belong to? What are the advantages and disadvantages of different types of agricultural machinery enterprises? What is the trend of development? Please take a look at the article brought by teacher Liu Qi, an expert in strategic research in the agricultural machinery industry.

Wen Wen | Liu Qi

Photography | Fu Rao

Fukuda Leivo heavy Industries, a local company, spent a lot of money on Apos, a veteran Italian agricultural machinery company, in 2015, shortly after it acquired Matmark, another Italian manufacturer of agricultural machinery. This reminds me of an article published in 2002 in IT Manager World magazine, "the Evolution of hyenas to Lions."

Precision seeder of Fukuda Leiwo heavy Industry

In this article, the author divides manufacturing enterprises into three types. Lion-Western enterprises are characterized by the comprehensive advantages of technology, products, capital and management, and have a sense of superiority of giants. Leopard, a Sino-foreign joint venture, also has comprehensive advantages in technology, products, capital and management, as well as preferential treatment in policy and familiarity with the local market. Hyenas, local enterprises, lack core technology, poor products, basically zero management, scarce policy resources, and may even be discriminated against, but they are extremely aggressive in the market. and is using "survival of the fittest" unconventional tactics to pose a powerful threat to lions and leopards.

At present, in the agricultural machinery industry in China and even around the world, there is a comprehensive competition among lions, leopards and hyenas, which are in different links of the food chain. The performance in the Chinese market is particularly outstanding, and the current competition situation can be summed up in a sentence: "Lions are routed, leopards are confused and helpless, and hyenas are pressing step by step."

The Lion is losing ground.

In the field of agricultural machinery manufacturing, the Chinese market has long shown the characteristics of "internationalization of international competition and internationalization of domestic competition". All the foreign-funded enterprises that have entered the world 500 and the top 15 agricultural machinery in the world have already entered the Chinese market. John Deere, case New Holland and other enterprises began to expand in the Chinese market even before the founding of New China. These enterprises are the "lions" referred to in the article "the evolution from hyenas to lions". In the face of this huge cake of China, these "lions" of noble blood come with knives and forks in hand and smell incense.

Indeed, in the past few years, with the comprehensive advantages of technology, products, capital and management, the "lions" occupied the most profitable high-end market in the Chinese market and made a lot of money.

However, it is difficult for the well-fed to hear the footsteps of the hungry. The good days of the "lions" have become fond memories of the past, and successive rout and persistent losses have become a common disease of the "lions" in the Chinese market.

For example, a multinational giant, the former leader of the tractor and harvester industry in China, has been completely replaced by Chinese companies in its most profitable wheat and corn harvester business in 2014, and the middle wheel towing market has been eaten by local hyenas. Now only large and medium drag business is barely operating, while another American multinational company lost 20 million in 2014 ten years after entering China, and its business performance is deteriorating.

On the whole, with the exception of Japan's Kubota and Yangma, most of the other multinational companies' operations in the Chinese market are not very satisfactory, their performance continues to decline, and their benefits decline year after year. Compared with the performance of the "leopard", the decline of the "lion" seems to be expected.

John Deere booth of China International Agricultural Machinery Exhibition 2015

The leopard is confused and helpless.

Trading market for technology is a common practice in China's equipment manufacturing industry, and Sino-foreign joint ventures are the main mode of cooperation, which is most obvious in the automobile industry. But in fact, the market for technology is only a beautiful imagination of the Chinese people, the end result is that there is no exchange for technology, on the contrary, the market has completely fallen.

This is also the case in China's agricultural machinery industry. Most of the enterprises that undertake the task of "market for technology" are the old domestic agricultural machinery industry, such as Tiantuo, Jiamusi combine harvester factory, Ningbo Benye, Huanghai Golden Horse and so on.

Heavenly tractor

With the rapid development of agricultural machinery industry in the past 10 years, the competition in agricultural machinery industry is becoming more and more fierce, but these mixed-race "leopards" have generally fallen into the trap of joint ventures and their development has fallen into the prisoner's dilemma. For example, Huanghai Golden Horse, once the leader of the tugboat industry, exported more than 40,000 sets a year in its heyday, accounting for more than 50% of the total export volume of domestic enterprises, but now it is no longer brilliant. According to internal sources, the joint venture Mahengda Golden Horse sold only 20,000 units in 2015, and it is a pity to drag the boss, which China Yituo and Leiwo heavy Industries once chased, into the current business situation. What is completely different from these confused "leopards" is the pressing "hyenas" step by step.

"the hyenas are getting closer and closer."

When the "lions" are completely routed and the "leopards" are collectively confused, those native-born "hyenas" are a completely different scene.

Observing the competition pattern of each subdivision of the agricultural machinery industry can tell everything. Tractor industry, the top four are China Yituo, Futian Leiwo heavy Industry, Changzhou Dongfeng, Zoomlion heavy Science, all are all independent brands.

The top three wheat harvesters are Futian Leiwo heavy Industry, Zoomlion and Shandong Ninglian, respectively. Lions and leopards have been hard to find in the top ten.

The top five rice harvesters are Jiangsu Ward, Kubota, Fukuda Leiwo heavy Industry, Zoomlion heavy Science and Huzhou Xingguang Agricultural Machinery. In this segment, Kubota was replaced by Jiangsu Ward this year after reaching the top in 2013. Industry rookie-Zoomlion is waiting, and Fukuda Leiwo heavy Industry will never be inferior, so Kubota is facing the disadvantageous situation of the former wolf and the second tiger.

In the field of corn harvester, it is almost difficult to find lions and leopards. John Deere ended gloomily after a short period of brilliance, while Kubota corn harvester has more mature products, but it does not have much advantage in the competition with wolves. So far, it has not opened the situation.

And the national enterprises in this field, such as brave machinery, which were born and raised, have taken a "bullet train" with rapid development in the past two years, with sales reaching 5000 units in 2015. It has to be said that "coyote" enterprises such as brave machinery are quietly thriving.

Yong Meng machinery workshop

From the above analysis, we can see that in China's domestic agricultural machinery market, independent brands gradually occupy an absolute advantage in large categories of products, such as tractors, wheat harvesters, rice harvesters, corn harvesters, and so on. in other words, the mountain is firmly in the hands of "hyenas", while multinational companies can basically be routed across the board.

In the Chinese market, before 2015, the agricultural machinery industry is basically a net capital inflow, which is the process of multinational corporations importing capital to China in one direction. Multinational companies may set up wholly-owned companies or joint ventures with domestic companies, but since 2015, when Fukuda Leivo heavy Industries acquired Matmark and Apos, "hyenas" began to stage a counterattack. People of insight in the industry believe that Fukuda Lewo's acquisition of Italian agricultural machinery enterprises marks the arrival of the first year of the internationalization of Chinese agricultural machinery, while the author believes that this is a counterattack of "losers" and the beginning of the evolution from "hyenas" to "lions". From then on, Pandora's box, the capital of global M & An of Chinese agricultural machinery, will be opened. In the future, in Europe and the United States, Japan, South Korea and other developed countries, we will see more and more phantom of Chinese corporate capital.

The reason behind: strong market and strong enterprising spirit

So, how did the once poor and short "hyenas" counterattack the rich and handsome "lion" and the white and beautiful "leopard"?

The first is the large-scale and demand-rich domestic market. Great markets give birth to great companies. from the process of family wealth of multinational corporations, no company has grown up in other countries without their own home market. China's huge and multi-tiered market provides a suitable soil for a variety of companies to survive, and those companies that are good at drawing nutrients from the domestic market and are good at using policy resources are growing rapidly.

On the contrary, the "lion" and "leopard" are just the opposite. it is very difficult for these multinational corporations and joint ventures with a strong sense of superiority to grasp China's complex and ever-changing market. Foreign pure market-oriented business models and products are often unable to adapt to the agricultural machinery market with Chinese characteristics.

Disobedience between soil and water is the biggest problem faced by "lions" in China. China is the market most profoundly affected by the planned economy, and it is also the most complex market in the world. In this market, the "hyenas" jump up and down, move around, push the boat along the river, or go against the wind. In short, the "hyenas" have nothing and no scruples, so they may have a chance to survive in a back-to-back battle.

It is this strong sense of hunger and enterprising spirit that makes these "hyenas" enterprises survive, grow and grow.

Roll, hyenas.

At this point, the author thinks of a sentence in Yuan Shikai's 12-year-old poem: Ono long Fang stings, Central Plains deer is fat!

At dawn, standing on the land of the ancient capital of Shu, the author looked at the morning light rising out of the window and clearly heard the sound of the dragon turning over and shaking.

China's agricultural machinery this giant dragon has awakened, the local market has been difficult to meet its appetite, the dragon took off in a day, soaring to 90,000 miles.

In the future, the global agricultural machinery market will be dominated by Chinese dragons, and the world will tremble in front of Chinese dragons!

Roll, hyenas!