One third of Weichai engine market will come from overseas to start the internationalization strategy
After a boat race, the winner comes first. Different from many enterprises' internationalization strategies that only outline the "roadmap" and "timetable" for innovation breakthroughs, Weichai clearly positions the overseas market as an important part of the "two-thirds" strategy. In 10 years international market share will account for a third of total revenue.
In order to achieve the above goals, Weichai has staged a long dance in the international capital market in recent years, and has successively brought France's Baudouin, the world's top luxury yacht manufacturer, Italy's Ferrati Group, and Germany's Kairau Group to a new height. This year, overseas revenue will account for a third of the group's total revenue." Zhang Jiansheng, head of Weichai International business, said in an interview with the economic guide recently.
Even in the most challenging engine market, Weichai's overseas share is expected to reach one-third of the total in the next three years.
"Cost advantage alone will not become mainstream, but if the product is good, the service is good, and there is a price advantage, it will prevail in the competition." Perennial involvement in the international market Chang Gengsheng frankly.
Weichai Engine has the largest market share in domestic heavy truck, bulldozer, Liugong loader, SDLG loader, Lonking loader, SEM loader, XCMG loader, Marine engine and generator set, and currently accounts for 10%-15% of the total sales in overseas markets. With the adjustment of overseas strategy in the past two years, growth will accelerate in the next few years.
Adhere to quality, build competitive advantage
Just as the domestic market continues to have vehicle or foreign brands "enter" the engine market, the international market competition is also constantly challenged by challengers. In the Chinese market, Weichai this "big guy" is undoubtedly a strong competitor in the international market.
Vietnam's passenger car engine market, for example, was dominated by Hyundai, Mr Zhang says. The 12-meter bus is basically powered by modern engines. But through the experimental comparison, we found that Weichai engine is not only powerful, but also more fuel efficient, less vibration. As a result, since last year, "30 percent of Vietnam's 12-meter-long buses have Weichai engines. This year, the proportion will reach 70%, and next year will probably be basically Weichai's world."
In Turkey, the same story is playing out. Customers have found through experiments that Weichai's 12-liter engine is more powerful than the previously used 11-liter engine, and its fuel consumption is similar. Of course, this customer also chose Weichai.
"Good power, low fuel consumption, good comfort, price advantage is definitely the first supplier." Analysis of the international market strategy, Zhang Gengsheng outspoken and there is no special secret.
Opportunities to tap the potential of regional markets. How to position in this market, how to establish competitive advantages, what to bring to customers, at a glance. Build your strengths according to the requirements of the local market and you will be successful.
"Today's market competition is not a price war, nor can we simply talk about the feelings of customers, we have real hard products and timely comprehensive service, is the key to win the market." In the opinion of Feng, Vice president of Weichai Power, this is also the fundamental reason why Weichai's position in the domestic industry cannot be shaken -- to provide customers with the most competitive products in cost, core technology and quality, which will help both sides achieve a real win-win situation. In the international market, this is also the common rule.
In this regard, Tan Xuguang, chairman of Weichai Power, summed it up as "' I have excellent people ', and the market will eventually choose us."
It is understood that in the "five countries and ten places" R&D center with five overseas companies and Weichai, the engine market has been spread across the Asia-Pacific, South Asia, the Middle East, North America, Eastern Europe, the independent countries of the Commonwealth and other regions, and the localization of the team has been realized, including technology localization, sales localization and service localization.
Service is competitive and profit center
"In addition to improving product performance and developing new products, we provide our customers with value-added after-sales services throughout the life cycle and are driven by service to continuously improve customer satisfaction. This is the key for Weichai to win the market, "Feng said.
In fact, service internationalization is not only the strong backing of Weichai's deep development in the overseas market, but also the high-end positioning and major expectations of Weichai. Early last year, Mr Tan called for "three thirds of the overseas market in five to 10 years". First, the main business in China accounts for one third of the market, and the service and after-sales service market accounts for one third. The service has become the third largest support for domestic and foreign enterprises. Such an important position encourages Weichai's services to match the most advanced international standards and create profits with competitive advantages in the competition.
Zhang Gengsheng told reporters that Weichai has many amazing works in this regard. For example, Weichai engine has an electronic control system, which can collect the road spectrum, and then readjust the engine design according to the road spectrum of different areas to make it more suitable for road conditions. , more fuel efficient. Weichai even adjusts its design according to drivers' driving habits.
At the same time, after the customer chooses the configuration, Weichai will not only test its own product -- the engine, but also test all packages related to the engine, and conduct a comprehensive test for each model.
"While other companies do it, we do it best." He said Weichai's lab is better than a vehicle company's.
It is understood that Weichai has 30 overseas offices, 6 overseas parts libraries and 240 overseas service outlets. It can be said that Weichai service is available on the Weichai engine.
"This year we plan to increase our service outlets to 270. At the same time, we will strengthen the assessment of service stations, and strive to achieve 95% service within 5 hours; Once the completion rate reaches 90%; 95% of the parts arrive within three days." "Said Zhang Gengsheng. At present, the overseas market of Weichai's various products is about 300,000 units. With the acceleration of localization process, Weichai's overseas market share will increase substantially.
"The army and horses are not moved, grain and grass go first", service outlets will become overseas bridgehead. Weichai will accelerate integration.
At the same time, Weichai will accelerate storage localization. At present, Weichai overseas parts warehouse management localization has been launched in CIS, Dubai and other regions. It plans to roll out to Turkey, Brazil and Ghana this year, aiming for 15 accessory and hub stores by the end of the year.
Warehouse localization can not only improve the supply efficiency of spare parts, but also reduce the impact of adverse factors such as rising freight rates and currency depreciation, and improve the competitiveness of Weichai.
"Ten overseas support service centers will also be built this year to integrate sales service, parts supply, brand promotion and training upgrading." Zhang Gengsheng told reporters that according to the current market size, Weichai is planning to retain more than 5,000 units, annual sales of more than 1,000 units of the market, combined with market conditions and resource allocation, the construction of supporting service centers.
The establishment of the service center follows the principle of regional division and attaches importance to its radiation intensity in a certain area. For example, a security service center in Moscow will be able to radiate throughout Eastern Europe and Russia. The support service center in Dubai, United Arab Emirates, will be able to reach most countries in the Middle East.
