Where is the "way out" of traffic engineering machinery?

In recent years, companies represented by China National Transport and Import and Export Corporation, China Road and Bridge Engineering Co., Ltd., Sany Heavy Industry, Xi'an Dagang, etc. have continued to enter the international market, and many Chinese-made transportation and construction machinery have expanded overseas markets through various means. According to the data, in 2013, the export volume of Beijing Juyang Road Machinery was US$28.0 million. In the first quarter of this year, the export value reached US$9.4 million, which was an increase of 26% year-on-year. Last year, the import volume of Beijing Sanyang Road Machinery was US$95 million.

China National Transportation Import and Export Corporation is an important window for foreign trade in China's transportation industry. It has accumulated rich experience in the field of transportation engineering machinery export, and also encountered a lot of problems that need attention. Traffic engineering machinery must smoothly apply these experiences and avoid common problems in a timely manner.

First-class products require first-class service

Whether it is the sale of tangible goods or intangible ideas, the product itself is the first criterion for buyers and sellers to consider. In order to achieve a smooth sale of traffic engineering machinery, it must first obtain the buyer's approval, that is, the function of the product can meet the needs of users. Although the traffic engineering machinery products have many varieties and sizes, their sales process and sales of other mechanical products. The process is much the same.

The export of mechanical and mechanical products abroad must be competitive, and its cost performance must be higher than that of other similar products produced by other countries. With less price difference, it has better technical performance and product quality, and has a low durability and easy operation. Or, if the difference in technical performance and product quality is not significant, the price of the product is more competitive than other similar products. In the actual transaction negotiation process, the price is a key factor.

The after-sales service of the product (how to establish the “going out” of the traffic engineering machinery of the maintenance service network and the guarantee of spare parts supply) is particularly important for the sales of large-scale mechanical equipment. Once the product fails, it must be repaired in time to avoid affecting the progress of the project.

It is not easy to open up an overseas market, but it is very simple to destroy this hard-to-open market. Once the market is affected, it will be difficult to repair and market sales in other regions will also be affected. Today's society is an information society with a highly developed network. The news that products have problems in the market will quickly spread across the Internet.

After-sales service is the image of the company and the life of the product. It is a necessary condition for the company to occupy the market.

In the past, there were a number of large-scale mechanical equipment export projects in China. Due to inadequate after-sales service, the market was destroyed and the market was destroyed. China National Transport and Import Corporation has exported 400 buses to Sri Lanka for assistance projects. Due to lack of experience at that time, technical training for users after the products were exported was not in place. The operation of the local drivers was not standardized and the local road conditions were poor. , resulting in a higher failure rate of the vehicle in the actual use of the process. A lot of vehicles soon appeared to have problems after they were used. At that time, the supply of spare parts was insufficient and the vehicles could not operate normally. After that, only the parts of the vehicles were dismantled and other failed vehicles were repaired, eventually resulting in the loss of the entire Sri Lankan market.

Focus on partners

Traffic engineering machinery products to export, partners are indispensable. Partners are diverse and can be direct users, middlemen, joint venture partners, middlemen and joint venture partners. In the actual export business, the selection of partners is a very important part. The strength and strength of the partners and their mutual cooperation will affect the success of the transaction and the expansion of the business.

Direct user

A direct user is a user who sells a product directly to a traffic engineering machine. This is a simple and economical sale, which is what the market calls "direct sales." On the face of this model, buyers and sellers have reduced the intermediate links and can get the ideal transaction price. However, in fact, this model has a limited impact on the sales price of the product. Because the manufacturer sells its own products, it needs to set up a The foreign trade department (or company) employs a group of professional foreign trade sales personnel. The cost of such departments and personnel is eventually passed on to the products sold, so the direct sales form has limited impact on the final sales price of the products. This model is suitable for large-scale, export-oriented production companies.

Middleman

A joint venture partner of transport engineering machinery, ie a middleman, should consider exporting its own construction machinery products if it wants to export its own construction machinery products on a large scale. It is necessary to consider setting up a joint-venture assembly plant outside the country and exporting the products as assembly and spare parts. To the assembly plant, after assembly, sell it locally. To achieve this goal, it is necessary to find a strong partner in the importing country, preferably the partner has its own assembly plant and ready-made maintenance network.

Choose a cooperation method

Once the partners have been identified, the next step is to clarify the cooperation method. There are many types of cooperation in the export of traffic engineering machinery. Different cooperation methods not only determine the profitability of export companies, but also determine whether or not future cooperation relationships can be rationalized. Therefore, choosing a good cooperation method is a key issue that export companies must consider.

Self-export

Self-operated exports are suitable for large brand manufacturers with international reputation. In addition to its own production technology strength and product brand strength, such traffic engineering machinery enterprises also need a strong professional foreign trade team. Enterprises can sell their products through participation in relevant internationally renowned fairs, professional exhibitions, and media advertisements from overseas.

Foreign trade agency exports

Foreign trade agency exports are suitable for brands with low brand awareness, unwilling to invest a lot of advertising for promotion, and do not want to invest too much foreign trade human resources, and overseas production companies with poor channels. Transportation machinery manufacturers may cooperate with foreign trade companies and entrust their overseas sales to one or more foreign trade companies. They also sign agency sales framework agreements with foreign trade companies, and set prices, sales ranges, and sales deadlines for the products. The scope of responsibility, the conditions of after-sales service, etc. are limited, and the products are sold using the human resources of the foreign trade company, overseas market information and customer channels.

Overseas assembly

Production enterprises cooperate with overseas companies and establish assembly plants overseas. The assembly plant may be a wholly foreign-owned enterprise or a joint-venture between the two parties. The proportion of joint ventures depends on the actual situation and is determined by both parties. Maintenance outlets and maintenance personnel (including technical training for maintenance personnel) are equipped by both parties according to actual conditions.

Trilateral alliance

The export of traffic engineering machinery can also choose the mode of cooperation among production enterprises, foreign trade agency companies and overseas partners. In the way of building an assembly plant overseas, the assembly plant can also be divided into the form of a tripartite joint venture between a wholly foreign-owned enterprise, a joint venture between a production company and an overseas company, and a foreign trade agency company. The proportion of joint ventures depends on the actual situation and is decided by all parties. Maintenance outlets and maintenance personnel (including technical training for maintenance personnel) are equipped by the participating parties according to actual conditions.

Select the export method

There are generally three types of export methods for traffic engineering machinery products, including complete machine exports, spare parts exports and leases. Export methods may affect the quality of export products and are related to the company's profitability.

Total exports

This method is relatively simple, easy to control the quality of the product, but the cost of sales is relatively high, on the one hand the whole machine export cost is expensive, the cost of post-product after-sales service is difficult to control, on the other hand the whole import tariff of the importing country Generally higher.

Therefore, this method is generally suitable for small-batch exports. It is suitable for exporting after the overseas projects in China or participating in exhibitions abroad for promotion.

Assembly + parts

After the parts are exported, they are assembled into complete machines locally in the importing country. This method is more complicated and it is relatively difficult to control the quality of the assembled products. This, of course, depends on the technical strength and assembly ability of the assembly plant. The benefits of this approach are to reduce transportation costs and tariffs, make effective use of partners’ maintenance networks, ensure timely supply of spare parts, increase product competitiveness in the local market, suit markets with large demand, or neighboring countries. And areas with greater demand.

To a certain extent, exports of assembly and aggregating parts are an ideal export method. The premise is that traffic engineering machinery has a competitive advantage, and the potential demand of the market is relatively large, because the initial investment of building and assembly plants is also relatively large. Enterprises must Have a good understanding of their products and markets and do more detailed feasibility studies.

Equipment rental exports are relatively rare. Lease products can be new equipment or used equipment, suitable for convenient transportation in neighboring countries.

Accurately grasp the policy pulse

Before the transportation machinery products go international, it is very necessary to understand the export policies. There are two aspects concerning domestic policies and foreign policies. Companies need to understand the different policies of the importing country on the establishment of imported products before exporting, such as the difference between the import tariff of the whole machine and the import duty of spare parts, the policy of import bonded zones, the policy of after-sales service of construction machinery, and the protection policy of the importing country on patents and trademarks The policy of investment proportion of joint-venture assembly factories, labor employment policies of joint ventures, foreign-funded enterprises' taxation and profit remittance policies, etc., avoid unnecessary losses in the actual export process.

In the process of the export of traffic engineering machinery, especially in the process of overseas joint venture production and sales, it is very important to protect intellectual property rights. Chinese enterprises must attach importance to brand protection and protection of patented technologies, and must promptly implement patents and trademark brands in importing countries. Registration to ensure that the company's painstakingly operating market will not be lost due to brand and patent issues.

Domestic policies need to understand some preferential policies formulated by the state to encourage product exports, such as export tax rebates, export credits, and export credit insurance.

Export tax rebate

Refers to the return of exported goods on the actual payment of product tax, value-added tax, business tax and special consumption tax on domestic production and distribution. The export tax rebate is aimed at reducing the export cost of export products and increasing the competitiveness of export products in the international market. At present, the export tax rebate rate for construction machinery products in China is between 13% and 17%. Enterprises that bid for export tax rebate can be either production enterprises or export companies (such as foreign trade companies).

Export credit

It is an international credit method. In order to support and encourage the export of large-scale machinery and equipment and engineering projects in the country, and improve international competitiveness, a country offers preferential loans for interest subsidies and credit guarantees to domestic exporters or foreign importers, and encourages domestic banks to provide loans. Loans with lower interest rates can be used to solve the problem of exporter's cash flow difficulties, or to satisfy foreign importers' need for a financing method for exporters to pay for loans.

There are mainly two kinds of export buyer credits and export seller credits, in addition to mixed credit, forfaiting and so on. At present, China's export credit agency is mainly China Export-Import Bank, which has more than 20 branches in China.

Export credit insurance

Export credit insurance, also known as export credit insurance, is used by governments of various countries to promote their own export trade, to protect the exporter’s foreign exchange collection security and bank’s credit security, and to promote economic development. It is backed by national finance, and is used by enterprises in export trade, foreign investment and foreign investment. A policy support measure that provides risk protection in economic activities such as project contracting is a non-profit insurance business and an indirect regulation and supplement to the market economy by the government. It is also a policy instrument that supports exports in principle as allowed by the World Trade Organization (WTO) Subsidies and Countervailing Agreements.

The reason why export credit insurance is also called is because under this model, exporters can not immediately collect foreign exchange after selling their products to foreign buyers, but instead give the buyer a deferred payment period with a period of less than one year. When the account period expires, the buyer then pays the seller the goods. If the buyer can only partially pay when the expiry date, the exporter can report the loss to the export credit insurance company and apply for payment. Therefore, the export credit insurance is actually export credit insurance. Exporting companies only need to apply to the export credit insurance company and obtain consent to insure before exporting, then the export project will receive basic guarantees. At present, China Export Credit Insurance Corporation is China's only policy insurance company that undertakes export credit insurance business.

Full understanding and use of the country's preferential export policies can help enterprises reduce export costs, increase the competitiveness of traffic engineering machinery products, and expand export scope and export business. While using the policy, export companies should provide credit or credit insurance for the buyer according to their own ability to bear, do a good job of the buyer's credit investigation, and control the amount of export credit or export credit insurance.