One hundred contends for the flow, and the one who excels is the first. Unlike many companies’ internationalization strategies that only outline the “roadmap” and “timetable” for innovation and breakthroughs, Weichai clearly identified overseas markets as an important part of the “three-thirds” strategy. International market share will account for 1/3 of total revenue in 10 years.
In order to achieve the above goals, Weichai has performed long-term dance on the international capital market in recent years, and has successively brought France Baudouin, the world's top luxury yacht manufacturer Italy Ferretti Group, and Germany's KION Group to the next level. This year, overseas income will account for 1/3 of the group's total revenue." In an interview with the Economic Herald recently, Zhang Jiansheng, head of Weichai International Business, said.
Even with the most challenging engine market, Weichai’s overseas share is expected to reach 1/3 of the total in the next three years.
"Only the cost advantage will not become the mainstream, but if the products are good, the service is excellent, and there are price advantages, they will have the upper hand in the competition." Chang Gengsheng, who has been perennial in the international market, frankly stated.
Weichai Engines, which has the largest domestic market share in domestic heavy trucks, bulldozers, loaders, ship engines, and generator sets, currently account for 10%-15% of total sales in overseas markets. With the adjustment of overseas strategies in the past two years, it will accelerate growth in the coming years.
Adhere to quality to establish a competitive advantage
Just as the domestic market has continued to have entire vehicles or foreign brands “into the” engine market, the competition in the international market is also constantly being challenged by the challengers. In the Chinese market, Weichai, the “one big player”, is undoubtedly a strong competitor in the international market.
For example, Zhang Gengsheng said that the passenger car engine market in Vietnam was originally dominated by the Hyundai Group. The 12-meter-long bus basically uses modern engines. However, experimental comparisons have found that the engine of Weichai is not only dynamic, but also more fuel-efficient and less vibrating. Therefore, starting last year, “30% of the 12-meter-long buses in Vietnam use Weichai engines. This year, this proportion will reach 70%, and next year it may be basically the world of Weichai.”
In Turkey, the same story is also being staged. The customer found through experimentation that the 12-liter engine of Weichai was more dynamic than the 11-liter engine used before, and the fuel consumption was comparable. Of course, this customer also chose Weichai.
“Good dynamics, low fuel consumption, good comfort, and price advantage will certainly be the No. 1 supplier.” Analyzing the Raiders in the international market, Zhang Gengsheng bluntly has no special tips.
There are opportunities to tap potentials in the regional market. How to position in this market, how to establish competitive advantages, and what to bring to customers can be seen clearly. To build your own advantages according to the requirements of the local market, you can succeed.
"Today's market competition is not relying on price wars, nor can we simply talk about the feelings we have had with our customers, and we have real hard products and timely and comprehensive services. It is the key to winning the market." Vice President of Weichai Power Feng It seems that this is the fundamental reason why Weichai cannot shake its position in the domestic industry—to provide customers with the most cost-competitive, core technology-competitive, and quality-competitive products that will help both parties achieve truly win-win results. In the international market, this is also the prevailing rule.
In this regard, Tan Xuguang, chairman of Weichai Power, summed it as "'I have excellent people' and the market will ultimately choose us."
It is understood that in the “five countries and ten places” R&D center and Weichai, which has five overseas companies, the engine market has spread over the Asia-Pacific, South Asia, the Middle East, North America, Eastern Europe, the Commonwealth of Independent States and other regions, and has achieved a team’s Localization, including the localization of technology, sales, and services.
Service is Competitive and Profit Center
"In addition to improving product performance and developing new products, we also provide customers with a full-life post-market value-added service, and with services as the driving force, continuously improving customer satisfaction. This is the key to Weichai winning the market," said Feng Gang.
In fact, the internationalization of services is not only a strong backing for Weichai to deepen its overseas markets, but also lies in the high-end positioning and major expectations of Weichai. At the beginning of last year, Tan Xuguang proposed to achieve “three-thirds of overseas markets in 5 to 10 years”. First, the main business of the Chinese market is one-third, and the service after-sales market is one-third of the target. The service has become the third most important support for domestic and foreign businesses. Such an important position has prompted Weichai's services to be benchmarked against the most advanced international standards and to create profits through competitive advantage in the race.
Zhang Gengsheng told reporters that in this regard, Weichai has many stunning works. For example, Weichai engines have electronic control systems that can collect Lupu, and then re-adjust the engine design according to Lupu in different areas to make it more suitable for road conditions. , More fuel-efficient. Weichai even adjusts the design according to the driver's driving habits.
At the same time, after the customer chooses a good configuration, Weichai will not only detect its own product, the engine, but also test all engine-related packages, and each model will be fully tested.
"Although other companies do the same, we are doing the best." He said that Weichai's laboratory is even better than the entire vehicle company.
It is understood that Weichai has 30 overseas offices, 6 overseas accessories libraries and 240 overseas service outlets. It can be said that weichai service is available at Weichai engines.
“This year we plan to increase the number of service outlets to 270. At the same time, we will strengthen the assessment of service stations and strive to reach 95% of the services within 5 hours; once the rate of completion is 90%; 95% of the parts arrive within 3 days.” said Zhang Gengsheng. At present, the overseas market for various types of Weichai products is around 300,000 units. With the acceleration of the localization of production, Weichai's overseas market share will grow significantly.
"The troops and horses have not moved, the forage and grass first" and service outlets will serve as bridgeheads overseas. Weichai will accelerate its integration.
At the same time, Weichai will accelerate the localization of storage. At present, the localization of Weichai's overseas parts warehouse management has been initiated in the Commonwealth of Independent States (CIS), Dubai, and other regions. It plans to fully roll out in Turkey, Brazil, and Ghana this year and strives to achieve 15 accessories and central stores during the year.
Warehousing localization can not only improve the efficiency of spare parts supply, but also reduce the impact of unfavorable factors such as rising freight rates and currency devaluation, and improve the competitiveness of Weichai.
“This year will also build 10 overseas support service centers to achieve the integration of sales services, parts supply, brand promotion and training upgrades.” Zhang Gengsheng told reporters that Weichai is planning according to the current market scale, choosing to retain more than 5000 Taiwan, with annual sales of more than 1,000 units of the market, combined with market conditions and resource allocation, the construction of support services center.
The establishment of the service center follows the principle of regional division and attaches importance to its radiation intensity in certain areas. For example, the support service center established in Moscow will be able to radiate throughout Russia's Eastern Europe and even Russia. The support service center established in Dubai, United Arab Emirates, will be able to radiate most of the countries in the Middle East.
