Mass excavator production is completed, waiting for transportation

15-06-2021

Mass excavator production is completed, waiting for transportation


mini excavator

Excavator is the most widely applicable variety of construction machinery, and it is also called "the jewel in the crown of construction machinery".


According to industry statistics from the Excavation Machinery Branch of the China Construction Machinery Industry Association, in December 2020, a total of 31,530 sets of various excavation machinery products were sold, a year-on-year increase of 56.4%. The domestic market sold 27,319 units, a year-on-year increase of 58.5%. The export sales volume was 4,211 units, a year-on-year increase of 44.4%.


Li Hongqi, chairman of Henan Yugong Machinery Co., Ltd., who has been in the trading business for more than ten years, is deeply touched by the increase in sales of excavators. "Shandong Jining, Laizhou and other places are where the small excavator industry chain is relatively concentrated. The company has 2 to 3 long-term suppliers of small excavators in Jining, mainly because the price is relatively cheap and the quality is good." Henan Yugong Machinery Co., Ltd. is a trading company that mainly sells small equipment such as road repairing, bridge repairing, and repairing equipment. Among them, the sales of small excavators account for less than 10% of the company's overall sales.


The company's foreign trade gross profit margin is 20%, and its business scope covers Africa, Southeast Asia, the Belt and Road Initiative, Central Asia and other places; the domestic trade gross profit margin is 15%.




Benefiting from the good demand for small construction projects such as farmland, water conservancy, and municipal engineering, the demand for small excavators is increasing.


"The company has been engaged in the production and sales of large and medium-sized excavators before, because the chairman often led the R&D team to the market. After seeing the market's demand for small excavators, in 2015, it began to develop small excavators and put them on the market. MOUNTAIN RAISE told First financial reporter.


At the same time that the products are put on the market, the e-commerce platform has also begun to promote the further improvement of the products.


MOUNTAIN RAISE found that through the analysis of industry big data on Ali International Station, the most frequently searched keywords for platform buyers are "small digging" (micro excavator), "1 ton", "low price", and "self-use". And other words, combined with the high-frequency questions of our own platform inquiries, further improve the product design, so that it can more accurately meet the needs of buyers.


At present, there are 6 to 8 basic models of MOUNTAIN RAISE small excavators, and there are also some derivative models that need to meet the standards of the European Union, the United States and other places. The current foreign trade accounts for 1/3 of the company's overall sales, and it is expected to reach 40% in 2021.


Compared with large excavators that require professionals to operate, small excavators do not need to operate a certificate or the like, because the operation is simple and cheap, small excavators have entered rural households. Application scenarios include the renovation of dry toilets, digging trenches in vegetable greenhouses, and repairing green belts.


“At the beginning of urbanization, there were more large-scale excavators used. Now the urbanization is basically completed, and the urban application is basically some minor repairs.” For example, a European customer said that when the work pressure is particularly high, I drove an excavator to dig a hole in my garden to fill it up, and then dig another hole to fill it up.



"The joystick marks various functions on the machine. The company will also post videos on the official Kuaishou account and send instructional videos to customers on WeChat. Generally speaking, you can operate the machine well after half a day of study." The sales staff told China Business News that as of now , MOUNTAIN RAISE has 189 offline outlets and provides after-sales service.


In 2020, MOUNTAIN RAISE will achieve domestic trade sales of 350 million yuan and foreign trade sales of 200 million yuan. Among them, the sales volume of domestic e-commerce channels is 70 to 80 million yuan, mainly through Taobao, Ali International Station, Baidu bidding ranking advertising and other methods.



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