Chinese
English
Market Strategies for the First Half of 2024
Companies that proactively developed high-quality National IV products in advance have seen good market returns.
It has been reported that several companies in the industry have already achieved their business targets for 2023,
steadily enhancing their market reputation, product image, and user base. However, it is also important to note that
most agricultural machinery companies did not meet their sales targets last year, and many are banking on this
year’s market for growth. Additionally, some companies are looking to enter the capital market for financing,
which will further intensify the drive for increased sales performance.
It is expected that market competition will become even fiercer in 2024, with many companies launching various
strategic marketing initiatives starting from the spring market.
1.Increased Promotional Efforts:
From December 2023, agricultural machinery companies began implementing brand promotions, image advertising,
and product sales activities for the upcoming spring. They primarily adopted strategies such as direct price reductions,
cash discounts, and enhanced customer benefits to stimulate sales, clear inventory, and improve cash flow. National IV
products are utilizing multi-tiered and multi-batch promotional strategies, where discounts gradually decrease over time,
encouraging early purchases. Companies are also offering interest-free loans, complimentary accessories with purchases,
extended service periods, and service commitments to enhance users’ purchasing and usage rights.
2.Frequent Product Promotions:
Offline, companies are using eye-catching displays such as banners, flags, and brochures to showcase their products.
They are conducting activities like on-site giveaways, lottery draws, communal meals, and gifts for sign-ins. Marketing seminars,
product tasting events, field test drives, and home visits for promotions are organized to boost customer interest and sales. Online,
platforms like WeChat, Douyin, and Kuaishou are leveraged for increased promotional outreach.
3.Overall Enhancement of Product Quality:
Major companies have subjected their products to rigorous testing under various operating conditions and have addressed
identified shortcomings to improve adaptability and quality. This has strengthened their market competitiveness.
Spring market conditions are expected to see these products competing head-to-head, generating new user testimonials
and laying the foundation for future competition.
4.Service Empowerment:
With the launch of National IV products, users have heightened expectations regarding service capabilities. In reality,
users tend to prefer companies with strong service offerings. The overall service chain for agricultural machinery has improved,
with some companies leveraging social and internal resources to build a comprehensive service parts supply and network.
They have created both dynamic and static service resources, resulting in significantly enhanced service response capabilities
and fulfillment of service commitments, achieving a high repair rate within 8 hours, meeting user expectations. Leading
companies have established brand effects through their service capabilities, providing comprehensive support for product sales.
Seizing Opportunities in the 2024 Market Demand
With the release of users’ essential needs, the agricultural machinery market is expected to emerge from its low point and
gradually recover in 2024. Product promotions and a competitive selection process are set to become new trends. Relevant
companies must navigate the uncertainties and challenges present in the industry cycle, endure transitional pains, and accelerate
resource optimization and capabilities to adapt to the competitive landscape.
Currently, there are nearly 250 main tractor manufacturers with over 10,000 dealers and around 70 rice transplanter manufacturers
with over 2,500 dealers. Some main manufacturers and dealers may struggle to adapt to market competition and may either
transform or exit the market. It is possible that mid-tier companies may emerge as dark horses in the industry and become new leaders.
To achieve new business goals, agricultural machinery companies need a multi-dimensional approach and collaborative progress.
1.Strategic Leadership:
Companies should adjust their strategic objectives based on agricultural policies, industry policies, and purchase subsidy policies,
ensuring sound top-level design. They need to classify and refine measures for different market scenarios, developing comprehensive and
specialized response plans. Focusing on stable growth and enhancing profitability should take precedence, driving high-quality development.
Companies should optimize and enhance supply chains, improving self-manufacturing capabilities. They must also transform and upgrade marketing
and service chains to achieve high levels of collaboration among manufacturers and social resources, paving new paths for competition.
2.Revitalizing Operational Mechanisms:
Companies should strengthen their brand, marketing organization, quality management, and service system while consolidating advantages
and addressing weaknesses to enhance efficient operations. This will help them meet the pressures of market competition and ensure quality and service delivery.
3.Strengthening Talent Development:
Currently, many young individuals prefer jobs outside the factory setting, leaving a significant number of mature talents in the workforce.
Companies must recognize the contributions of long-serving employees while also focusing on attracting, training, and utilizing high-quality talent.
They should particularly target scarce roles in areas such as digitalization, marketing strategy, materials, and product manufacturing,
addressing talent shortages to enhance team quality, ensuring the transition from “good designs” to “great products,” and facilitating successful market entry.
