GermanyBAUMA2007ConstructionMachineryInternationalExposition
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I.Breakthrough of China Construction Machinery Export
The sales,import and export of China construction machinery reached RMB 100 billion yuan,USD 3.89 billion and USD 1.05 billion respectively in 2003,and came up to RMB 222.3 billion yuan,USD 4.94 billion and USD 8.70 billion respectively in 2007,with an export growth by 700% during such five years. The overall scales of both China construction machinery market and construction machinery industry have stood at the important positions in the world. The conversion of China construction machinery trade from domestic demand basis to international basis indicates the breakthrough of export and the progress of this trade,and also shows that the participation in international exhibitions is an important way for China construction machinery enterprises to enter the international market.
II.Review of the Organization of “China Delegation” for Supporting China Construction Machinery Trade’s Participation in International Exhibitions
At the beginning of 2003,China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) and China Construction Machinery Association (CCMA) agreed on the organization of “China Delegation” to international exhibitions,that is to say,by use of the international market development funds of medium & small enterprises,in the form of “China Delegation”,CCCME and CCMA will jointly organize China construction machinery enterprises to international exhibitions so as to show the appearance of China construction machinery trade,to promote the export and to make the enterprises go into the international market. CCCME and CCMA made a decision to well organize China delegation to the three top construction machinery exhibitions in the world,including Germany BAUMA Construction Machinery Exposition (2004),USA Las Vegas Construction Machinery Exposition (2005) and France INTERMAT Construction Machinery Exposition (2006). Some skeleton construction machinery enterprises of China like XCMG have participated in the above three grand exhibitions ahead of the rest for many times,however,owing to the limited exhibition space of an single enterprise as well as the insufficient financial support against the high transportation cost due to the large space occupancy of construction machinery,the effects brought from the exhibitions were limited. Such a platform based on the “China Delegation” will greatly boost the understanding and communication among trade organizations of different countries,and effectively promote the business activities among different enterprises. In addition,such a platform will be paid great attention by the relevant administrative departments,forming a China advantage.
1.First Show of China Delegation in Germany BAUMA+MINING 2004 Construction Machinery International Exposition (2004)
From March 29 to April 4 in 2004,a China delegation organized by CCCME and CCMA,which consisted of such 15 construction machinery enterprises as XCMG,Zoomlion,showed its appearance for the first time in the Germany BAUMA 27th (2004BAUMA+MINING) Construction Machinery International Exposition. The show space of China delegation come up to 1,402 square meters,and 38 sets of products (including 15 sets of large-scale equipment) were exhibited,such as loader,excavator,mixer truck,truck-mounted concrete pump,grader,hydraulic hammer,reachstacker,pallet truck,hydraulic torque converter and seat. Furthermore,each enterprise participating in this exposition sent a professional study group.
During the exhibition,“China Delegation” issued special booklets named “The Developing China Construction Machinery Trade” and held a news release conference in order to show the power of China construction machinery trade,which made foreign enterprises fully understand the China construction machinery trade in terms of development scale,technical level and market,and encouraged the foreign businessman intending to operate or use China construction machinery. The Vice President of Munich Exhibition Company praised the news release conference of China delegation as the one of the best quality and the most wonderful scene in that exposition.
The business negotiation and technical communication of China delegation during the exhibition were summarized as follows: more than 4,000 person-times of businessmen and experts were received in total,the actual volume of transaction reached USD 0.6 million,the intended volume of transaction were USD 3.80 million,and 28 sets of sample equipment were sold. During the exhibition,the 15 enterprises of China delegation not only showed their own products but also collected lots of trade information; especially,since their products were exhibited together with the products of international leading enterprise in the same trade,they understood the new technology and trend of construction machinery trade and products,which can provide a new idea for product improvement and foreign business enlargement. The international market development fund of medium & small enterprises is a significant support for the China delegation of such scale. The financial support of RMB 1.90 million yuan greatly relieved the burden of the enterprise participating in the exposition.
2.Show of China Delegation in USA Las Vegas CONEXPO-CON/AGG 2005 Construction Machinery Exposition (2005)
From March 15 to 19 in 2005,the CONEXPO-CON/AGG 2005 Construction Machinery Exposition was held in USA Las Vegas. A China delegation organized by CCCME and CCMA,which consisted of such 19 construction machinery enterprises as XCMG,SANY Heavy Industry,showed its appearance in USA. The scale was larger than that in Germany. The exhibition area reached 2,200 square meters,and the products transported for exhibition purpose covered all-terrain crane,loader,roller,trailer-mounted concrete pump and so on,with a total transportation volume up to 1,600 cubic meters. In this exposition,China construction machinery product became a new hot spot,and the business negotiation and technical communication presented in full swing. Especially,many USA agents intended to act for China construction machinery products,while many medium & small enterprises of China requested to join the next China delegation. Just in this exposition,some full-terrain crane and loaders from such international leading enterprises as XCMG were sold to Brazil and USA.
In the exposition,USA and other countries and regions paid great attention on the China construction machinery market and manufacturing once more. USA Association of Equipment Manufacturer (AEM),the sponsor of Las Vegas CONEXPO-CON/AGG Construction Machinery Exposition,specially arranged an international forum named “China Day” during the exposition,and Mr. Liu Meikun,the Deputy President of CCCME,and Mr. William,Assistant Secretary of USA Deputy Minister of Commerce,attended this meeting and gave speeches. Also,CCCME and AEM communicated with respect to the enlargement of bilateral construction machinery trade.
3.Show of China Delegation in France INTERMAT Construction Machinery Exposition (2006)
From April 24 to 29 in 2006,CCCME and CCMA organized more than 30 enterprises to INTERMAT 2006 Construction Machinery Exposition,and the China delegation enjoyed an exhibition area up to 2,090 square meters. There were 60 sets of equipment exhibited,including wheel loader,hydraulic excavator,asphalt paver,trailer-mounted concrete pump,sweeping truck,wheel crane,construction lifter,forklift,tamping machinery and rock drilling machinery,as well as some spare parts like hydraulic hammer,driver’s seat,axle,and track. In INTERMAT 2006 Exposition,China Overseas Exhibition Co.,Ltd. organized a delegation consisting of over ten companies engaged in construction machinery spare parts,and show such spare parts as falsework,bucket lip,heat exchanger,cutting tools,bearing shell,and rubber track. In addition,the Construction Chapter under China Council for Promotion of International Trade (CCPIT) applied for and obtained an exhibition area of 1,058 square meters in INTERMAT 2006 Exposition.
Significant effects are brought from the participation of China delegation in this exposition. Not only the European customers but also the customers from various countries and regions in the world such as North America,South America,and Oceania were greatly interested in our products. Such participation has given favorable effects on the development of China products on international market.
4.Show of China Delegation in Germany BAUMA 2007 Construction Machinery International Exposition,with Total Exhibition Area over 10,000 Square Meters (2007)
From April 23 to 29 of 2007,BAUMA 2007 Construction Machinery International Exposition was held in Germany. The China delegation organized jointly by CCMA and CCCME,as the main part of China’s participation,covered 29 enterprises,and enjoyed an exhibition area of 10,115 square meters,accounting for 76% of total exhibition area for China enterprises. Also,40 enterprises were organized by Machinery Trade Promotion Chapter under CCPIT for exhibition purpose,with a total exhibition area of 1,358 square meters,and 33 enterprises were organized by Jingmu International Exhibition Co.,Ltd. for exhibition purpose,with an exhibition area of 1,727 square meters.
With more than 100 sets of large-scale equipment and a total transportation volume over 10,000 cubic meters,the China delegation under CCCME and CCMA showed an impact greatly exceeding that in BAUMA2004. During the first seven days of this exposition,there were many visitors to the China exhibition space,over 47,000 propaganda booklets and sample manuals were issued,and 80% of the exhibited products were sold,with an actual volume of transaction of USD 24.50 million and an intended volume of transaction more than USD 100 million. Relying on the participation in this exposition,the position of China construction machinery on international market was established initially. Such products of China delegation as truck-mounted concrete pump,batching plant,rotary driller,bulldozer,and pallet truck became hot selling equipment on the international market,and the agent network was further enlarged. Each enterprise to this exposition further communicated with global customers and agents technically,and lots of customers presented many valuable suggestions concerning the export of China construction machinery according to their demands and various market situation. Among the 102 China’s enterprises participating in this exposition,there were 68 enterprises engaged in spare parts business. All such data indicated the cost performance of China’s spare parts for construction machinery spare parts was paid great attention to and welcomed by international construction machinery manufacturers.
5.Show of China Delegation in USA Las Vegas CONEXPO-CON/AGG 2008 Construction Machinery Exposition (2008)
From March 11 to 15 of 2008,USA CONEXPO-CON/AGG 2008 Construction Machinery Exposition was held in Las Vegas. The purpose of such exposition was to show the latest equipment,products,service and frontal technologies in current construction machinery industry. There were 200 China’s enterprises participating in this exposition,of which,such three enterprises as Zoomlion,SUNWARD all presented their most powerful fleet and occupied an exhibition area nearly 5,000 square meters. In addition,Changsha Economic & Technical Development Zone as a state-level one held a workshop special for the China (Changsha) Investment and Corporation for Construction Machinery Introduction Meeting.
III.Perception and Experience of China Construction Machinery Enterprises’ Participation in International Exhibitions
1.The participation in international exhibitions is an important way for China construction machinery enterprises to enter the international market.
The international construction machinery exposition is the most centralized,open and vibrant site for various information of international construction machinery concerning market,product,technology,management and business. The participation of China enterprises in international construction machinery expositions,is the necessary way for the development of such industry. In Germany BAUMA 2004 Exposition,the 15 China’s enterprises enjoyed an exhibition area of 1,while in Germany BAUMA 2007 Exposition,there were 100 enterprises from China participating in such exposition,which enjoyed an exhibition area more than 10,000 square meters. At present,it is expected that for the France 2009 exposition and the Germany BAUMA 2010 exposition under invitation,the exhibition area of China delegation may exceed 20,000 square meters. Now,in the form of “China Delegation” and with the advantage of centralization,China construction machinery is showing high quality with inexpensive price,reliable and applicable performance to the international construction machinery markets,and more and more agents and distributors are being attracted. Also,through such international expositions,the China construction machinery enterprises open their ken,see the technology and business gaps with other enterprises,and find the direction of improvement. The fact has demonstrated that participation in international exhibitions is an important way for China construction machinery enterprises to enter the international market.
2.The international exhibition is the wind vane of international construction machinery development trend.
The development trend of construction machinery products in international expositions varies continuously,and variations mainly includes the further intelligentization,new appearance,continuous improvement of safety and environmental-protection characteristics,professional working functions of products,and the development of spare parts’ manufacture aiming at further professional,elaborate and individual purposes.
Viewing from international exhibitions,we can see that the complete machinery products develop towards the intelligentization and humanization. In recent years,although more and more intelligent construction machinery products come up in China,such development has not been popularized. As for the new products of some famous company like Caterpillar,Komatsu,Liebherr,Volvo,and Putzmeister,it is found that the technology application concerning working functions,energy-saving and consumption-reducing performance,working condition monitoring,malfunction diagnosis,self-locking,information feedback and display,has been enhanced greatly,the overall working efficiency,safety and comfort performance has been improved,and thus the market competitiveness has been increased greatly. The technology level of China construction machinery has been improved obviously; however,in comparison with the international advanced technologies,the gap exists to some extent yet. This gap directly affects the sales prices of China construction machinery,and should be paid great attention to.
The focusing on spare parts in international exhibitions indicates that international construction machinery manufacturers,including the large multi-national corporations,adopts the international procurement for lots of spares parts instead of the manufacture so as to avoid the market risks and prevent international financial crisis,focus on the research of new products,and develops towards high technology and humanization. China has been a powerful country on the international construction machinery manufacture. The technology level of spare parts is the foundation of the development of China construction machinery trade. Only the research on materials,component functions,technical performance and reliability can basically sustain the development of China construction machinery trade,and can make China the global construction machinery spare parts production base.
3.International exhibition is an important site for us to understand relevant laws and regulations.
1)Understand international technical standards for construction machinery products and relevant laws and regulations
The international exhibition is an important site for understanding the relevant technical standards,certification,technical and non-trade barriers as well as the laws and regulations for entering the international market. The CE certification system,as implemented by the EU members,has been accepted by most countries in the rest of the world for its scientificalness,practicability and credibility and has become an international trend. The CE certification is not only a passport for the China construction machinery products to access the EU market but also an internationally accepted market access rule.
2)Face disputes over intellectual property rights seriously
The developed countries are now paying close attention to the violation of the intellectual property rights by China products. At the exhibition,some foreign businessmen were obviously fully prepared to find out such violations by carefully examining the appearance,structure and auxiliary parts of the China exhibits,taking photos on the spot and sending penalty notification for intellectual property rights violations to the China exhibition delegation. The China exhibition delegation attached great importance to this and held immediate negotiations to finally prove that the alleged violations were not facts,but negative impact had already been exerted on the China exhibition delegation. Therefore,the exhibitors are required to carefully examine the intellectual property rights of their own products and submit the results to the exhibition delegation for file before attending the exhibition in the future.
3)Comply with the exhibition rules made by organization committees of international exhibitions as well as relevant laws and regulations strictly
Exhibitions of different natures held in different countries have their own strict exhibition rules,laws and regulations and on-spot operation procedures. Some exhibitors or their staff attended these exhibitions for the first time,so they knew little about the rules and acted according to the usual ways at home or their own judgments. For example,they acted on their own and violated relevant safety regulations made by the organizing committees in the respects of building the exhibition stands,installing key exhibits and equipment,removing the garbage and so on.
4)Strengthen price coordination and strictly prevent vicious price wars
Since both the China exhibitors and the exhibits of the same class and specification abound,foreign businessmen enjoy great opportunities of making inquiries and bargaining. In particular,some ill-behaved agents spread fabricated price information to lure the China exhibitors for reaching deals. In this case,we should on the one hand fully know the background of the agents and refrain from slandering the competitive products; on the other hand,we should stick to our own values,promote the advantages of our products,purse reasonable business competition and maintain good images and reputations of China enterprises.
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