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[65th Anniversary Struggle] Liugong's "Comprehensive Internationalization" Road
Seetao 2023-05-12 10:00
  • Liugong business will strive to become the first brand of earthwork product portfolio
  • The 20 years of Liugong's internationalization is a history of development, but also a history of struggle, passion and pioneering
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In 2002, LiuGong put forward the strategic goal of "building an open and international LiuGong", which has braved the wind and rain for 20 years.

In the past 20 years, the sales revenue of Liugong's overseas business has exceeded 40 million yuan to 8 billion yuan; overseas dealers have grown from 0 to more than 300; from the sales of a single loader product to the current full series of high-quality products and services to meet the needs of different global customers Working condition requirements; from less than 10 people at the beginning to the current international talent team of more than 1,600, Liugong has grown into a leading global enterprise. Looking back on the 20 years of Liugong's internationalization, it is not only a history of development that has gone through hardships, but also a history of magnificent struggles, passions and dreams.

In 2003, Zeng Guang'an, the then president, visited Morocco to develop Liugong's first overseas distributor, and started the journey of internationalization.

From 2007 to 2009, Liugong successively established companies in India, North America, Latin America and Europe. The international business model changed from international trade to international marketing. The marketing and service network covered most emerging markets and began to set foot in mature markets. Liugong established the first overseas manufacturing plant in India, creating a precedent for Chinese manufacturing in India and overseas manufacturing of China's construction machinery industry. In less than 10 years of overseas business exploration, Liugong's overseas business revenue has exceeded 1 billion yuan.

So far, the first round of Liugong's global strategic layout has been completed, and a global marketing service network covering more than 100 countries and more than 200 agents has been established, with footprints all over the world on five continents. At the same time, LiuGong established an international technical service training department to provide customers with professional technical training services. The mature marketing network and high-quality aftermarket services have enabled Liugong to win many major projects such as the Angola project, the Sinopec Saudi transportation project, and the China-aided Uzbekistan project; during the same period, many like-minded agents have joined hands with Liugong since then ,Achieve win-win.

While laying out the market, Liugong has not forgotten the brand marketing. Since 2004, Liugong has been listed in every international exhibition, and has been recognized and praised by international professional customers.

LiuGong has been deeply involved in "Incredible India" for 19 years. From export trade in 2002 to the establishment of an Indian office in 2003; from the development of the first Indian distributor in 2004 to the establishment of a wholly-owned subsidiary in 2007; from the establishment of Liugong's first overseas manufacturing plant in India in 2009, By 2014, it has turned losses into profits in an all-round way, and in the past three years, the compound growth rate of Liugong India’s business has reached 36.5%, and the local market share of loaders has continued to dominate the list. The development of Liugong India can be described as a glorious journey of exploration, sharpening and transformation Journey, it's just incredible!

Deep integration enables local manufacturing. In 2003, Liugong's first batch of 50 loaders traveled across the ocean to India, starting Liugong's exploration in the Indian market. From the initial acclimatization to the establishment of manufacturing plants, the cultivation of key talents, the construction of a marketing service network, the establishment of logistics warehouses and parts centers, etc. Today, Liugong India Co., Ltd. (hereinafter referred to as Liugong India) has developed into a pure foreign-funded enterprise in India with excellent product performance and perfect production management, with a localization level of nearly 50%.

During the COVID-19 pandemic, LiuGong India took advantage of its regional supply chain and local manufacturing, and the market responded enthusiastically. At present, it is planning to introduce more LiuGong products such as wide-body vehicles, aerial work platforms, and pile machinery into the Indian market.

Focus on customers and deepen innovation. No matter how the industry changes, for LiuGong India, the most important thing is to meet customer needs and innovate in products and technologies. Braving the high temperature of more than 50 degrees, the Indian R&D team overcame many difficulties and designed a large number of differentiated solutions for different working conditions and different user needs. The 835BSIII loader is a product independently developed and designed by Liugong India. Taking LiuGong India as the starting point, LiuGong headquarters has closely communicated and innovated with overseas R&D and manufacturing centers, and jointly promoted the global development of LiuGong's product system.

In 2011, Liugong's "Twelfth Five-Year Plan" strategy clarified the internationalization strategy of creating a second local market overseas, which sounded the rallying call for Liugong to move towards a world-class enterprise. In 2012, on the basis of basically establishing a global marketing service network, LiuGong proposed an overseas 4K strategy (key international markets, key dealers, key customers, and key products), and LiuGong's international business entered the stage of in-depth marketing. In 2015, Liugong's "Thirteenth Five-Year Plan" strategy clearly defined the development strategy of "comprehensive internationalization, comprehensive intelligence, and comprehensive solutions". During this period, Liugong successively established companies in Europe, Asia Pacific, South Africa, the Middle East, Hong Kong, and Russia to complete the layout of the global marketing network. According to the market size and development prospects, LiuGong selected 22 countries as strategic core markets, made breakthroughs one by one, and continued to improve customer-oriented marketing and after-market services; completed the acquisition of the construction machinery business of HSW in Poland and established a strategic alliance with ZMG in Argentina , to establish a multi-product line assembly production base in Brazil in an asset-light mode.

Liugong's forward-looking layout, continuous construction and in-depth practice in the market along the "Belt and Road" have made the "Belt and Road" chess game alive. The Polish market has become the bridgehead for Liugong to conquer the European high-end market, and has grown to become Liugong's European headquarters.

With the in-depth expansion of overseas markets and the gradual advancement of global layout, Liugong will gradually root overseas in value creation links such as product research and development, manufacturing, and financing services, such as after-market service informationization and regional global customer experience centers, to promote full value. Chain synergy; aiming at the high-end market, linking countries along the “Belt and Road” and speeding up localization development. Jakarta-Bandung High-speed Railway, China-Laos Railway, China-Myanmar Oil and Gas Pipeline Laying, Kaliwa Dam in the Philippines, E60 Expressway in Georgia...LiuGong's equipment escorted the construction of key projects along the "Belt and Road" and showed LiuGong's "limit" to global customers With the extraordinary strength of "equipment with strong working conditions", the scale of overseas revenue exceeded 3 billion yuan.

Focusing on the strategic idea of "comprehensive internationalization", Liugong adheres to the new development concept, integrates into and serves the new development pattern, integrates the whole value chain into the whole process of international development, and is a pioneer in the high-quality development of the equipment manufacturing industry. Build the strategic core market in the entire value chain of R&D, manufacturing, marketing, supply chain, and service, enhance the comprehensive strength of overseas subsidiaries, and forge core competitiveness.

During this period, Liugong's international development entered a stage of high-quality growth. In the mature markets of developed countries, Liugong established the first overseas direct sales company through the acquisition of British agents; established the Warrior Machinery direct sales company in Los Angeles, North America, to carry out leasing business, and further explore and develop high-end markets. In emerging markets, the Regional Comprehensive Economic Partnership (RCEP) came into effect in January 2022, bringing new development opportunities for LiuGong. Indonesia has become LiuGong's most outstanding market in the RCEP region; in 2022, LiuGong's board of directors approved Overseas subsidiaries such as Uzbekistan, Australia, and Côte d'Ivoire were established. In August of the same year, Liugong's Thailand joint venture company officially opened. Liugong's "comprehensive internationalization" strategy is accelerating.

Since 2019, Liugong has deeply integrated and developed overseas channels, adding 118 new dealers, about 70% of which are concentrated in the core market, and major customers and major projects are located along the "Belt and Road" and RCEP areas. Through in-depth cooperation with upstream and downstream industries, Liugong has opened up overseas transportation channels such as China-Europe Railway Express, China-Vietnam Railway, Central Asia Railway and cross-border ocean transportation, which has improved the efficiency of international transportation and saved nearly 10 million yuan in logistics costs; 2022 In July 2009, China Credit Insurance awarded Liugong the highest rating title of "V-level customer" based on the evaluation of Liugong's many years of cooperation and risk control. In 2022, Liugong's overseas business will reach 8 billion yuan, setting a record for the best performance in history.

In the future, LiuGong will continue to enhance its ability to grasp the market, develop customers and resist risks, seize development opportunities, and strive to create a highland for development and cooperation facing RCEP and the "Belt and Road" initiative, and accelerate the new development pattern.

In recent years, as one of the emerging markets with great growth potential in the field of construction machinery, the recognition and acceptance of Chinese construction machinery brands in the Indonesian market has continued to rise. In the past 16 years, Liugong's development in Indonesia has experienced the process of business scale from small to large, and business model from single to multi-integrated. It has become a microcosm of Liugong's heavy equipment and high-quality growth. In 2019, Liugong's thirteenth overseas subsidiary settled in Indonesia, marking that Liugong's overseas business has entered a stage of high-quality development.

"At the beginning of our establishment, we faced difficulties such as lack of distribution channels and market trust, and poor basic capabilities in the post-market. These pressures inspired everyone's sense of mission, and the team worked hard to fight back." Liugong Machinery Indonesia Co., Ltd. ( Lin Long, general manager of LiuGong Indonesia for short, recalled the company's start-up period and was still filled with emotion. The Indonesian team continued to promote business transformation. In 2020, based on Indonesia's national conditions and its own development advantages, it proposed a high-quality development strategy centered on "value creation, localization, and sustainability", laying the foundation for the rapid development of LiuGong Indonesia.

LiuGong Indonesia regards business transformation as the first step in localized organizational transformation. Changes in personnel structure, distribution model, channel layout, etc., and create long-term sustainable development potential through capacity building in the aftermarket, organization, and brand. The scope of business has also expanded from product portfolio marketing to providing customized financing and aftermarket solutions to continuously create value for customers. In 2022, the Jakarta Parts Center was established, creating a team of industry experts represented by product application managers, training masters, and service experts to ensure the supply of parts at all levels and at multiple levels, and quickly respond to market demand. In addition, LiuGong Indonesia cooperates with local vocational colleges and Indonesian famous technical schools to carry out professional talent training projects, and continues to provide talents for the Indonesian construction machinery industry.

LiuGong Indonesia combines the concept of high-quality sustainable development with LiuGong's "Three Alls" strategy to double its business scale for two consecutive years, continuously expand its high-quality customer base, and increase its profitability year after year. How to continue high-quality development, Lin Long's direction is very clear: "Only by continuously innovating and reforming around customer needs and strengthening our own capacity building can we build sustainable competitiveness and make us truly invincible." In the future, Liugong Indonesia will continue to focus on the improvement of key customer business and distribution channel capabilities, and continuously improve customer value creation to promote its own business growth and achieve a win-win situation for the company and customers.

Comprehensive internationalization is the way of Liugong's survival and growth, the call of mission and vision, and the embodiment of Liugong's core values. LiuGong's 20-year overseas business development history has gone through a trilogy of overseas marketing, overseas manufacturing and operation, international mergers and acquisitions and integration, and has composed a long song of exploring the internationalization of China's manufacturing industry.

LiuGong's international business will always adhere to the strategy of "sustainable high-quality development". Through reform and innovation, in-depth breakthroughs, strategic investment, and rapid response, it will seize the market strategic opportunities arising from the changes and strive to become the first brand in the earthwork product portfolio.

In the past, Liugong looked at the world from Liuzhou and China; in the future, Liugong will look at the world from the perspective of the earth!Editor / Xie Li

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