Views: 0 Author: PEAK Publish Time: 2022-12-21 Origin: Nongjitong
The author has been tracking and studying the domestic tractor industry for a long time, and has fully witnessed the most recent development cycle of the tractor industry (2004-2022), The author can understand the real operation of the tractor enterprise and feel the slightest pulse of the tractor industry. In this process, he has known many bosses, front-line business managers in the market and people in various roles in the supply chain, thus establishing his own information access channels.
The author has always been concerned about the living conditions of more than 200 small, medium-sized and micro tractor manufacturers in China. These 200 tractor factories are deformed children born in the era, and also unexpected multiple children of the subsidy policy. They have a special background of the times. But once an enterprise is registered for business, it should have the same right of survival as people. People, whether born in marriage or out of wedlock, have the right to be raised. Enterprises, whether deformed children or multiple children, As long as compliance and legality are established, they also have the right to survive, develop, become bigger and stronger.
Rights belong to rights, but the market competition is ruthless. What's more, the commercial society follows the jungle law, which shows the "Matthew effect" - "Give more to those who have it, and make it redundant; take all that they have not". Therefore, more than 200 small and medium-sized tractor factories, most of which are eliminated, are inevitable, and everyone says that they cannot be enemies of the trend, But after all, more than 200 tractor factories are made up of living people. There are tens of thousands of workers and tens of thousands of families behind the 200 factories. It is irresponsible to let them be eliminated by the "jungle rule". It is a commercial law that the industry needs to be integrated. But how to promote the industry integration and how to guide these enterprises to become bigger, stronger or transform, It should also be natural for these enterprises and their employees and the families behind them to have a better way out.
What is the way out for more than 200 tractor enterprises? Do they have a future?
The domestic tractor industry has passed the peak period and entered the downward channel since 2013. After the COVID-19 in 2020, the industry had a brief recovery under the stimulus of policies, and then entered a depression period from 2021 to 2022. In 2022, the market resources of the domestic tractor industry will become more concentrated on the leading brands. More than 230 domestic tractor manufacturers, such as Yituo Dongfanghong, Weichai Lovol, Dongfeng Agricultural Machinery, John Deere, Kesnew Netherlands and other leading brands at home and abroad, will quickly concentrate on these major brands in a natural flow way, while nearly 200 second-line, third line and non mainstream small brands will struggle, Hundreds of small brands that grew crazily in 2018-2020 will either quit or survive.
After many years, the market law of the domestic tractor industry has regained control of the competition situation, the magic of the "Matthew Effect" has reappeared, and the industrial integration driven by the subsidy policy+industry cycle+industry law has slowly started.
"Survival or death, this is a question". The longest lived enterprise in the world is Japan's King Kong Group, but it has only 1500 years of history. The life will eventually end, and the enterprise will eventually die. But all enterprises are willing to live, no enterprise is willing to die in front of competitors, and 200 tractor enterprises have the right to live, but where will they go?
Don't be blindly pessimistic. It is not the only way to shuffle the cards.
By studying the upheaval, reshuffle and reorganization of the European and American agricultural machinery industry in the 1980s and 1990s, you will find that the reshuffle of the industry is not a one-way road of big companies annexing small companies. In fact, in addition to a few big companies such as John Deere, they are the resources of the industry and other small companies, there are also some small companies in the industry mix from small to large From weak to strong, it has become an international company with global influence.
AGCO is such a company. As mentioned earlier, the president of American Deutz Ellis bought Deutz Ellis in 1990 by means of management acquisition, and later renamed it AGCO. At that time, AGCO had only sales revenue of 200 million dollars, and was also faced with severe internal contradictions such as the conflict and tear between the American and German cultures. However, AGCO is a completely modern enterprise. With the help of the capital market, With the bold use of professional managers, AGCO has gradually absorbed a series of big brands with strength and popularity far higher than that of Deutz Ellis in the past seven years. In just seven years, the annual turnover has reached 5.4 billion dollars, becoming the third largest agricultural machinery company in the world.
AGCO is a typical company that focuses on fast food and slow food. At present, there are not few domestic tractors with the same strength as those of Deutz Ellis in those years. These enterprises are not the only ones that have been integrated or eliminated, but have the opportunity to grow into national and even global industry leaders like AGCO. Therefore, more than 200 small and medium-sized tractor brands should not be blindly pessimistic. In this opportunistic market in China, large and small enterprises have the opportunity, There are great difficulties and small advantages. As long as you find the right path and obtain the proper resources, you may become a dark horse in the industry. This is a large number of cases in all ages and in all industries.
