China's construction machinery industry grew out of state-owned enterprises, experienced three major economic system stages of planned economy, planned commodity economy and market economy. The sales model of products also evolved accordingly, forming a unique sales model in each period. With the development of the social economy and the gradual maturity of the market, the choice of the sales model has begun to show new changes, and more and more attention has been paid to the control of the efficiency, cost, and risk of the sales model.

Evolution of marketing model of construction machinery

1. Transformation of marketing model from singleness to diversity

Before the 1980s, under the planned economy system, the market was a seller's market, and the manufacturer's scale was relatively weak. The marketing task was basically based on product delivery and after-sales three-package services, forming a single direct sales model. In the direct sales model, manufacturers set up branch offices or offices around the country, station their own sales and service personnel, and directly face end users to carry out sales and service work. At this stage, market competition is not yet sufficient, especially since the development of channels has just begun. Manufacturers basically have no more choices in the sales model.

From the 1980s to the mid-1990s, with the reform and opening up and the expansion of the market, the social demand for construction machinery products increased significantly, manufacturers continued to increase, the scale of enterprises expanded, competition intensified, and the consumer groups were collectively used by construction units in the past. Purchasing mainly for units, small groups, and private multi-level development. The traditional direct sales model has not been able to meet the requirements of development. Manufacturers began to look for a new marketing model--agent model to meet the challenges of the market. The agency model is that the manufacturer passes the agent with large scale and strength, sells its own products in a certain area, and provides the three-package service sales model for users. At this time, the size of the agency is relatively small, the scope of the agency's products is mainly limited to the conventional scale products, and the direct sales model still dominates.

After the mid-1990s, China's construction machinery industry entered a period of rapid development. State-owned, private-owned, and joint-venture companies and other companies have participated in market competition. The unprecedented expansion of market size and production capacity has directly promoted the development of channels. The dominant position of the direct sales model has gradually been replaced by the agency model, especially the loader and excavator. Almost all of the sales of construction machinery products use the agency model.

The issue of the cost of running and the risks of the agency model began to appear. At the same time, with the development of the domestic financial market, microfinance conditions have been relaxed, and the sales model of simple financial leasing has also begun to enter the enterprise. Therefore, in order to reduce costs and risks, a mixed marketing model of direct sales, agency, and financial leasing became the choice of this period.

2. The future development trend of marketing model

In the market conditions where supply exceeds demand and products are heavily homogenized, the agency system is the most viable one. The reasons are as follows: First, the Chinese market is too large, and local development is not balanced. It is difficult for manufacturers to face users in different markets independently. Selecting an agency model is equivalent to choosing localization; second, the rational use of regional marketing resources by agents. Strong distribution capabilities; third, the integrated business model of procurement, production, and sales does not conform to the trend of economic globalization. With the deepening of the division of labor and the increase in the strength of agents, the agency system will be a trend, and the space for development will also increase.

In addition, the characteristics of construction machinery products are very suitable for the use of financial leasing methods, but due to the short development time of the Chinese market, the country's low credit level, coupled with the user's strong sense of independence and unique purchasing psychology, making the development of financial leasing slow. With the maturity of the market, financial leasing will gradually become an important part of the marketing model in the post-market era.

At the same time, with the increase of the social possession of construction machinery products, users’ demands for construction quality and efficiency have been continuously improved and the professionalization of the social division of labor is further specialized. It is also a more effective sales model for manufacturers to establish their own construction companies. There are obvious advantages for introducing new products. In this respect, German Breguet company has a lot of experience worth learning from.