英文丨农机行业10大“小趋势”酝酿大变革

Rather than the big trends that the average person can't control, it's the "small trends" that create the big changes that really bring opportunity to everyone.

The future of agricultural machinery is being shaped, honed and driven by many small trends. So what are some trends in the farm machinery industry?

Small trend 1: unmanned

According to the published data of agricultural machinery purchase subsidy system in 2018, the sales volume of plant protection unmanned aerial vehicle is about 300 million yuan. Although the number is insignificant, unmanned is the general trend of agricultural machinery in China and even in the world.

Minor trend 2: domestic brand single product breakthrough

In the market competition of agricultural machinery industry, such as the market of southern paddy field, offensive and defensive battle is in full blast, Japanese brand defense, more than 100 domestic brand attack, some domestic brands have achieved a single product breakthrough.

Domestic brand single product breakthrough is a quantitative change. The amount of accumulation to a certain stage is bound to cause qualitative change, the global agricultural machinery China era is bound to come.

Mini-trend 3: consumption goes down

Agricultural machinery industry also has the symptom of consumption downgrading, so we call it "small trend". The author summarized the downgrading of agricultural machinery consumption into 7 aspects:

From hunger to saturation

From much money to less money smart consumer

From field crops to cash crops, product demand from high power and high efficiency to small and medium-sized transformation.

From the policy frequently established to less policy

Users from immature to rational maturity

From new machine to second-machines

From personal purchase to machine share

The author believes that consumption degradation and consumption upgrading, as the two sides of the industry, will exist for a long time, and will be more and more prominent in recent years.

Minor trend 4: channel upturn

In order to fully contact with users, in order to increase the probability of terminal interception, in recent years agricultural machinery production enterprises are pushing the channel sinking and network dense planting.

But after the end of the golden decade, with the rise of big customers and reduced demand, agricultural machinery channel revenue is quietly happening.

Minor trend 5: the "three guarantees" period is prolonged

Agricultural machinery industry competition is not only white-hot, and is bound to be the upgrading of competition, "three guarantees" period extension has been a "small trend".

In fact, the extension of the "three guarantees" period was implemented as early as 2015 on tractors in China. That was the beginning of a "mini-trend".

Small trend 6: agricultural machinery insurance break

Auto insurance accounts for 7% to 15% of the profits of dealers in the auto industry. However, the domestic industry did not cause enough attention. But the biggest obstacle that agricultural machinery insurance promotes is the concept of the user and the responsibility after giving an accident affirmatory and decides loss.

Although agricultural machinery insurance has just germinated, the product competition into service competition, insurance business will become an important profit point manufacturers.

Small trend 7: electrification

In the field of electric agricultural machinery, domestic and foreign enterprises are at the same starting line. In terms of application, China seems to have an advantage over advanced agricultural machinery countries such as Europe, Japan and South Korea. The development of electric plant protection unmanned aircraft in China is of great concern.

Electrification is a "small trend" at present; the great era of electric agricultural machinery is not far away.

Mini-trend 8: mash-up innovation

In the domestic agricultural machinery industry, some enterprises are using mix-and-match innovation to find the advantage of differentiated competition, some excellent mix-and-match even created a new category of agricultural machinery.

Agricultural machinery technology is divided into bottom level technology (original technology) and application level technology. At present, the domestic agricultural machinery industry lacks advanced underlying technology, which is difficult to break through in a short term. However, at the application level, domestic enterprises can mix and match different technologies or graft them together to create a brand new category. This is a "mini-trend" and some domestic companies have successful precedents and are still making big strides in this direction.

Minor trend 9: the shift from hard power competition to soft power competition

Although the domestic agricultural machinery industry has not entered the digital era, but "from hard to soft""small trend" seems to have arrived.

China Yituo, Suzhou Jiufu, often hair farm outfit, tractor, rice transplanter "three guarantees" period extended to two years, and Anhui Chenyu dryer "three guarantees" period extended to three years, service competition is a typical soft power competition.

Product hardware Competition never end, high quality means cost increase, low price means profit reduction. However, soft competition, such as financial instruments and services, provides new value to users and is the best differentiated competition, which is not easy to imitate.

Minor trend 10: increased long-tail opportunities

On the whole, the domestic demand for grain crop-based field machines has reached stage saturation, and the demand for subsectors is increasing. This is a general trend, but specific to each subsector is a "small trend".

In the mature agricultural machinery market in Europe and the United States, there are more than 7,000 categories of agricultural machinery, but there are only 4,000 categories in China, that is to say, there are 3,000 new categories of domestic market segments to be explored in the future, these segments of demand is the long tail opportunity.

Once again: "small trends" are trends that affect trends, changes that bring about change! So now and in the future, agricultural machinery enterprises should grasp the "small trend", ready to embrace the big trend.