China's Agricultural Machinery Market Shows Stage Characteristics

China's Agricultural Machinery Market Shows Stage Characteristics In recent years, the agricultural machinery industry has maintained an overall growth rate of over 13% with the increase in subsidies for the purchase of agricultural machinery and the dual pull of demand in the market. The "12th Five-Year Plan" of the agricultural machinery industry proposed that the agricultural machinery industry's total production value will increase from 280 billion yuan in 2010 to 400 billion yuan in 2015. The rapid development of China's agricultural machinery industry is progressing from the intermediate stage to the advanced stage, showing the characteristics and trends of industrial development, market prosperity and user benefits, and the agricultural machinery market reflects the phased characteristics.

Since the beginning of the new century, China’s policy of supporting agriculture, benefiting farmers, and affluent farmers has been continuously strengthened, and the agricultural machinery market has entered a new stage. It has obvious stages in terms of user needs, market structure, subsidies orientation, circulation model, and product innovation. The agricultural machinery market faces multiple favorable development environment.

First, the user needs to change from rigid to flexible. The main performance is to buy subsidies in the past, but now it is necessary to buy. The demand for user purchases has undergone significant changes, which have evolved from the traditional product price, quality, service-oriented quality, brand, and technology leadership.

The second is that the development of the market is driven by incremental increase to the optimal amount. Product operating capacity has become a major factor in the increase. Exclusive knowledge technology constitutes the main value of product operating capability and has become the main driving force for development. Large-scale, breadth, complete, intelligent, and accurate quality products have become the main factors driving incremental growth. Corn combine harvesters, high-speed rice transplanters, large-sized hourly needle sprinklers, tractors with power above 100 hp and supporting farm implements have become the main drivers of market growth.

The third is that subsidies are oriented by the government and the user chooses the same. Policy from the key support to strengthen the transition to the local. Under the role of the market mechanism, provincial and municipal agricultural machinery authorities have changed from dominant to leading, and subsidy authority has been continuously shifted to county and township agricultural machinery authorities. End-users have more options to purchase and use agricultural machinery products according to their needs.

Fourth, the circulation of agricultural machinery is guided by sales masters to coordinate sales services. Agricultural machinery circulation enterprises are separated from traditional sales and services, and are transformed into collaborative sales services. Service guarantees and spare parts supply have become a guarantee for circulation enterprises to promote sales and intensity competition. Agricultural machinery companies, agricultural machinery supermarkets, agricultural machinery supermarkets, etc., jointly build a multi-level development model for circulation, regional distribution to the national circulation enterprises has taken shape, and promote China's agricultural machinery market continues to make new progress.

Fifth, the transformation of enterprise technology from follow-up imitation to independent innovation. After many years of development, agricultural machinery enterprises have achieved effective breakthroughs in the introduction, digestion, absorption, and re-innovation modes. The company's original innovation and integrated innovation have made positive progress and its independent innovation capability has been enhanced. China's One Trailer, Lovol Heavy Industry, Dongfeng Agricultural Machinery and other domestic companies have formed their own differentiated technology systems and product platforms.

Sixth, the development of the enterprise is both inward-oriented and outward-oriented. Agricultural machinery enterprises actively promote the "going out" strategy, make full use of domestic and international two platforms and two resources, coordinate long-term goals and current operations, plan global direction and local resources, focus on improving the quality of economic operations, and realize the global allocation of strategic resources. The orientation, wide-area, and multi-level openness pattern are emerging, and the industry level and growth mode have been continuously improved and optimized. In the past three years, the export of agricultural machinery products in China continued to increase. In 2011, the export ratio of large and medium-sized tractors in Chinese agricultural machinery enterprises was close to 10%. The export sales volume and growth rate of Dongfeng Agricultural Machinery and Lovol Heavy Industry products kept growing, becoming the leader in implementing the “going out” strategy for agricultural machinery enterprises in China.

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