June 2012 China Construction Machinery Industry Prosperity Study and Forecast Report

Important findings in this issue:

The market is even more dismal and sales continue to decline. According to the statistics from the China Construction Machinery Business Network, the agency confidence index in June was only 3.14.

The decline in sales in June was mainly due to the following reasons: First, June was a traditional off-season with industry characteristics. Second, funds were not in place. There were not enough projects to start, leading customers to wait and see. Third, some areas in the south entered the rainy season. Affecting the progress of the project; Fourth, the occurrence of production accidents in some areas led to the stagnation of mining production.

Judging from the June market, most agencies are not optimistic about the July market, and the confidence index is 2.98. It is believed that it is very difficult to ensure that the sales volume is even.

Promotional activities have been further reduced, savings have been saved, and traditional promotional activities have not been able to display their magic of selling in a gloomy market environment. Plus, customers are now very rational, and most agents choose small promotions or even give up.

"Internal skills" cultivation is a required course for manufacturers and agents during the off-season. In addition, maintaining old customers and developing new customers, different brands have different ways.

The lower threshold for purchases, the tight situation of the collection of agents, etc. In addition to the objective factors such as low start-up projects and poor customer turnover, the low purchase threshold is also a very important phenomenon. The depressed market conditions and the pressure exerted by manufacturers have caused many agents to take risks to protect their performance and reduce the barriers to purchase, making it impossible to guarantee the quality of customers.

Of course, there are also some brand agents who have increased the down payment ratio or even the full amount under such weak conditions. The purpose is to control the risk. The July municipal real estate construction project still leads, and the stoppage of mineral development projects has affected the projects started in July. Real estate construction projects are still the most extensive in coverage and the largest amount of investment. Other types of projects are not at an order of magnitude compared to municipal real estate projects.

Shanghai, with its strong rise in municipal projects, became the province with the most start-up this month, and far more than other provinces.

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