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Jun 17, 2021

In the process of transforming the incremental market to the stock market, the development of the after-service market has highlighted its importance. This is the next fiercely contested commanding height of the enterprise. Whoever wins the after-service market will win the old customers and win Good reputation and brand opportunity. At the same time, the after-service market can also bring certain benefits to agents. With the increasingly fierce competition in the complete machine market, the profit of the complete machine sales continues to shrink. An enterprise lacking an aftermarket is equivalent to walking on one leg, relying solely on the complete machine. Sales agents have been difficult to survive, and under the conditions of the stock market, the ability of the market after service will surely become a watershed in distinguishing the quality of agents.

How to develop the aftermarket is a brand new subject. Over the years, many companies have invested 90% of their time, energy, and budget on the sale of the whole machine, and even shouted the slogan of 'free service', giving the service as a marketing tool to users for free. When the after-service market began to enter people's vision, many companies suddenly discovered that the after-market turnover in their hands was pitifully small, because old customers, out-of-warranty services and accessories had long been lost.

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The dilemma of 'players' in the after-service market

At the Changsha China Construction Machinery Aftermarket Thousand Talents Summit in May 2019, Mr. Xue Xiaoping proposed the famous 'elephant, rabbit and ant theory', describing the 'players' in the construction machinery aftermarket ecosystem: OEMs 'Elephants', agents and distributors are 'wolves', domestic parts suppliers are 'rabbits', social repair shops, parts stores and individual maintenance technicians (also known as 'backpackers') are 'ant '.

Facing the after-service market, the foreign brand 'Elephant' and the domestic brand 'Elephant' have two completely different mentalities: The foreign brand 'Elephant' deeply understands the importance of the aftermarket, and tries to protect the profits of original parts and services. , I hope to enjoy the 'cake' of the aftermarket exclusively. On the one hand, parts and maintenance information are kept strictly confidential, and part numbers are frequently changed; on the other hand, agents’ exclusive service areas and parts supply channels are strictly protected, and agents and distributors are strictly prohibited. Dealing with non-original parts. Indeed, the accessories of 'Elephant' and 'Wolf' used to be very profitable and made a lot of money.

On the contrary, the domestic brand 'Elephant' seems to have insufficient understanding of the importance of the aftermarket. They are still immersed in the high-margin sales of the whole machine. They regard maintenance service and parts business as 'chicken ribs' and adopt a kind of 'who loves to do it'. 'Who does it' laissez-faire attitude. Some domestic brands 'Elephants' even feel that if 'Ants' assume all the services, they can reduce the pressure they face in the market after the service, and they can still lose some money in terms of services.

All 'Elephants' believe that the equipment is produced by them and sold to users through 'Wolves'. All technical standards, maintenance manuals, and parts catalogs are formulated by them. For this reason, they have established a complete set of services and accessories support. On the Internet, the customers are of course theirs, and of course customers will come to them for help when they encounter problems. Due to technical barriers and supply channels, customers of brand A usually do not go to brand B to purchase accessories and seek services. Therefore, the initial competition in the market after service is not so fierce. The 'elephant' focuses on the whole machine. In terms of sales and competition for market share, they did not pay serious attention to customer needs and pain points in the aftermarket.

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With the rise of 'Made in China', more and more 'rabbits' have grown and expanded, and more 'ants' have met the needs of customers in the after-service market. More than 80% of the after-service market has been lost to 'Elephant'. Outside the service network. When the stock market came, 'Elephant' was surprised to find that customers, especially those old customers, were not in the hands of 'Wolf', and many old customers did not look for 'Wolf' to do business long ago! 'Elephant' thinks The loss of customers is the responsibility of the 'wolf', so they are constantly putting pressure on the 'wolf' to increase the number of service technicians, increase the coverage of service outlets, and increase the inventory of parts to improve the timeliness of service.

However, 'Wolf' believes that the loss of old customers is because the price of original parts is too high, and 'Elephant' prohibits 'Wolf' from operating subsidiary parts, causing them to watch the loss of old customers. In recent years, the 'wolf' life has not been easy, and the sales profit of the whole machine has continued to shrink, resulting in the unsustainable operation model of 'the whole machine maintenance service'. The market decline a few years ago is still fresh in memory, leaving 'wolves' with lingering fears about increasing service personnel, because the market will not make money after the service, and the increase in service resources will inevitably lead to a decline in efficiency. The free service slogan shouted by 'Xiang' makes market profitability after service a fantasy.

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The 'elephants' looked down on the 'ants' in their hearts, thinking that they were just 'spouse and wife shops', a group of scammers 'selling fake and shoddy parts,' and they were not worth looking at. It is precisely this arrogant attitude that gives the 'ant' the opportunity to grow and develop. With more and more equipment sales and declining rents, it is more difficult for customers to make money. They have to pay attention to equipment repair and maintenance costs, otherwise they will not be able to make money. In this environment, the first choice of customers in the aftermarket is not 'elephant' and 'wolf', but 'ant' and 'rabbit'. Unknowingly, 80% of the old customers and the aftermarket have been renewed. Shuffle.

'Ants' are also facing challenges from the market. The prices of accessories are becoming more and more transparent, making it more and more difficult to make money. 'Elephant' and 'Wolf' have awakened and began to pay attention to the challenge of 'ants', extending the equipment warranty period, signing service agreements, adjusting the price of accessories, and launching adaptive and remanufactured parts in order to restore those lost old customers. Many 'ants' lack technical support, and some 'ants' still do not speak good faith and deceive customers. National tax regulations have a great impact on the profits of 'ants'. Although many 'ants' are close to customers and operate flexibly, they are small in size. There is a serious inventory backlog in accessories stores operated by 'ants', and many 'ants' are still struggling to survive.

The situation of 'Rabbit' is similar to that of 'Ant'. The goal of many 'Rabbits' is to eventually become a parts supplier of 'Elephant' through the