Bauma Stimulates Bucket Development Foreign ... - Pdworld.com

Foreign brandsgrow in popularity in ChinaHusqvarna Construction Products has been present with their own manufacturing plants in Chinasince 1995. But it has taken time to become a considerable supplier to the domestic market. “Butnow we see a clear opening in to the Chinese market,” said Husqvarna Construction Products ChinaMD Marc Segers, speaking at the recent Bauma China exhibition.Husqvarna Construction ProductsChina,managing director,Marc SegersBauma China has grown from being aChinese meeting point for Chinese andinternational manufacturers seeking apartner in China to being an increasinggateway for reaching the Chinese andother Asian markets. Just ten years agoit was much more difficult to sell toChinese building and construction contractors,apart from a few big companiesthat were government controlled. Andthe bureaucracy was horrendous, whichmade negotiations take a very long time.The almost one million small oftenone-man contractors had no means toinvest in expensive equipment. Foreignmanufacturers were more concentratedin setting up production plants in Chinain order to better compete in the globalmarket. But now things are changingfast. Bauma China last year was a goodexample. More then 180,000 visitedthe show and 154,000 came from thedomestic Chinese market.has today two plants, one in Xiamen,one in Shijiazhuang in the province ofHebei which is in the Nothern partof China. “It was difficult to enter theChinese market in the beginning. Nodoubt about that. We tried to sell ourwhole range, but our feeling was that weneeded a niche product to actually getin to the market. And we found it. Theniche product became our popular powercutters. But it was not the constructionindustry that embraced them first. It wasthe rail and rescue industry,” said Segers.Husqvarna now dominates thisindustry in China having about 80%market share of the hand held power cuttermarket . “We try to be a supportingpartner to China when different typesof catastrophes occur, providing ourproducts and support. In some cases wehave even been on the spot before theChinese army,” said Segers. With sucha strong foothold in this industry, it becameeasier to enter other niches relatedto the Husqvarna product range and toestablish product and service centresthroughout the country. Segers says thatthey now have service centres in Beijing,Shanghai and Xiamen, besides a widerange of servicing dealers throughoutthe country. Thanks to the network ofproduct centres, Husqvarna has been ableto find and reach the heavy users in construction,and has become an importantplayer in this market as well.A growing demolition industrySegers says that much has changed in theconstruction industry, which has helpedsales. Before there were many small contractorsin concrete sawing and drillingand demolition. In terms of demolitionthere are a big number that now worknation wide. Several of them have over100 employees. There is also a nationaldemolition association with over 500members with office in Beijing. Regulationsand environmental laws are alsostricter. Before almost any constructioncompany could tear down a building.Now a license is needed, anyway forlarger demolition projects in the cities.The Chinese construction marketis in strong development and a lot isexpected to happen in the coming years.For a couple of years it has experienceda slow down due to over heating of themarket, but analysts believe that in 2013the market will start showing increasingnumbers again. The forecast for investmentsin infrastructure for 2013 aresome Yuan 800bn. A strong advantagefor China’s position on the global marketFrom left: Husqvarna Construction Products China managing directior Marc Segers, Husqvarna Construction Productsmarketing manager Helen Thiel, and Husqvarna Construction Products China sales and marketing manager Lawrence LiuHusqvarna with 80%market shareHusqvarna Construction Products hasbeen present with their own plants inChina since 1995. The manufacturer58 PDi • Issue 1 • February - March 2013