Analysis of the Current Status of Domestic Construction Machinery Second Mobile Phone Exports

Release date 2024-11-16 16:02:34 Reading 4

　　used excavator In recent years, since the Chinese construction machinery market entered the stock market from the incremental market, the market ownership has been huge. According to incomplete statistics, as of the end of 2022, the main products of Chinese construction machinery in the domestic market have a ownership of 8.56 million to 9.27 million units. How to deal with excess equipment has become a highly concerned topic in the industry. Among them, the export of second-hand mobile phones has always been a hot topic of discussion. Undoubtedly, after China has become the world's largest manufacturer of construction machinery and made significant progress in technological innovation and product quality, it has not only become a major exporter of new machines, but also gradually shifted from an importing country to an exporting country for second-hand machines.

　　In the domestic market, on the one hand, the growth rate of fixed assets investment is reduced, and the operating volume is insufficient; On the other hand, the domestic market has a huge inventory, so many experienced professionals are accelerating their exploration of the export business of second-hand phones. In their view, now is no longer the time to consider whether or not to do it, but to discuss how to expand channels. The export of second-hand mobile phones, as an inevitable trend in the future, is a living water in the gradually calming pool of the domestic construction machinery industry. Undoubtedly, it will bring new development opportunities.

　　01. Methods and characteristics of mobile phone export business

　　The export of second-hand mobile phones, as an important way of reusing idle equipment, is not uncommon in the global construction machinery market. But this track is often chaotic, and compared to the sales of new phones, the trading of second-hand phones is more complex. The uncertainty of device sources and trading points, as well as the non standardized characteristics of one phone, one condition, make the second-hand phone market appear dispersed. In interviews with multiple companies engaged in the second-hand mobile phone business, most respondents stated that objective limitations have led to a continuous reduction in the possibility of doing large-scale in this industry, so they focus on small used excavator but refined and long-term thinking.

　　The uncertainty of smartphones also determines the complexity of this industry to a certain extent. In the analysis of regional infrastructure capacity, researchers often use local new phone sales to calculate the activity level of construction in this area, but the transaction volume and amount of second-hand phones do not have this necessary connection, which exacerbates the difficulty of predicting the circulation of second-hand phones. In addition, the customs declaration process for the export of domestic construction machinery is very complex, which inevitably means that there is no standard answer in the field of second-hand mobile phone exports. As Su Yu, the founder of "Digging Alliance," said in an interview, "Now everyone is like the Eight Immortals crossing the sea, each showing their own skills." The export mode of second-hand mobile phones in China can be described as very diverse.

　　Domestic two mobile phone export mode:

　　（1） Foreign trade company. As the most familiar type of company with customs, foreign trade companies have certain export capabilities and therefore occupy a relatively large proportion in the export mode of second-hand mobile phones. In addition to professional foreign trade companies specializing in exporting second-hand mobile phones, there are also some foreign trade companies with a wide range of interests. The latter have their own channels and warehouses, playing the role of intermediaries and serving as a bridge between buyers and sellers.

　　3） Agent export. A small number of agents have import and export qualifications, so they can take advantage of their own advantages by sourcing goods domestically and finding buyers abroad to complete the export process on their own. But agents without import and export qualifications are also constantly expanding their business, using their own sources of goods to entrust foreign trade companies to declare exports.

　　（4） Platform mode. The advantage of this model lies in its wide coverage, abundant equipment sources, and global service, as well as cooperative export trade.

　　（5） Leasing trade. This is a relatively small export method. According to domestic export regulations, normal declaration of rental exports without tariffs, but with a maximum circulation time of two years abroad.

　　（6） Remanufacturing for export. This method consumes a significant amount of manpower and material resources, so currently only a very small portion of people are exploring this model.

　　used excavator There are various modes, but in the digital age, many companies engaged in exporting second-hand phones are not confined to one of the six methods mentioned above. For example, China Machinery Technology (Tianjin) Co., Ltd., leveraging its port advantages, went from an early international logistics company to a window agency company. In October 2023, China Machinery officially launched an all English platform and began to cooperate with major manufacturers to set up exhibition areas using the platform model. It also built its own repair factory to customize the repair of exported second-hand phones. In addition, Zhou Zheng also revealed China Machinery's next plan - to establish overseas warehouses abroad by 2025, shorten logistics time, and accelerate circulation efficiency. Zhongji Machinery has always been committed to building a comprehensive service platform. Currently, eight business segments including international stores, precise promotion, payment settlement, customs declaration and refund, warehousing and customs clearance, international logistics, trade financing, and transaction guarantee have been implemented.

　　2024/02/23 17:24 Today's Construction Machinery Ding Yuzhu

　　In recent years, since the Chinese construction machinery market entered the stock market from the incremental market, the market ownership has been huge. According to incomplete statistics, as of the end of 2022, the main products of Chinese construction machinery in the domestic market have a ownership of 8.56 million to 9.27 million units. How to deal with excess equipment has become a highly concerned topic in the industry. Among them, the export of second-hand mobile phones has always been a hot topic of discussion. Undoubtedly, after China has become the world's largest manufacturer of construction machinery and made significant progress in technological innovation and product quality, it has not only become a major exporter of new machines, but also gradually shifted from an importing country to an exporting country for second-hand machines.

　　01. Methods and characteristics of mobile phone export business

　　Domestic two mobile phone export mode:

　　（2） Manufacturers export. Financing sales and trade in programs have resulted in manufacturers having a large number of debt machines and trade in devices. With the current circulation and export of second-hand phones, many large domestic manufacturers have also begun to exert their power in this field. However, manufacturers will have more considerations in this regard. Whether the export volume of second-hand phones will affect the sales of local new phones is something that manufacturers must weigh, because only when new phones are sold overseas can second-hand phones open up sales channels. Therefore, this model is still in its infancy in practice. At present, it is known that there are XCMG E-commerce Technology Co., Ltd. and Sany Yunlian Technology Co., Ltd., which will start operating in May 2022. Both have their own online foreign language trading platforms, which can provide a large amount of data for second-hand mobile devices. At the same time, the former also engages in export trade.

　　XCMG Online English Two Phone Mall

　　（3）used excavator Agent export. A small number of agents have import and export qualifications, so they can take advantage of their own advantages by sourcing goods domestically and finding buyers abroad to complete the export process on their own. But agents without import and export qualifications are also constantly expanding their business, using their own sources of goods to entrust foreign trade companies to declare exports.

　　（4） Platform mode. The advantage of this model lies in its wide coverage, abundant equipment sources, and global service, as well as cooperative export trade.

　　（6） Remanufacturing for export. This method consumes a significant amount of manpower and material resources, so currently only a very small portion of people are exploring this model.

　　There are various modes, but in the digital age, many companies engaged in exporting second-hand phones are not confined to one of the six methods mentioned above. For example, China Machinery Technology (Tianjin) Co., Ltd., leveraging its port advantages, went from an early international logistics company to a window agency company. In October 2023, China Machinery officially launched an all English platform and began to cooperate with major manufacturers to set up exhibition areas using the platform model. It also built its own repair factory to customize the repair of exported second-hand phones. In addition, Zhou Zheng also revealed China Machinery's next plan - to establish overseas warehouses abroad by 2025, shorten logistics time, and accelerate circulation efficiency. Zhongji Machinery has always been committed to building a comprehensive service platform. Currently, eight business segments including international stores, precise promotion, payment settlement, customs declaration and refund, warehousing and customs clearance, international logistics, trade financing, and transaction guarantee have been implemented.

　　Intermediate Machinery Second hand Equipment Shutdown Site

　　02. Upstream and downstream flow of mobile phone exports

　　In the past 10 years, the second-hand equipment trading market has formed a very clear trade market differentiated by the level of national economic development, divided into upstream and downstream markets. The upstream market mainly consists of developed regions such as Europe, North America, Japan, etc., where the utilization rate of equipment throughout its entire lifecycle is the highest. That is to say, once this device is shut down, there are many ways to monetize and circulate devices in this area. The downstream market refers to some underdeveloped regions, such as Africa and South America, where equipment circulation is very lagging and idle rates are high. Especially after the completion of the the Belt and Road project, a large number of equipment is still idle there, which can be said to be a great waste.

　　How does the upstream market maintain trading volume or activity? Taking the United States as an example, the main buyers of new equipment are large leasing companies, so nearly 50% of the equipment will be sent to large leasing venues. The comprehensive participation of leasing companies in large-scale engineering projects enables them to efficiently match the leased equipment and maximize its utilization value. Therefore, their profit margins are very considerable throughout the lifecycle of each equipment. In addition, tenants will also use large platforms to process second-hand phones in bulk, such as relying on the Li Brothers Auction House. Li Brothers not only has a customer base, but also has network technology capabilities, so they can sell second-hand phones in bulk. The equipment in the upstream market will not remain stagnant in the upstream market. To improve its conversion rate of utilization value, the equipment will enter the downstream market without stopping. For example, in North America, second-hand equipment has a naturally geographically determined overflow distribution market, namely Mexico and other regions in South America. In North America, used equipment first consumes one-third in the regions where it is manufactured, then another one-third in the United States, and finally one-third flows into downstream markets in North America. The Li brothers can use their auction data from the past two years to infer market conditions and make corresponding resource allocation. In Mexico, mineral resources are abundant, so there is a strong demand for large-scale mining. By finely analyzing the auction data in Mexico, Lishi can easily infer the revenue situation of the mineral resources in the area, and based on this effective information, reasonably increase the auction price, increase the profit margin of second-hand phones, and use transaction volume data to achieve the effect of knowing the whole picture at a glance.

　　The North American region has naturally formed such circulation channels based on geographical conditions. Similarly, other upstream markets will also flow to different midstream and downstream markets based on different geographical conditions, forming fixed circulation channels. Some developed countries in Europe, as upstream markets, can enter Eastern Europe, the Middle East, Central Asia, and Africa through various circulation modes and online platforms when their leasing companies or equipment in large-scale projects need to be replaced or circulated. According to the global auction data of Li Brothers Auction House, 60% of second-hand equipment in Europe will be consumed locally, and the remaining 40% will flow to downstream markets. And nearly 40% of the transaction volume is in the Middle East, especially in Arab regions such as Dubai, while the last 60% goes to Eastern Europe, North Africa, and Central Asia, with India being a major traffic destination.

　　As the smallest region in the upstream market, Japan only completes 20% of its second-hand mobile phone transactions domestically, while the remaining 80% relies on its second-hand mobile phone export business to circulate to Southeast Asia, Australia, China, Central Asia, and other regions. In contrast to Japan, Australia has nearly 80% of its second-hand mobile phone transactions completed domestically, with only 20% relying on exports.

　　At present, China has shifted from an importing country to an exporting country in the field of second-hand excavators. So, in response to the three major trends mentioned above, which first class should we take? Domestic brands that do not have CE certification and engine EPA certification for second-hand equipment cannot enter the European and American markets in the short term. Therefore, the only regions that can be entered at present are Southeast Asia, the Middle East, Central Asia, West Asia, Africa, and South America. Yang Jiangao, the Key Account Manager of Lishi Brothers Auction House in China, summarized in his speech that the future of China's second tier mobile phone exports is to compete with the downstream of the traditional three major trends in the market, utilize efficient information platforms, expand sales channels, and establish smooth and stable channels.

　　03. Current Problems in Exporting Second Mobile Phones

　　The long-standing and core issue in the field of mobile phone sales is the credit problem. Most of the transaction processes rely on the internet and private negotiations, so there is a gray space. This has allowed some unscrupulous vendors to take advantage of loopholes and engage in one hit buying and selling, resulting in a constant occurrence of substandard goods and the phenomenon of passing off inferior goods as good. This has also damaged the image of Chinese merchants overseas and affected the industry atmosphere.

　　A company operating on a platform model

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