The troubled Lawrence: Liugong business opportunities
China Industrial Daily: Liugong's "going out" strategy has been implemented very early, and has accumulated a lot of experience in this regard. What are the arrangements for overseas layout in the future?
Yu Chuanfen: after 58 years of history, now China from Liugong market to the international market, not only to foreign trade products, more important is the root of the enterprise has been tied to the overseas development, and formed a system of research and development, manufacturing, service, distribution, training, has a global customer resources.
At present, Liugong has moved from an export - oriented company to a truly internationalized company. In the past 10 years, Liugong has made a very good effect on the overseas market. Last year, the whole overseas sales had occupied 36% of the total sales.
Willow industry in the overseas development, along the line layout, research and development system, manufacturing system and service system in fact are in the layout, are doing. The next step, Liugong in these areas, in accordance with the planning and development strategy, to further increase investment in this area, these inputs include better meet local needs, but also a greater degree of support for the global and local development, in product development and manufacturing, and service system, training system do better.
Luo Guobing: actually, Liugong's internationalization strategy coincides with national strategy at many times. When we go out, we also expand from China's peripheral market to other emerging markets, and gradually form the concept of mature market. Now in the "The Belt and Road" area, we have operations in 63 countries, with our manufacturing base, the base of research and development in 47 countries, basically covering the country and along the market.
Liugong has a good influence on the Belt and Road Initiative along. Our products have improved and perfected a large number of products according to the market demand, which is highly satisfied with the demand of the market. The support for localization is really achieved. These areas have the overseas strength of Liugong, and more than 55% of overseas forces serve the area. It is also the core of the whole Liugong's international development. Liugong supports the national strategy, will continue to increase investment in these areas, and become better localized brands, local businesses and local brands. The goal of Liugong is not only to build this country, but also to make Liugong a local brand.
"China industry news": the current national macroeconomic policy core requirements, such as to productivity, deleveraging, these policies have some influence on the orientation of Liugong? In addition, how to evaluate the current international market environment, what is the Liugong development in these market opportunities and challenges?
Yu Chuanfen: the current global economy is undergoing dramatic adjustments, but it looks like this is a major opportunity in Liugong. Liugong went out earlier in the past. That is to say, during the period of China's rapid economic growth and the period of rapid growth of Chinese machinery, it has been placed overseas earlier, so we are relatively less affected in this regard.
On the second hand, Liugong has a very clear future for the future development, that is, the enterprise is not only globalization, but also to promote its sustainable development. We also did a lot of work on system reform and capacity development, and also focused on a number of production bases.
The third aspect of the reform is that we are increasing the technology of the product. Although China's market has declined 30%, 40% and 50% since 2012, Liugong has been increasing its investment in research and development in such a difficult period. Last year, the R & D investment of Liugong was 4.5%, and the budget R & D investment in this year was about 4.8%.
