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Employment Model Analysis of Forklift Parts Businessmen
Dec 05, 2018

Forklift parts suppliers can be divided into manufacturers and sellers. In order to facilitate our analysis of their position in the spare parts industry, we roughly divided into the following five types of business models.

(1) Excellent national enterprises in China

Forklift truck industry is developing rapidly. In this process, a large number of spare parts enterprises are booming. After decades of expansion, spare parts enterprises have made a lot of profits and recycled investment, which has developed into a mature industry with a certain scale. The characteristics of spare parts industry in China are basically the surplus of low-end matching industries, while there are still technical bottlenecks in key matching areas, and some excellent national enterprises, which can be used for reference actively. After a period of efforts, domestic enterprises have achieved initial results in strategic restructuring. The pace of technological innovation has been accelerated and brand competition awareness has been enhanced. They continuously independently research and develop matching products and sell them to matching companies, actively adjust product structure, develop new products and processes, stabilize the old market, expand new markets, and move from the low-end maintenance market to the high-end mainframe market. Some of them are specialized in one field, refined, take the line of technological reform and concentrate their efforts. Quantity becomes the leader, while establishing various barriers, gradually forming a lasting competitive advantage, leading the domestic forklift industry, and even enjoying a reputation in the international community.

(2) International Parts and Components Enterprises with Foreign Capital and Joint Venture

One of the main motives for China to introduce foreign investment is to exchange advanced technology. With large multinational corporations investing in China to set up whole machine factories and intensify competition in domestic market, forklift truck parts giants have also set off a climax of research and development investment in China, especially some key components such as high-end hydraulic parts, hydrostatic transmission and some high-performance, high-precision, lightweight, high-efficiency and high-quality products. Most foreign-funded enterprises rely on strong parent companies for quality, digitalization and intellectualization products. They are sensitive to changes in demand and are good at capturing market opportunities with the global strategy of parent companies. They are also good at capturing market opportunities in terms of enterprise size and financial status, technological level and research and development capabilities, comprehensive profitability of enterprises, brand competition of enterprises, etc. With these advantages, the market share of foreign-invested enterprises has been expanding and their industrial control has been strengthened. The establishment of R&D centers and technology development activities of these foreign-funded investment companies will undoubtedly help to improve the overall level of technology in China's spare parts industry, but also widen the gap between domestic and foreign enterprises in terms of technological innovation and R&D capabilities.

The entry of foreign-invested enterprises into the forklift spare parts market to participate in the competition has a certain positive significance for Chinese enterprises to improve their competitive awareness, market their behavior and adjust their organizational scale. Foreign-funded enterprises attach great importance to brand effect. They not only arrange the production and publicity of their own brand products in joint ventures, but also actively try to localize their brands. Within joint ventures, the foreign side usually transfers technology by rolling mode in order to maintain certain technological advantages, and they are generally reluctant to transfer the most advanced technology. Give it joint ventures that cannot be controlled. Therefore, the role of foreign enterprises in technological upgrading of forklift parts industry in China is limited.

(3) Maintenance business accessories

With the increasing production and sales of forklift trucks, domestic forklift spare parts are not mature enough. There are some spare parts companies derived from the original forklift maintenance and operation department. The research and development of their products and the management level of their enterprises are still quite backward. They basically do not have the scale. The rapid development of the industry has led to the rapid development of such enterprises. Development, some companies can smooth transition at the same time, in management and technology for the development of the industry has played a certain role in promoting, some companies have very limited development flexibility, in the future they may restrict the development of the industry.

(4) Large-scale distributors of spare parts

We divide these large wholesalers into domestic forklift parts suppliers and imported forklift parts suppliers.

Domestic forklift parts suppliers fulfill their functions by performing marketing functions and providing services to forklift parts manufacturers and regional service providers (retailers). They specialize in the distribution of forklift parts, combining the supply of parts manufacturers with the demand of regional service providers (retailers). It acts as the sales center of the spare parts manufacturers and the purchasing center of the regional service providers (retailers), and becomes the center of communication information. It enlarges the comparability of products in terms of quality and price, and improves the transparency of the market, thus reducing the blind promotion and acquisition of spare parts manufacturers and regional service providers (retailers). The enormous expense incurred in purchasing. At the same time, through warehousing, transportation and other business, the supply and demand of different time and different regions can be balanced.

Imported forklift truck accessories wholesalers have the characteristics of domestic forklift truck accessories, but also continue to import high-quality forklift truck accessories and new service concepts from abroad, leading to the improvement of domestic forklift truck accessories and service level.

However, the infrastructure construction of large-scale wholesalers is lagging behind. In the aspect of wholesale trade, most wholesalers still follow the traditional high-cost trading mode. The feedback of supply and demand information is lagging behind, and the utilization rate of market forecast is low. As a result, forklift parts can not keep up with the pace of the whole machine manufacturer in time. The most important thing is that the products operated by large-scale wholesalers are relative to each other. It is relatively single and lacks a unified layout of industrial chain planning.