Liu Gong's exploration of the most popular brand i

2022-10-02
  • Detail

The Ministry of industry and information technology recently issued the implementation opinions on promoting the improvement of the quality of products and services in the manufacturing industry, proposing to promote quality improvement through brand cultivation. Guide enterprises to establish a brand development strategy based on quality, enrich brand connotation and improve brand image. Strengthen brand publicity and promotion, lead consumer demand, enhance consumer confidence, and promote enterprises to speed up quality upgrading

with the continuous promotion of deepening the supply side structural reform, quality, branding and even brand high-end have become the new trend of high-quality development of made in China. In the open market with diversified demand, the development mode of enterprise led core technological progress and product function innovation, brand collaborative technological progress has continuously improved the international competitiveness of China's manufacturing industry, especially the equipment manufacturing industry. It can be said that brand development has played a decisive role for manufacturing enterprises to obtain competitive advantages, achieve high added value and enhance their position in the global value chain. As one of the research cases of brand building in China's manufacturing industry, the China economic times research group recently went to Liuzhou, Guangxi, to deeply analyze the experience and achievements of Liugong group in the development direction of brand internationalization. Liugong group is a leading enterprise in the R & D and manufacturing of wheel loaders in China. It has changed from waiting for customers' orders to actively "going out". Since 2003, Liugong has closely followed the opening road of China's accession to the WTO, spent more than 10 years in the layout of the international market and participated in international competition. Now it has 20 production bases in the world and 10 overseas subsidiaries with engineering design, marketing and service capabilities. With more than 300 global distributors in more than 100 countries and regions on 6 continents, it can respond to the needs of global customers in a timely manner and achieve localized service and support. The headquarters of the company and its subsidiaries have more than 9500 employees, including more than 1000 engineers in five world-class R & D centers

"If we can say that Liugong's brand internationalization path has successful experience, one is to insist on not being confused by short-term interests, resolutely refuse OEM, and focus on building independent brands. The other is to adhere to the international talent strategy, promote the international marketing of Liugong's brand, and establish an international agent system. Since the brand internationalization in 2003, the first thing we did was to spend 5million yuan to invite Ogilvy designers to design Liugong's new logo, which was also quite bold at that time Behavior. " Zeng Guangan, chairman of Liugong group, told the China economic times

Liugong's brand internationalization path

"Liugong's brand internationalization path has gone through four stages, export trade, international marketing, overseas factory construction, international mergers and acquisitions." Luo guobing, vice president of Liugong group in charge of international marketing, told the China economic times about the overseas development journey of Liugong group. After China joined the WTO in 2002, the board of directors of Liugong keenly seized the opportunity and proposed to build an open international Liugong, led by Zeng Guangan, to develop international business from Egypt and Morocco. Liu Gong took a difficult first step in starting up international business. In 2003, Zeng Guangan sent a person to take a machine to participate in the international exhibition of construction machinery for the first time. His kind of aggressive spirit of fearing difficulties and moving forward bravely made Luo guobing, the eighth employee who joined Liugong international team, feel very sad: "if the thinking is conservative, it is impossible to engage in internationalization, especially in the machinery industry. At that time, the foundation and preconditions of our equipment manufacturing industry were still very weak." It is with the spirit of international vision and daring to try and do that Liugong has embarked on a path of brand internationalization from export trade to "going global", from overseas factory construction to overseas mergers and acquisitions. Luo guobing said that Chairman Zeng Guangan quoted the sentence of GUI Youguang of the Ming Dynasty last year, "nothing can be done in the world if you follow the rules, and it is not difficult to do it vigorously", to summarize Liu Gong's belief and determination in overseas development, "this is very incisive, and this is also the motto of all employees of our international marketing department"

various exhibitions have been running for a year, and dozens of equipment have been sold. Zeng Guang'an felt that this would not work. Liu Gong must shift from trade to marketing, understand the real needs of the market, complete service matching for such needs, and establish an international agent system. By 2004, Liugong had established its first overseas subsidiary in Australia, and it had made a real breakthrough in overseas marketing. Looking for dealers and partners, and paying attention to product positioning and services, Liugong spent a lot of energy to create a new logo at the beginning of going international, which was gradually known to international peers

in 2006, Zeng Guangan, as one of the representatives of entrepreneurs, visited with national leaders. During his visit to India in November, Zeng Guangan was able to communicate perfectly with the CEOs of some companies in India because of his excellent English. In the process, he found business opportunities and decided to establish the first overseas factory in India. In 2007, Liugong India Company was established. On July 1st, 2009, Liugong's Indian manufacturing plant opened, which is the first manufacturing plant established by China in India. After seven years of hard exploration and continuous improvement, Liugong India has finally turned losses into profits. Now it has become one of the "best factories" in India, and has won two Indian government awards, "best foreign investor" and "China India model enterprise". During his business visit to Poland, Zeng Guangan had the idea of acquiring HSW, a giant in the Polish heavy construction machinery industry. The economic crisis created opportunities for Liugong, who began arduous negotiations in 2010. In 2012, Liugong invested 350million yuan to successfully acquire the civil engineering division of Polish HSW company. As a world-famous manufacturer of heavy construction machinery and bulldozers, HSW's gear transmission technology is in a leading position in the world. From trade to marketing, from overseas manufacturing to overseas mergers and acquisitions, Liugong's brand internationalization exploration has entered a stage of in-depth development, forming an international model integrating marketing, R & D, manufacturing and capital - Overseas R & D has spread across the UK, Poland, India and the United States, overseas manufacturing has established factories in India, Poland, Brazil, Argentina and other countries, and has emerged from the international market model of Chinese enterprises. Four manufacturing plants have been built, with customers covering 148 countries and service networks covering 139 countries

Liu Gong's experience in internationalization of Chinese brands

from the experience of Liu Gong, the first is to adhere to the international business as the top business. Brand embodies the strategic will and vision of an enterprise. Establishing a brand image is not a matter of two days. Its connotation needs to be repeated and overlapped constantly

the second is to adhere to the road of independent brands from beginning to end. "I have worked for so many years and have never been involved in OEM, even at the beginning of the most difficult time." Zeng Guangan said. The international business philosophy of "building independent brands and resolutely refusing OEM" enables Liugong to avoid the risk of falling into the low end of the global value chain due to OEM. An Italian multinational company once offered preferential terms for purchasing nearly 1000 sets of Liugong equipment every year in exchange for "Liugong does not enter the European market", but Liugong remained unmoved and adhered to the international bottom line of building Liugong's own brand. "There are actually many connotations in strengthening our own brands. We can take advantage of the situation, such as building an engine joint venture with Cummins and a gearbox joint venture with ZF, but the overall big brand is still the independent brand of Chinese enterprises, which is very important." Luo guobing said

the third is to focus on brand connotation. "Brand is not isolated. If a brand is just a name, it is easy to forget. The brand must have actual content and reflect the core culture of the enterprise." Luo guobing said. "Committed to providing customers with excellent construction machinery products and services" and "becoming a world-class enterprise in the construction machinery industry" are not only the vision of Liugong, but also an important embodiment of Liugong's national mission

understanding of the connotation of enterprise brand, Stacie, Liugong brand director, told China Economic Times: "Liugong brand is not only the things we publicize now, but also involves everyone in our company, not only our logo, advertisements we broadcast, and even every screw we make. Our suppliers and products are the embodiment of Liugong brand. Through years of international development, we can realize that Liugong brand is the construction of our whole company and all things of Liugong, including Research and development, product quality, partners and talent construction will promote the development of Liugong brand and play a very important role in the international brand image construction of Liugong. "

the fourth is the internationalization and localization of enterprise talents. Liugong's international development is inseparable from the tireless pursuit of international talents in this industry. When Liugong took the first step towards internationalization, Zeng Guangan understood the importance of international talents, and he set his eyes on the executives of international leading enterprises in the industry

Guan Tongbao, vice president of Liugong group, spent four years "fooling" Zeng Guangan to Liuzhou. 2. The current main problems. "At that time, he was in charge of R & D in a foreign construction machinery company. After his arrival, he completely changed our R & D center, including the R & D system. After more than ten years of development, we have achieved great improvement in R & D process, product improvement, quality system, product design, cost, etc., so that we have a world-class R & D level." Zeng Guangan said. Like Guan Tongbao, there are a large number of senior executives in charge of brand, R & D and international marketing in Liugong, all of whom are senior talents in the industry from different countries around the world

difficulties and suggestions for brand internationalization

with the continuous growth and development of China's economy, the number of Chinese enterprises in the world's top 500 brands is increasing, but at the same time, the number of manufacturing brands is not much compared with Europe, America and Japan. Especially in the equipment manufacturing industry, the number of Chinese enterprises is small, and the brand value and brand influence are relatively low. There is still a long way to go to further enhance the international competitiveness of China's equipment manufacturing brands

taking Liugong as an example, Zeng Guang'an believes that first of all, the core is products and technology. Technology, quality and quality. How to meet the needs of customers in different countries, regions and industries around the world is the biggest challenge. This is also the fundamental reason why Liugong insists on talent internationalization and localization. "Liugong has nearly 100000 equipment overseas, distributed in more than 100 countries. If the global agent channel is not built well and the localization service ability is insufficient, Liugong's brand will not be established." Zeng Guangan said

secondly, the management system supporting global operations. What really supports the global operation system and international brands is its efficient management system. This management system covers every field of the enterprise, including technology research and development system, manufacturing system, finance, human resources and legal affairs. The difficulty of the construction of all these systems is not easy to solve with money, but also takes time to accumulate

finally, the above problems can be solved. The most difficult thing is to really cultivate a group of entrepreneurs with world vision and strategic awareness. The entrepreneur team is the real

Copyright © 2011 JIN SHI