Market Prospers when Innovation Prevails---Orders from Africa Exceeds 10,000
Sales volume in 2014 over 10 thousand in African market failed to persuade Sinotruk (Hong Kong) Limited to rest on his laurels. In 2015, orders from Africa, therefore, have again exceeded 10 thousand by 4 months earlier than our schedule, up by 36% year-on-year. Vehicles exported directly by Sinotruk Import & Export Co., Ltd account to 82% of the total, representing an in-depth development and encouraging advancement in the African market.
Severe Situation Remains in the International Market
Entering into 2015, the world economic recovery remains sluggish amidst readjustment of slow growth. The languishing economy and weak demand will be here to stay for the long run. Therefore, we are confronted with great downward pressure in the African market like markets in other regions, as result of the world economic downturn.
On one hand, Ebola Hemorrhagic Fever (EHF) originating from The Republic of Guinea sowed seeds of chaos, and disrupted the Africa economy, suddenly arresting the process of some mining and agricultural projects. Meanwhile, the price plunge in crude oil, a key to African countries to earn foreign exchange through export, led to spreading shortages of foreign exchange in major African countries including Nigeria, South Africa, and Angola and so on, and other traditional customers. In this context, the market demand for commercial vehicles has been substantially wizened and the sales growth slackened.
On the other, sales of commercial vehicles of both medium and heavy duties saw a sharp decline in sympathy with the macroeconomic situation, national economic slowdown and contracting market demand. In order to get out the trouble, mainstream commercial vehicle enterprises and some dealers in China have swarmed into the international markets including the market in Africa by employing such ways as price cut, and promises of downpayment-and-interest-free installment, which has created huge pressure on maintaining orderly market and building market networks in a deeper fashion.
Overcoming the Difficulties through Innovation and Upgrading
In face of severe market situations both at home and abroad, the Africa Department has stayed committed to the Action Plan on Innovation and Upgrading, Three-Network Initiative and Policy on KD Plant Building in its effort to innovate the marketing patterns and upgrade regional sales strategies. As a result, they have made remarkable achievements in defiance of difficulties.
Innovating Marketing Patterns: the Africa Department has actively explored the ways for innovative marketing patterns by starting from the market reality. Targeting at the slow process of foreign exchange and letter of credit in most African countries, the Africa Department has mobilized in all aspects the potential of customers through active communication and adopted a combination of diversified methods to address issues concerning foreign exchange and fund channels, greatly shortening the order cycle and increasing the orders by a large margin. At the same time, the utilization of the logistical advantages in important ports of the region and innovative financial marketing in cooperation with dealers of partnership for a reasonable allocation of resources have greatly contributed to order cycle reduction and vehicle sales, thereby effectively spreading our influence in surrounding countries.
Based on the overwhelming advantage of Sinotruk with respect to product series and categories in the domestic industry and on profound market research, the Africa Department has continued its discriminating marketing strategies in accordance with varied demands in the overseas markets. Benchmarking with products by different countries and from various regional markets, dealers screening and positioning, and launch of diversified products have helped avoid infighting and vicious competition among dealers, safeguard the interests of both the dealers and the Group, and expand sales and market space, while satisfying the market demand for Sinotruk products.
Upgrading Regional Strategies: the Africa Department in recent years has developed discriminating development strategies, in light of the national conditions of African countries and their different development stages in heavy-duty truck industry,
Dedication Brings about Fruits: behind the achievements stands the willingness to take up responsibilities, while the glories’ source finds its root in devotion. Work is hard in Africa; life is way more difficult there since one may even find difficulties in getting access to drinking water. But it is what exactly in Africa has forged the spirit of embracing hardships of the so-called “African People”, a name they all are in the habit of calling themselves, down from the salesmen directly up to the general representatives. They joke that they might get even more resilient than cockroaches in adapting to local conditions and become yellow-skin giants, a metaphor for Chinese people, of greater vigor and vitality. It is their strong belief that selling vehicles is another way of moral cultivation, yet experiencing hardships helps one grow from strength to strength.
Colleagues from Sinotruk Import & Export Co., Ltd all have given their counterparts stationed in Africa thumbs up for uncomplaining endurance of great hardships, which is in their own eyes, however, just a sort of wealth and gift. They have dedicated themselves wholeheartedly to the cause, with entrepreneurship, boldness and sense of responsibility.