Share information about excavator in China, and some questions about US

I think most of you guys are not familiar with Asia especially China, today I just wanna share some the information about excavator situation here in China, 1.China Construction Equipment Industry Introduction China CE industry begin to grow rapidly from 2001, which has 15% growth rate every year. The whole revenue of China CE industry(main product line) has exceed 80 Billion USD last year, which means 17% growth from 2010. Actually, China has become the biggest market in the world from 2010, in that year, China has sold 165,000 units excavator which is nearly 60% of the whole world excavator sales volume. This result is all because of the China economics developed fast during the past 30 years, thousands of foreign companies like Caterpillar, Apple, Shell went to China and begin their business, and thousands of China local companies like XCMG,SANY,Liugong also improved themselves fast, The manufacture bring huge fortune and huge demand of Mining, infrastructure as well, which push the CE industry to explode. I think this also happened during 1930s to 1970s in US, the only difference is the process in China is more complex and short. This process for CE industry is very interesting when we look at the structure of the main players: Although Caterpillar and Komatsu etc. enter China very early during 1970s in terms of selling technology to China local state-owned company and selling equipment to big project like The Three Gorges Project, the amount is very small. A big event is the Ingersoll Rand established a joint venture with a local manufacture in 1987, after then most of the foreign CE manufactures begin to set joint venture in China and China market become very competitive, Europe and American manufactures like Cat/Volvo/Case/Wirtgen occupied the high end market, Japan manufactures like Komatsu/Hitachi/Kobelco/Sumitomo/Kobuta take the middle class market, Korea and China local manufactures like Doosan/Hyundai/Sany/XCMG/Liugong take over the low end market. Among the China local manufactures, 3 of them (SANY/XCMG/ZOOMLION) revenue are more than 13 billion USD. China Excavator Market Introduction From 2000 to 2010, the main players of excavator in China now is still the international brand like Cat, Komatsu, Hitachi,Volvo, It was changed when Sany, Yuchai and Liugong etc. Local brand begin to regain the marketing share. The following data is about the sales volume and marketing share: Rank Brand Country Sales Unit Marketing Share 1 Sany China 21223 11.90% 2 Komatsu Japan 20689 11.60% 3 Hyundai Korea 17300 9.70% 4 Doosan Korea 16765 9.40% 5 Hitachi Japan 15695 8.80% 6 Kobelco Japan 13376 7.50% 7 Caterpillar USA 11593 6.50% 8 Yuchai China 10166 5.70% 9 Volvo Sweden 9809 5.50% 10 Liugong China 7669 4.30% 11 Strong China 5707 3.20% 12 Sunward China 5172 2.90% 13 Sumitomo Japan 2675 1.50% 14 Lovol China Unavailable Unavailable 15 Lishide China Unavailable Unavailable Marketing share for China local brand is 40.4%, while grow 10.6% from 2010,marketing share for foreign brand decline from 70.1% to 59.6%, among which Japan brand decline 5.2%, Korea brand decline 6.9%, US&Europe brand rise 1.2%. China Used Equipment (Excavator) Market Introduction For most of the excavator users in North part of China, they are used to buy new equipment. While many of the users from south part of China, they begin to bought used excavator which imported from Japan from late 1990s. Many of the used excavators from Japan were smuggled to China, so there is not accurate data about the used excavator. By the end of 2011, there is about 5 million construction equipment in total and among them 1.2 million excavator working in whole china, which means these 5 million equipment and 1.2 million excavator are all used equipment that would be sell by the owners in the future. And more and more China excavators users will buy used equipment instead of new equipment, so the hotspot for China CE industry would be used equipment. 4.China Excavator Users Introduction Take the present excavator uesers for example, 90% of the users are individual contractor(not registered as company), 10% are state-owned companies and other kind of company operating style users. So almost all the excavator manufactures put their effort to please the individual users. For the individual users, characteristic of this group are changing now, 60% of them are age from 18 to 35, among which many are 2nd generation users just gain the equipment from their parents, and many others were operators several years before. These group of people are open-minded and eager to try different kind of new stuff. Actually this group is the majority of our membership. The other 40% of the users are elder than 35 years old, they began to enter this industry from a Tractor or Dozer business in the late 1990s. Many of them are in low literacy and even don't use internet. As the elder generation retired, more and more younger users will be the leading group, then internet and information tools will become necessary for everyone. China Users Consume Habit Brief Introduction For the elder generation, they get equipment information mainly from peers around them, so when they plan to buy new or used equipment, they usually call the local dealers and other users. For the younger generation, they are very used to get information from various channel, internet plays an important role for them now. When they buy new or used equipment, they will firstly gather enough information from internet and then choose the suitable one.