Capital Equipment News April 2018

BAUMA CONEXPO REVIEW – EARTHMOVING EQUIPMENT

XCMG had a successful exhibit at the recently-ended bauma CONEXPO AFRICA 2018.

In 2014, XCMG abandoned its traditional dealership approach to adopt a subsidiary strategy which saw the launch of XCMG South Africa to take charge of the brand locally. Four years later, through a range of initiatives – including an expanded product range, establishment of new markets, reliable parts supply and a strong aftersales channel – the move has paid formidable dividends. Testimony to this is the brand’s increased market share and a recent successful exhibit at bauma CONEXPO AFRICA, writes Munesu Shoko. Reaching new heights

A s part of its international strategy, XCMG – said to be the largest construction equipment manufac- turer in China and the fifth largest globally – launched its XCMG South Africa (XCMG SA) subsidiary in August 2014, ending its long-time association with its local dealer at the time. The move was aimed at re-strengthening the brand in the local market, through several initiatives, but more importantly establishing a strong backup support structure, as well as expanding into other southern African

markets and growing the product range. One of the immediate initiatives after taking over the distribution of the brand in 2014 was to establish a massive parts warehouse in South Africa to support its customers across the southern African region. “The parts warehouse was a very important initiative for us to be able to offer responsible aftermarket support to our customers. We understand that having a good product, but without proper support structures, is a recipe for disaster,” says David Dai, MD of XCMG SA.

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