Embracing the World: Guangxi LiuGong’s Path of Going Global
OVER the 61 years since it was founded in 1958, Guangxi LiuGong Group Co., Ltd. (Guangxi LiuGong) has grown from a regional plant to a world leading construction equipment manufacturer. It produces a full range of machines applicable to all working conditions, and offers total solutions in the sector to clients around the globe.
During its six- decade- long existence, LiuGong has been continuously undertaking management reform and technological innovation. Guided by the strategies of going global, offering total solutions to varying climates, and adopting smart technologies, the company has achieved leapfrog development and pushed the forays of Chinese equipment manufacturing industry into international markets.
At the moment, LiuGong has 20 manufacturing bases, five research and development ( R& D) centers, and 13 regional fulfillment centers across the world. With more than 300 dealers in some 100 countries and regions, the machinery giant is ready to render responsive and professional after-sales services to global customers.
Zeng Guang’an, a deputy to the 13th National People’s Congress, and president of LiuGong, began to work in the company 34 years ago. Rising from the position of an ordinary employee to the group’s helmsman, Zeng aims to build
the company into an open and international conglomerate.
“Our successes are mainly the result of developing markets. The next goal is to gain market shares in Europe and America and grow to be a truly competitive global company,” Zeng said with firm confidence.
From Exporting to Marketing Globally
LiuGong’s globalization started with the export business back in 1993 when it was granted an import and export license. Over the first 10 years, it only sold around a dozen sets of equipment annually to foreign buyers, and failed to seek out the target clients in the global market.
In 2003, the company adopted a new strategy of going global. Around that time, Zeng took over the overseas businesses. He led a group to North Africa and hired the company’s first ever overseas agent in Morocco.
The agent was an elderly man around 80 years old. But his passion about working touched and convinced Zeng to establish a partnership with him. The agent was confident about China’s promising future.
The trip brought far-reaching influence to the development of LiuGong. Changing its business mentality, the company upgraded its export trade to international marketing, which enabled targeted support from R& D, manufacturing systems, and distribution channels.
In 2003, LiuGong started to establish overseas marketing networks. In 2009, its first overseas plant was put into operation in India. In 2011, it merged the production line of engineering machinery of a Polish company.
From overseas marketing to international manufacturing and then to overseas acquisition, LiuGong established a strong foothold in the international market in three steps. Thanks to its efforts over many decades, its products have been on the markets of more than 100 countries and regions, reaching some 50,000 clients and bringing in sales revenues far exceeding expectations.
Zeng told ChinaToday the company plans to further expand its marketing campaigns. “Our goal is to increase our market share, and improve brand awareness and customer loyalty in major foreign countries. Our main production lines need to be adapted to better meet the demands of targeted markets,” he said. “This is the greatest challenge in going global.”
“Our goal is to increase our market share, and improve brand awareness and customer loyalty in major foreign countries.”