Perfect partners: the importance of local knowledge in global success

With at least 50% of its initial European sales based on dealer reputation and service, LiuGong is continuing with its focus on finding the right partners as a key building block in achieving European success. Despite brand awareness of Chinese construction machinery remaining relatively low in Europe, the recent economic crises across many leading countries have meant that the appeal of cost-effective options has increased.

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However, while loyalty to the established, leading brands may have become less important than in previous decades, the importance of efficiency, productivity and reliability appear to be more prominent than ever before in owners’ purchasing decisions.

These factors together mean that the opportunity of cost-effective LiuGong machinery provided by reliable dealers who can provide excellent aftersales service is an attractive proposition for many customers who may not have previously considered Chinese machinery as an option. Add to this the fact that many of the key components of LiuGong machinery are provided by reputable partners, such as Cummins, ZF and Kawasaki, and the likelihood of the manufacturer extending its success into Europe seems almost certain.

The crucial pillar in this process has been taking time to identify and work with a choice selection of established dealers with strong local knowledge to lay the foundation for long-term success. Rather than recruiting several dealers in each market, the strategy is to find a small amount of dealers who understand the industry in their country and have the potential to grow in line with LiuGong’s European expansion. This will be particularly important when the manufacturer’s investment into its next generation machinery is realised.

A good example of this in practice is The Netherlands – a country with strong regional divisions. Family-run dealer, Hansan Bouwmachines B.V., was established more than 50 years ago and has three bases to cater for local needs and requirements. Their reputation is proving to be LiuGong’s strongest sales tool, which is then backed up by low price and good product.

This success is already being mirrored in the UK with the first dealer, Construction Plant & Machinery Sales, recently recruited and immediately securing sales to its established customer base. With the focus now on recruiting the first Austrian dealer, LiuGong’s European dealer network is expanding quickly, proving that reliance on local knowledge could be crucial in the manufacturer’s global success.