2010: The overall strength of agricultural machinery distribution channels has rapidly increased

In 2010, the subsidies for the purchase of agricultural machinery in China reached as high as 15.5 billion yuan, and the total output value of the agricultural machinery industry was 280 billion yuan, which was a good year for the agricultural machinery industry. In 2010, it was also a year in which the agricultural machinery circulation industry accelerated its integration and its overall strength improved rapidly. It mainly manifested in the following aspects:

First, the integration of chain distribution of agricultural machinery circulation industry has accelerated. With the launch of Jifeng Agricultural Machinery on the GEM in 2009, the company increased the acquisition and merger efforts in 2010 and raised the speed of chain operations in the country with remarkable results. Some regional agricultural machinery dealers are also conducting Reorganization and integration, such as the Sushen agricultural machinery chain network development is also very fast; in addition to the Xuzhou Xu Chang company formed as the "agricultural machinery for agriculture, agriculture and farmers" has become a regional chain network and so on. A group of large and medium-sized agricultural machinery circulation enterprises with a wide range of radiation has already taken shape.

Second, the service capacity of agricultural machinery circulation enterprises has been further enhanced. The greatest performance is that the satisfaction rate of purchase subsidies for agricultural machinery has increased, and the rate of complaints on product quality and service issues has decreased. Among these, besides the improvement of product quality, the service capability and level of the agricultural machinery circulation industry have contributed to the improvement. Mainly in the increase in service investment, including personnel, vehicles, accessories, equipment, etc., service efficiency has also increased significantly, some dealers have also established a sense of active service, home tour services.

Third, the agricultural machinery circulation industry is gradually standardized. With the further improvement of the subsidy program and various systems, the supervision of agricultural machinery authorities has continued to increase. The vast majority of distribution companies conduct marketing strictly in accordance with the subsidy program. The prices of products are relatively transparent and after-sales services are more standardized. In particular, since 2009, the subsidies for dealers have been recommended by the manufacturers to include in the country's supplementary procedures, and a group of couples with weak service capabilities and ineligible conditions have been eliminated. The scale and credibility of the distribution companies have been further improved.

The rapid increase in the strength of agricultural distribution channels in recent years has benefited from the following reasons:

The first is the requirements for the subsidy program for agricultural machinery purchases. Many local agricultural machinery authorities set access thresholds for subsidized implement dealers. For example, Shaanxi, Heilongjiang and other provinces have set certain requirements for dealers in terms of registered capital (50-300 million yuan), maintenance level, operating sites, service vehicles, staffing, tax payment, equipment, and other aspects. The driving force of policies is the main driving force for the improvement of agricultural machinery distribution channels.

The second is the requirements for the development of agricultural machinery circulation enterprises by agricultural machinery manufacturers. Since the subsidized dealers are recommended by the production companies, the production companies put forward requirements for the dealers' capabilities, including market control power, service capacity, and subsidy norms. This is a requirement for establishing a new type of circulation system and a requirement for the common development of the manufacturing and distribution industries.

The third is the requirement for the development of agricultural machinery circulation enterprises. Circulation companies also fully realize that in order to increase market share, they must comprehensively upgrade their marketing capabilities. In addition, some circulation companies have penetrated into areas such as automobile sales, which has laid a foundation for the overall strength of circulation companies.

Fourth, the requirements of the majority of agricultural users. With the continuous increase in subsidies for the purchase of agricultural machinery in recent years, the advocacy has continued to be in place, and the amount of sales has continued to expand, so the number of users of agricultural machinery products has also expanded. The awareness of rights protection of users has become stronger and stronger, and the requirements for pre-sales, sales, and after-sales of dealers have been continuously improved. This will also promote the further improvement of the overall capabilities of distribution companies.

Although the national subsidy program for 2011 has not yet been issued, the qualifications and thresholds for subsidized dealers are still rising in view of the list of subsidy and relevant requirements formulated by the provinces. In addition, some provinces are also introducing some supportive policies and measures that are beneficial to the development of the agricultural machinery circulation industry. Therefore, it can be expected that the overall strength of agricultural machinery circulation channels will be further enhanced in 2011.