China is the world’s largest market for most machinery categories. Foreign machinery companies have done especially well with importing machines to China for local customers who wanted quality and performance. However, nobody makes real money when it comes to selling services to local customers. InterChina believe this will be changing soon, and foreign players need to make sure they invest enough service capability at the right time – and also have the right service model in place – to actually make money from services.
Whilst some think that Chinese customers will never change their attitude towards fee-paying services, others believe that several factors are pointing towards a change for the better. Installed stock is reaching critical mass, with machine stock levels in China approaching those of Western Europe – all of which will require servicing. The customer landscape is shifting, with an increase in private players and growing importance given to repeat customers. Cost and automation pressures, as well as the changing mindsets of decision makers, also have a part to play.
In order to create a successful future strategy for making money from machinery services, machinery makers will need to address their product offering, target audience and organisational structure among other key considerations. Click here to read the full report.