Sany Innovative Business Model Based on Internet Plus

In April, BAUMA 2016, the world’s largest trade fair for construction machinery is held in Munich, Germany. As the leader of engineering equipment, Sany demonstrates its advanced O2O marketing model and Internet Plus idea. It is said that Sany began to explore “Internet + construction machinery” as early as six years ago. The new platform built last year has made the purchase more convenient. Moreover, Sany is playing a leading role in Internetization among traditional enterprises.

Official Website Has Become the Main E-commerce Platform

Since 2010, Sany’s online inquiry has resulted in over 1.2 billion RMB sales. Statistics show that in 2014, Sany had 19,796 online inquiries, contributing to deals of 342 machines of about 240 million RMB. As for overseas marketing, the official website of Sany Group has become the main platform for global clients to know its products and brand.

Still this was not a complete Internetization, but more like an online extension of the traditional business. Therefore, in August 2015, Sany completed the upgrading and revision of its Chinese website, and in December launched its English website. With these efforts, Sany has built an O2O platform with its official website.

To make the equipment purchase more convenient, more elements such as 24*7 online consulting, sales promotion, product comparison, suggestions and complaints are added to its official website, an interactive platform both on PC and mobile device. The English website is also a cross-border e-commerce platform with more aftermarket service derived from business on the Chinese website. By taking advantage of Internet technology and global service network, Sany endeavors to provide customers with optimized service and experience.

From Passiveness to Activeness

Mr. Zhang Xiaoshuai, Director of E-commerce Center of Sany Group, says that the establishment of e-commerce platform is only the first step for Sany to shift to O2O model.

“Sany’s O2O consists of 3 stages, which are platform construction, in-depth operation and continuous innovation. Currently, we are at the final phase of platform construction and trial operation,” he said. The customer interaction data and sales volume have increased enormously each month. This year, Sany would complete the platform construction. The year of 2017 would witness a further business growth when it reaches the stage of in-depth operation.

Mr. Zhang said,” we used to look for customers passively, but now we are doing it actively.” In March 2016, Sany launched an advanced sales promotion program-“Save Big”-which creates more benefit to customers. They would purchase equipment at a very reasonable price, and enjoy premium quality and service at the same time. Meanwhile, optimized design and technology of the “Save Big” makes it possible to meet customers’ machine purchase demand within 5 minutes, a benchmark for the whole industry.

Mr. Zhang states that Sany has always been thinking how to meet customers’ demand in a better way. E-commerce is one answer as it helps clients to have a convenient and efficient shopping experience. He also gives an example that very impressed him. Around 5pm, a customer made inquiries about Sany excavators online. And just the next day, he placed the order. “Internet does not change everything overnight. But its convenience is immediately evident.” When customers need products in a hurry, they could just go online instead of asking around for dealers’ contact information. It saves time for customers, and it is a perfect statement of “convenience”.

Deeper Integration, Big Data

In the Internet age, people are often addicted to Internet and mobile phones. For companies, only when they adapt to customers with business model innovation can they provide better service.

Some people may argue that e-commerce makes little sense to construction machinery because it is a traditional industry and all the business is done offline. However, new technology is applied to all industries and people. When customers are purchasing equipment in their office, in the departure lounge or any place in the world, the e-commerce era has arrived. Therefore, there is a huge e-commerce potential in the engineering equipment industry.

Mr. Zhang says that 2016 could be the year of Internetization in construction machinery. Since 2015, leading companies in China started to explore O2O. Among them, Sany has the quickest response and best effect. “The business and sales volume have increased rapidly each month,” he said.

These achievements would not have been possible without a profound integration of Sany and Internet. On the one hand, Sany is shifting its management concepts and making more efforts for transformation to ensure that resources meet the market demand and are utilized more effectively. On the other hand, Sany has talents from traditional industry and also personnel with Internet expertise, which is a strong support for Internet Plus innovation. It is fair to say that Sany has overcome the two biggest obstacles of Internet-based business faced by many traditional enterprises. Moreover, Sany’s big data contributes to its online marketing.

“The Internetization of construction machinery industry in the future could be ’O2O + Experience Store + after-sales service’. O2O would start and push forward with innovation and transformation in the whole industry,” said Mr. Zhang. Sany would play a leading role in this area.