Shell looks forward to joining forces to help China's non-road vehicle rear market

Vanessa Montgomerie, Asia-Pacific Marketing Manager of Shell Construction Machinery Industry, participated in the “2012 Third Asian-Pacific Non-road Vehicle Manufacturing and Aftermarket Summit” recently held in Beijing. The prospects for the development of the non-road vehicle industry in China and the The advantages communicated with the guests present. Shell has its own interpretation of China's non-road vehicle rear market and expects to join forces to help China's non-road vehicle rear market.

With the year-on-year growth of the construction and construction machinery market, vehicle manufacturers are increasingly concerned about providing higher quality products and after-sales maintenance. The summit provided a platform for communication, cooperation between manufacturers, agents and parts suppliers. It focused on manufacturing technology and post-market development, and focused on creating a new era of construction machinery services. As a leading supplier to the worldwide lubricants market for five consecutive years, Shell was invited to attend the summit.

According to the “Global Construction 2020 Report”, the total global building output value is about 7.2 trillion U.S. dollars, and by 2020, its output value is estimated to reach 12.7 trillion U.S. dollars, and it will increase rapidly by 70% in 10 years. It shows that the development trend of the construction industry in the next decade is exciting. What is even more exciting is that China will exponentially grow on the current basis, reaching US$2.5 trillion in 2020, accounting for 21% of the world construction market. The rapid development of the construction industry will drastically stimulate the demand for non-road vehicles in the construction industry. In today's increasingly fierce market competition, OEMs of non-road vehicles begin to focus more and more on the post-market sector. On the one hand, in order to improve their market competitiveness by providing comprehensive after-sales services, they are even more important. The reason is that there is a large profit margin in the post-market area. The data shows that in developed country markets, lubricants are listed as one of the five most profitable parts and can account for up to 20% of the profits of vehicle parts. Lubricants can help non-road vehicle manufacturers to expand their profits. The range of services for customers helps sustain the development of the post market. Therefore, although the contribution of lubricants to sales is not as great as that of the entire vehicle, it can help manufacturers to earn more profits, thereby increasing profitability.

As an international top lubricant supplier, Shell focuses on the supply of lubricants in the aftermarket segment. At present, although there are many kinds of lubricants on the market, the order of competition is still confusing, brands are complex, and there is a lack of clear product positioning. Therefore, prices are often the decisive factor for buyers when choosing lubricants. In Shell's view, competition in the post-market is becoming increasingly fierce, and in this chaotic competitive environment, the market is reshuffled and gradually entered the brand phase. During this period, choosing a strong brand partner is crucial in the post-market area. As a world leader in the lubricants market, Shell has a strong confidence in its products. First of all, Shell has the largest market share in the world for five consecutive years. It can provide standardized and high-quality products worldwide. These products have many advantages, such as energy efficiency, economy, and long service life. Etc. Secondly, Shell is a world-renowned brand and has close cooperation with many world-renowned original equipment manufacturers. It also enjoys high popularity among end users. At the same time, Shell has a high level of technical and service support.

Today, it is an indisputable fact that the war in the non-road vehicle market is shifting towards the post-market. The success of this summit has further demonstrated that the majority of colleagues in the industry have set their sights on this new blue ocean. Shell hopes to rely on its advantages in the lubricants industry to cooperate with non-road vehicles, construction machinery and other related industries to promote the development of post-market industries.

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