How Japanese Companies Target Emerging Market Countries

Chinese companies have gradually gained competitiveness not only in terms of low prices but also in terms of high performance and high quality. Therefore, it is imperative for Japanese companies to increase their competitiveness in both low-priced general models and high-value-added models.

Japan’s JTEKT introduced the “The 25th Japan International Machine Tool Show (JIMTOF2010)” from October 28 to November 2, 2010 at the Tokyo International Exhibition Center (Koto, Tokyo). The summary of some models (3 models) on display*6. The three models all target emerging market countries such as China and India as their main sales targets. "We are currently developing the target of reducing the price of the existing models by reducing over-specification by about half of the existing models." (Jettagte).

Specifically introduced three types of cylinder grinding machine "GL3P-32E", horizontal MC "FH500E", vertical MC "PV640E".

Although the detailed performances of the above three models have not been announced, it is learned that low-price models will be provided for the idea of ​​lowering prices without reducing the basic performance. However, the company did not consider importing components from emerging market countries as a result.

In the field of NC devices, only independent products have been used in grinding machines in the past, and this time the three models have adopted their own products.

Jtegerte said: "In the Chinese market, although our high-precision gantry MCs and other high-end models have received good reviews, there is a large price gap between GM's MCs and companies in mainland China, Taiwan and South Korea. , so it failed to sell well." The company judged that in order to realize its goal of increasing sales by 15% per annum in the Chinese market, it must also sell high-end models as well as low-priced models that announce development news.

In addition to price and performance must work hard

To launch an offensive against emerging market countries headed by China, like Jettegt, the launch of low-cost models is an essential means. Other Japanese companies have also started to vigorously develop low-cost models and reduce the cost of high-end models by establishing joint ventures with Chinese companies and building factories there.

In addition, as a strategy that is more advanced than Chinese companies, Japanese companies have begun to focus on improving production efficiency following low prices and high performance. “Employees are constantly making strong demands to raise wages. In the future, we should focus on how we can use fewer people to make products” (Mr. Ozawa, general manager of Citizen Business (Shanghai) Co., Ltd.).

In the future, in China, where labor costs are expected to rise, excellent production efficiency will also become an important selling point. "As far as Citizen is concerned, the demand for multi-processing machine tools that can handle multiple processes with one machine tool and automated systems that use a combination of loaders and robots will inevitably expand." (Ozawa Tatsuya).

Mitsubishi Heavy Industries also focused its high-efficiency promotion on gear processing machines (hobbing machines) that are dedicated to the Chinese market. The company conducted a live demonstration of dry cutting at a trade show using gear cutting machines. The case where one gear can be processed in less than one minute was demonstrated, highlighting the high production efficiency of "some workpieces can even reach three times" (Mitsubishi Heavy Industries).

Dry cutting is a cutting technology that does not use cutting fluids. In addition to energy-saving advantages such as cutting fluid supply devices and cutting fluid post-processing, high productivity due to high-speed cutting and low operating costs have been well received. According to Mitsubishi Heavy Industries, dry cutting technology is gradually gaining popularity in China, with orders for the automotive industry particularly growing.

Although the price is 2 to 3 times higher than that of a machine manufactured by a Chinese company, the advantages of dry cutting are increasingly accepted. Therefore, Mitsubishi Heavy Industries is still advancing the measures to reduce prices.

Specifically, Mitsubishi Heavy Industries is building a factory in the suburbs of Shanghai to produce the main product of a gear processing machine, the “gear cutting machine GE15A”*8. The company expects sales of gear processing machines in the Chinese market (especially for auto companies) will increase, and will be mainly used to expand the sales of small-sized, high-precision gears for automobiles, motorcycles, and reducer gears. The plant started construction in August 2010 and is scheduled to begin production in March 2011. It is estimated that the annual output in 2011 will be about 40 units/year, and that after 4 years will be about 100 units/year.

The factory is scheduled to use the Shared Factory (factory that produces a variety of products). SharedFactory is a way to produce a variety of products through an overseas factory. A new plant will be built at the company's rubber tire machinery production base in Changshu, China. It will increase production of rubber tire machinery while producing gear machinery. Mitsubishi Heavy Industries said that it will be able to ensure local production quickly and cost-effectively by adding new factories to existing production bases. This is the first time the company has used this method to enter overseas markets. In the future, the company will further establish and expand overseas bases using this method.

Mitsubishi Heavy Industries used to manufacture gear cutting tools in India. This is the first time that it has built a machinery factory in China. The production model is locked to the best-selling, processable gears for automobiles (gearboxes, etc.) on the Chinese market, and the performance indicators are basically the same as those produced by the Ridong plant in Japan (Litdong City, Shiga Prefecture).

Mitsubishi Heavy Industries will reduce costs including tariffs and transportation costs through production at its factories in China, and strive to improve after-sales services. In addition to the introduction of various assembly equipment and measurement equipment for the manufacture of gear cutting machines, there will also be exhibition halls. In addition, we will actively promote gear processing machines to the Chinese market through actual machine demonstrations and satisfying customers' requirements for trial machining.

Minimize machine downtime

The improvement of the customer service system is directly related to the improvement of production efficiency. This not only allows the customer to grasp the usage methods that can fully exploit the performance of the machine tool, but also shortens the machine downtime due to problems such as faults.

In fact, the company also plans to set up a customer service center in the suburbs of Shanghai in 2010 in order to strengthen its support to users while launching low-priced models. The demonstration machine will be set up in the customer service center to allow the user to operate and perform trial machining, thereby fully promoting the company's machine tool products. At the same time, it will also expand customer service personnel to quickly resolve issues such as machine tool failures.

Yamazaki Mazak Machine Tool (YAMAZAKIMAZAK) promoted the most important feature of its customer service: “Service is provided within 24 hours after receiving emails or telephone calls, which can minimize user downtime.” The company aims to improve customer service in China. , Established a technology center in Dalian in August 2010. Yamazaki Mazak just set up a technology center in Guangzhou in June 2010. Together with Shanghai's technical center, it formed a system to provide customer service through three technical centers.