Construction machine manufacturers can relate to a Chinese proverb that says, every potter praises his own pot, while promoting the features of a new product. This idea is out of style and irrelevant unless they communicate what matters to customers nowadays, which are perceived value and price sensitivity, according to Sohaib Asghar, technical sales in charge, Bu Hamdan Group (BHG), the distributor of brands such as Lovol, Kamaz, Oscar, Ace and Maximal in the UAE.
Asghar refers to how Lovol is positioning itself among other global brands in the construction machinery business. The Chinese manufacturer is competing in a sweet spot of price and performance against other established brands.
“When we look at the convergence of three important decision-making factors, ‘what the user needs’, ‘what competitors cannot offer’, and ‘what we can offer’, Lovol machines are found to be more reliable because they help construction contractors and rental companies overcome their biggest challenges. As these type of companies seek to cut costs and make the best use of their working capital while facing cash flow difficulties, they refrain from investing in new machines, let alone premium brands. A value-priced product like Lovol allows them to buy new machines with warranties that protect them as compared to buying used machines that have unknown work histories,” says Asghar.
This strategy also gives BHG a positive outlook for the UAE construction market, according to Asghar. “The UAE is committed to delivering its EXPO 2020 projects. The rise in construction spend, especially on infrastructure projects, will drive demand for construction machinery, particularly wheel loaders and excavators, through 2018 and 2019. We also expect some more cash flow and liquidity in the market during this period. Since equipment rental is picking up pace, our target customers are transport companies renting equipment to projects and contracting companies that want to cut costs with value-priced products,” he says.
Sohaib Asghar, technical sales in charge, Bu Hamdan Group.
Bu Hamdan Group offers Lovol’s range of wheel loaders, excavators, backhoe loaders, skid steer loaders and forklifts in the UAE. Asgher points out that dealership exclusivity for Lovol in the UAE helps BHG compete with a combination of attractive prices and value added services that help customers reduce total cost of ownership.
Lovol wheel loader.
“We offer attractive prices and other benefits such as extended warranty terms, prices inclusive of VAT, free comprehensive insurance, flexible payment terms, and free service and maintenance contracts. Moreover a service contract from Bu Hamdan Group will cover a range of benefits such as (1) trade-in policy, which allows customers to trade in their old Lovol machines with new models by singing up a 3-year service contract at the time of purchasing; (2) machine value retention: when it comes to selling of wheel loader, a full service history of machine from the supplier will add more value in return; and (3) fix pricing: the charges of spare parts will not rise with inflation, and the customer pay only what they sign on the contract,” says Asghar.
“With regard to product features, Lovol’s machines are known for their stability, power and versatility. Lovol wheel loaders use ZF transmission which results in smooth gearshift and comfortable operations. The rocker arm on the machines is stronger than on competitor brands because the greater thickness of the plate of the arm. In addition, the main cutting blade of the bucket is made of wear-resistant steel, which prolongs the life of the bucket,” he adds.
In China, Lovol has been identified as a ‘national key high-tech enterprise’, and its engineering and research institute a ‘national certified enterprise technology centre’. Moreover, Lovol’s products have been recognised with the tags ‘Chinese famous brand’ and ‘most competitive brand’. BHG aims to establish the same level of brand recognition in the UAE market.
“Lovol and Bu Hamdan Group are committed to fulfilling customer demands for high-end machinery. It’s equally important that our machines to help them get more jobs done for less. Whether they choose a wheel loader or an excavator, our customer should save money while benefiting from the efficiency and durability of Lovol machines,” says Asghar.
Asghar elaborates on how the company focuses on new ways of customer engagement. “One of the ways we attract customer attention is through intuitive product demonstrations. The Lovol FL958 wheel loader is popular as the first loader that performed a hip hop and street dance show, bouncing on its two front wheels and twerking its rear end. Such demos are more than just stunts; they create a vivid impression among customers that Lovol machines are reliable, efficient and cool. Potential buyers realise that Lovol machines are equipped with the advanced hydraulics, transmissions, engines and electronic control systems and that helps build the brand,” he says.
