A view of Doosan Infracore’s pavilion at CONEXPO-CON/AGG 2020, North America’s largest construction trade show, which took place in Las Vegas from March 10 to 14. (Photo: Doosan Infracore)

The recession within the Chinese construction industry, affected by the spread of the novel coronavirus, caused a plunge in excavator sales, making Doosan Infracore on alert for its poor business performance. China is the world’s largest global excavator market.

Doosan Infracore saw the portion of sales in the Chinese market account for 15 percent as of the end of last year. The company plans to focus on the North American and European markets to offset setbacks in China.

Figures released by the financial investment industry showed that 7,756 excavators were sold in January, a 23.5 percent year-on-year decrease, and the lowest in the recent three years.

Caterpillar sales dropped a whopping 47 percent over the previous month. Sany Heavy Industry, a Chinese multinational heavy equipment manufacturer, saw sales fall 20 percent.

Doosan Infracore also sold 370 excavators in January, a 31 percent plunge over the same period last year. Statistics, released by NH Investment & Securities, showed that Doosan Infracore saw its market share in China declining to 4.8 percent, almost half of 10.5 percent recorded two years ago.

In the past, excavator sakes entered high season after the Chinese Lunar New Year holiday was over and peaked in March and April.

But the Chinese excavator market suffered a setback in the first two months of the year due to the consequences of the COVID-19. Industry sources predicted that excavator sales would shoot up on the back of the Chinese government’s pump-priming steps like the resumption of railway construction projects.

Doosan Infracore posted 8.185.8 trillion won in sales on a consolidated basis last year. China’s portion out of the total sales stood at about 1.2 trillion won or some 15 percent.

Doosan Infracore plans to expand its shares in North American and European markets to offset a slump in the Chinese market.

The company saw sales in China dropping 4.7 percent last year, but those in North America and Europe shooting up 7 percent, contributing to achieving an overall 5.9 percent year-on-year rise.

Doosan Infracore sold more than 4,500 construction machineries in Europe last year. The figure represents a 12 percent year-on-year surge. The company achieved the best business performance in 12 years since it sold about 4,200 units in 2007.

Doosan Infracore maintained a double-digit growth for the fourth consecutive year since 2016. The company’s growth there was attributable to digital solution.

Doosan Infracore, based on digital solution, had won a streak of winning orders in Europe as the company sold 100 wheel loaders and 80 excavators to CEMEX and Beuloc, respectively.

The main factor behind Doosan Infracore’s strong performance in the European market is its field-centered sales strategies.

The headquarters of Doosan Infracore has extended the authority of the sales departments in charge of the European market and encouraged them to establish their own performance/profitability analysis system so that sales representatives can make decisions faster and more efficiently in the field.

The more active utilization of Social Networking Services (SNS) has also played a significant role.

Staff members at Doosan Infracore Europe have worked tirelessly to communicate directly with their customers and find potential customers via SNS, which has actually led to the placement of orders for construction equipment — positive proof of the tangible impact of such digital efforts.

Doosan Infracore has aggressively strengthened marketing activities. The company hosted a European dealerships’ meeting in Lisbon on Feb. 10.

The company discussed ways of expanding sales with 150 dealers from the whole of Europe, including the UK, France and Germany.

Last April, Doosan Infracore showcased the latest technologies, including 5G telelcom-based construction machine remote control technology and Doosan-connected and 3D machine guidance at Bauma 2019, the world’ largest construction machinery technology fair in Munich, Germany.

Doosan Infracore, which established a construction machinery assembly center in Savannah, Georgia, has been ramping up marketing activities.