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Products are manufactured by OEM factories in China", Advanta-M company's own brand products operation strategy

2024-09-24 15:03

"Products are manufactured by OEM factories in China", Advanta-M company's own brand products operation strategy

The main business direction of Advanta-M is warehousing equipment, construction and lifting equipment. The company's brand products are manufactured by OEM factories in China. Roman Kalashnikov, head of the construction equipment sales department of the company, introduced the status and prospect of Advanta-M's brand operation, product strategy and related product market.

Promote private brand

arm rack

At present, Advanta-M has launched products under several brands, including its own brands: SKYER (arm rack, shear fork, telescopic aerial work platform, self-propelled and non-self-propelled), NORSU (vibratory plate, vibratory rammer, vibratory slat), GEARSEN (jack, winch, hoist and hoist), YETT (forklift truck, including high-pass models), PROLIFT and PROLIFT PRO (lift trucks, hydraulic trolleys, stackers, etc.), RONEL (tyres and tyre mounts for storage and construction equipment). "We are bringing the SKYER product line to the market in 2020," said Roman Kalashnikov. "Production is in China, but we are improving the model according to the agreement of the factory. For example, the console has been improved for winter operation, the safety hydraulic lock has been added, the steering system has been optimized, etc. In addition, we collect feedback from all our affiliates and take it into account." The NORSU brand, which makes vibration equipment for construction and road works, was launched just this year. The equipment can be equipped with Chinese Longxin engines or Japanese Honda engines. The full range of NORSU products comes with a 2-year extended warranty. As for YETT forklifts, according to our interlocutors, they have replaced the company's original Chinese HELI brand equipment. "Promoting private labels protects us from sudden changes in manufacturers' policies.

 

New products: high-altitude and non-standard models

The SKYER product line expands every year. New this year is the NPF series of electric scissor and fork lifts, which function as both self-propelled and non-self-propelled devices. These are towed versions with operator cockpits, equipped with modern lithium-ion batteries and capable of moving in a raised state. Company representatives stressed that there are currently no similar products for such devices on the Russian market. In 2024, a new version of the SKYER SPF family of scissor-fork aerial work platforms has been added with an operating altitude of 14.85 meters (the previous maximum altitude was 12 meters). In addition, there are plans to expand the product line of self-propelled diesel boom lifts. The previous maximum operating height was limited to 28 meters, and next year the company plans to introduce equipment that can work at an altitude of 40 meters.

Equipment shortage and sales growth

Company representatives said Advanta-M's overall growth was significant last year. Specifically, excluding branches in other cities, the Moscow office saw a 46% increase in revenue. Two new brands have been launched on the market and new product categories have been introduced accordingly. According to our interlocutors, all Advanta-M products are currently in high demand. In addition, there is an obvious shortage of supply in the construction equipment market. One of the reasons is the supply disruption caused by some peer competitors due to payment difficulties and a shortage of containers in China, as well as rising shipping costs. Asked about payment issues, the executive said: "I can't say we don't have problems. Yes, there are some delays. But delays vary: some are delayed by a week, others by months, and still others give the money back completely. We don't have the latter two, but I think almost every company has. Fortunately, the Chinese factory we work with works with a Chinese bank that accepts Russian rubles and renminbi." "We know our competitors like the back of our hand"

Two to three years ago, many Western manufacturers withdrew from the Russian market, and this gap needs to be filled. Whoever is more aggressive will be able to enter the market and gain a foothold in it. "We caught the opportunity, although our market share is not the largest in terms of forklifts or aerial work platforms," he said. "Overall, we know our competitors well and can see their revenue and supply through public channels." Almost all imported products are sold out in a short time (1 to 1.5 months). Within the quarter, all devices will reach the end user or our distributor.


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