ASA Astra develops a dealer network for joint import of large parts shipments from China to the Ukrainian market. Recall that two years ago, the management of “ABA “Astra” Ltd. decided to make market research to identify reliable producers of alterna
ASA Astra develops a dealer network for joint import of large parts shipments from China to the Ukrainian market. Recall that two years ago, the management of “ABA “Astra” Ltd. decided to make market research to identify reliable producers of alternative parts that could be considered as partners to expand the range of the company. About the results you can find in an interview with Vitaly Metolkin.
AgroPravda.com - Vitalii, please tell us about the results of research and achievements, which are related to the expansion of the company's assortment through the supply of alternative spare parts.
Vitalii Mietolkin - Based on the results of the conducted studies, numerous surveys of technical farms specialists and other market participants, we identified several manufacturers with the best indicators: price / quality, confidence level and brand recognition. Then, we identified some of the best manufacturers and focused on working with them. We have been able to expand the range through the first deliveries and get the first positive feedback from our customers at the beginning of last year. Such a balanced and carefully planned approach allowed us to avoid the unpleasant surprises that usually accompany companies developing new directions.
AgroPravda.com - which of the producers could you single out and how do you plan to develop cooperation in the future.
Vitalii Mietolkin - Of the total number of producers of alternative spare parts, I would like to mention the Greek company Kouimtzis, products that are well known as the brands: ALPHA PARTS and Kouimtzis, as well as the Chinese company Ningbo Combine Machinery Co., Ltd., products that are well known all over the world as the brands: COMBINE, GOTECH, Seed Magic. During 2016, we successfully delivered the first batch of their products and get great results on the basis of sales through our own sales network.
This year we increased the volume of supplies of these companies' products. This became possible due to the stable financial position and opportunities of the international business group, which includes LLC ASA ASTRA. We were able to attract cheap resources of the world's leading financial structures to supply in this season. In simple words, today we do not need to freeze our own funds for the 6 months to place an order for production, bring it by sea, then sell the products and return the expenses. This gives us the opportunity not only to meet the demand of our own trading network, but also this year to expand our dealer network.
AgroPravda.com – why is it important to expand the dealer network, after all the company Astra has own, developed retail network for the sale of spare parts and a large number of service engineers who serve agricultural machinery in all regions of Ukraine?
Vitalii Mietolkin - thanks for the question. Today in China you can get everything, high quality of products and low price. But it is possible, by placing large lots in production. These privileges have been long using by agricultural machinery manufacturers of world famous brands and large wholesale warehouses located in the EU or in the USA. We need to rely not only on the needs of our own trading network in order to get a low price with high quality of the goods, but also be able to find favorable conditions for cooperation with the same as we dealers or smaller in order to make a consolidated order in a timely manner. Judge for yourself: some of the dealers have the opportunity to order 200 units of a certain position for the combine, which has a large population in the Ukrainian market. But after sending a request to manufacturer, receives a refusal because the minimum batch for placement in the production of this part is equal 500 units. A few days later another Ukrainian dealer has a need to order three hundred units of the same part, but also receives a refusal from the Chinese manufacturer. And such positions are enough in the list of any importer. This does not allow companies to bring from China a wide range of high-quality spare parts at low prices. Each of them is forced to be satisfied with the location in production of only those parts that have sufficient volume for a minimum order. The rest of the dealers usually buy in Europe, overpaying at times a lot of money. The consolidated order opens new opportunities absolutely for all participants, beginning with the manufacturer of spare parts, ending with the manufacturer by the dealer. And first of all, the final consumer wins, because this affects the final price, which means that it saves money.
AgroPravda.com - what do you plan to interest your dealers so that they can participate in this project?
Vitalii Mietolkin - there are several advantages. First, we absolutely openly provide all information about manufacturers. This information is important for companies that do not have experience with the same China. Secondly, we have already provided an opportunity on advantageous dealer terms to sell the spare parts COMBINE and Kouimtzis, which are available in our warehouse. This proposal can be interesting both for beginners who need to receive quality feedback from their customers before negotiating the placement of a large order, as well as other dealers who successfully cooperate with the above mentioned companies without our participation. Thus, some have the opportunity to test a new product, others get the opportunity to expand the range and this season meets the needs of their customers. Third, when placing a consolidated order, our dealer has the opportunity to partially take advantage of our capabilities as an international group for financing supplies. This means that we can offer the interested dealers the following conditions:
These are the basic conditions for cooperation when placing a consolidated order in Chinese production. Individual conditions are negotiated in the course of negotiations, considering needs, financial opportunities and counter offers of a potential partner.
AgroPravda.com - how do you plan to regulate pricing policy, how can a potential dealer know the prices and terms of cooperation?
Vitalii Mietolkin - from 01.02.2017 a new online store www.altparts.com.ua started have started working. In this store you can find the offered assortment. Every week on the website we updating information about availability. The prices are automatically recalculated in UAH when the NBU exchange rate changes. The store lists only the recommended retail prices for which the sales representatives of ASTRA and our dealers sell the product. The wholesale price list is provided to potential dealers during the negotiations.
AgroPravda.com - How can a dealer know the prices of spare parts on condition of consolidated order placement for supplies in January 2018?
Vitalii Mietolkin - My coordinates are listed below, as well as in our online store www.altparts.com.ua. After the appeal, we can agree on a meeting in our office or office of a potential dealer for negotiations and presentation of product samples. Applications for participation in the consolidated order are accepted until August 15, 2017. To do this, the potential dealer should be provided with a request indicating the list and number of interested items. After considering the request, the dealer will be provided with a commercial offer.
AgroPravda.com - What plans does the Astra company have for further development of the direction of alternative spare parts?
Vitalii Mietolkin - This is a promising direction and of course it has the following stages of development. We conduct further work on the development of new manufacturers from different countries to expand the range of alternative spare parts. This year we signed new contracts, which already this season, we plan to get the first batch of products of several Chinese manufacturers, which is well represented and is in great demand in many leading countries of the world, but this product will be delivered to the Ukrainian market for the first time. This year we signed new contracts, which already this season, we plan to get the first batch of products of several Chinese manufacturers, which is well represented and is in great demand in many leading countries of the world, but this product will be delivered to the Ukrainian market for the first time. We intend to develop this line of activity and ready to build partnership, mutually beneficial relations with all market participants
coordinator of the working group
on promotion of OEM / ALT spare parts
and development of dealer network
Ltd. "Agro-Building Alliance" ASTRA "
+ 38 099 918 20 99