For a company to thrive in the long term, it must assess the situation and adapt its business and management models in a timely manner according to shifts in national policies, market conditions, and customer demands. This approach ensures it maintains a confident and forward-looking stance amid increasingly fierce market competition. Currently, China is vigorously promoting an increase in the proportion of service trade. For equipment manufacturers, this presents both challenges and opportunities. As a professional printing equipment manufacturer, Beijing Zhenheng Limin Printing Machinery Co., Ltd. (hereinafter referred to as “Zhenhengli”) has taken the lead in exploring this direction.
How should we correctly understand increasing the proportion of service trade? “My personal interpretation is shifting the focus of the equipment manufacturing industry from physical product production to paid services,” " Feng Yan, General Manager of Zhenhengli, shared his perspective. Statistics indicate that service trade revenue accounts for 60% of total income for foreign equipment manufacturers. This suggests that increasing the proportion of service trade may be a key strategy for sustainable corporate development.
What constitutes service trade? "For Zhenhengli, service trade encompasses two aspects: first, the adjustment, relocation, and major/medium repairs of used equipment; second, the sale of spare parts and paid services. To achieve this, the design department's role must evolve. Beyond designing machinery, it must also establish standardized service protocols and fee structures. This marks a shift from dependence on equipment sales to developing independent pricing models, moving from planned production to market-driven operations." Feng Yan is confident in this direction.
The Proper Perspective on Used Equipment
"From a manufacturer's standpoint, large-scale production is undoubtedly advantageous. Sustained growth in output and sales naturally leads to increased profits. However, economic crises and environmental degradation remind us that we cannot continue down this old path—it is unsustainable." Feng Yan deeply understands that the equipment manufacturing industry is poised for transformation. Financial leasing is highly prevalent in Western developed countries. Equipment manufacturers can only secure bank support by committing to buyback agreements and maintaining sound finances, while also ensuring their service levels keep pace. Conventional practice dictates a one-year warranty and ten-year service guarantee. To this end, Feng Yan directed Zhenhengli's sales department to treat used equipment as a commodity. Drawing inspiration from the model of second-hand real estate agencies, they established fee standards for used equipment exchange and reinstallation/commissioning. These fair pricing practices have earned unanimous praise from customers.
Spare Parts and Paid Services: Equally Important
Spare parts sales management is complex and low-margin, yet when managed effectively, it can generate profits and positively support new equipment sales. Simultaneously, it helps frontline employees increase their income, contributing to workforce stability.
Wuhan Zhongyuan Printing Co., Ltd. introduced a Zhenhengli 1020 Coater in 2012, primarily for coating pharmaceutical packaging boxes. After operational testing, the ultrasonic double-sheet detector proved highly reliable, featuring easy installation, flexibility, and compatibility across various printing and post-press equipment, significantly boosting production efficiency. Subsequently, three additional units were purchased to retrofit a laminator, a coating machine, and a used Beiren 05 press, delivering exceptional value for money. “Through technical exploration, we found that domestically produced ultrasonic double-sheet detectors deliver comparable performance—the key lies in installation position and angle.” With customer support, Zhenhengli has made significant progress while further driving innovation in accessories and paid services. Currently, Zhenhengli has expanded into inserters modification and installation.
In response to shifts in the market environment, Zhenhengli demonstrates the ability to react swiftly—a capability essential for enterprises in the new era. We believe that Zhenhengli's proactive exploration in increasing the proportion of its enterprise service trade will facilitate comprehensive expansion, positioning it to become a comprehensive equipment manufacturing supplier.