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In the excavator market, the number of excavators in China is approximately 1.4 million, with an average annual consumption of 35,000 spare parts per excavator. In 2011, the spare parts market expanded significantly alongside the growth in excavator sales. In 2013, overproduction of spare parts occurred: equipment gradually aged, the spare parts market expanded slowly, and the production volume of spare parts far exceeded demand. Under these conditions, general agents, who had actively expanded in the early stages of the industry's development, accumulated large inventories of unsold goods; regional wholesalers had non-transparent prices, with many enterprises arbitrarily inflating prices to defraud customers; municipal wholesalers offered no quality guarantees, and the practice of replacing quality goods with counterfeit ones was common; terminal stores had incomplete product ranges that could not meet customer needs.
"Digging and distributing soldier" is an electronic trading platform for excavator spare parts. It operates mainly through direct supply from manufacturers, online orders from end-users, as well as third-party logistics and capital flows. The profit model is based on three aspects: manufacturers pay a certain percentage of sales commission, profits from self-developed supporting tool products, and advertising fees. In addition, the company has another product – the mobile application WugouWarrior, which is based on information services. Through the application, users can post information about searching for a temporary driver, hiring a permanent driver, and looking for an excavator. Interested users can directly contact the information publisher by phone. This application provides free services for industry users, helping solve the problems of "finding a driver" and "idle excavators without work".
Currently, the platform has collected data on 5,839 industry users in Shijiazhuang, Handan, and Shijiazhuang, among whom 3,781 are drivers, managers, and engineering contacts with clearly identified identities.
At present, more influential companies in the industry are engaged in the used vehicle market. Their customer base mainly consists of excavator dealers, and the number of end customers engaged in used machines accounts for less than 5% of the entire market. There are no strong competitors in the spare parts industry.
Within the team, the founder has 12 years of experience working in grassroots positions in the excavator field, as well as managing a spare parts store and repair work. Over the past three years, he has focused on integrating and researching traditional methods and networks, and also holds a patent for a quick-change device for bucket teeth.
