China's forklift manufacturers are upbeat about 2010, with many renewing their marketing strategies for the domestic market.

At the Industrial Truck Association's annual meeting in October, China Industrial Truck Association president Lu Daming said although the forklift market declined by 18.5%, the industry remains optimistic.

"Affected by the global financial crisis, China's forklift market started declining from July 2008, reaching its lowest point in January 2009. After the Spring Festival in February, the market picked up significantly in March, then gradually grew from April to August," Lu explained.

Chingpong Quek, CEO of Linde (China) Forklift Truck Corp Ltd, observes that recovery in the Chinese forklift market appears to be quicker than in other countries.

"We foresee that for the full year 2009, the market volume would be at the same levels of 2008, or even slightly higher, whereas the rest of the world is forecasted to be down by 40% compared to 2008."

He adds that the recovery has been driven by strong domestic demand.

This is why manufacturers like Noblelift Equipment Joint Stock Co Ltd are adapting their marketing strategy.

Company spokeswoman Wendy Mao says while Noblelift has not been greatly impacted by the global financial crisis, it will now focus more on the Chinese domestic market, instead of exporting.

Mao says the global recession has opened up opportunities for Chinese forklifts to replace imported ones that are more expensive.

David Chen, Microlift Co Ltd's sales manager, says that while export-orientated factories suffered over the past year, "all the forklift companies don't feel it is the end of the world".

"The domestic sales volume is not expected to be less than last year's. The local market is very good."

With manufacturers shifting their attention to the domestic market, Quek predicts an intensified competitive spirit in the forklift industry.

"We think this would lead to further consolidation in the industry as it was very much fragmented before," he adds.

Forkliftaction.com's sales executive, Patrick Chin, who spoke to industry members at CeMAT Asia in Shanghai, says that while GDP grew 7% for the last nine months in China, forklift companies engaged in a price war.

"Heli and Hangcha have dropped their selling price by USD3,000 per machine," Chin says.

Barry Su from Zhejiang Maximal Forklift Co Ltd says that the price war is not confined to larger manufacturers. "There are some puny manufacturers who try to obtain an initial order with extremely low prices."

Su says instead of lowering prices, manufacturers should focus on building their brand name and diversifying their product offering.

"[We also need] to establish spare parts and service centres overseas."

According to World Industrial Truck Statistics, 168,119 industrial trucks were sold in China, in 2008. 10.3% higher than the 152,415 units sold in 2007. However, 111,573 units were sold in 2006, indicating a 36.6% jump in 2007.