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"Auto market" brings huge business opportunities
In 2011, the Chinese auto market suffered a cold spell, and the double-digit increase over many years had abruptly ended. Although the growth rate has gradually slowed down, the substantial increase in the number of holdings has brought huge business opportunities to the automotive aftermarket. Yu Yuanjun, vice president of the China Automobile Dealers Association, publicly stated that the after-sales service profit is three times that of the vehicle sales. It is expected that the Chinese auto aftermarket will increase to approximately 490 billion yuan by 2012, representing a compound annual growth rate of 26.9%.
Industry experts predict that the automotive rear market , which is the rear area of ​​automobile sales, is gradually becoming the second “big cake†in the auto market after the vehicle sales, and will generate unlimited business opportunities in 2012. For car companies that are under tremendous sales pressure, the car market may become the biggest profit growth point in the future.
At present, more and more companies have focused their attention on the moneybags of automobile manufacturers and consumers, and have accelerated the pace of entering the automotive aftermarket. However, due to the lack of relevant laws and regulations and the monopoly of auto parts suppliers, automobile There are many difficulties in the post-market, such as the chaotic business environment, credit crisis, and lack of industry standards. It is imperative to strengthen industry self-regulation.
Rapid development
Insiders refer to the market space created after car sales as the “auto aftermarketâ€, which refers to the general term for a series of trading activities that are generated after the automobile sales and subsequent needs and services in the after-sales use of automobiles, such as car repair and maintenance. Services and required parts, supplies and materials.
In the developed country market, the sales profit of automobiles accounts for about 20% of the profits of the entire automotive industry, and the profit of spare parts supply accounts for about 20%. The other 60% of profits are generated in the service sector, which means that the profit of after-sales services is generally a whole. Three times the sales profit of the car. At present, in the domestic auto market sales, the proportion of services is still relatively small, and the auto service market has a lot of room for growth.
In 2011, the Chinese auto market bid farewell to the high growth rate, entered the stage of steady development and brand competition, the major car companies competed for price cuts, and vehicle profits were repeatedly compressed. More and more automakers are aware that the cake in the auto aftermarket is far more oil than the vehicle sales. The auto aftermarket has gradually become a powerful tool for auto companies to consolidate their operations, increase profits, and enhance their competitive advantage.
At the same time, increasingly mature and rational consumers are increasingly critical of after-sales services. Consumers not only use the car as a tool for travel, but also pay more attention to the convenience that car derivative services can bring for themselves.
Due to the vast space of service and the lucrative profit return, combined with consumer preferences for personalized consumption, the expansion of automotive aftermarket services has become a common demand of car manufacturers, distributors and consumers. It can be said that China’s automobile economy is transforming from sales to service.
As of August last year, China’s car ownership has exceeded 100 million, and the huge amount of car ownership is enough to support a large-scale maintenance and repair market. According to statistics, in 2005 China's auto aftermarket had a turnover of 88 billion yuan, and by 2009 it had grown to 240 billion yuan. Industry experts predict that by 2012 China's auto aftermarket will increase to 490 billion yuan, and by 2016 it may exceed 700 billion yuan, an alarming rate of growth.
At the end of last year, the Ministry of Commerce announced the guidance on promoting the development of the "12th Five-Year Plan" of the automobile circulation industry, and improving the automobile marketing and service system has become the top priority. Relevant persons believe that at present, the proportion of first car purchases in China is as high as 80%. Once the proportion of China’s first car purchases has fallen to 50%, the capacity of the automobile aftermarket will be even greater.
There are also industry analysts who believe that, in addition to the adjustment of national policies, the biggest impact on the development of the automotive sales market is the automotive aftermarket. In a sense, the automotive aftermarket will determine the future of the automotive industry.
Increased competition
It is an indisputable fact that the market-oriented market in the auto market segment has shifted to the post-war market. Many car companies that stick to the forward positions in the auto market have started to line up in the post-market.
After the battle of the car market has started, several car companies have come to the front. FAW-Volkswagen's "Strictly Caring for Love", Shanghai GM Buick's "Buick Care", and Shanghai Volkswagen's "Caring for the Masses" are gradually becoming familiar to consumers. In addition, Changan Ford and Japanese brands have begun to increase investment in the automotive aftermarket to form a competitive force.
Not only vehicle companies, but also well-known foreign car service companies, including Bosch, Federal-Mogul, and Delphi, have also deployed China's auto aftermarket. They rely on their advantages in capital, technology, and channels to introduce foreign mature brand chain models into China.
In the layout of foreign-funded companies, it is the cross-border component suppliers that bear the brunt of this. It is reported that Bosch has established more than 500 auto repair shops in China; Japan's largest auto parts dealer “Yellow Hat†plans to increase the number of Chinese direct sales stores and franchise stores to 500 by 2015; GM’s The maintenance chain AC Deco has now entered major cities in China; 3M in China has sold its 8,000 automotive aftermarket products to 700 special beauty shops, 6,000 auto repair shops and 4S sales centers; Germany’s Würth Group is already More than 100 cities in China have established sales service networks dedicated to automotive aftermarket services.
According to incomplete statistics, at least 30 foreign well-known automobile service companies have plans to enter the Chinese market. These foreign companies, with their strong economic strength and mature management experience, began to quickly seize the Chinese market, relying on professional services and chain business model to establish a brand image, and earned a good performance and reputation.
Faced with the landing of many foreign-funded enterprises, private domestic enterprises have also begun to set foot in the automotive aftermarket. Beijing Chinap, Zhengda Fortis, CRRC Auto Repair, Che Jue Shi and other chain companies have risen one after another.
Regardless of the after-market battle situation, consumers will benefit more, and at the same time they will promote a more healthy development of the auto market.
Urgently required specification
Behind the infinite business opportunities and increased competition, there is also a huge crisis hidden. According to analysis by industry experts, the disorderly development of the automotive aftermarket over the years has led to rampant counterfeit goods and the phenomenon of “bad money driving out good moneyâ€. "The more high-end, high-quality products, the more they can't sell to the terminal market. And the demand in the terminal market is met by many companies that produce counterfeit original parts."
According to the latest survey, 56% of Chinese auto users have found counterfeit products on their vehicles. In the past three years, accidental vehicles accounted for about 13% of accident vehicles because of the use of inferior parts. The vast majority of consumers lack the judgment on auto parts products. It is easy to be blinded and the rights and interests are not guaranteed. Analysts believe that the excessive growth of the auto aftermarket is at the expense of encroaching on the interests of high-quality component manufacturers and consumers.
The lack of standards is another prominent problem in the automotive aftermarket. The entire domestic automotive aftermarket is in a regulatory vacuum, and the laws and standards for automobile maintenance are extremely impractical. In the automotive accessories industry, even the guidance specifications of the nature of the industry are not available. In the area of ​​automotive beauty and automotive supplies, it is the standard. None, regardless of quality standards or pricing standards. Insufficient laws and regulations have affected the overall development of the automotive aftermarket.
Another important phenomenon in the automotive aftermarket is that domestic companies are still unable to form a large climate in the entire post-market sector and are not competitive in international brand competition.
At present, there are more than 130 vehicle manufacturers in China, tens of thousands of domestic component manufacturers, and other workshop-style automotive after-sales service and related companies. Due to the lack of understanding of specialization and branding, production and operation are difficult to form scale, and they always remain in the “low-risk and self-confident†low-level repeated construction and homogenization competition, which seriously affects the further development of the company. And grow. Experts in the industry suggest that this disorder should be changed through mergers and reorganizations to further standardize the industry and promote industrial development.