The auto parts market has been undercurrent and a “three hits and two constructions†initiative in Guangdong has been sweeping the auto parts market nationwide. Expert analysis, China's auto parts market may be reborn.
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Industry is mixed
The "three hits and two constructions" initiated by Guangdong are connotations of "strengthening and fighting tyrants, cracking down on counterfeiting, counterfeiting, commercial bribery," and "building a social credit system and building a market supervision system." Actions were quickly promoted throughout the country. After a period of special strikes, the issues of auto parts counterfeiting and key areas and key products were effectively contained.
A recent survey shows that 56% of Chinese auto users have found counterfeit products on their vehicles. According to incomplete statistics, in 2009, the domestic and international auto parts trading volume was 390 billion yuan. In 2010, the domestic and foreign auto parts trading volume is expected to reach 460 billion yuan. The auto parts production areas are mainly distributed along the coast. At present, many domestic auto parts have counterfeiting and infringement, and the auto parts industry needs to be rectified.
“Absolute market share is dominated by deputy plant products and fake and shoddy products,†said industry sources, “it is even good if the factory products account for half.†And the cost of the deputy plant products is only 2/3 of the factory, counterfeit products The cost is lower, but their profits can be several times more than the factory.
According to the latest data released by the Traffic Management Bureau of the Ministry of Public Security in August, the number of motor vehicles in the country reached 219 million vehicles. Among them, the total vehicle ownership accounts for 45.88% of the total number of motor vehicles, and it has exceeded 100 million. The rapid increase in the number of car ownership has driven the active trading in the auto parts market, but the accessories companies with mixed results have caused considerable losses to consumers. Some auto parts manufacturers shoddy and disorganized, making the operation of the industry very confusing and urgently needed to be completed. It is understood that the country’s law enforcement activities throughout the country have found that counterfeiting and selling fakes “arase people with 50,000 or more,†and therefore played a very good law enforcement effect.
Some experts pointed out that this "three hits and two constructions" or an opportunity will prompt the entire industry to phase out and integrate, and eventually realize rebirth.
Alliance terminal
Analysts pointed out that China's auto parts industry has developed to the present, and every profit in the traditional retail model has been exhausted. Although the transformation of traditional dealers to terminal operators is painful, the cost is enormous, and it is full of risks, but the terminal does not have to wait for the death.
In the past, the traditional decentralized retail business model was difficult to achieve scale effect, and the standard cost was relatively high. In addition, the strength of any single auto parts company is not sufficient to establish a strong distribution system, and it is impossible to solve the inventory pressure caused by the terminal network to meet auto parts “all†through timely delivery. Moreover, the 2S stores that the automobile sales chain group has vigorously promoted recently are extending the interest reach to the downstream of auto parts companies and are threatening the survival of independent repair factories step by step.
Therefore, establishing an alliance to make the company bigger and stronger is the only way out for the auto parts industry. There are many auto parts alliances in the first and second-tier cities recently, such as the Audi League, the Volkswagen Alliance, the General Alliance, and the Modern Alliance. An auto parts manufacturer who declined to be named introduced: The alliance is mainly aimed at jointly resisting the pressure from middlemen in the same model. This will change the local competitors into alliances and will no longer carry out vicious competition, ensuring that there is sufficient interest sharing between them.
Industry insiders pointed out that the auto parts industry needs to survive in the market environment where competition has become more intense now, and it is the only way to go for scale and networking and commit to brand building. First, use scale to achieve effects to enhance competition and pressure resistance. Secondly, it is necessary to focus on product branding through traditional focus on product sales. Especially for “middle†products such as auto parts, it is difficult to judge the merits of the “middle†products before they are on the train. What consumers can do is choose A company with a trusted brand. Finally, build more terminal networks that directly serve the maintenance plant with the scale and brand, and realize the terminal network.
Just as Yu Xuming, Yujiang’s general manager, said: “If you want to move from a big automobile country to a powerful automobile country, China must first realize four strategic tasks: technologically-developing capabilities with international competitiveness, a solid industrial base for auto parts, and related industries that develop simultaneously. Drive the support of the service trade industry. As an important part of the automotive market, the auto parts industry should seize the opportunity to achieve a successful transition and better serve the auto market and consumers.