International parts giants join forces to compete for the national tour of the aftermarket

The ever-growing huge cakes in the automotive aftermarket have become more and more attractive, and international auto parts giants continue to fight for their contention. On March 15, 2012, Delphi, Philips, Federal-Mogul, and Tenneco joined forces in the top 100 of the world's top 100 automotive parts companies to organize a large-scale market promotion campaign for “Auto Parts to Terminals” in Shanghai. The prelude to 100 city events is expected to include Bosch, Valeo, SKF, Mann, Hummel, and more than 50 world-class brand manufacturers in the event. The joint action of international giants indicates that the competition in China's auto aftermarket is heating up.

In 2011, the sales volume of the auto market declined. The outlook for 2012 is still not optimistic. On the contrary, the number of car ownership has been increasing year by year and it has become a new business opportunity. According to statistics, as of the end of 2011, the number of vehicles in China has exceeded 100 million, second only to the United States' 285 million, ranking second in the world. Even if 20 million three-wheel and four-wheel low-speed trucks (ie agricultural vehicles) are deducted, China’s car ownership has exceeded 70 million vehicles in Japan, which is still the second largest in the world. As a result, more and more parts and components companies have turned their attention to the strong interest chain behind vehicle sales – the automotive maintenance market, that is, the automotive aftermarket.

Given the rapid expansion of the auto aftermarket in China, not all powerful companies are equally sharing opportunities for growth. The automotive aftermarket is different from the supporting market. In addition to the sales system capabilities, brand building for end users is one of the most critical factors. Facts have proven that if we do not rapidly increase the branding of the terminal market in the last five years, quite a few companies will be quickly marginalized in the aftermarket. For example, a domestic brake customer's brand awareness of terminal customers is about 30%, which drives its sales volume from 60 million in 2007 to 200 million yuan in 2011. In contrast, a world-class brake pad company sells in the Chinese automotive aftermarket. Has been maintained at 10 million, the reason is not the quality of the product quality, but rather the awareness of the brand, after investigation, the latter's client brand awareness is only 3%. The ever-expanding post-market capacity and relatively low corporate brand power have severely restricted the healthy development of China's auto aftermarket.

The lack of brand power not only reflects the awareness of the brand, but also the awareness of brand accessories. "3.15" has just passed. During this period, the whole society was paying attention to counterfeit and shoddy products, and the auto parts market was also the same. The Beijing Municipal Bureau of Industry and Commerce Chaoyang Branch seized more than 700 pieces of counterfeit generic brand accessories worth more than 400,000 yuan in the Shenghua Auto Parts City of Wangsiying, Chaoyang District. The Daya Bay Branch of the Huizhou Bureau of Industry and Commerce and the shell company’s counterfeiters seized a total of 418 kilograms of counterfeit shell registered trademark lubricants. The reason why these fake and shoddy brand accessories can be popularized in the market is, on the one hand, because of interest-driven. On the other hand, auto parts terminals, that is, repair shops, small and medium auto parts retailers do not understand brand accessories, and regard counterfeit and inferior parts as brand accessories. , And then pass the risk to innocent consumers, resulting in damage to the interests of consumers, the entire auto parts industry chaos.

In the just-concluded China Auto Aftermarket “Authentic to the Terminal, 100 City Tour” Shanghai Station, the first-class parts and components companies participating in the event expressed strong interest in the brand strength of the automotive aftermarket, Federal-Mogul, Philips, Delphi, Tenneco, and other internationally renowned companies are all affected by fake and shoddy products. They all expressed the hope that through such "100-city tour" activities, they would sink their own brands and deepen their channels to expand the influence of genuine accessories. Finally, the goal is to clear the channels and purify the market. Therefore, under the new situation of China’s automobile market, building brand strength has become the key to spare parts companies’ standing in the post-market and not being marginalized. Do not let the lack of brand power become a stumbling block for the transformation and development of parts and components companies.