The huge potential of the auto parts market has given rise to changes in the industry Background: At present, 60% of auto parts used in domestic auto repairs come from Auto Parts City. According to incomplete statistics, there are about 250,000 auto parts dealers in China. They are distributed in more than 350 auto parts cities across the country. Therefore, Auto Parts City is the most typical and most important auto parts circulation model in China. However, with the rapid growth of the auto vehicle market since 2002, the rapid popularization of domestic family cars, auto parts city sales model has also been more and more The challenge will be mainly discussed in the domestic and foreign models of several circulation models, through the comparison of these models to explore the future of the domestic auto parts circulation in the field of possible development trends. I. The enormous potential of the auto parts market has spawned changes in the format industry With the rise of the automotive market, domestic car ownership has increased rapidly within two years, which provides a prerequisite for the development of the auto parts market. According to Maiwei's forecast analysis, in 2007, the domestic automobile aftermarket market will reach 110 billion yuan, of which non-accessories and modified parts will account for the vast majority of the proportion. Chart 1 Forecast of domestic auto aftermarket market size: Source: Mawei Market Research It is precisely because of the huge potential for development of the domestic auto parts market that the market will receive more and more attention from domestic and foreign investors. Due to the particularity of the starting point of the current market, the drastic changes that may occur in the coming period of time will also be studied. It is a very valuable job. Current domestic circulation patterns Domestic parts supply chain From the perspective of the supply chain, the domestic spare parts circulation will be completed in the manner shown in Figure 2, starting from the parts suppliers, through the spare parts distributors, to the vehicle maintenance companies and then to the owners. In this transmission process, due to differences in parts and components, vehicle owners' use of brand features, or owners' choice of service themes, there may be many different distribution channels, which can be divided roughly by the brands of four-in-one stores, Quick repair chain stores, auto parts city or other service stations, as shown in the figure: Figure 2: China's auto parts supply chain In the above flow chart, we are most concerned about the specific situation of the accessories circulation business. At present, the domestic accessories circulation business generally includes the following three categories: 1. Large-scale parts wholesaler (WD): once a major purchaser of imported spare parts, its upstream purchase target is usually an OE manufacturer, and it is distributed down to small and medium-sized distributors through large-scale procurement (Auto Parts City distributors, etc.) . At present, due to the transformation of the model, the purchase scale of this part of dealers is rapidly expanding, and it shows the ability to buy out a certain brand or brands; 2. Small and medium-sized auto parts distributors (Jobber): At present, this kind of domestic group is quite large, mainly concentrated in Auto Parts City and other places. According to incomplete statistics, there are more than 350 domestic and small auto parts cities and 250,000 auto dealers. However, due to the chaos of supply channels in the domestic auto parts industry, lack of after-sales service and product quality guarantees, the profitability of such distributors is rapidly declining. Jobber's procurement target is usually all levels of WD, OE manufacturers and other auto parts dealers, its sales target is usually a car repair station; 3. Special service station: It is mainly the service mode of domestic cars, SUVs, MPVs, etc., which are usually purchased through the closed or quasi-closed supply channels of manufacturers, and will be directly in the process of vehicle maintenance and maintenance. Accessories are sold to the end owner. In other small and medium-sized commercial vehicles, this type of service model often exists, but the procurement channels for maintenance stations are often lack of standardization, and both factory parts and sub-plant parts can be sold at the same time. Domestic auto parts demand pattern Judging from the current status of the domestic auto parts industry, the current domestic mainstream still belongs to small and medium-sized auto parts dealers. Although in terms of turnover, the total volume of this type of business is comparable to that of special maintenance stations, but due to the large number and low prices of its products, Therefore, it is often able to attract a large number of price-sensitive owners. In terms of sales flow, currently small and medium-sized auto parts distributors distribute products to auto repair stations mainly through Auto Parts City. Therefore, the choice of service stations directly determines the market size of Auto Parts City. Domestic car repair stations mainly include the following types: 1. Affiliated maintenance companies: These enterprises are often affiliated with the existing state-owned large and medium-sized enterprises, usually transport companies, passenger transport companies, large factories, etc. Due to the existence of affiliation, such maintenance stations often only repair the relevant vehicles of the parent company. However, due to the emergence of domestic enterprises’ outsourcing trends in recent years and the continuous transformation of large state-owned enterprises, such maintenance resources will be continuously decentralized and operated independently. Therefore, the proportion of this type of business will continue to decrease after several years. Enterprises account for about 25-30% of domestic maintenance resources. From the perspective of purchase channels, such companies usually purchase goods through OE manufacturers, Auto Parts City, or special maintenance stations. According to the differences in maintenance vehicles, the purchase channels are also different. 2. Special service stations: Special service stations are subject to the management of the corresponding brands and are part of the after-sales service system of the vehicle manufacturers. Therefore, they have the responsibility of maintaining their brand image. Usually this type of enterprise purchases through the closed system or quasi-closed system of the vehicle manufacturer, while only a small amount of purchases come from distribution channels such as Auto Parts City. With the rapid popularization of domestic private cars and the increasing improvement of sales channels of passenger vehicle companies, the proportion of this type of business has also been increasing rapidly since 2002; 3. Ordinary maintenance companies: These types of maintenance companies are generally oriented towards the society. The main service targets are users with high price sensitivity and relatively low maintenance technical requirements. The majority of purchases in this type of maintenance stations come from cities such as Auto Parts City. Due to the high proportion of auxiliary parts, quality is often difficult to guarantee. 4. Workshop maintenance companies: At present, the total number of domestic motor vehicle repair companies is about 320,000, of which about 220,000 are car maintenance companies, of which a large proportion are in this category. Due to the low technological content and poor service standards of such enterprises, the reputation in the industry is very poor. They usually only serve companies with high price sensitivity, and their purchase is Auto Parts City. 5. Chain fast repair shop or service shop: It is an emerging industry, although it does not occupy the mainstream, but it is developing rapidly, especially in the automotive supplies field. With the influx of foreign capital, the development of this type of business in recent years is unstoppable. In terms of purchase channels, such companies are relatively formal and often come from large auto parts distributors or OE manufacturers in batch procurement. On the whole, domestic maintenance companies can be divided into two types: independent maintenance companies and non-independent maintenance companies (whether or not independence is controlled by the corresponding vehicle company). From the current market share distribution, the total amount of independent maintenance companies and non-independent maintenance companies is roughly the same, which determines that the auto parts city's turnover in the accessories market is about 50% of all levels. Domestic end-user demand pattern At present, domestic auto parts end users can be roughly divided into the following categories: 1. Commercial vehicle users (including enterprise and individual parts): This type of vehicle uses vehicles as production materials and is mainly engaged in the transportation industry such as passenger transportation and freight transportation as well as some automobile rental industries. Since most domestic commercial vehicle companies do not use the sales channels of the monopoly model, this type of vehicle owners often conducts vehicle maintenance and maintenance through independent maintenance companies, and ultimately realizes the purchase of accessories products. For commercial vehicle brand customers who use the form of specialty stores, because of the disparity in the cost gap, manufacturers' special service stations are often not the main choice for such owners. 2. Government/corporate official car users: The models purchased by this type of users are often high-end or mid-to-high-end passenger cars. There is a good brand management system in the country, and due to the complexity of most repairs, users are less likely to choose independent maintenance. Enterprises, so this type of user usually selects the original parts through the formal channels of the manufacturer; 3. Private passenger car users: In the domestic private car market, due to the emergence of a large number of new brands, independent maintenance companies lack a competitive advantage. Therefore, new private car owners often develop maintenance vehicles through specialized repair stations, but at the same time, due to price differences, In the daily care and non-critical maintenance issues, such users will also choose other maintenance channels. Compared to foreign mature markets, the proportion of DIY drivers in domestic maintenance is very low. Therefore, the proportion of vehicle owners who directly purchase parts through auto parts dealers is almost negligible. Auto Parts City: Crisis in Growth As mentioned in the previous analysis, the most important form of auto parts distribution in China is the mode in which large numbers of small and medium-sized accessory distributors (Jobber) focus on large and medium auto parts cities. However, with the rapid development of the automotive market, the increasingly fierce competition, and the influx of external capital, various problems of this format began to be exposed, and the model of Auto Parts City is facing a dramatic change. First of all, since most of the dealers concentrated in Auto Parts City belong to small and medium-sized companies and their financial strength is limited, it is impossible to achieve the scale of procurement in the short term, and thus to compress costs in the upstream, so the model will be at a cost in the future competition. Disadvantage Secondly, due to the large number of distributors in Auto Parts City, the supply and demand sides are often not stable. Therefore, it is quite common for dealers to get goods from each other. This has a direct impact on the profitability of all parts dealers. Once again, due to the chaotic purchase of goods within the Auto Parts City and the distributors' own purchase channels, the market lacks a strong supervisory system, which makes the quality and after-sales service of Auto Parts City products unable to be effectively guaranteed. This has also caused very serious problems for Auto Parts City. negative effect; Finally, with the increasingly fierce domestic auto parts market, new circulation models are emerging, and the development potential of Auto Parts City is very limited. Although it will not be completely replaced by the new model, at least its influence will gradually decline. In the face of the aforementioned unfavorable circumstances, some domestic auto parts dealers have also taken corresponding measures to maintain their own competitive position in the future: At present, some dealers have begun to expand their own batch purchase scale through joint or other methods, and have increased their procurement efforts. The bargaining power even buys off the agency rights of a certain OE manufacturer's distribution channel and releases the goods to the secondary market by itself. From this point of view, new large-scale accessory wholesalers are constantly emerging in Auto Parts City. At the same time, these distributors who hope to be strong quickly are trying to change the chaotic supply system in the existing auto parts city and start to use their own agent products. Establish an independent brand, and make up for the disadvantages of the original product quality that cannot be guaranteed through brand management. [next] The development direction of domestic auto parts circulation If it is compared with the parts circulation area in the United States and Japan, the current domestic circulation modes mainly have the following differences: 1. Compared with Japan and the United States, the industry concentration in the domestic auto parts distribution industry is obviously low, and the number of dealers is large, making the individual dealers' capabilities limited; 2. The lack of a quality assurance system in the domestic auto parts industry leads to a poor reputation in the industry, which will affect the development of the auto parts field in the long run. At the same time, brand management has not yet started in many areas. 3. Compared with the United States, the proportion of domestic DIY users is very small, making many of the applicable circulation models in the United States not suitable for specific domestic situations; 4. Compared with Japan, the proportion of domestic independent accessory suppliers is very large. From this point of view, the Japanese parts circulation model will far exceed that of domestic ones in terms of the proportion of positive parts; 5. Compared with Japan and the United States, the domestic chain-form management system has not yet been completed. This is due to the fact that the domestic auto market has just started. On the other hand, due to the historical protection policy of the domestic market, with changes in the external environment, This situation will be completely broken in the near future. From the above differences, we can predict that the following changes will occur in the field of domestic accessories circulation: 1. The overall size of the market will further expand rapidly, and at the same time a large influx of external capital will bring large-scale integration of the auto parts industry; 2. As a result of the overall decline in profitability, the trend of integration among dealers in Auto Parts City will gradually emerge in the next few years. Existing small and middle-level distributors may become distributors of large-scale distributors or lose their power to survive in the fierce competition. ; 3. Due to the special stage of the domestic auto parts market, the coexistence of various types of industries will be maintained for a long time, but in this process there will be a large number of companies to fill the market gap; 4. Future winners in the domestic component sector will need to have three major characteristics: strong capital or financial strength, advanced management models, and leading logistics and information management. External Rewinder,Label Roll Rewinder,Table Top Label Rewinder,Label Printer External Rewinder Guangdong Shuangma Technology Co., Ltd. , https://www.soonmarkprinter.com
