The 500 billion class automotive supplies market grows wildly

In addition to the Beijing International Auto Show, what other auto exhibitions are required to use all the main exhibition halls of the Beijing New International Exhibition Center? The answer is automotive supplies exhibition.

On February 15, 2012, when we entered the scene of the 14th China Automobile Supplies and Modified Automobile Exhibition, the reporter was actually somewhat surprised. This year's auto supplies exhibition actually attracted 6,000 auto aftermarket manufacturers worldwide, brought 200,000 kinds of exhibits, occupied 250,000 square meters of exhibition area, deservedly to become the world's largest auto supplies exhibition.

Why is automotive supplies so attractive? What is the business opportunity in the automotive supplies market ? According to the data released by the Automotive Equipment and Modification Technology Center of the National Equipment Development and Reform Commission of the National Development and Reform Commission, “China’s total automotive product market reached RMB 430 billion in 2011, and more than 100,000 companies in the automotive supplies industry have distributed products. It will exceed 550 billion yuan."

With a market size of 500 billion yuan, who can do it? With the attraction of huge business opportunities, domestic and foreign automotive supplies companies have applied their skills to each other to share food. Putting aside the prosperous appearance, we can also see that the competition for low-priced automotive products has intensified, and inferior products have emerged one after another. At present, China's auto supply market that needs to be regulated is so "barbarously growing."

Rapid development and adjustment

Automotive supplies refer to automotive parts and related products that are used in car modification, automotive beauty, and automotive decoration. A wide range of automotive supplies, it can be divided into automotive decoration products, automotive electronics, automotive beauty products, automotive maintenance supplies, automotive conversion supplies, automotive safety supplies, vehicle maintenance tools.

"A new car, if it is priced at 500,000 yuan, then the cost of its use in the post-market is definitely more than 500,000 yuan." Zhang Wei, manager of the Jiangxi branch of South Korea's Samsung Electromechanical Automotive Electronics Co., Ltd. told reporters. Every year, China sells 18 million new cars. Each car sold can drive almost the same amount of post-market consumption as its price, or more than its selling price, including daily repairs, maintenance, services, and spare parts and related supplies. Therefore, the potential of the automotive supplies market can be imagined.

The rapid development of the automotive supplies market has intensified market competition and reduced profits, which need to be adjusted. The business manager of Beijing Renault Optoelectronics Business Center told reporters that although the sales volume of new cars in China ranks first in the world and the number of cars in the fleet exceeds 100 million, the development in the past two years is not as good as that of previous years. Previously reduced.

Shenzhen Zhengding Technology Co., Ltd. mainly produces video and audio entertainment navigation systems. The company's deputy general manager of marketing, Ning Xiangli, believes: “In the past few years, with the rapid increase in car sales, businesses in the industry have gained a lot of opportunities. But since last year, The growth of new car sales slowed down, and the auto market is entering an adjustment period."

Foreign investment for upgrading

At the auto supplies exhibition site, the reporter saw many international famous brands. According to the organizers, this exhibition brought together the most comprehensive internationally renowned brands developed in China, including Long Sky, Magic Sharp, JB, Magician, Speed ​​99, Limo, Nelson, Craftsman, American Standard, and Love. Che Bao, Ryukyu Window Film, Amber Optics, LLumar, Ouba, Disney, Airo Tour, 3M, Snoopy, and Paratroopers are nearly 3,000.

The most typical car film museum, completely become the world of foreign brands. 3M's strong position needless to say. Endifors from South Korea entered China in 2000, and today's sales of film products have exceeded 100 million yuan. US-based film brand Jade Optics, which just entered China last year, now has more than one million yuan in sales. In recent years, the rapid growth of China's film market has attracted foreign investment. A manager of Endifos Films (Shanghai) Co., Ltd. said: "The car foil market is far from saturated, and there is plenty of room for growth."

Foreign auto supplies companies have entered China and competition has intensified, which will inevitably lead to lower profits. A person in charge of a foreign film company told reporters that the low-end car film has no profit at all, and the mid-range film is also popular, only the high-grade film has a better profit. Therefore, foreign-funded enterprises all hope that the Chinese automotive supplies market can be upgraded and can quickly accept high-end products from abroad.

The influx of foreign capital will inevitably squeeze the market space of local auto supplies companies. The business manager of the Beijing Renault Optoelectronics Business Center stated that the current difficulties encountered by the company are that the channels are not widely spread, and the promotion is unfavorable and the product advantages are not obvious. Must find ways to improve product quality, expand channels, and effective promotion in order to win market competition.

Need to regulate the cohabitation

After visiting the Auto Accessories Show, the reporter felt that most of the auto supplies companies were not large in scale and their technical content was not high. This provides the soil for the development of counterfeiting. The industry generally believes that the most prominent feature of the automotive supplies market is "chaos," and the vicious price war continues. As counterfeit and inferior products are seen everywhere, product homogenization is becoming more and more serious.

“The current biggest problem in the automotive film market is that the industry is not regulated, there are no national standards, there is no threshold, and anyone can enter,” said Han Zhentao, manager of the United States Dr. Turtle Solar Films (China) Operational Headquarters, and told reporters: “There are many counterfeit and shoddy goods. Cases continue to emerge in an endless stream and companies cannot cope with it. There is no energy to litigate."

In China's auto aftermarket , the phenomenon of “bad money driving good coins” often occurs, and counterfeiting has become a stubborn disease.

The person in charge of a car maintenance product company in Shenzhen pointed out that with the overall rise in the prices of international raw materials, the cost of products will increase, and the price war will only sacrifice the quality of the products.

Experts in the industry suggest that auto supplies companies must step out of the cycle of price wars and must establish a brand and rely on quality. The government and enterprises should work together to establish a standardized market order, so that the automotive supplies market will return to a healthy development track and will no longer grow wild.