Automobile Supply Market Outlook Analysis


Problems with automotive supplies market

First, the lack of transparency in price

From the price of car supplies, the profits are surprisingly high, but the price is often determined by the business itself, without any transparency, and obviously high, both in large chain stores and roadside shops. Calculated according to the marked price, some decorative automotive products cost hundreds of yuan, the cost may be about 10 yuan, and the profit rate is surprisingly high. Interestingly, some sales staff told reporters that car items with a higher price point can be sold, because car owners are the first to get rich and do not care about tens or hundreds of dollars. This can only explain that it is the merchant's chances and the consumer's irrational consumer behavior.

Second, too little personalization

Whether it is comfort or decorative automotive products, personal style items can be minimal, all have the same pattern and the same creativity. Some of the slightly better or most interesting decorations are mostly one or two brands from Japan. The price is not low, and the range of options is narrow.

However, personalization is a major trend in the development of the automobile industry. There are more and more car buyers, especially young people. No one wants to put their own cars in the same way as their colleagues’ cars. Therefore, the blank of personalized car supplies seems to be imminent. .

Third, the scale and standardization are not enough

In the reporter’s survey, Guangzhou’s fragmented auto supply stores are also numerous, but there are also several supply stores with large-scale, well-managed, and basically complete varieties. Many supply stores sell only a few of them, and the entire store environment is also not good, not dirty or messy. Some salesmen are not enthusiastic enough, and some don't even know how much their store sells. It's confusing. The best shopping environment is the Yellow Hat Chain, which is open until 10:30 in the evening and staff are well-trained. There are also customer lounge areas, internet areas, children's play areas and smoking rooms.

The future of automotive supplies market

The buzz of the auto market means that the auto aftermarket is booming, and, like the repair and replacement parts market, another major pillar of the aftermarket is the automotive supplies market.

The main customers of this market are individual users. According to a survey conducted by Roland Berger's China Office, most of the individuals who buy a car will purchase car audio or CD car audio at the same time. Among the users who purchase audio, 85% purchase car audio, and the purchase of CD car audio is 15%.

The main items purchased by individual users in the store after purchasing a new car are car CDs, safety systems, car waxes, foams, and fragrances. In particular, it is worth mentioning that the safety system has been very popular recently. The reason is that high-grade cars are easy targets for theft, and the security situation is also deteriorating.

It is the so-called car enthusiasts who are driving the automotive market. Although the number of members of this group is still small, the automotive supplies required are no different from those of Japanese car enthusiasts. In fact, rather than enhancing the performance of the car itself, these enthusiasts are more inclined to spend money to make the car more luxurious. In China, the limousine is a symbol of status, so the owner will buy the interior and exterior decorative items matched with the limousine at any cost. Today, many young people feel that Japanese products are "good quality", "appearance better", "feeling", and "pleasing" than American products. This contains important opportunities for Japanese manufacturers to open up the Chinese automotive supplies market in the future.

In this current situation, the advancement of Japanese supplies companies will bring significant changes to China's supplies industry:

I. Rapid increase in the overall industry level

The foreign auto supplies industry has long been mature. They have advanced management experience, mature market operation modes, and high-end technical levels. Perhaps what they lack is knowledge and understanding of a new market, and cooperation with China's outstanding automotive supplies companies. It is particularly important. There is no doubt that they will be promoted in the Chinese market, virtually promoting the development of China's automotive supplies industry and technological level.

Second, the development trend of enterprises is obvious, and small enterprises are dying.

The trend of automotive supplies is internationalization and chaining. At the same time, as with all commercial development laws, it has become monopolized. In industries where the competition is so fierce, China’s existing small supplies companies cannot compete with each other. Withdrawal and demise will be inevitable. Perhaps there is a situation that is 1+1>2, which is risky but resourceful. Restructuring will enhance the company's strength, which is a common and effective method in the stock market.

Third, speed up the development of large enterprises

At present, China has emerged some large auto supplies cities and supermarket chains, but it is still in its infancy. They are direct opponents of foreign brands. They are fighting under immature conditions. Speeding up the market means seizing the market opportunities, and large companies will speed up. In recent years, there will be large local auto supplies city and auto supply chain stores.

The term supermarket is no longer unfamiliar to us, but it is still rare in the automotive decoration industry. Currently, there are some special automobile decoration supermarkets in Shanghai and Guangzhou, which may be a development direction of the automotive decoration industry. With the increase in the number of private car owners, the demand for automotive decoration products will certainly show a diversified trend. The supermarket has changed the model of counter operations, allowing consumers to independently choose among a variety of brands, supplemented by perfect services. popular. And in the long run, the automotive decoration industry not only needs to establish the brand of the product, the distributor must also establish the brand concept, and only in this way can it be possible to establish the chain model of the automotive industry needed by the market.

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