Under the epidemic situation, the after-sales auto parts market has accelerated to upgrade, and the development of the group has become a trend.
If an auto parts company becomes a supplier of a OEM, the days are relatively better. If it is a auto parts supplier of a world-famous company, everything follows the process and the days are relatively easy. Not all parts companies can become suppliers to OEMs, and they have discovered a broad aftermarket.
If there is no such epidemic, some after-sale auto parts companies may have a more comfortable life. In fact, even if there is no epidemic, the after-sales market is also changing. Enterprises need to adapt to market changes. Enterprises that have not kept up with the changes may be eliminated.
The market forces companies to innovate
According to the data from the China Automobile Dealers Association, the scale of the post-automotive service market reached 1.3 trillion yuan in 2018. China's automotive aftermarket value chain is divided into automotive finance, insurance, repair and maintenance, leasing, supplies, and used cars. From the perspective of volume, repair and maintenance ranks second, accounting for 20% of the automotive aftermarket market share, second only to auto finance.
According to the data from the China Automobile Maintenance Association, as of the end of 2017, there were a total of 427,500 operating enterprises with maintenance qualifications, including 27,000 authorized 4S stores and about 40,000 2S and 3S stores. 4S stores accounted for 68% of the overall market share, and more than 300,000 independent maintenance companies accounted for 32% of the entire maintenance market.
The market size is very large, but there are also many people who take a slice of it. Not only the original after-sales auto parts companies are digging for gold, but also new OEMs are added. They are going from the front end to the back end. The scale, financial strength, and channel advantages of OEMs are not comparable to small and medium-sized after-sale auto parts companies. Li Tongmei, secretary general of the Aftermarket Parts Branch of the China Automobile Dealers Association, told reporters that in 2014, after the SAIC Group fired its first shot, many car companies responded. According to the world statistics of auto services, as of 2019, a total of 11 OEMs entered independent after-sales Market, layout more than 5,300 quick repair shops.
In recent years, the development of OEMs has not been extremely uneven, and benignly developing companies have embarked on the fast track, and some enterprises have made decision-making mistakes and operations are more difficult. This difficulty will also be reflected in the after-sales market. Li Tongmei said: "After five years of experimentation, some OEMs have collapsed, and some OEMs are still making great strides. In general, OEMs no longer expand blindly, but pay more attention to operational capabilities and vehicle owner services."
The most typical trading place in the after-sales market was the auto parts city. For example, the auto parts city in the western suburbs of Beijing is now transforming into a service park. For example, Beijing ’s Wufang Tianya Auto Service Park covers five major service segments including new car sales / used car (Internet) city showrooms, comprehensive car services, auto accessories department stores, auto parts, and business office / display. Shared sheet spraying center, and assisted nearly one hundred maintenance companies entering the park to obtain qualification records.
The sense of capital is always sensitive, and the after-sales market is very large. They ca n’t see it. Under the urging of capital, many new enterprises have emerged in the after-sales market. Their innovative ideas have entered, bringing vitality to the after-sales market. Accelerated the pace of market innovation. For example, platforms such as Xinkangzhong, Baturu, Kuaizhun Auto Service, Kaisi, Chetongyun, Three-Headed Six-Arms, Hao Auto Parts, A, B, C and D have continuously completed financing and become well-known enterprises in the aftermarket.
Thinking deeply about enterprise reform in epidemic situation
The epidemic has a serious impact on China's auto parts and components companies. The impact of this epidemic has caused many executives to think deeply about changes. Gao Haibin, Chairman of Shaoyang Circulation Association, Chairman of Tianjiao Group, is very representative.
In the next 2 to 3 years, auto dealer groups will be reshuffled, and there will be a situation where American dealer groups will reshuffle that year. About 30% to 40% of dealer groups will be eliminated. The surviving enterprises are not necessarily the largest, but they must be the ones with the most comprehensive capabilities. The original after-sale auto parts supply method will change.
The strong comprehensive capabilities of the surviving enterprises are mainly reflected in several aspects, the best strategic layout, independent brands, complete European and American car series; car prices are high, medium and low, to meet the consumer needs of all levels; the regional layout is reasonable, not only in first-tier cities , Deeper into the 4-5 line market; do a good job of intermediary service closed loop, provide consumers with various services such as listing on the card; excellent management ability, planning, performance assessment, corporate culture, talent echelon, etc. reflect the level of management ability ; The strongest innovation ability, creating a blue ocean market in the Red Sea market; The strongest profitability, the profitability is higher than the companies in the same industry are more likely to survive. Under the current situation, the dealer group should do subtraction on the scale and addition on the benefit, survive first and then develop.
Faced with market changes, Tianjiao Group introduced an ERP management system, cooperated with Kingdee and other technology companies, introduced Huawei's human resource management methods, improved efficiency, reduced scale, and saved about 15 million yuan in costs every year. "Now 5 people do things, 3 people do it and pay 4 people's salary." Gao Haibin said.
Through cross-border services, break the bottleneck of low-frequency consumption and resistant consumption in the automobile sales industry, and increase the stickiness of customers. Tianjiao Group is running Tianjiao Supermarket, through the sale of agricultural and sideline products, daily necessities, to dispel the resistance of customers. The Tianjiao Group has a stock of 100,000 customers, which provides a basis for cross-border services. Through the cross-border service, the service radius is expanded to shorten the distance between customers and service stores.
Gao Haibin believes that the ideal pattern of the automobile sales market is mainly three points. The three front markets of the car are equal to each other, restrict each other, and develop each other; in addition to the platform of auto parts procurement in the after-market, and single-channel auto parts procurement, dealers have the opportunity to choose; form a healthy development of OEMs, dealer parts suppliers and customers Good situation.
End singles and fight alone
There were many self-employed in the after-sales market. Not only are there more self-employed in the circulation field, but also a lot of small workshops in the production field. A typical feature is single-handedness. How will the after-sales market develop in the new situation? Li Tongmei believes that, first, the market's focus shifts to the rear service market; second, the parties are deeply involved in the automotive aftermarket; and third, the presence of vehicles with Chinese after-sales components has already taken shape. China's after-sale auto parts companies are blooming inside and outside the wall. It is recommended that OEM auto dealers and after-sale auto parts companies jointly build an ecosystem.
The times are changing. The previous single-handed fighting method has no room for survival. OEMs are coming in. New entrants have venture capital behind them, and their strength is not small.
Everyone is aware of how to build an ecological circle and develop together, how can this be done?
Li Tongmei believes that the OEM, with its innate product supply chain, quality original endorsement, capital, channels, products, top talent, and technological advantages, has a unique advantage in the market after the layout. The core is to be the rule-making party and resource integration party, linking auto parts factories, auto dealer groups and after-sales maintenance chain resources, doing supply chain and network layout, adjusting prices, services, and timeliness, rather than building high-rise buildings from scratch. The Auto Dealership Group takes advantage of its service brand, traffic and customer trust and has a deep layout in the aftermarket.
Auto parts manufacturers follow the trend of change, complete the construction of core advantages such as technology and brand, and strive to move towards the front end of the supply chain. Li Tongmei believes that through technological introduction, digestion, and re-absorption, technological innovation will be achieved to accelerate the completion of the technical reserve of electrification, intelligence, and networking of auto parts. Pay attention to the improvement of manufacturing equipment, optimize and upgrade existing fist products, and develop competitive solutions. On the basis of mastering the production process and technology of auto parts and components, parts companies should focus on process optimization, build a systematic module within the company, accelerate the market layout of the company's products, and improve their own modular supply capabilities. Auto parts distributors have transformed into product integration service providers and system integration service providers.
Due to historical reasons, domestic after-sales auto parts companies do not have a high share. They have turned to the foreign after-sales auto parts market and have occupied a considerable share. It is a good thing for after-sale parts enterprises to go to sea, which opens up the living space. However, the overseas market needs more development in order to survive, and domestic parts companies need to update their concepts and work together to break through the world.