First, the characteristics of China's spare parts market
I believe that many suppliers are exploring this issue. The old saying is good: know yourself and know yourself and fight with each other. For suppliers in the transition stage, or for suppliers preparing to enter the Chinese auto parts supporting industry, grasping the characteristics of the domestic matching market can reduce unnecessary “tuition feesâ€. The characteristics of the domestic matching market can be summarized as follows:
1. Relative to the after-sales market, the variety is small, but the amount of each batch is relatively large.
2. The technical difficulty is higher than that of the aftermarket. Due to the direct control and participation of the OEM, the technical requirements will be much higher than the aftermarket;
3. The logistics must absolutely guarantee the timeliness and continuity of the supply. It must not cause the main plant to stop production. The ideal situation is to set up warehousing around the entire vehicle factory.
4. Higher service requirements, such as may involve recalls. In addition, even if the models you supply have been discontinued, it is generally necessary to guarantee the supply of spare parts for more than 10 years.
For many suppliers, there is not much space in the domestic market, and the development of overseas markets has become a priority.
Second, the survival status of China's auto parts production enterprises
1. Difficulties in China's domestic parts and components manufacturers
In recent years, with the rapid development of China's automobile industry, the strength of vehicle manufacturers has greatly increased. In stark contrast to this, there is still a small gap between China's auto parts industry and bigger and stronger companies.
Under the influence of rising raw materials, appreciation of the renminbi, rising labor costs, and repeated reductions in export tax rebates, prices have not risen, making every company difficult. However, for China's domestic parts and components companies, the price increase may mean the loss of orders, because the product itself lacks core technologies, if you lose the traditional cost advantage, then you will be afraid of no one "made in China" to pay the awkward situation .
At the “2008 China Shanghai International Auto Parts Expoâ€, many parts suppliers expressed their feelings of pressure from the international market, and the companies that can create a good profit in previous years have a dual role in rising raw materials and appreciation of the renminbi. As the profit margins have deteriorated, the profits of enterprises’ exports have become thinner and thinner, and the competition in the domestic auto market has become increasingly fierce. The gross profit of the enterprises supporting the after-sales market has been declining, and the average level is about 10%.
In addition, multinational parts companies have entered China and rapidly expanded in the areas of passenger car parts and commercial vehicle parts. Various factors have caused China's domestic parts and components companies to face severe challenges.
2. Strong multinational supplier of parts and components
Compared with the increasingly difficult days of local parts suppliers, the days of cross-border component suppliers in China have come to fruition. Japan's Denso, South Korea's Mobis, the United States's Delphi and BorgWarner, etc., in China's wholly-owned or holding companies, their business with the strong growth of the Chinese market are rapidly rising.
According to Yang Weihua, Visteon Asia Pacific Marketing Director, the rise in raw materials will make local suppliers no longer have the advantage of low cost, but Visteon’s business in China will continue to grow substantially. "The direct impact will be on China's domestic suppliers, although this effect may not appear until a year or two later."
A related person from the procurement department of BorgWarner (China) stated that from 2006 to 2010, BorgWarner's turnover in China will achieve the “5-year growth rate of five times†grand goal. At present, BorgWarner is supporting domestic OEMs on the one hand and China as a production base for global exports on the other. Changes in the exchange rate of the renminbi against the US dollar will only affect exports to the United States, and it is not enough to affect the strong growth of BorgWarner's overall business in China.
Delphi (China) public relations manager Liu Xiaohong optimistically estimates that this year's performance in China will increase by more than 40%. According to Jiang Jian, vice president of Delphi (China), his business in the Asia-Pacific region has been growing at a rate of 26% every year, while business in China is growing at an annual rate of 30%. “It is precisely because of this rapid growth that Delphi decided to establish its fifth technology center in the Asia Pacific region in China. The current work is in full swing.â€
Relevant statistics show that currently there are nearly 500 parts and components companies that foreign investors have invested in China, and multinational suppliers including Visteon, BorgWarner, Delphi and other world top 500 parts and components companies have all established in China. Joint venture or wholly-owned enterprise.
3. The official start of the marginal elimination tournament
In the domestic and foreign competitions, the majority of suppliers from China's mainland have become increasingly marginalized.
A typical example is that almost all of the core parts and components companies in China are completely monopolized by multinational corporations in the form of wholly-owned or controlled companies. According to statistics, foreign investment in China's auto parts market has accounted for more than 60% of the share, while in the auto parts industry, some experts estimate that will reach 80%. In addition, in key areas such as high-tech products such as automotive electronics and core parts and components such as engines and transmissions, the foreign-controlled market share is even as high as 90%. Some experts even cautioned that as a supplier of components to the upper reaches of the automotive industry chain, once it loses its dominant position in the market, it may mean that the local automobile industry is “emptyâ€.
At present, China's auto parts industry has lagging far behind the development of complete vehicles. The overall competitiveness of Chinese auto parts companies has been declining. Due to the heavy emphasis on heavy-duty parts and components, the lagging nature has become China's auto parts industry development. The biggest obstacle.
Although China's suppliers have grown rapidly, the lack of core technologies in their products coupled with the weakness of basic industries (such as iron and steel manufacturing and industrial plastics) are the reasons for the lack of confidence of OEMs in local component suppliers. Take BorgWarner (China) as an example. Currently, nearly 70% of the suppliers in BorgWarner are from China, but only 30% of these suppliers may be listed as core suppliers, while other suppliers will eventually be eliminated. Out of the situation.
In the ecosystem of parts suppliers, they can be divided into three levels according to their size and division of labor: Tier1 (tier) is automotive system supplier, Tier2 is automotive assembly/module supplier, and Tier3 is automotive component/ Component suppliers, and most of the domestic domestic parts and components companies, are Tier2 and Tier3 camps, almost no finalists Tier1. â€
Currently Tier1 camp is almost the world of Bosch, Weishitong, Delphi and other multinational parts companies, while local companies are mostly Tier3 small parts suppliers with raw material production, low technology content, and labor-intensive production methods.
We can't graduate by copying other people's homework. Chinese auto parts manufacturers can only get rid of the situation where they are technologically innovative and develop high value-added products in order to get rid of the “increasing marginalization in production, technology, and research and developmentâ€.
[next]Third, local auto parts supporting enterprises how to highlight the encirclement
With the rapid development of China's automobile industry, China has become the world's third largest consumer of automobiles. In 2007, the number of cars will reach 45 million, of which private cars will be 32.5 million. In recent years, China’s car ownership has grown rapidly, ranking sixth in the world, reaching 133 million by 2020, ranking first in the world. The second place, second only to the United States, will enter a steady period of development. It has unlimited business opportunities and is full of charm. It is a "gold mine" that we are going to develop. With the rapid growth of automobile vehicles, the auto parts industry has also achieved rapid development. This huge cake in the Chinese market has attracted almost all internationally renowned auto parts brands, especially in recent years, such as Goodrich Delphi, Visteon, Denso, Michelin, Mahle and other international well-known brands of spare parts, with its international brand The advantages of China's auto parts market have skyrocketed. It has a strong impact on the domestic auto parts market. The development of domestic auto parts and components has been driven into a passive situation, highlighting the importance of international sieges and has become a top priority for local parts and components companies.
1. Create "DangDang" independent brands to achieve brand breakthrough
Foreign auto parts brands often cleverly use the psychology of blind consumption of Chinese consumers. By virtue of their “foreign†and “international corporations,†they dress themselves up as the most professional auto parts brands. Consumer trust. At the same time, because of this kind of psychological respect, many customers will also be asked to import high-end accessories, because in their eyes, domestic accessories are only low-end products.
It can be said that the brand inferiority is one of the biggest disadvantages of China's local auto parts companies. In recent years, although China's auto parts manufacturing has greatly improved, but compared with the powerful companies in the world, we still have a big gap. Not even a few of our auto parts companies are proud and proud of our people. "Dangdang" brand. Therefore, auto parts companies must focus on the shaping and prominence of their own brand personality and create Chinese brands with independent characteristics. An automotive expert believes that the parts and components companies can only form their own development system and independent development capabilities, and form an independent development team, so that they can finally show their own "brand" and form a competitive edge that breaks through the international arena.
The auto parts industry is highly competitive, especially in the increasingly intensified economic globalization. Many auto parts giants have entered the Chinese market. Domestic auto parts companies are facing tremendous pressure. Domestic auto parts companies should regard the world-class standards and companies in the industry as their goal of catching up with the standard and develop to a higher level. It is necessary to train one or two strokes or more of the “unique skills†that others do not have, and to increase the competitiveness of the company’s products from its own competitiveness and create an absolute advantage. To rapidly expand their production capacity and scale, they will become stronger and bigger. We must create a world-class strong independent brand and create a “brand-name effect†of “high, special, and strongâ€. In recent years, China's auto parts companies have emerged a number of well-established brands in the market, such as universal bearings, etc. The scale of these companies is gradually expanding, their technological capabilities have gradually increased, and they have played their own in fierce competition. World, showing its own brand. For example, Hunan Jiangbin Machinery (Group) Co., Ltd., which specializes in the production and operation of high- and mid-range diesel engine pistons, gears, and oil pumps, has rapidly adapted to the market in recent years and continuously improved the level of product technology development and product quality. The market competition is always in a dominant position, thus providing favorable conditions for enterprises to participate in domestic and foreign competition. "Jiangbin" brand piston has become a well-known brand in the industry, and has been continuously rated as the industry and provincial "brand-name products."
2. Innovate core technologies to achieve high-end breakthroughs
The high-end market for auto parts has always been a battleground. From the perspective of market profits, although high-end auto parts currently account for only 30% of the entire automotive parts market, the profits have greatly exceeded the total profit of low-end products. Although China’s auto parts industry has made breakthroughs in the high-end market, foreign auto parts manufacturers have occupied with their strong economic and technological strength, mature products and production management experience, and strategic alliances with multinational auto groups. The main high-end spare parts market in China controls high-tech and high-efficiency product areas. However, the domestic parts and components companies are intensified in the “low-end melee†and present a situation of “high-end fallâ€.
"China's auto parts industry's low-end melee" and "high-end fallout" are true portrayal of its low-end industrial chain. The current cause of this status quo in China's auto parts industry lies in the lack of core technologies of local companies. Out of your own unique skills. Many enterprises have low scientific and technological inputs, weak technical development personnel, backward technology, obsolete production equipment, and poor timeliness. The improvement of quality lags behind the increase in volume. We urgently need to strengthen technological innovation in enterprises. According to market demand, we must constantly research new technologies and new products, increase product technology content, and enhance market competitiveness. It is necessary to increase the intensity of knowledge production, use the independent intellectual property rights to continuously increase the gold content of products, and produce high-tech and high-value-added products. The improvement of enterprises’ technological innovation capabilities will not only help enhance the competitiveness of enterprises and enhance the benefits, but also help narrow the gap between the industry and foreign advanced levels, optimize the industrial structure, and ensure the sustainable, rapid, and healthy development of the industry. For example, Hunan Jiangbin Company, which is an auto parts company, adheres to independent innovation by taking the road of independent innovation. The company is autonomous.
3. Tap service potential to achieve a marketing breakthrough
The connotation and denotation of the service have undergone constant changes, and now it has been accompanied by the whole process of the product life cycle. With the fierce competition in product prices and the rapidly shrinking profit margins, service becomes the new profit-added space for enterprises in the future. Domestic auto parts companies in the "wolf is coming" today, not only to hold their own market, but also to highlight the encirclement, to seize more market opportunities. Our auto parts companies cannot wait for multinational companies to come to us to purchase. We may not be able to support large foreign OEMs, but we can be like a “snowball†and become a supplier to their Tier 1 suppliers as part suppliers to their repair market, and gradually roll the “snowball†. This requires us to further tap service potential, "going out" sales, and achieve breakthroughs in marketing.
According to the experience of the development of foreign auto parts industry, after the customer's demand enters the diversification stage, the production company must change from "production-centered" to "service-centered" and have comprehensive capabilities (products + services). Industrial transfer. Actively understand the various requirements put forward by customers, and penetrate the service into every corner of customers and markets. "Customer-centered" instead of "product-centric" business concept is the inevitable outcome of the market economy. The customer is the market. We all know this principle, but the idea of ​​truly guiding customers and their needs has yet to be improved and strengthened, because the service that stays in ideology and ideology is passive. Enterprises must always understand that it is not that we lead the market but that the market is leading us. Only when we really move from a state of consciousness to thinking, then from the thinking of thinking to behavioral service of action, is it suitable for adapting to the market and consumers? The service can be achieved with the customer as the center. Of course, the bigger the "center" is, the bigger your market is, and your competitive strength will be stronger and stronger.
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