The automobile market looks very beautiful and foreign companies blindly join or become hidden

As a basketball superstar, Asian "Little Giant" Yao Ming experienced a bitter start in the NBA. His Houston Rockets suffered a five-game losing streak. However, there is an old Chinese saying that "The stadium loses its interest and the sea is profitable." Within a few days, Yao Ming’s hundreds of thousands of dollars was turned into tens of millions of yuan. The industry’s attention has also been attracted to the automotive aftermarket market by this GPS company.

As the name implies, the aftermarket is the market formed by the services required by consumers after the sale of the vehicle. With the development of the market, the profit of vehicle sales has gradually shrunk, and the huge aftermarket has become a major competition for the major manufacturers. The "cake". The person in charge of the Henan Fenglang Automobile Supply Center told the reporter of the Automotive Electronics Network that “The sales profit of the vehicle is usually at 20%, and more than 50% of the profits are generated in the automotive aftermarket, such as vehicle maintenance and maintenance, which is the largest in the Chinese automobile market. A piece of 'cake'".

For this “potential stock” that has not yet been tapped, not only domestic companies are focusing on it, but even foreign-funded enterprises also want to share a share. In the past, the high-end automotive electronics products offered by Bosch went to the field of vehicle maintenance for low-end auto repair tool brands such as “Ruichi”. At present, foreign investment has been “invasive” into the domestic auto aftermarket.

According to reports, as China grows into the world’s largest auto market and the rapid growth of auto brands such as Geely and BYD, worries about the impact of China’s entry into the WTO on the auto manufacturing industry have gradually diminished. In the post-market sector, however, foreign companies continue to erode, and independent brand companies can only survive in the cracks.

Foreign capital enters the automobile industry chain

“With the continuous development and expansion of the domestic automobile market, foreign investment has undergone a significant change in the 'invasion' of the automotive aftermarket, that is, shifting from providing high-end automotive supplies to low-end vehicle maintenance and other fields”, from the Western Suburb Auto Parts City. A merchant told the Automotive Electronics Network that more and more foreign brands have appeared in terminal service areas such as automotive electronics and supplies that have not been favored by foreign investors. At present, there has been a trend of foreign capital entering the domestic automobile industry chain.

“The huge market size and high profits of China’s auto aftermarket are important reasons why foreign investment enters the market.” Xu told reporters that the output value of the auto market will be nearly 7 times that of the auto industry.

Two months ago, the foreign brand Jiaming had a recall incident. Officials said that the product line was merely negligent and there were minor defects. Due to the small scope, the Jiaming recall incident did not cause fluctuations in the industry. After this, Jiaming successively introduced a number of products to meet the needs of customers. In addition to Garmin, the foreign navigation brand TOMTOM also officially announced its entry into the Chinese market. Coupled with a number of eager international brands, the competition in the domestic auto market will become more intense. It is reported that more than 30 foreign well-known auto service companies have announced their entry into the Chinese market.

“Before the car service market was mixed and the standards were different. The entry of professional brands is certainly a good thing, but the survival space of domestic independent brand enterprises will be even more compelled.” An agent from Xijiao Auto Parts City did not interview the car electronics network reporter. Express without worry. In my opinion, the entry of foreign-funded enterprises into the Chinese market is already an indisputable market, and the scale will increase.

Independent brand or crevice survival

“Compared with the automotive sales market, the development of the domestic auto aftermarket has not completely kept pace with, and there is still a large gap from the mature period. Under the impact of foreign investment, the auto brand enterprises in the auto service field can only have standardized service and standardization. Achieve a place in the competition," said Xi Xiuchun, secretary-general of the Harbin Bin County Automobile Supplies Association, in an interview with an automotive electronics network reporter.

China's auto electronics industry has a certain scale, but the main problem in the industry is that there are not many well-known brands and the popularity of the products is not high. After the auto electronic network has gradually become an important platform for auto supplies companies to display and carry out business, it will rely on the powerful influence of auto electronic networks. Force, the road of branding of automotive electronics companies will be wider and wider. Mr. Zhuang Liang of Shenzhen Meisaida Technology Co., Ltd. has a lot of feelings about this. Zhuang Liang told reporters that the United States is a provider of professional GPS navigation solutions and has a great deal of cooperation with the automotive electronics network in terms of its customer base. With the help of the online platform, the influence of the Metsida service brand among customers can be quickly promoted, and at the same time, the trust of customers is greatly increased.

At the same time, branding and enterprise products and service quality are inseparable. "High-quality products and excellent after-sales service are the inexhaustible motive force for brand growth." Zhuang Liang said that quality assurance is particularly important under the financial crisis situation where trust has become a scarce resource. When asked about the impact of the financial crisis on the automotive electronics industry, Zhuang Liang told reporters that after the increase in vehicle ownership, there was little impact on post-market companies because there was demand for automotive services for vehicles and China's current after-market services. The system has not yet been fully formed and there is still much room for improvement.

What attracts people's attention is that the largest GPS manufacturer and seller in China, Zong Zisi, has already successfully listed on the market. Another car navigation map and dynamic traffic information service provider, NavInfo, has also been on the market for some time. The two companies are automotive aftermarket. The development of independent brand companies provides excellent examples.

After the car market looks beautiful?

With the continuous increase in the number of automobiles, the corresponding store business in the post-car market has also become more and more popular. However, some problems have also emerged. A large number of fake and shoddy products flood the market, leaving owners unguarded.

Mr. Li, who lives in a district of Beijing Changping, is deeply affected by the “cottage” GPS car navigation system. Mr. Li spent nearly 2,000 yuan in a auto parts city in May to buy a GPS car navigator. The navigator often crashes during use, and even misdirects the traffic lanes and sends instructions. He wanted to buy a driving assistant, but he did not know that he had bought a fine “helper”.

When interviewed by Auto Electronic Network reporters in the western suburbs of Auto Parts City, there are many automotive supplies, ranging from safe electronics and anti-theft devices to GPS navigators. There are hundreds of products. There is more than a thousand species of light-based GPS navigation products on the market, and the names are varied. The sales price ranges from a few hundred dollars to several thousand dollars. In fact, there are only a few really influential products, and most of the products on the market are branded goods. Consumers are deceived when they are not careful.

The owner of an international luxury car brand 4S shop believes that automotive electronics is still a new industry in China and is one of the fastest-growing and best-looking industries. However, due to late start, the phenomenon of shoddy in the market is widespread. Therefore, standardized services and effective integration have become crucial links.

Therefore, it can only be said that the current automobile aftermarket looks beautiful, and its "intension" is very important. There are many places that need to be standardized and further improved, especially in terms of the lack of industry standards, and the old Chinese saying goes, " "No rules have become a circle," and a truly sound market has healthy standards and healthy development.