Future development trend of automotive aftermarket

The data shows that the size of China’s auto aftermarket reached US$118 billion in 2015 and is expected to grow at a CAGR of 12.7%, and it will reach US$214 billion by 2020. In addition, the average age of Chinese cars in 2018 is expected to exceed 5 years. According to the development history of the developed countries, once the vehicle age is more than five years, China's auto market is expected to usher in a new prosperity.


In such a large car market, what challenges and opportunities will we face? How will the industry eventually develop? Who will be the first to stand out?

In the past 2016, the auto market reached a trillion market scale, which means that the auto service industry has become a million-dollar club. This year, the automotive aftermarket, Vientiane update, surging, many online platforms have become an indispensable part of the majority of owners of smart phones. Then, in 2017, how can China's one-trillion-dollar auto after-market be divided? In the new year, the after-market auto war has already begun. Which e-commerce companies can run before they run, and they are full of vitality.


First, the chain

Xiao Bian’s investigations on various chain companies show that the main factors constraining the development of enterprises are internal governance (customer relations with customers, parts supply chain, and technicians). The industry is generally optimistic about the refined stores that take root in the community. Such stores have very good landing capability. Powerful, daily service to the surrounding community customers, with a very strong customer viscosity capabilities.

Compared with other industries, the chain of post-automobile industries is difficult to do, and China's auto market is a great opportunity to establish a chain of brands. Although bitter, but there are many opportunities, it is the best opportunity to build into this industry, the window period may be 3-5 years, missing is missed forever.

For chain companies, grasping the balance between “single store control efforts” and “project complexity” requires “subtractive” thinking. Enhancing professional competence and customer experience is the key—professional capabilities help establish word of mouth. Word of mouth on the basis of branding, will be a better achievement of "chain".

Second, the supply chain

Supply chain companies are essentially high-tech high-tech companies that require a strong retail and distribution network, efficient collaborative logistics management, refined inventory management, and high-level capital management rather than low-level price competition.

The supply chain of spare parts has become a hotly contested area for the auto market. Most dealer companies rely on the platform, identify the positioning, provide differentiated and irreplaceable services, and focus on the customer relationship in each region.

The positioning of small and medium-sized auto parts dealers is increasingly important: One is to constantly improve the professionalism in the subdivided fields, and the second is to do a good job in the last one-kilometre service and to manage the customer relationship of the repair shop. "Customer relations" is difficult to be replaced by e-commerce.

Third, insurance

After the start of the auto insurance fee reform, the continuous decline in insurance premiums is irreversible. Insurance companies focus on the “throttling” of the claims level, starting from the selection of high-quality repair companies and the establishment of certified parts circulation systems, which will inevitably lead the development of the industry chain of accident vehicles. .

Fourth, mergers and acquisitions

2017 regional chain mergers and acquisitions occur from time to time, but national mergers and acquisitions are still difficult. The main reason is that the quality assets in China's auto aftermarket have not yet been enterprise-based, mergers and acquisitions are not practical, and it is difficult to buy core advantages and prevent new entrants; non-quality asset mergers and acquisitions are meaningless.

Fifth, players

Major players, such as OEMs, insurance companies, 4S Group, internet capital, and industrial capital, are concerned about the impact of independent after-sales: All players are expanding their space to promote the production and sales of accessories, to washing, washing, and maintenance. Full value chain integration and coverage in service areas such as electromechanical maintenance.

Sixth, 4S Group

Although 4S gains greater market share in vehicle maintenance, it faces enormous challenges: expensive and opaque, inconvenient outlets, high turnover rate of owners of new vehicles, and chain stores with better brand recognition and geographical location, etc. Get the biggest winner of the "dividend" of 4S shop loss customers. On the other hand, 4S Group investors are also increasing their investment in independent after-sales services.

Seven, terminal stores

For stores, the customer experience of 5 square kilometers is well done. Through the information tools and tools provided by the headquarters, the “small data” of owners and vehicles is mastered, and it is the key to provide “housekeeper” service construction and trust relationships with customers. In this link, at present, in the company of Haojie Auto Service, the embodiment is more obvious!

Eight, the owner

There are two news in the automotive aftermarket: the bad news is that the average mileage of vehicles has fallen, the annual maintenance expenditure of vehicle owners and maintenance expenditures are declining; the good news is that the car ownership is still increasing at a high speed, and beauty decoration and personalization of characteristics The demand is very strong. The overall size of the market is still expanding rapidly. It is estimated that by 2020, the number of vehicles in China will reach 248 million.

But no matter what the trend is, the key to obtaining a market for enterprises is to meet user needs. In the fierce competition, to create a rich scene, to accurately understand and match the user's personalized needs, so that the user needs to meet the industry is the best posture to meet the development trend.

In general, the automotive aftermarket in 2017 will be a scene, socialization and entertainment market. If China's auto market enterprises want to develop, they must return to the essence of human beings.

Nine, Jie Jie, car jazz, car octave and other joining brand how?


From a comprehensive perspective, these franchise brands all have certain strengths, but because of the different positioning of each company, it leads to different business models and the strength of profitability. However, among them, Yu Jie’s brand is quite different, because brands such as Jazz and octave are all promoted online, and Li Jie’s promotion is more to the owner’s propaganda. What's good about the promotion of the business in the store instead of promoting him all day.

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