With the major OEMs increasing the layout of the automotive aftermarket, in the case of gradually fierce competition, "crisis" and "opportunity" coexist, what changes have the entry of OEMs brought to the automotive aftermarket, and how to seize the development opportunity?
Author|Sister Circle
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After decades of arduous exploration, China's automobile industry has successfully crossed the century-old development process of the European and American automobile industries. Nowadays, with the continuous increase in car ownership, the automobile aftermarket has also entered the fast lane. According to the data released by F6 in April, in the first quarter of 2024, the output value of the automotive aftermarket increased by 1% year-on-year, and the number of units entering the factory increased by 2% year-on-year.
In the face of the continuous expansion of the space of the automotive aftermarket, it has attracted major OEMs to increase their layout, and gradually began to make efforts to launch aftermarket-related businesses. They are not blindly following the trend, but have a deep understanding behind them, as well as industry and market background.
After the layout of the main engine factory, the market trend is unstoppable
Recently, Guangqi Honda has quietly reshaped the pattern of the aftermarket and grandly opened the first "Happy Car Maintenance" community store in Chongqing, covering an area of more than 600 square meters, which not only has a spacious and bright customer rest area, but also is equipped with advanced maintenance stations and fine washing and beauty equipment.
According to the data, as early as 2016, Guangqi Honda launched the "Joy Quick Repair" brand, but due to market positioning, service content and other reasons, the brand did not achieve the expected success. Now, the launch of Lexiang is a new attempt by Guangqi Honda in the aftermarket.
In this trillion-level aftermarket blue ocean, the majority of OEMs have entered the automotive aftermarket track with their forward-looking vision and pace of innovation. It is often said: "Crisis and opportunity coexist, and whoever can take the lead in seeking change will be able to seize the opportunity of high-quality development in the predicament." "Let's go back and look at the OEMs that are entering the automotive aftermarket.
SAIC - Car Enjoyer
In 2014, SAIC Motor Co., Ltd. built the first full-life cycle O2O e-commerce platform for China's auto market, "Car Enjoyment", which was officially launched, adhering to the brand proposition of "Car Life Enjoyment", combining "efficient online operation" and "high-quality offline service", and comprehensively opening up the "seeing, selecting, buying, using, selling" O2O of automobiles, providing one-stop services for the whole life cycle value of automobiles, and successfully creating a unique "Car Enjoyment Model" in the automotive e-commerce industry.
In 2015, Chexiang laid out the automotive aftermarket, vigorously developed the O2O chain service brand - Chexiangjia, based on the concept of "community-based" layout, and fully practiced the "1+1+1" development model of "integration, one-stop, 10,000 homes", and was committed to becoming a leading brand of China's first-class automotive aftermarket services.
BAIC Group - good cultivation
In 2015, BAIC Group seized the market in the field of fast-repair chain and officially released the fast-repair chain brand "Good Cultivation", with the expansion and maintenance of terminal chain stores as its main business. It is one of the strategic projects of BAIC Group to lay out the whole industrial chain, and has formed a product system dominated by "Zhi" series of lubricants and maintenance products, "Cheng" series of accident parts, and "Xin" series of wearing parts. In addition, Haoxiu has also formed brand associations with authorized service providers and chain terminals around the country to provide car owners with services including car repair, maintenance, insurance, and travel.
DPCA - Sunshine Craftsman
In 2017, DPCA entered the automotive aftermarket and built the first Sunshine Craftsman Store in Wuhan, providing vehicle repair, maintenance, beauty and other services at preferential prices. With the three core advantages of true quality, fast service and affordable price, Sunshine Craftsman brings a pleasant car experience to tens of millions of Chinese consumers with a service system from Europe, trustworthy professional technology and a flexible and powerful spare parts series, and creates a truly trustworthy car maintenance craftsman.
Shanghai General Motors - Car Workshop
In 2018, SAIC-GM was determined to lay out the automotive aftermarket and officially launched the chain car service brand "Car Workshop" to extend the after-sales service radius and meet the diversified needs of consumers for automobile repair and maintenance services. As a good neighbor of car maintenance around you, the store service network of the car workshop covers more than 1,000 stores in 270 cities across the country, providing car owners with full brand and all-round car maintenance services with the heart of craftsmen, including car inspection, quick repair and quick maintenance, car beauty, sheet metal painting and other core businesses.
According to the data, the biggest difference between the car workshop and the traditional 4S shop is that the "car workshop" not only repairs SAIC-GM's models, but also repairs other brand models, and it also has new car display, second-hand car trading, finance, insurance and other business modules.
Changan Automobile - Car and Beauty
In 2018, Changan Automobile's first new retail direct experience store, "Car and Beauty" Auto Mall, officially opened, becoming the first Internet-integrated automobile direct store in China, complying with consumption upgrades and committed to providing customers with the ultimate consumer experience in six aspects. In addition, Changan Automobile, together with dealer partners and social resources, continues to deploy offline stores in Chehe and the United States, bringing consumers innovative services and experiences throughout the life cycle of "selection, purchase, use, maintenance and exchange".
In fact, in addition to the above-mentioned OEMs to lay out the automotive aftermarket and launch independent service projects, such as: Chery Group to build an automobile service chain brand Chebeijian, Ford to introduce a quick repair brand in China, the French PSA Group (Peugeot Citroen) international auto repair brand Eurorepar to enter China's auto fast repair service chain business, Bosch Automobile's car repair station Bosch Auto Link, etc. In addition, following the development trend of new energy vehicles, the broad market space also attracts a large number of OEMs to lay out the new energy vehicle aftermarket, such as: Huasheng, Weilai, etc.
At present, some of the OEMs that have entered the automotive aftermarket have a "dazzling" foothold, and some have left the market "dimly". Judging from the current scale of these OEMs, the data found on the Internet shows that as of 2023, the annual sales of Chexiangjia will be 385 million yuan, the annual sales of the car workshop will be 167 million yuan, the good cultivation has developed 1200+ stores, and the sunshine craftsman is in a slow growth stage. In addition, Ford Quick Lane, BMW City Quick Repair Center, Jiangling Motors MC brand fast repair shop, etc., pressed the "pause button".
More and more OEMs are cutting in, bringing changes to the automotive aftermarket
It can be seen that with the entry of more and more players, the threshold for entering the automotive aftermarket has been raised a lot compared with the past. Celebrities from all walks of life are optimistic about this track and have begun to lay out, so it is difficult for new players to stand out without certain advantages. OEMs revitalize core resources, undertake new incremental markets, and hope to leverage independent after-market channels to deepen the vertical supply chain, open up the whole chain by exploring different business models, and do business with customers with development ideas.
So, in the situation of gradually fierce competition in the aftermarket, what changes has the entry of OEMs brought to the automotive aftermarket?
01 Competitive landscape
OEMs have a strong brand influence, and their entry may change the competitive landscape of the automotive aftermarket, increase market competitiveness, and force some small maintenance companies to face greater competitive pressure.
02Service upgrade
OEMs have a relatively complete after-sales service system and technical support, and their entry has prompted maintenance companies to improve service quality and professionalism to meet the needs of consumers.
03Technological innovation
OEMs generally have more advanced equipment and technology, and their entry will prompt maintenance companies to increase technological innovation and improve maintenance efficiency and quality.
04Demand changes
The entry of OEMs has higher expectations for aftermarket services, maintenance quality, efficiency, etc., and this change may bring a shift in the service model of automotive aftermarket enterprises.
In fact, over the years, OEMs have set a good example to the world, and the automotive aftermarket is already surging, and their entry into the market has a multifaceted impact, with both challenges and opportunities. As an automotive aftermarket company, it needs to actively respond to changes and continuously improve its service standards, technological innovation and professional level to cope with such changes and achieve greater development.
Here's a word for you: "All the dramas that surpass the leader are not the original path of the leader, but to change the dimension of competition through innovation." ”
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