Sustainable Development of Commercial Vehicle Accessories Market

In today's auto parts after-sales service industry, each joint venture company is divided into four parts by brand name. Recently, in Zhangjiagang, there has been a vigorous and well-regulated commercial vehicle accessories chain sales enterprise. It is a very pleasant surprise and it seems to have also seen the prospect of national self-owned brands in the auto parts service industry.

In the past 10 years, the construction of the 4S store in the passenger vehicle industry has resulted in a serious differentiation in the profitable passenger car aftermarket component industry. Intermediate and above passenger cars after-sales brand independent accessories, relatively concentrated in the 4S shop and brand special maintenance station. It is rare to see distributors of passenger car aftermarket accessories with distinctive brand features on the market. Vehicle companies passed a total of 21,275 (as of the end of 2006) 4S stores, brand stores, and special service stations, and they tried their best to strengthen the field of profitability that is far higher than the overall vehicle sales margin. Therefore, in addition to strict management regulations, 4S stores are not allowed to purchase from outside the vehicle company's channels, but also try to block the upstream source of after-sales parts, that is, its supporting parts suppliers are not allowed to provide sources to the social channels. At the same time, as 4S stores themselves to recover investment of more than 10 million yuan, as soon as possible to obtain returns, so also take advantage of the consumer's little known weaknesses in the structure of the car, and in the after-sales service to use over-maintenance methods, such as the use of broken Part-for-manufacture means to earn excess profits. Although consumers are protected from inferior parts in 4S stores, they have to accept high-priced services that are several times the normal and reasonable price. Although this monopolistic practice has long been rejected in the international community, even more clearly in Europe, OE manufacturers' products can be sold with the original factory's trademarks sold in the social aftermarket, but due to the inaction of certain domestic management departments Convinced that this monopolistic behavior continues unimpeded.

The reality of chain business dreams

Fortunately, in the face of strong complaints from various quarters, the relevant departments have had to slow down the pace of implementing the “brand marketing” approach and stopped the business filing system for commercial vehicles and more than nine passenger vehicles. It is precisely because the vast majority of commercial vehicles have not been put on the “chain shackles” of “brand marketing management”, so its business model is also the most active and most innovative. After more than ten years, the dream of chain management in the after-sales service industry has finally been realized in recent years, and reflects a strong vitality. The variety of accessories it manages is as many as tens of thousands, and it uses computer remote management technology. The digital products such as bar code and other standardized digital technology have been used in the import, export, marketing and storage of goods, which has broken through the bottleneck of management in the accessories industry for a long time. So that commodities can cross regional and inter-provincial chain operations. The business scale of the company has reached the level that the previous people dared not dream.

Take Zhengda Fortis Auto Parts Chain Co., Ltd. as an example. The company was initially established by a joint venture and merger of three private small distributor companies on May 15, 2005. In June 2006, the company introduced a chain operation model. In October 2007, it completed a matching South Jiangsu auto parts distribution network. In December of the same year, it further established a joint venture to form a new company and expanded its service network to Jiangsu Province. In the five years, the staff of Zhengda Fortis grew from more than 20 people to more than 200 people. The annual turnover has grown from the original 10 million to the current 150 million yuan. In 2008, the turnover will reach 250 million yuan.

From wholesale business to chain operations, to logistics and distribution services, and even further expansion of service areas, this should be an important innovation in China's commercial vehicle auto parts business enterprises to embark on the road of standardization, scale, and networking. The sign is worth celebrating. It is precisely because of the promising development model of “Zhengda Futong” that it has recently got the attention of the most successful private equity funds in the United States that had been listed for “Apple” and “Cisco” and became their investment and helping them to “Nasdaq” in the United States. "The goal of listing. This is China's auto parts dealer company or "the first to eat crabs."

In spite of this, the challenges faced by domestic commercial vehicle parts after-sales service companies are still very severe. From the perspective of the company itself, most of these parts and accessories dealers are small and scattered, with extremely thin business operations. Market competition is mainly to fight prices, fight relationships, service gold content is very low. From the external environment, 2007 is a very good year for the commercial vehicle industry. Its sales growth rate reached 23.83%, which is higher than the 22.82% growth rate of passenger cars. Among them, 1.18 million vehicles were sold in January-November, and the growth rate reached 20.72%. Among them, the sales volume of heavy goods vehicles reached 284,941, with a growth rate of 42.26%. More than 217,738 medium goods vehicles. And 20.58% growth rate. This is the first time in China’s history that the sales volume of heavy-duty trucks has surpassed that of medium-duty trucks. However, it is also necessary to see the extraordinary growth of 46.26% of heavy-duty vehicle sales this year, which contains a lot of policy factors. For example, in order to deal with the overload of road transport this year, the implementation of the axle charge weight policy has brought the “sustained power” of the road semi-trailer market upside. But this motivation is not eternal. At the same time, the recent Central Economic Work Conference proposed to "prevent the rapid growth of economic growth from overheating and prevent price from structural rise to obvious inflation." As the primary task of the current macro-control, a sound fiscal policy and tight monetary policy will be implemented. Although the goal of this policy is “high growth” and “low inflation”, the actual impact is still objective. In particular, there is a fundamental difference between the commercial vehicle market and the private consumption market of passenger vehicles. It is a market that is heavily influenced by policy. Therefore, the market for the largest share of commercial vehicles in 2008, especially the medium and heavy goods vehicles, will shrink. This will inevitably affect the service sector of commercial vehicles. On the other hand, with the dramatic increase in domestic and foreign resources such as crude oil, iron ore and non-ferrous metals, and the emergence of new conditions for the protection of workers’ rights and interests, such as the country’s efforts to build a harmonious society, there are also land costs. And the environmental costs are summed up to greatly increase the cost of corporate social responsibility. In the past, in the past of low-cost era, material-intensive and labor-intensive products accounted for most of the sales of after-sales parts for commercial vehicles, posing new and more severe challenges to end-user endurance and the operating standards of sales companies. .

To create a commercial miracle with continuous innovation

The first important concept of the scientific development concept is development, but this must be sustainable development. In such a market where competition is fierce, costs are increased, and profits are declining, we must continue to innovate in order to maintain sustainable development. Chain management is an innovative model developed under the old mechanism of decentralized, individual, and small-batch operations, and has achieved initial success. Even so, under such an overall model of chain operations, each operation and management link still needs constant continuous innovation, and only continuous continuous innovation can lead to sustainable development. Therefore, chain operations must also operate in a modern network and develop management models, unified management of chain brands, large-scale commodity resources (especially branded product resources), as well as warehousing and logistics services for industrialization, and of course, outstanding attraction. The management mechanism innovation of talents and retention of talents, as well as the continuous mergers and reorganizations of listings and other capital operations that face greater challenges, in order to realize a greater market with faster development speed, better asset quality, and more comprehensive services. Share.

The initial stage of the development of the market economy was like an adventurer's paradise. “Many dauntless people have made a fortune”, but at this level of economic development today, it is imperative that entrepreneurs behave in an orderly manner and create a commercial spirit. A model, and thus create a miracle of commercial success. Everyone knows that the United States has a chain of billions of dollars in sales, such as the Auto Zone, the top ten chain auto parts companies, so in the case of China’s car sales have been ranked second in the world, why can not create a number of commensurate with One TOP chain company.

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