Brand casts competitiveness Zhejiang auto parts excavate automobile after market gold mine

The dawn of the new century ushered in the development of China's auto blowout-style. According to statistics, the Chinese automobile manufacturing industry is growing at an average annual rate of 24.5%. In 2005, the social possession of China’s civil automobiles had exceeded 29 million vehicles. The exuberant automotive consumer market is the driving force behind the auto parts sales market. This also makes the automotive aftermarket, including automotive supplies and auto parts, irresistibly attractive. It can be called the final gold mine in the automotive industry.

The field is vast and needs to be developed! The richness of the treasure depends on whether or not it can be taken. The active economy in Zhejiang has triggered a round of entrepreneurial climaxes in the auto parts market. Several hundred million or billions of dollars have been invested, and the auto parts market with an area of ​​over 100 million acres has emerged. As time goes by, merchants gather and business opportunities arise. .

Seize the Opportunity to Expand the Automotive Aftermarket

The burgeoning automobile consumer market will inevitably drive the development of the entire industry chain, of which auto parts will bear the brunt. Nowadays, the annual auto parts turnover has reached 500 billion yuan. Now as long as the parts of Chinese cars are mentioned, people will naturally think of Zhejiang because Zhejiang has one-third of the country’s auto parts and accessories industry. At present, most of China’s automotive parts and components exports are from Zhejiang, FAW, Dongfeng, and SAIC each year, 50% of parts procurement from Zhejiang, and hundreds of spare parts are exported to Europe, America and Southeast Asian countries.

Relying on the huge parts and components manufacturers to develop the market, there is no doubt that the industrial advantage of the Zhejiang auto parts professional market is clearly highlighted. The rapid development of Zhejiang Auto Parts City is enough to confirm this point.

General Manager Chen Yunneng of Zhejiang Auto Parts City told the reporter that the development of the market can be divided into three stages. 1991-1994 is the basic training period. The market passes the “first bird after nesting; management after the first service; Dahe’s unique services fully benefited the business households, which led to the rapid development of the market. In a few years, the market turnover increased linearly from 60 million yuan to 833 million yuan. From 1995 to 1999, the market was committed to brand building, and the first joint quality supervision and management department. Strengthen quality management, establish a credit market, and comprehensively implement internal service standardization, improve and strictly implement the “Zhejiang Auto Parts City Q/HJQ01-2000 Service Standards”, and have been awarded the “Quality Management Advanced Unit” by Zhejiang Provincial Technical Supervision Bureau for three consecutive years. The amount has thus climbed to more than 2 billion yuan; at the end of 1999, the market as a whole relocated to create a clustering market. Nowadays, the market is continuously improving the construction of e-commerce, and the two markets are developing simultaneously. In 2005, the turnover of the market was as high as 5.086 billion yuan, and the number of operating households grew to more than 600, accounting for 60-70% of Zhejiang Province. Radiating in East China, Shanghai's source of purchase is also here.

In addition, Hangzhou Motor City has also been working hard on the development of the auto parts market for several years. According to Xin Cheng, general manager of Motor City, the auto parts market has recruited more than 100 merchants in the past two years and it should be said that the development is sound. First of all, Chengbei is a major center for sales of automobiles in Hangzhou. There are many brands of 4S stores in the market. At the moment, car sales have already entered the post-service stage. Therefore, at that time, the Auto City assumed that car dealers were to purchase auto parts and it would not be convenient to go from the north of the city to the east of the city. It would be better for them to develop an auto parts market. Facts have proved that although the auto parts market has developed for more than two years, the business sources of the merchants are stable and have great potential.

Promotion of Trade Forms to be Updated

The primary auto parts market that has been reconstructed from vegetable greenhouses and old factory warehouses has completed its historical mission, and the trade-style model will gradually withdraw from the auto parts market. Today, the newly-built Auto Parts City is gradually replacing the old-fashioned auto market.

Since 1999, Zhejiang Auto Parts City moved into the new mall. In the early 1990s, the auto parts market changed its appearance in the new look and carried out a new round of reconstruction. During this period, not only is the brighter appearance or the environment changing in the Auto City, but the main body in the auto parts market is also changing, and the business model and philosophy are even more qualitative.

General Manager Chen Yunneng of Zhejiang Auto Parts City explained to reporters that, for the moment, with the continuous improvement of the business, the flow of people in the market has been gradually reduced, and traffic is mostly in the market. The entire market mainly focuses on display and warehousing. Nowadays, the market occupies less and less area. The earlier retailing has gradually shifted towards logistics distribution and wholesale, forming a large warehouse with small markets, and organic integration of people flow, logistics and information flow.

The recently opened Yiwu Auto Accessories and Auto Parts Street has also set up a professional street integrating production, branding, and internationalization with a new pattern of “intensive” services and “one-stop” sales. Sun Meide, the person in charge of the professional street, told reporters that there are currently more than 150 businesses that sell automotive products and auto parts. There are more than a thousand varieties of products. From the perspective of long-term development, professional service providers of chain stores will Gain greater market share in this market. They are also preparing to build an international brand in 5 years and want to be the boss of the national auto market.

Similarly, Taizhou Auto Parts City, which is under intense investment, has invested 220 million yuan through the integration of the previous zero-distribution market. It has created the first Auto Parts City in Taizhou, which has a considerable scale, in a commercial zone. Among them, there are 380 business and rentable shops, 15,300 square meters of lift-type roof garden parking and 9,000 square meters of underground garage. Deputy Mayor Zhang Meizhu of the market told reporters that they will make rational use of regional resource advantages, aim at quality and market development, and co-exist with services and management to create an aircraft carrier for the Taizhou international auto parts market.

The Hangzhou Auto City hosts a large-scale auto show every year during the Hangzhou West Lake Expo. In the auto show, not only are various beautiful and avant-garde vehicles displayed, but also auto parts and auto beauty exhibitions. The exhibition industry also brought opportunities for Hangzhou Auto City auto parts market and increased its popularity.

Advantage integration Macro-control needs to be in place

Today, many people are optimistic about the auto parts market. Take the Hangzhou region for example, the auto parts market has grown from 4 of the original 4 to as many as 78. The resulting disorderly competition has caused many bad influences: For many temptations, I do not know how to choose, set up points everywhere under the expedient, resulting in increased operating costs.

General Manager Chen Yunneng is very eager to use this newspaper to appeal to the relevant government departments: The overall distribution of the auto parts market is reasonable. Controlling the total amount is enough, and it will lead to disorderly competition. Because the cakes in the auto parts market are only so big, if the government does not control and let its market develop, the result will be cruel. In the end, vicious competition will not only increase social costs, but also affect related industries.

In this regard, the deputy general manager of Jiangnan Motor City in Huzhou, Sun Yong also feel the same, the orderly development of the market, urgently need to rely on the government's macro-control, and can be implemented.

In this regard, Yiwu can be said to be a model. The strong government has brought out a strong market. Sun Meide, director of Auto Parts and Auto Parts Professional Street, admitted to reporters that in order to allow their markets to develop as quickly as possible, the Yiwu government has a special restriction: All dealerships are locked in Yiwu Auto Accessories and Auto Parts Street.

This is exactly what Mr. Chen hopes. In his opinion, the cakes in the auto parts market are only so large. If the government controls it properly, they should focus on doing well in the development of the company and at the same time, drive the relevant industries.

Strong Brand Creates Market Competitiveness

In order to further improve the professional market, in 2003 the Hangzhou Municipal Planning Commission issued a document on “Reorganizing the Professional Market and Building a Specialized Professional Market”. Zhejiang Auto Parts City was included in one of the five major professional markets for construction in Hangzhou. Therefore, the development ideas of scale agglomeration, advantage agglomeration, function agglomeration and benefit agglomeration are more clearly defined.

According to Chen Yunneng’s general manager, in the past two years, they have focused on strengthening the scale of construction, invested 46 million yuan, and completed the construction of the third, fourth, and fifth-phase business houses in Zhejiang Auto Parts City in order to fully realize the agglomeration effect. In order to expand the radiation area of ​​the mall and increase the agglomeration effect, they also adopted a policy tilting approach when increasing the investment promotion work for the general distributors and general agents. Such as the use of housing areas, rent, warehouses and other priority to ensure that large dealers to attract them to enter the mall. In the past two years, 68 national and provincial general distributors and general agents have been introduced.

To strengthen the market's overall competitiveness, a strong brand is particularly critical. Zhejiang Auto Parts City is relying on this point to become famous in the auto parts professional market, thus becoming the only auto parts professional market that ranks among the top 50 competitiveness in the Chinese commodity market.

General Manager Chen Yunneng told reporters that with China's accession to the WTO and economic globalization, they are fully aware that the market economy will become more mature and market competition will also intensify. To this end, they compared the international modern logistics industry, rationally considered the professional market's comparative advantages and challenges, and decided to transform Zhejiang Auto Parts City into an agglomeration-type modern auto parts logistics center and adopt a series of measures to strengthen the brand of the mall.

First of all, we will further improve the AUTO518 e-commerce website and sign a strategic cooperation agreement with China Telecom in 2005. The two parties will combine strengths and complement each other, and at the same time accelerate networking with departments such as finance, price, industry and commerce, and technology supervision, and build a truly meaningful auto parts electronics company. The business website is a combination of information flow, capital flow, and logistics. In 2005, it achieved a good performance of 800 million yuan in online sales.

Then, a distribution center was specially set up to provide fast and convenient distribution services for the mall operators. Thanks to the establishment of a distribution center, it not only achieved fast and thoughtful delivery services, but also reduced the circulation costs of the business households, but also effectively changed the face of the original transport operators competing for business. According to incomplete statistics, in 2005, only a distribution center with more than one year was established, and the amount of spare parts delivered reached more than 2 billion yuan.

At the same time, the mall took advantage of the advantages and reengineering, and actively implemented brand output. While actively participating in the work of vice presidents of the National Automobile Parts & Accessories Merchants Association, they also managed to export to Guangzhou Foshan Auto Parts Market, participated in the market's operation and management, and conducted chain operations with the mall. It has successively established Zhejiang Auto Parts City Chain Market in Qufu, Suzhou, and has adopted market chain, unified management and unified distribution, and achieved good economic and social benefits.

In the current sluggish commercial housing lease period, Zhejiang Auto Parts City Chain Suzhou Jiangnan Auto Parts Market Phase I 20,000 square meters of commercial housing sold in only two days, Qufu motor vehicle (accessories) market 50,000 square The rice house will be rented for more than half in only 1 month. President Chen also revealed that the sales price of Suzhou Jiangnan auto parts market is much higher than that of the local similar market. They are also preparing to build a chain market in Anhui and Jiangxi to develop the competitiveness of Zhejiang Auto Parts City throughout the country.

In response to Zhejiang Auto Parts City, Zhejiang’s numerous auto parts specialty markets are relying on industrial advantages to build Zhejiang into one of the country’s auto parts distribution hubs.

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