In 2009, the global auto industry as a whole was sluggish, while the Chinese market was thriving. The auto production and sales exceeded 13.64 million vehicles, surpassing the United States as the world’s number one automotive production and consumer country. In the industry, people in the industry rejoiced with the production and sales of automobile vehicles in 2009. When the market prospects for 2010 were geared, they ignored the huge gap between China's auto parts industry and developed countries, and the technical barriers to the auto parts industry were even higher. Larger scale. When foreign-invested parts and components manufacturers expand their market in China, domestic manufacturers are still killing people in the low-end market. Bayesian Consulting will use automotive shock absorbers as an example to analyze the status quo and the way out of Chinese parts and components companies. Industry status quo: foreign companies play the leading role of independent brand marginalization In the automotive shock absorber market in China, there is a huge gap between independent brand manufacturers and foreign manufacturers. According to the Bayesian survey results, in 2009 China OEM OEM market, 9 foreign shock absorber manufacturers occupied 82% of the market share, while the market share of Chinese independent brand manufacturers was reduced to a very small space. Although there are a large number of Chinese independent brand manufacturers, about 100, and the total output of the top 20 auto shock absorber manufacturers has reached 30 million, they are mainly for the aftermarket, with low-price competition and low profits. In addition to the OEM OEM market, the gap between Chinese independent brand manufacturers and foreign manufacturers is mainly reflected in product R&D strength and technical capabilities. The shock absorber industry in Europe, the Americas, Japan, and South Korea started early, and development is relatively rapid. The production strength is also strong. In terms of the research and development capabilities and technological levels of key technologies, such as eliminating the impact of vibration sources, matching with other related components, and sealing products, they are all ahead of Chinese independent brand manufacturers. Most manufacturers of Chinese independent brand manufacturers are at the stage of product and technology duplication. Their independent development capabilities are weak and they lack independent status. They are basically dependent on or subordinate to the automobile manufacturing industry. Developing the Way Out: Taking the Low-end Products as the Breakthrough to Expand the Overseas Market At present, the domestic automobile shock absorber production level is still not high, the product is still mainly in the low-end, and the domestic market has shown the trend of excess capacity, but the international market demand is relatively stable. So how do domestic companies enter the international export market and maintain steady growth in their export business? Through in-depth investigation and research, Bayes believes that: China's own brand manufacturers can first use the mature middle and low-end shock absorber products as a stepping stone, with "high quality and low price" to win overseas orders, and then use the high standards of overseas business, positive Enhance the company's own technology and management capabilities, so as to embark on the path of rapid development. According to Bayesian research results, overseas markets are currently favoring mid- to low-end shock absorbers in China. The relatively stable demand is concentrated in technologically underdeveloped regions such as the Middle East and Southeast Asia. These regions do not require product specifications and safety standards. Too strict, and China's vehicle exports are concentrated in these areas, so domestic companies can easily enter the region. However, if the company only targets its products in export-oriented underdeveloped regions, it will not be conducive to the establishment of overseas brands, and it will also weaken the continuous improvement of corporate technology. In view of this situation, at present, many domestic export companies have begun to target the aftermarket maintenance market in Europe and the United States and other developed countries. The characteristics of this market are: high vehicle ownership, many types of products, and more sensitive to the price of mid-to-low-end shock absorber products. Therefore, domestic companies can exploit the advantages of low labor costs to develop a wide range of shock absorber products for overseas models, bringing higher overseas returns to the company. At the same time, as companies gradually enter the European and American markets and develop shock absorber products adapted to market demands, the company’s product R&D strength will be virtually improved; on the other hand, through cooperation with companies in these developed regions, companies can be promoted. In the product technical indicators, safety standards, import and export inspections and other aspects to obtain faster improvement. Take the domestic Zhejiang Chaoyang Group as an example: The market orientation is mainly export, and the product is positioned as a shock absorber imported from abroad. Bayesian analysts believe that the price of accessories for imported vehicles is relatively high, and the foreign service market for these products is more profitable for domestic companies than domestic-made ones, and because the company has the right to self-export in the industry. Doing overseas markets is more competitive and competitors are less. According to the survey results of Wanxiang System Co., Ltd.: Although the total export volume of parts and components is only 20% to 30% of the total volume, the export profits are much higher than the domestic market. In summary, Bayesian Consulting believes that in the face of a damper market that is becoming saturated in China, China's free-brand shock absorber manufacturers should not limit themselves to the domestic market while strengthening their internal strength. They should seize the opportunity and take the initiative to attack. In overseas markets, the disadvantages of weakness are the advantages that enable companies to achieve stable and sustained development.
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