Industry Press Releases

New Business Models Will Steer Revenues in Chinese Automotive Aftermarket, Finds Frost & Sullivan

Wednesday, Mar 11, 2015
Pressreleases

The total number of passenger, light and mini commercial vehicles in China is likely to reach 282 million by 2021, opening up opportunities for the automotive aftermarket in the country. To tap into this potential, however, aftermarket participants must address the challenges stemming from fragmented distribution networks, regulatory uncertainty, and the presence of counterfeit parts.

New analysis from Frost & Sullivan, Strategic Analysis of the Chinese Automotive Aftermarket (https://www.frost.com/ne8e), finds that the growing number of vehicles in operation and as well as the rising number of aging vehicles will triple manufacturer-level replacement parts revenue to $82.04 billion between 2013 and 2021.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/CHN_PR_JZheng_NE8E-18_06Mar15.

"The increasing demand of end users and the enforcement of anti-monopoly policies are expected to strengthen the independent aftermarket channel in China," said Frost & Sullivan Automotive and Transportation Research Analyst Will Wong. "Automakers are opening authorized workshops and fast-fit chains in order to compete with lower-priced independent workshops."

Increasing competition and changing consumer behavior will steadily boost the sale volumes of vehicle parts and services. Intense competition will also create a wider range of product and service options for end users to choose from, requiring participants to deliver more than just basic services to consumers and installers.

While vehicle owners demand high-quality products and services, their limited product knowledge and low brand awareness inhibits market growth. In order to sustain profits, service providers and parts suppliers must train end users on the identification of counterfeit parts.

"Further, deploying business models such as 'bricks and clicks' will be vital to market success," concluded Wong. "Foreign suppliers should also consider partnering with eCommerce channels such as Alibaba to develop brand loyalty with consumers in the Chinese market."

Strategic Analysis of the Chinese Automotive Aftermarket is a Strategic Insight that is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. This study delves into key industry trends and identifies the major market participants in the Chinese aftermarket. In addition, the study provides manufacturer-level revenue forecasts and analyses of wholesale parts and service channels. Consumer trends and key conclusions are also presented.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
     

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies

 

Source : http://www.marketwatch.com/

Other Press Releases