While China's car sales model gradually transitioned to 4S stores, people found that the original spare parts are expensive and inconvenient to maintain. Moreover, with the increase in the number of domestic cars, the loyalty of users to genuine parts (original parts) has not increased. In order to reduce the cost of use, more users are attracted to the large and small parts city. Although the accessories of the accessories store are mixed, the charm of the price is irresistible.
After seeing parts, there are many problems in the market and vast business opportunities.
The company was formally established. The company mainly sells genuine Japanese OEM products, such as accessories for Japan, Denso, Hitachi, and Mitsubishi Electric, which are used by Japanese automakers such as Toyota and Nissan. The sales model of China United Auto Parts abandons the traditional wholesale distribution method and takes the lead in the domestic auto parts industry to implement a franchise distribution system. Recently, during the symposium on the establishment of China United Auto Parts for the past year, people in the industry agreed that this business model brought three good results.
First, the prices of the original parts have been greatly reduced, opening the door for genuine products to be popularized in the post-market, virtually eliminating fake and shoddy products from the auto parts market. Over the years, the genuine price of original factory maintenance points has been expensive, resulting in a corresponding reduction in the number of original parts imported. Toyota’s parts and components exported to China for many years ranged from 18 billion to 20 billion yen. Last year, imports fell sharply to 9 billion yen, which is expected to be less than 7 billion yen this year. Although Toyota's vehicle ownership in China has increased year-on-year, parts and components exports have shown a downward trend. According to Toyota's analysis, part of the market is the re-export of its overseas parts and components base, and most of the markets are occupied by fake and inferior parts. Therefore, Toyota believes that instead of letting counterfeit and inferior parts flood the market, it is better to agree to let its accessory parts factory products enter China. Through the operation of China United Auto Parts Sales Network, the company has obtained price advantages through monopolization and a large number of advantages, giving profits to users. The prices of Japanese OEM products sold by the company are about half lower than those of the original manufacturer's genuine parts, and the original manufacturer's accessories are used in quality and function. Completely consistent, it has further won the trust of consumers.
Second, through the franchising of the after-market parts, the brand awareness of people using auto parts has been strengthened. In the past, users only recognized the brand of the vehicle, knew little about the brand of the component, or thought that it was the finished product. It is because of the vague understanding of the spare parts brand that makes brandless accessories popular. After the establishment of China United Auto Parts, it began to focus on the introduction of spare parts from world-famous brands. The distribution of products from the initial electric spark plugs to the development of electric equipment, Nissan, Mitsubishi Electric, Aisin and other 20 manufacturers of more than 400 varieties.
Due to the unique business model of China United Auto Parts, the integrity of well-known brands has been ensured and users and suppliers have gained great trust. In the past year, Zhonglian Auto Parts insisted on its commitment to the system members, formulated and implemented a strict management mechanism and pricing system, and established a set of standardized market operations. So far, Zhonglian Auto Parts' franchise system has developed more than 20 specialty stores and more than 100 dealers, and has initially established a franchise network covering the whole country.
The establishment of the system ensures that well-known brands are effectively protected. Even Japan’s Toyota’s genuine parts are now considering the sale of new products such as Zhonglian, Denso’s car navigation systems and air-conditioning pumps for the aftermarket sales rights, and will also add a greater weight to the product lines of Zoomlion.
Third, the establishment of China United auto parts marketing model, in order to clarify the auto parts market's operating order, eliminate the inflow of counterfeit parts into the market, improve the quality of auto parts operators, to find a clear road to development. In the past two years, with the further expansion of China's auto market, the standardization of vehicle marketing has been further improved. Many models have been adopted in line with international standards, and the modular supplier of supporting manufacturers has not only reduced vehicle cost, but also shortened the supply. Time, and more transparent supply procurement system. However, on the other hand, the auto accessories market is still in a disorderly state of operation. The relevant departments have been putting the standard auto parts market into the top priority in recent years.
For the business model of China United Auto Parts, it had caused many people to question it at first. However, through one year's operation, Zoomlion’s brand not only won the full trust of the members of the system and the Japanese partners, but also won widespread recognition from all walks of life. In the image of its responsible large company, Zhonglian Auto Parts has led to a number of distributors that specialize in the distribution of imported accessories. Recently, with the opening of another batch of Zhonglian franchise stores, some provinces and cities have more powerful accessories suppliers. In order to inquire into the franchise matters, the image of Zhonglian Auto Parts with the world famous brand product sales has been established among customers.
A number of Japanese companies also jointly organized several joint delegations with Zhong Lian Auto Parts to participate in the National Auto Parts Fair. Zhong Lian Auto Parts Co., Ltd. and senior Japanese companies discussed the long-term cooperation, led by Japan’s largest auto parts trader, Toyota Tsusho. The cooperation plan of the new Japanese OEM auto parts manufacturer has been carried out, indicating that the large-scale cooperation between China Unicom Auto Parts and Japanese OEM companies is about to begin. Due to the success of China United Auto Parts, its distribution model has attracted attention from all parties. Officials from the Department of Market Construction of the Ministry of Commerce once stated that the model of China United Auto Parts is a model worthy of research and promotion. Mr. Huo Yiguang, chairman of the Association of Automobile and Motorcycle Parts Industry of the All-China Federation of Industry and Commerce, pointed out that China Auto Parts provides a good platform for the domestic auto parts industry.
According to Yan Lixing, Chairman of China United Auto Parts, Zhonglian Auto Parts not only out of its own circulation mode, but also increased the status of Chinese auto parts dealers in Japanese companies, so that they also began to understand this new marketing model. Senior executives from Japan's well-known parts and components companies such as Denso, Hitachi, and Mitsubishi Electric highly praised the rapid growth of China United Auto Parts for one year, and expressed confidence in the prospect of cooperation between Auto China and Japan.
The reporter learned from Zhong Lian Auto Parts Manager Liu Heping that, with the perfect expansion of the Zhong Lian auto parts concession monopoly network system, Japanese Denso and other companies have coordinated with Japanese automobile manufacturers and authorized by Denso, Hitachi and Mitsubishi Electric to jointly Members, established a high-tech maintenance system for key auto parts in China. This dual-track maintenance system featuring high-tech specialization and high-quality monopoly will become a new starting point for cooperation between Auto Parts and well-known Japanese companies. (Sun Hong; Zhao Sanming)
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