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Truck driver friends must have encountered so many brands of lubricants when choosing lubricants for cars. Which is better? In 2014, relative to the continuous turmoil of the entire auto parts industry, the lubricant industry was recently "Jingdong" and "Meifu," a little "noise", and there was some embarrassment. It seems that every company is burying their heads. Hard work seems particularly calm. And often behind this calm, hidden great mysteries.
Pure and efficient lubricant
After turning over more than a decade of time in the Chinese lubricants market, we can see that with the increase in the number of cars in China, the lubricants market has been driving on the fast track. Since 1992, China opened up the lube oil market, especially after China joined the World Trade Organization. Lubricant tariffs have dropped from 9% to 6%. Almost all internationally renowned lubricant brands have entered the domestic market through alliance and multinational car manufacturers. At present, there are about 4,000 lubricant companies in China, and the forms they face are complex and changeable.
Increased brand competition
China Lubricants has never lacked a brand, but it lacks a real brand. In 2014, major manufacturers will continue to strengthen their own brand building, while competition for conventional products will become more intense. With the development of the OEM brand and the promotion of its professional marketing level and model, and at the same time the repositioning of some of the Shanzhai enterprises, the lube brand will increase substantially and the products will become increasingly abundant. The lower requirements of the foreign investment approval powers promulgated in 2013 will, to some extent, encourage foreign investment in high-end manufacturing, high-tech industries, new energy, and energy-saving and environmental protection industries. This will undoubtedly attract more new entrants and exacerbate market competition.
Hegemony, foreign brands dominate
With the continuous improvement of people’s living standards, the speed of urban construction has accelerated. In recent years, the domestic car consumption market has continued to prosper, and the maintenance of trucks has also continued to increase, which directly stimulated the expansion of the vehicle lubricant market. Currently, China’s Has become the world's second largest consumer of lubricants.
The huge lube oil market in China has caused domestic and foreign companies to covet. Even though high-end oil accounts for only 30% of the entire vehicle oil market, profits have greatly exceeded the total profit of middle and low-end products. At present, Mobil, Shell, BP and other well-known foreign brands account for 78% of the domestic high-end oil market share, taking 80% of the profits of the entire automotive lubricant market; while a large number of domestic oil products such as the Great Wall, Kunlun, and Unity are The overall market share has an absolute advantage, with more than 80% of the shares, but only one-fifth of the profits.
Where do you go from here? This is a problem that local lubricant companies have to ponder. The Chinese lubricants market has never lacked brave people. New market competition will surely create a new market structure. Who will stand out from the crowd?
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