The City of Auto Parts that came into being
In the early 1990s, there were dozens of large-scale auto parts cities across the country. This new business model brings together large and small distributors to form the scale effect of multiple stores, and provides users with a convenient shopping environment that “takes a winning handâ€.
The auto parts market (city) is the inevitable result of the transformation from the planned economy to the market economy in our country, and is the inevitable result of the continuous increase in the number of auto ownership in China. Therefore, with its unique comprehensive features, Auto Parts City has rapidly developed throughout the country. So far, there are more than 300 auto parts cities across the country, of which more than 100 auto parts markets (towns) are on the scale, invest 10 million yuan or more, and occupy an area of ​​10,000 square meters or more.
Auto Parts City Advantages
Scale efficiency. The scale effect will inevitably lead to economies of scale, bring benefits to operators, and bring benefits to consumers. The scale effect has provided a large number of wholesale dealers with a large number of agents and manufacturers, allowing them to play a leading role and a main channel, enabling the auto parts market to operate in a balanced manner.
Convenient for customers. The large scale and variety of products make it possible for customers to buy anything in the Auto Parts City and buy everything, which is both convenient and time-saving.
Suppress prices. Due to the competition between the auto parts city business groups and the presence of large agents, distributors, and large and medium-sized manufacturers, consumers can shop around and keep prices down.
No inventory repair. Because Auto Parts City itself is a large warehouse, the information center is a large database, auto repair shop can do "no inventory repair," save a lot of circulating funds, the cost of a substantial reduction.
Information network. The establishment of an information network in Auto Parts City is an effort to benefit the country and the people. Companies can save a lot of liquidity, greatly facilitate car users, auto repair shops, and provide an efficient marketing tool for accessories operators.
Shopping assured. Auto Parts City has a quality supervision station and has full-time staff to manage complaints. Factory outlets, large wholesalers good reputation, customers trust.
Enter the track of healthy development
The appearance of Auto Parts City is a new thing in the process of auto parts circulation to the market economy.
In October 1997, 14 auto parts markets (cities) including Shanghai, Beijing, and Xi’an launched an initiative: The auto parts market should enter a healthy development track, and the competition mechanism for the survival of the fittest and the fittest must be fully utilized in accordance with the policies of the Chinese auto industry and relevant national laws. , laws and regulations, regulate the market, and strengthen management. Under the principle of “jointly seeking joint development and joint developmentâ€, China National Automobile Industry Sales Corporation has led the formation of the National Auto Parts Market Federation. The National Auto Parts Market Consortium has been established for more than six years and has carried out a series of activities centering on market construction, cracking down on counterfeit and inferior products, purifying the market environment, regulating market development, promoting the connection of production and sales, communicating market information, and doing a good job of consulting services. The establishment of the Auto Parts Market Consortium is conducive to the separation of government and enterprises; it is conducive to the effective implementation of the government’s macro regulation and control; and it is conducive to the standardization of market behavior.
In order to meet the need for survival and development of the auto parts market after China's accession to the WTO, in recent years, the main practice in the auto parts market is:
Regulate market management. In recent years, the local auto parts market (city) has changed from a traditional investment promotion method to a matching model based on market operations. It has focused on introducing famous manufacturers into the market to set up operations; using branded stores, specialty stores and other forms, it has gradually eliminated the old ones. Grocery store.
Strengthen city-city cooperation. Along with China's accession to the WTO, some far-sighted auto parts cities have boldly reformed and explored the market system and operating system, strengthened the cooperation with the auto parts markets in different parts of the country, and created a new type of auto parts with both Chinese characteristics and international circulation practices. Market model. Its main approach is to devote itself to the continuous sales operation of Auto Parts City and to bring together many small-scale and decentralized auto parts market business activities. Under the banner of a unified product brand, it has established a nationwide production, supply and sales chain to make it become an integral whole. The chain system of chemistry, specialization, and ordering has promoted the sound development of Auto Parts City.
Implement brand strategy
Since the accession to the WTO, the local auto parts market has gradually realized in practice that the brand is the basis for cooperation between companies and dealers. The future will be able to stand on the auto parts market, will be the brand auto parts market (City). The local auto parts market (City) put forward the concepts of “promoting famous brands, serving auto usersâ€, “emphasizing brand effects, developing creditworthiness and economyâ€, “entering ethical norms, and establishing a brand name with integrity servicesâ€, striving to optimize the soft environment, encouraging Merchants marry large groups to increase market credibility.
Shanghai Dongfang Auto Parts City, which implemented the brand strategy earlier, has now become a more influential domestic well-known auto parts market. The China United Auto Parts Co., Ltd., jointly funded by the major members of the National Association of Auto Parts Markets, is another successful example of implementing the brand strategy. The company has combined China's specific national conditions with internationally-discovered franchising methods to create a unique domestic auto parts brand marketing system with Chinese characteristics.
The auto parts market (city) all over the country, because it has gathered thousands of merchants, has extremely rich parts resources. Integrating these resources to form a scale will not only suit the needs of the domestic market, but also the needs of the international market. . Since the accession to the WTO, the auto parts market (city) around the country under the banner of “joint development†has introduced internal links, accelerated the pace of integration with the international community, and greatly improved the public image and economic benefits of Auto Parts City.
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The revolution in the field of auto parts distribution
The circulation of auto parts has undergone five historical changes. First, it has changed from unified purchase and marketing to open marketing. Second, it has changed from a single planned distribution channel to a multi-channel market circulation. Third, it has changed from a seller’s market to a buyer’s purchase. The intangible market has changed from the intangible market management to the tangible market management.
In the era of planned economy, the Ministry of Communications implemented nationwide direct marketing management before the early 1960s, and all of them were handed over to the Ministry of Industry and Machinery in the mid-term. The China National Automobile Industry Corporation implemented centralized marketing management across the country and was implemented by the Department of Materials. The national unified ordering allocation of supply resources; before and after the reform and opening up, with the establishment and expansion of the production and marketing rights of auto parts manufacturers, the auto parts circulation system has formed a situation in which the Ministry of Materials, China National Automotive Industry Corporation and auto parts manufacturers coexist. While the accessory marketing of auto parts production enterprises is moving into the tangible market, the automobile repair parts produced by the auto vehicle production companies and the OEM auto parts products (ie, the original car original auto parts) have established this group ( (Company) Auto Parts Sales Service Center (Auto Parts Center) and Network.
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