With the rapid development of China's automobile industry, the auto parts industry has also made considerable progress. However, how to grasp the development trend of the auto market and achieve survival and development in this market has become a common problem for most parts and components companies. . Recently, Mr. Chen Lixun, the managing director of Delphi Trading (Shanghai) Co., Ltd., received an exclusive interview with reporters on the existing problems in the Chinese automotive aftermarket, the causes, and the promotion of the Delphi brand.

Reporter: In recent years, the growth rate of new vehicles in China is very fast. The entire automotive aftermarket is also experiencing rapid development due to its impact. What do you think of the characteristics of the automotive aftermarket and what do you think about the development of the entire automotive aftermarket in the coming years?

Chen Lixun: As a whole, China's car ownership and vehicle age are constantly growing, and the entire post-market is also developing year by year. At the same time, the rapid expansion of the entire vehicle market and the country's vigorous investment in intellectual property protection and other good news, so that the world's major parts and components companies continue to increase investment and actively explore the Chinese auto parts market. Although the entire after-sales situation is very good, we have to admit that due to the lack of maturity in the post-market development, low barriers to entry, inadequate industry supervision, scattered channels, excessive distribution levels, and disorderly competition, it has become a major problem. . Of course, the development of the auto aftermarket is also affected by other factors. For example, the effect of restricting the introduction of drunken driving and other laws and regulations on the after-sales market began to appear in 2010, and it has become more and more obvious. In addition, with the improvement of the quality of the citizens, driving has become more and more standardized, and accidents have become less and less natural. As a result, sales of parts and components in the aftermarket market caused by the maintenance of the accident vehicle have been significantly reduced.

Reporter: Did the "unorderedness" you mentioned refer to the disorder of channels or other aspects?

Chen Lixun: disorder, on the one hand, refers to the chaos in the channels, and on the other, to the disorder in prices. The price disorder is not only caused by the sales cycle, but also includes the disorderly pricing of some suppliers. Some companies produce substandard products at low cost or even zero cost, and then hit the market at low prices. All these have caused disorderly competition in the market and have caused great impact on formal production enterprises, including transnational corporations.

Reporter: In reality, many 4S stores have fakes. They seek real profits by taking advantage of it. Consumers, under their guidance, will clearly know that they are counterfeit but still willing to spend less to buy. "Authentic sales do not go out and cheap counterfeits are popular." How do you see this phenomenon?

Chen Lixun: This phenomenon is mainly related to two aspects: First, it is related to the owner of the car. Some car owners want to buy genuine products but can't find them. The other car owners are more rational and will consider their own age to choose accessories. Low-vehicle owners will pursue high-quality and original accessories. However, owners with a vehicle age of more than 5 years may be the second best choice. Second, from the perspective of repair companies, the social responsibility of some repair companies still needs to be improved. In order to pursue high profits, it tends to recommend to consumers low-cost, low-quality accessories and even fakes.

Reporter: As you just mentioned, the proportion of high-end products and low-end products that are eventually consumed in the market is related to the owner's consumer psychology and vehicle age. In reality, the number of consumers who can actually buy high-end products is much less than the expected value of the theory. What causes this? Is there a problem with the channel? Or are there other reasons?

Chen Lixun: This is mainly determined by the domestic parts market structure and sales channel model. The domestic aftermarket structure is pyramidal, with international brands at the top and domestic brands in the middle. The following are high imitation products or inferior products. Unlike China and Europe, mature markets have many direct retailers, consumers can easily buy authentic high-end brand parts from them. In addition to regular dealers in Europe, in the repair stations can be seen everywhere can buy genuine products; and Chinese consumers have fewer buying channels, in addition to 4S stores, most of the street is not a regular shop . Most of them use the product sales profit as the main consideration. It is much more difficult for Chinese consumers to buy suitable, authentic brand parts and components when they are not familiar with the parts themselves. Delphi's mission is to bring safe and comfortable driving. We encourage Delphi dealers to directly face the repair shop instead of just making a wholesale sale. By simplifying the business process and shortening the distance with consumers, we can more directly put our real brand. Product sales to the hands of owners, to the vast number of consumers bring real convenience and reassurance.

Reporter: Do you think this situation will change in the future? What forces can change China's current situation that has lasted for decades?

Chen Lixun: It may change. According to my prediction, one of the forces for change is foreign capital. If foreign capital is confident and can see the broad prospects of the industry, they will invest to accelerate the standardization process of the survival of the fittest in the market; another force is Europe and the United States. The successful transplantation of the operating channel model has emerged as a genuine auto parts retailer. However, in the initial stage of this model, in the immature consumer and market environment, it is sure to prepare for the initial loss; however, regardless of the mode of government support and supervision is very important. Industry associations should also play a positive role in communicating with the government.

Reporter: What countermeasures do you think can be taken for counterfeiting in the Chinese industry?

Chen Lixun: Counterfeit goods are a problem facing the entire industry. Therefore, it is not enough for a single company to fight counterfeiting. And now the means of counterfeiters are endless, it is difficult to find the source of counterfeiting. This requires specialized agencies or coalition organizations to unite companies and fight frauds together, which will have greater impact.

Reporter: Let's talk about Delphi itself. What are Delphi's current product lines?

Chen Lixun: Delphi has a total of five product lines in the aftermarket, the first is our main product - automotive electronics, mainly relying on the original supporting business support; the second product line is the heat exchange system; the third is the chassis system; The fourth is maintenance and repair; these are for customers of petrol car parts, and the fifth major product line is mainly for diesel car parts customers, including injectors, filters, etc. We have these five product lines. Build a broad product strategy model to serve customers.

Reporter: Which business segment of Delphi has the strongest aftermarket?

Chen Lixun: Due to driving habits and road conditions and other reasons, the replacement rate of certain products is relatively higher, such as chassis and electronic products. In addition, as one of the world's three largest diesel system suppliers, Delphi diesel system products have a promising future in the domestic commercial vehicle market, especially the light commercial vehicle market.

Reporter: In terms of sales channels, Delphi mainly sells products? Is there direct sales?

Chen Lixun: Most of them are distribution systems. Our dealers mainly do full-vehicle sales. When choosing a distributor, the competition mechanism for survival of the fittest is adopted. At present, in addition to some of the more remote areas, the provinces and cities across the country basically have our dealers. According to statistics, the business scope of our first-tier dealers can already cover repair shops at all levels in small and medium-sized cities.

Reporter: The brand is very important to any company, and the influence in the post-market is also obvious. Did Delphi's branding reach end customers? Please talk about Delphi's brand strategy.

Chen Lixun: Delphi's brand strategy is closely linked with the company's products and sales strategy, which are complementary to each other. Therefore, when selecting a distributor, we always emphasize one point: We are not purely trading relationships, but partners. . On the one hand, dealers sell our products. On the other hand, they will also be willing to cooperate with Delphi's brand promotion in the local area, especially the second-and third-tier local markets and end customers that are difficult for us to reach. According to our own market research, it was found that the awareness of the brand of the repair shop was still very strong. Delphi also actively promoted brand promotion through continuous investment in brand promotion, including support for dealers, to jointly generate new products for the market. Great promotion. In addition, for the repair shop, we will also conduct brand promotion by advertising, participating in industry exhibitions, and conducting targeted training activities. In this form of benefit to the company, dealers, and repair shops, the purpose of win-win is achieved.

Reporter: In the West, e-commerce has achieved great breakthroughs in the auto parts industry. How do you view the development prospects of China's e-commerce industry in the auto parts sector?

Chen Lixun: E-commerce has become a development trend. There is no doubt that e-commerce is even more so in China. China has a huge population, especially young private car owners will increasingly use the network for consultation, inquiries, transactions, etc. In addition, dealers and maintenance companies have begun to obtain and transmit information through the Internet. We are interested in trying e-commerce at the right time.

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