How novel coronavirus will impact Chinese Auto Aftermarket - part 1 Market changes

Market competition is fiercer

Newly released annual leave throughout the country is continuously postponed, the household income of residents across the country is affected, and the overall consumption of car owners has become a downward trend, which means that market competition will be more intense this year.

After the epidemic, the moment when the store door is opened, all kinds of pressures will come to the face ... Friends in auto service shops across the country must now have such a sense of crisis. The epidemic will profoundly change the industry structure and business model, and it will also profoundly affect and change everyone in the automotive aftermarket.


Strengthening health awareness

Isolation, masks, disinfection, health care ... are the words that frequently appear in this epidemic. Isolation at home is the best health lesson for the whole people.

Next, such vivid marketing materials will be repeatedly announced by the Internet and auto service shops, which will profoundly affect car owners. The escalation of health consumption awareness will widely affect household consumption, the concept of auto parts supplies and auto service consumption, and the selection criteria for products and services will naturally also be affected.

It can be further foreseen that the products and services in the automotive aftermarket will further develop towards quality, environmental protection and health. From the consumer side to the production side, this trend deserves high attention.


Strengthening health awareness

Isolation, masks, disinfection, health care ... are the words that frequently appear in this epidemic. Isolation at home is the best health lesson for the whole people.

Next, such vivid marketing materials will be repeatedly announced by the Internet and auto service shops, which will profoundly affect car owners. The escalation of health consumption awareness will widely affect household consumption, the concept of auto parts supplies and auto service consumption, and the selection criteria for products and services will naturally also be affected.

It can be further foreseen that the products and services in the automotive aftermarket will further develop towards quality, environmental protection and health. From the consumer side to the production side, this trend deserves high attention.


Service model will change

Imagine a decrease in new car growth this year - this is almost a definite trend .

Online transactions continue to rise - SARS promoted the rise of online shopping in 2003 .

The disposable consumption power of car owners has decreased - income has been reduced and consumption has been suppressed .

The above three aspects will drive a drastic change in the model of the auto service industry this year. As far as auto service shops are concerned, as the “ cake ” becomes smaller, the competition for services will increase significantly. Incremental competition between the new car inventory business and the old car inventory business, coupled with the epidemic situation will further promote online shopping, multiple squeezes will accelerate the demise of a group of backward auto service shops . Shop owners really have to score 12 points this year Come in spirit to ensure survival and development .


A new opportunity window opens

The outbreak has directly affected the production of enterprises. Guangzhou, for example, government regulations should not in general business Feb. 9th started recently; Hubei Province is even more late as Feb. 13th, while in fact the staff in place, that is, to restore production capacity, may be a conservative estimate to March even to April .

This aspect means that a large number of enterprises, especially small and medium-sized enterprises, may face greater operating pressure, and the operating costs and output will be severely inverted after the start of the year.

On the other hand, it means that some segments of the industry may usher in a shortage period, and there will be a shortage of supply, which is a good time for corporate marketing to " grab the rhythm " .



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