Commercial Vehicle Parts Distribution: Chain Operations Will Become Mainstream


In September 2005, the National Federation of Commercial Vehicle Parts Distributors was announced in Nanchang. In the past five years, through the continuous development and growth of the Federation, it has witnessed the unlimited potential of China's commercial vehicle aftermarket auto parts distribution industry. In January 2010, the National Association of Commercial Vehicle Production and Marketing held an annual meeting in Quanzhou, Fujian. Keywords: Commercial Vehicle Parts Chain Management

In September 2005, the National Federation of Commercial Vehicle Parts Distributors was announced in Nanchang. In the past five years, through the continuous development and growth of the Federation, it has witnessed the unlimited potential of China's commercial vehicle aftermarket auto parts distribution industry. In January 2010, the National Association of Commercial Vehicle Production and Marketing held an annual meeting in Quanzhou, Fujian.

Reviewing the Five-year Road to the Distributors Association

Mr. Zhang Yuwu, secretary-general of the Association for Production and Marketing of Commercial Vehicle Parts and Accessories, said that the most important task of the Federation is to provide peers with peer-to-peer communication, analysis of models, and exploration of development platforms. It ignited the passion of the distribution companies, from burying their heads only, to exchanging experiences from national perspectives, drawing lessons from the Federation, organizing learning and transportation through the Federation in 2005, learning the spirit of Wenzhou in 2006, experiencing Zhengtong Fortis in 2007, and In 2009, he went to Quanzhou Guolian to help clear the development direction of accessory distributors and improve the efficiency of decision-making.

He said that the development of its typical accessories dealers is gratifying, and the connotations of company structure, corporate management, team building, and cultural cultivation have also been improved. The future development mode of the company is more clear. He believes that the distribution, chaining, distribution and chain, brand regional agency, etc., are essentially the channels at work. In-depth development of the region and in-depth development of products, its essence is to find their own characteristics.

According to forecasts, in 2015, the annual sales of commercial vehicles will reach 4.6 million units, and the annual production and sales volume in 2020 will reach 7 million units. Commercial vehicle aftermarket accessories capacity is even more impressive. After five years, the number of commercial vehicles will exceed 20 million. After ten years, the number of commercial vehicles will exceed 30 million, and the capacity of aftermarket services and maintenance parts will be even greater.

Turning to the future development trend of commercial vehicle aftermarket accessories distribution companies, Mr. Yan Lixing, executive vice president of the Production and Marketing Association, said, “In the long run, the United States’ auto parts distribution situation is closer to us, and large-scale chains are an inevitable trend. From the model point of view, first, the accessory supply system of the host plant will be more strengthened, with the improvement of product technology and the progress of management tracking measures will be more obvious; Second, the progress of large-scale social distribution model, manifested in the "scale, branding The accelerated development of the "networking"; third is the gradual maturity of the social large-scale terminal chain model.

U.S. delegation to the United States to share

In November 2009, the “2009CIAPE China-US Automotive Aftermarket Senior Exchange Delegation” organized by the National Association of Commercial Vehicle Parts Production and Marketing successfully returned to the United States. The members include representatives from the National Federation of Commercial Vehicle Parts Production and Marketing and representatives of production and distribution companies. Mr. Zhao Yilin, a senior consultant of the Federation and an expert in the circulation of auto parts, shared the feelings of the visit.

He said that in the United States, 300 million people have about 245 million cars. According to the statistics of available people, the number of 1,000 cars is about 800, while in China, there are only about 40 cars. Although our country is limited by its land area, landforms and national conditions, it may not reach the level of the United States, but it still has great potential for development.

The automobile chain companies in the US automotive market include NAPA, AUTOZONE, and CARQUEST. NAPA has a history of about 90 years (founded in 1925). AUTOZONE has a history of 30 years (established in 1979) and CARQUEST (founded in 1974). They have accumulated rich experience and competitive strategies in their long-term operations.

The competition in the US automobile aftermarket is mainly carried out among big brands such as NAPA, AUTOZONE and CARQUEST, and there are more than 10,000 chain stores in these three companies. However, these markets are positioned to avoid each other and displace one another. From the aspect of accessories, AUTOZONE's products are all cars and light goods vehicles. The main service targets are cars with 7 to 10 years of age. CARQUEST, on the other hand, operates all-car accessories, with commercial vehicle accessories accounting for 30% of the total. Distribution centers are built on the borders of several states. They are large-scale, about 60,000 square meters, and are heavily used with automatic scanning and sorting. There are not many workers and there is a high level of electronics and mechanization. From the relationship with the repair shop, the NAPA repair shop is almost all its own, AUTOZONE does not have a repair shop, CARQUEST and the repair shop almost all of the partnership, mainly because it is a technical service-oriented enterprises. The company not only achieved seamless connection of spare parts supply with the repair shop through the database, but also sent special technical personnel to the repair shop to explain the new parts developed by the factory. Moreover, more than 80% of CARQUEST's products are sold through repair shop outlets, and there is a high degree of connection with repair shop profits.

The turnover rate of these chain accessories is not fast, but the rate of increase is high. This is because they have long-term service and cultivate loyal customers, thus forming their own stable market. Both China and the United States are major automakers. The US post-market today has a strong reference for our country to build a more efficient and reasonable post-market tomorrow.

Multiple modes of development coexist

In 2010, the National Federation of Commercial Vehicle Parts Distributors was held in Quanzhou, and Quanzhou Guolian Auto Parts Co., Ltd., the host company, gave a great impression to many participants. Quanzhou Guolian Auto Parts Co., Ltd. was established in 1999. After 10 years of hard work, the company has now become a distributor of more than 300 famous auto parts manufacturers such as FAW, Dongfeng, Yuchai, Cummins, Dachai, Weichai, and CNHTC. Or general agent, becoming the largest auto parts distributor in Fujian Province. There are nearly 300 professional talents of various types and annual sales revenue exceeds 300 million yuan. Its accessories wholesale business through the logistics service company to provide a full range of delivery services, so that each customer can get the door-to-door quality service. The marketing business network now covers dozens of counties (cities/districts) in the nine cities of Fujian Province, and has extended northwards to Zhejiang, west to Jiangxi, and south to Guangdong. Mr. Zheng Zhixiong, chairman and president of the National League, said that “Building China’s first-class auto parts brand channel provider” is the goal that the League of Nations has been striving for all along.

Based on the modernized ERP computer management system and a fast commodity storage and transportation fleet, Guolian has now set up 12 large-scale trucks (mainly used for long-distance home delivery services inside and outside Fujian Province) and 6 minivans (for short-distance transfers in Quanzhou. The largest scale auto parts logistics distribution system in the province, including 6 medium-sized goods vehicles (mainly used for long-distance delivery in the province), totaling 24 special delivery vehicles. At present, Quanzhou Guolian has established a number of commercial vehicle accessories terminal chain stores in Quanzhou Shihu Port, Fuzhou Asia Pacific Auto Parts City, Quanzhou, Putian Hanjiang, and Zhangzhou Nanjing.

Yinchuan Sanjiang Trading Co., Ltd. was established in 1994. It is a professional company engaged in heavy-duty truck accessories. Its products cover major domestic mainframe parts such as Dichai, Xichai, Aowei and Weiwei, as well as chassis parts of FAW's well-known manufacturers. In the selection of outstanding dealers of China Commercial Vehicle Accessories in 2008, it was awarded the title of an excellent dealer of commercial vehicle accessories. Ms. An Caiping, general manager of Yinchuan Sanjiang Trading Co., Ltd., said that in terms of management, the company strengthened internal management and employee training to enhance employees' service awareness; motivate employees, improve the company's distribution mechanism, and enhance the company's cohesion and centripetal force. Yinchuan Sanjiang Company has been authorized by FAW Trade Corporation as a model shop of Ningxia FAW Liberation Company based on its strength accumulated over the years, as well as the approval of manufacturers and customers.

Hebei Chuangwei Material & Trade Co., Ltd. is located in Huangpi City. The company was established in 1993. Its predecessor, Xinglian Auto Parts, is a comprehensive enterprise that integrates production, sales, maintenance and logistics into a joint-stock operation. Mr. Wang Youzhuang, the chairman of the company, told the reporter that due to the limited capacity of the local market, the company had been distressed by the types and brands of auto parts products and faced tough choices. However, after more than ten years of auto parts management and exploration, Chuangwei has finally come up with a correct path by maintaining close contact and exchanges with upstream and downstream. In 2005, it invested more than RMB 10 million to build the China National Heavy Duty Truck Hebei Chuangwei Sales Service Center. After more than one year of basic construction and continuous efforts, in early June 2007, an exhibition hall with an area of ​​1,200 square meters for auto sales, 800 square meters of accessories sales hall and a building area of ​​2,200 square meters, with 16 large maintenance workshops. The maintenance workshops were built and put into use one after another. At the same time, with the sales of complete vehicles, Hebei Tianwei Automobile Transportation Co., Ltd., a logistics service company, was set up, and in cooperation with local financial departments, it set up an automobile sales installment payment business.

The auto market has a huge space. Compared with the international market, there are no independent leading companies in the domestic spare parts circulation sector and auto repair sector. After the vehicle inventory reaches a certain scale, the automotive aftermarket will become an important force to promote the growth of the industry. In the future, the number of parts and components manufacturers with independent brands facing the after-sales market will increase; the concentration of spare parts circulation and maintenance industry will gradually increase; the chain business model is the main direction of development. China will appear similar to the US AUTOZONE, NAPA, and Japan's AUTOBACS. In spite of this, the circulation field will continue to present a multi-mode co-movement format for a long time to come.

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