Compared with the vehicle market, the auto market is undoubtedly hidden behind the scenes of workers. However, with the slowdown in the growth rate of China's auto ownership, the fierce competition in the entire vehicle market, coupled with changes in the country's macro-control policies, the entire vehicle market will undoubtedly fall into a trough period. The development of the automotive aftermarket, especially the auto parts industry, is closely related to the entire vehicle market. Then, how can auto parts companies play a supporting role?
Dilemma: Rising corporate costs and "price reduction" for automakers
In the course of the game between auto manufacturers and auto parts companies, auto parts companies are undoubtedly in a very unfavorable position. The strength of the automaker is high and the brand is well-known. Therefore, in terms of pricing power, auto parts companies, especially small and medium-sized enterprises, have strong advantages. Auto parts companies do not have the advantage of “dialâ€, so they can only do the work behind the scenes silently. On the one hand, due to the impact of the financial crisis on the national economy, the rising cost of raw materials, labor, and other enterprises caused by inflation has added to the already hard-earned businesses; on the other hand, the vehicle market is fiercely competitive and the automakers have further depressed The price of auto parts to achieve the purpose of transferring risk.
The future of auto parts companies: technology, brands and sales channels
However, facing the increasingly difficult status quo, where is the future of auto parts companies? It is true that in the process of cooperation with auto manufacturers, many companies have earned “the first barrel of goldâ€. Then, how do we realize the following? Transformation, from the "supporting role" role to the "protagonist" change? First, companies should increase investment in technology research and development, and strive to achieve product advantages in the same market, such as Zhuzhou Hunan Torch Spark Plug Co., Ltd.'s "torch card" "Spark plugs account for 40% of the market share in the country and the products are sold to more than 20 countries and regions abroad. Secondly, while doing a good job of products, enterprises should also establish a brand image of the company. Through various forms such as books, magazines, networks, exhibitions, etc., the company will strengthen the brand's propaganda and expand the influence of the brand; finally, it will broaden the sales channels of the products. In addition to cooperating with OEMs, auto parts companies can also choose to cooperate with 4S stores, auto repair shops, etc. to make the market bigger. In addition, as the owner’s DIY capabilities increase, companies can also try e-commerce models. Further expand the market share of the company.
To see the rise of auto parts companies requires a long-term process. Only by persisting in the two major advantages of “product†and “brand†can companies be gradually known and recognized by the market, so as to further tap the potential of the market and fully prepare the company for the rapid development of the post-market.
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