In July 2009, Mr. Liu, who had been operating the Great Wall Lubricant Oil Change Center for three years, renovated his storefront and put on the “Shell Heineken Car Care Center†brand. This is China's 1200th automotive quick repair shop that has joined Shell Lubricants and Shell's 100th high-end maintenance center.
Prior to this, Mr. Liu had voluntarily found Shell and requested to be a member of the development plan of his maintenance center. “The use of Great Wall Lubricants is mostly transport vehicles, and private cars and official vehicles in general still prefer higher-end products such as Shell or Meifu,†said Liu.
What surprised Mr. Liu was that he was soon not only allowed to hang shells for Heineken's stores, but also to have Shell's products and to get a redecorated fee and support. He thinks this is an economical deal. "Shell is an international big brand. Joining this program will make my store look more formal, more reliable, and attract more new customers."
The effect was obvious. After two months of changing the threshold, Mr. Liu's maintenance center not only increased the number of carwashes by about 30%, but also changed its daily oil replacement business by 1 to 2 vehicles.
There are more than one fast-repair shopkeepers that Shell sees as “resources†like Mr. Liu. According to Shell’s plan, this ambitious international oil giant is planning to develop fast repairs at the speed of adding more than 300 various types of conservation centers every year. Channels, including high-end maintenance centers for mid- to high-end car owners, will be built at a rate of 100 each year, and will build 400 to 500 in 2012.
“Currently, automotive 3S and 4S stores are still the main sales channels for Shell Lubricants, but in China's fast-growing automotive aftermarket, fast-track maintenance networks have gradually become an emerging channel.†Director of Shell Lubricants China and Hong Kong Shen Jian, the manager, said.
At the same time, Shell's old rival, Mobil, also saw the value of this emerging channel. At present, Exxon Mobil has leveraged on the rapid development of channels to develop more than 800 "Mobil 1 car care shops". In its plan, this network will be rapidly developed in the next few years, and will cover the entire country. area.
Grab the fast ground
“There are about four sales channels for lubricants at present: auto dealer-specific maintenance service systems, chain auto repair maintenance systems, gas stations and independent auto repairs, auto parts dealers.†Yang Fan, Marketing Director of Shell Automotive Lubricants, China and Hong Kong .
However, in recent years, due to low investment, fast cash flow, low operating costs, and rapid development of chain stores, auto-remodification has gradually become a more extensive after-sales network than 4S stores. “A 4S shop has tens of millions of investment, but only It can fix and maintain a certain brand, but fast-repair chain stores generally have an investment of 200,000 to 500,000 yuan, or even lower."
In Yang Fan’s view, the potential of the fast-repair shop is huge. Not only is the maintenance fast, and the price is far cheaper than the 4S shop. Therefore, the owner often chooses to repair and maintain the quick repair shop after the warranty period. If he seizes this channel, It will greatly benefit Shell's sales and market share.
“At present, more than 80% of vehicle lubricants are sold through 3S, 4S and independent fast repair channels, and a small part are sold through some quick oil change centers, hypermarkets and gas stations. This is also the case with Shell.†Shen Jian said.
In fact, it is also a win-win move to join forces with independent fast repair companies and develop channels for rapid repair. According to data from a group of surveys in Shenzhen and North China, after joining the Shell Conservation Center plan, the traffic volume at the fast repair shop increased by 20% to 40% over the previous period, and profits and sales both increased by more than 30%.
In order to speed up the development of fast-tracking channels, Shell also turned its sights to a large number of fast-repairing chains, in addition to independent fast-paced repairs. Since 2006, Shell has established a large customer direct sales team to conduct marketing for large customers such as quick repair and maintenance stores.
It is reported that Shell’s sales staff also tried to persuade the Shanghai CheJi flag to join the “Mobil 1 No 1 Car Maintenance†plan to change its flag, but ultimately failed. At present, Che Jie has more than 60 franchise stores, of which 70% have reached cooperation with Mobil.
However, a fast-repair shopkeeper revealed that neither Shell nor Mobil could really control the express repair business, especially the large chain of independent brands such as Aiyixing, although Shell and Meifu are trying their best Many outlets and more than 50 franchise stores have their own channels, but no one shop really sells only one brand of lubricants.
"They can only rely on their own fast-track maintenance centers to provide more support policies and added value to persuade the other party to sell their own lubricants in the store," said the fast-repair shop owner.
"Oil boss" dispute
According to a recent independent market survey conducted by Klein Company, a global consulting and research organization, Shell has been the global champion of lubricants for three consecutive years and has maintained China’s position as the largest international lubricants supplier. In the company's investigation, Exxon Mobil ranked No. 1 in the world over Shell in 2005.
According to Klein's data, Shell currently holds a 13% share in the global lubricants market and continues to gain market share in major growth countries. In 2008, China's total demand for lubricants was approximately 5.5 million tons, making it the world's second-largest lubricants market after the United States, and Shell’s share in it has exceeded 10%.
Exxon Mobil, who competes with Shell for global lubricating oil bosses, also shifted the focus of competition to the Chinese market. The data shows that the current size of China's auto aftermarket is approximately 100 billion yuan a year. By 2010, the auto sales market in China will reach US$23.017 billion, which is second only to Japan in Asia.
It is reported that at the dealer's rebate, Mobil is about 1% higher than Shell. In addition, like Shell, Mobil will also provide support for decoration, hardware specification, software upgrades, and service management for each member store that joins the Mobil No. 1 car conservation program.
Although Shell has a first-mover advantage in this round of quick repairs, Shell still needs to carefully study the more attractive channel development plans for the quick fixes in the face of rushes from Mobil.
In 2005, 13 Michelin dealers collectively changed their flags to Goodyear. In fact, judging from the current competitive situation, both Shell and Mobil need to be vigilant that history will repeat themselves.
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