In the Internet era, automobile manufacturers and 4S dealers have faced significant disruptions. With the rapid growth of the after-sales market, some major auto parts companies are now investing more in this sector, expanding their physical outlets and establishing flagship stores on e-commerce platforms. But the question remains: should auto parts companies develop their own e-commerce platforms or support their agents in doing so?
With big data and car network e-commerce emerging as key players, there's still a lack of integration in the domestic market. JD.com has quietly entered the automotive after-sales space with an O2O strategy, raising the question: will the future of the auto parts market become a battleground for tech giants like BAT? How can auto parts companies and channel providers adapt to these changes?
Auto parts are closely tied to on-site installation services. Can loosely connected offline channels through O2O truly integrate into a unified platform? These questions were explored by industry experts from CEIBS Alumni Automobile Industry Club, Shanghai Jiaotong University Antai College of Economics and Management, France Marseille KEDGE Business School, and China Automotive Consulting Center Network.
During the discussion, participants included Xie Junshan, General Manager of Mahler Trading (Shanghai) Co., Ltd. Aftermarket, Greater China; Qingyan Sikubo Trading (Shanghai) Co., Ltd. General Manager; Zhang Houqi, Chairman and President of Zhongchi E-Commerce Co., Ltd.; Gu Yu, Regional Director of Schaeffler Automotive China and Vice Chairman of CAF Association; and Li Binjia Road Auto Consulting (Shanghai) Co., Ltd. Partner.
Gu Yu pointed out that the Chinese after-sales market has been booming, with many players trying to ride the wave. However, not everyone can sustain their position, and even those struggling are still eager to enter. The market is evolving rapidly.
Zhang Houqi emphasized the importance of big data in the auto parts industry. He mentioned that while Wal-Mart may have 100,000 items in its catalog, the auto parts e-commerce market holds tens of millions of items. Accurate data is essential for repair shops to find the right parts. He also highlighted the need for efficient supply chain management and fast turnaround times.
Li Bin noted that current operations still rely heavily on traditional distribution models. Companies focus on developing quality agents, removing underperformers, and helping them expand their networks. This model remains central despite the rise of digital platforms.
Gu Yu added that manufacturers must respect and support new channel models, especially when it comes to user experience. While online channels are important, they cannot replace the role of dealers in the short term. Traditional channels remain crucial for providing support and maintaining brand reputation.
Xie Junshan stressed that online sales of auto parts still require service. DIY limitations mean that O2O platforms are necessary. His company continues to support dealers and improve service capabilities at the retail level.
Qingyan discussed the challenges of the traditional German model, where distributors operate independently. He believes that integrating the supply chain and embracing big data are key to success. Openness and collaboration with both upstream and downstream partners are essential.
Zhang Houqi concluded that the auto parts industry is complex, requiring vertical integration and standardization. The internet offers opportunities for openness and ecosystem building, but challenges remain in data accuracy and market transparency.
Gu Yu emphasized that multiple channels can coexist, and the future lies in integrating information, logistics, and capital flows. He supported innovation and called for bold approaches to transform the industry.
Li Bin noted that while entering the e-commerce space is easy, scaling up requires overcoming data and trust issues. He advocated for greater openness and collaboration to accelerate progress.
Overall, the discussion highlighted the need for adaptability, integration, and a balance between tradition and innovation in the evolving auto parts industry.
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