China's first "Lubricant Enterprise Alliance" officially established

Faced with the prevailing situation of world economic regional conglomeration and new trade protectionism, and in order to unite well-known enterprises in the domestic lubricants industry, they will better use their own brand, resource and network advantages to jointly cope with the rapidly changing market. surroundings. In November 2012, the first “ Lubricant Enterprise Alliance ” initiated by Dongfeng Oil Group and Korea GS Co., Ltd. was formally established in Xuchang, Henan Province. OEMs, suppliers, banks, and automobile manufacturers from all over the country were established. More than 200 relevant responsible persons witnessed this moment.

The combination is large, the independence is small, and the alliance creates a new pattern

Since the 1990s, around the global market, competition among enterprises has become increasingly fierce. Companies are having difficulties in exploring new markets and consolidating old markets. If a company wants to occupy a place in the domestic market or even in the international market, it is far from enough to rely on its own strength. Dongfeng Lubricants has used the wisdom of the East to open up a new pattern of cooperation among the national lubricant companies.

It is understood that the Lubricant Enterprise Alliance is a relatively stable, long-term contractual relationship between companies in R&D, production, sales, etc. It is also an innovative partnership in a new situation. It can not only reduce the investment costs and investment risks among different alliance companies, but also reduce the competitors among alliance companies, so as to better achieve the benefit sharing and group development.

“We know that capital is the lifeblood of a company's development and it is also something that companies often encounter during development. The alliance can precisely solve this bottleneck problem. We can provide strong capital guarantees for upstream and downstream cooperation among alliance companies!” Dongfeng Oil Products Director Chang Liangbing emphasized in an interview with reporters: "No matter where you come from, no matter what your company's current status is, whether you own your own brand or no name, you can do this in the 'Lubricant Enterprise Alliance'. On the big stage, do everything you want to do.”

From product brand to industry brand

As a new emerging automobile country, China has become the world’s largest car producer and the largest new car market in the world last year. The number of car ownership has rapidly expanded in recent years. China's demand for lubricants has remained at an annual growth rate of 10%. In the next 5-10 years, China will become the world's largest demand for lubricants. In the domestic lubricants market, due to factors such as brand, technology and financial situation, a major reshuffle of the lubricants industry is quietly underway. The growth of international brands has slowed down, and some weak domestic lubricant manufacturers have closed down. Some are also difficult to maintain. How to maintain strong growth under such a big situation has become a difficult issue facing the industry.

Although the development of Dongfeng Lubricating Oil also encountered some difficulties this year, it still maintained a good performance. The three-level five-star international chain image store in the national market has basically been distributed to every province and key city, and the order of large industrial oil customers has been Increasingly. “However, we still feel the chill of winter.” Gui Fenghui, Marketing Director of Dongfeng Oil Group, told reporters: “Dongfeng Lubricants must go through the upgrade from product brands to industrial brands, unite upstream, downstream, and surrounding companies, and strengthen domestic Cooperation and technical exchanges between oil companies, highlighting cooperation and win-win results, creating a major coalition of Dongfeng Lubricating Oil Industry, implementing large brands and major industries, and jointly pushing the national lubricants business to a new height."

Lubricant Enterprise Alliance Takes Shape

At the meeting, Dongfeng Lubricants signed strategic cooperation agreements with China Post and Sino-Kazakhstan joint venture KAZ. As the first brand of China Logistics, China Post has a vast postal express delivery logistics network and warehousing resources to provide Dongfeng lubricants with services such as logistics transportation, product transportation and warehousing, effectively reducing the loss of products during transportation and improving transportation efficiency. Dongfeng Lubricating Oil and various OEM manufacturers realize the "corporate alliance" escort. The cooperation of KAZ Group not only gave Dongfeng Lubricants a billion-dollar consumer market, but also paved the way for Dongfeng Lubricants to go overseas. Several OEM processing manufacturers also signed a production and processing agreement with Dongfeng Lubricant at the conference site to ensure Dongfeng Lubricant's capacity supply.

"After we put forward this concept, we are very honored to see the positive response of our colleagues in the industry. The leaders of China Post are eye-catching and we form strategic alliances. We use our own logistics and warehousing resources and the advantages of the Postal Savings Bank to fully support Dongfeng and Treasure Island. The online platform, Yiyatong's supply chain service and South Korea's GS Caltex Co., Ltd.'s cooperation are worth noting, Dongfeng Lubricant Enterprise Alliance has begun to take shape." Dongfeng lubricants chairman Liang Bing said in an interview with reporters . Jin Yingzhi, vice president of Korea GS Caltex Co., Ltd., said, “Our cooperation with Dongfeng Lubricating Oil is pleasant, trustworthy, and proud. When I join together in the “Lubricant Enterprise Alliance”, I would like to share this together. The difficult new approach is very promising."

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