Shell, Mobil and other foreign lubricant brands have tightened their nerves, because with the increasing strength of Chinese brands, the Chinese lubricants market is no longer the situation that imported goods “dominated the world†10 years ago. At present, Great Wall Lubricant has occupied one-third of the market share in the domestic high-end lubricants market. In the first quarter of 2010, Great Wall Lubricants ' high-end oil sales increased by nearly 50%. Fenghua Jade Motor Co., Ltd. , http://www.gosbearing.com
Solid research and development to seize the market
The brands Shell, Mobil, BP, Great Wall, and Kunlun are users' general awareness of the domestic lubricants market. At present, imported and domestic lubricants brands are evenly matched in the Chinese market and share the world.
The automotive industry began in the West. Lubricants were used as ancillary consumer goods for automobiles. The domestic market was initially monopolized by foreign giants. In the 1990s, foreign brands represented by Shell, Mobil, and BP entered China and long-term occupation of China's high-end lubricants market. In 2002, Sinopec Corp. consolidated its lubricants business and established a lubricants subsidiary. It wedged into the market and grew rapidly. The rise of domestic brands has reshuffled China's lube ecosystem.
According to the Flowserve Lubricant Research Center, China is the second largest country in terms of global lubricant consumption, second only to the United States, with a consumption of 4.7 million tons. “Sinopec Lubricants Lubricants sales in 2009 increased by 7% over the previous year. In the market environment in 2009, this achievement is still considerable.†Li Liangyao, deputy general manager of Sinopec Lubricants Branch, said, “Successfully seizing the market depends on This is a strong R&D force of Sinopec, and it can be said that Great Wall Lubricating Oil concentrates 70% of domestic oil R&D.â€
Great Wall Lubricants has been associated with China’s space industry for 50 years and is an important partner in China’s space industry. The “two bombs and one starâ€, Great Wall series carrier rockets and Shenzhou series manned spacecrafts all use Great Wall Lubricants. It is the ascension of space technology that has become the internal driving force for the development of Great Wall Lubricants.
"Lubricant market is the buyer's market. We cannot force users to use our products. We can only start from ourselves, and constantly pursue high-quality R&D results. When we let users choose quality, we prefer the 'Great Wall'." Li Liangyao said.
Joining the car company to build a brand
Automotive is an important link between lubricant manufacturers and users. The data shows that at present, Great Wall Lubricants has established a cooperative relationship with 90% of the domestic mainstream car companies, occupying more than 65% of the mainstream car companies, loading and service oil share.
China's auto service industry is in an era dominated by automakers. 4S stores are the choice of most car owners. Due to the great competitive pressure in the vehicle market, automobile manufacturers will inevitably consolidate and strengthen this important source of profits for automotive services. "For lubricant brands, cooperation with mainstream car companies is an inevitable choice to integrate into the automotive industry chain and develop the automotive aftermarket." Li Liangyao said.
As of 2009, Sinopec has signed strategic cooperation agreements with many automotive customers including Dongfeng Nissan, Chery Automobile and China National Heavy Duty Truck. Among them, Dongfeng Nissan is a representative of joint ventures and multinational automotive brands, Chery Automobile is a representative of self-owned brands, and Sinotruk is a representative of commercial vehicle brands.
In June 2009, Sinopec initiated the automotive source plan - the establishment of the Sinopec Automotive Industry Technical Cooperation Center. In the past year, leveraging this platform, Sinopec and automotive companies have jointly researched and developed more than 20 lubricant products, obtained 37 domestic OEM certifications, 10 international OEM certifications, and 17 related patents for the automotive industry.
At present, the market share of Great Wall Lubricants has reached 65% in the automotive lubricant OEM market. However, OEMs cannot meet the demand for Great Wall Lubricants.
"OEM is an area where we are vigorously developing, but it is not our goal. It is just one way we promote our brand." Li Liangyao said, "We do not want to lock customers in the OEM system. Instead, we want them to be After 3 years, you can purchase Great Wall lubricants from OEM to retail systems."
Based on the domestic to the world
In the report “Business Opportunities and Challenges in the Dynamic Chinese Lubricants Market, 2006-2011â€, American Kline Consulting Co., Ltd. stated that in the past five years, the growth rate of some economic data in China has caught up with the United States and some European countries, and This momentum is continuing. The total demand for lubricants in China will account for 13% of the world's demand. At the same time, this growth is more evident in the industry.
The increase is not only in the domestic market, but also the world's lubricant consumption is growing at a rate of 3% to 5% per year.
“We have clarified the 'three steps' strategy for the global market.†Li Liangyao said, “The first step is to develop the Asia-Pacific market, the second step is to build overseas production bases, and the third step is to form a global network layout of the 'Golden Triangle'.â€
Since 2004, Great Wall Lubricants has started to implement its overseas market strategy, and sales in the international market have grown rapidly. At present, Great Wall Lubricants has entered Southeast Asia, the Middle East, and Australia, more than 40 countries and regions. In the first quarter of 2010, overseas sales increased 101% year-on-year.