Pain points and trends of post-market chain development

Pain points and trends of post-market chain development
In the monthly AC car aftermarket, offline salon, from the Michelin Chi Jia, Delphi, Sophie, Federal-Mogul, Yue car workshop car service chain, Shanda auto repair chain, car partner and other post-market companies and distribution channels More than 80 people in the industry started the “brainstorming” by manufacturers, distributors, and terminal repair shops on topics such as the prospects and difficulties of auto parts chain operations. Representatives of domestic auto parts chain stores—Kangzhong auto parts chain general manager Shangbao The country also made a keynote speech, focusing on the "automobile market after the development of chain management business prospects."
How to break the auto sales chain?
Summary of difficulties in auto parts chain, mainly in three points: First, the inventory problem, the domestic market, many models and more accessories, leading to want to be big and complete dealer SKU (Stock Sharing Unit) is extremely large. The second is whether logistics and distribution can be timely, and the third is whether or not the stores in different regions can achieve joint procurement and truly achieve economies of scale.
These three major issues are also the key to whether repair shops/fast repairs will form “dependence” on auto parts chains (including ordinary dealers). In the auto parts supply chain, from dealers to repair shops to consumers, the main user of accessories is the repair shop. Shang Baoguo believes that consumers buy services, and pure accessories B2C does not exist. The development direction of dealers is professional survival. North America Autozone, NAPA also has more professional dealers to supply them. The repair shop also needs products and services.
Specifically speaking, the basic requirements of the repair shop for accessory dealers are: in stock, timely delivery, quality assurance, price advantage (but not the first factor), and it is better to be able to spread goods.
In response to the needs of the repair shop, Kangzhong proposed a "fast, accurate, full range," and promised to "do no counterfeit goods, no rebate, no profits." Its service support to the repair shop includes information sharing, product distribution, product display, inventory management (helping customers analyze, manage inventory), marketing, product application, technical support, and after-sales issues.
First, in the aspect of inventory management, the product strategy of “system supply” should be clearly defined. At present, Kangzhong has developed nine system products including a full series of engine timing systems, braking systems, ignition systems, and filtration systems. System product professional services, key project expert support." By relying on the "system supply" product strategy, KangZhong can control its own SKU relatively effectively; in addition, system supply can help KangZhong establish its own "brand" in the terminal.
Regarding the "brand auto parts chain," Shang Baoguo believes that there are two different definitions, namely, "brand auto parts" chain and "brand" auto parts chain. The difference between the two lies in that the former is the auto parts supply chain that is dominated by the manufacturer (or relies on the chain formed by a certain accessory brand); and the “brand” auto parts chain refers to the chain auto parts dealer to create its own brand. This has proven to be successful abroad, typically Autozone, NAPA. After they developed to a certain scale, they purchased a large number of accessories for OEM, which greatly affected the repair shop and vehicle owners. What Kangzang wants to do is also the "brand" auto parts chain.
Secondly, in terms of logistics and distribution, through the central bank-regional library-store distribution network (mainly based on direct sales), with stores as the center, covering an area with a radius of 5 kilometers, it can meet the needs of emergency repair shops for one-hour delivery. This distribution speed is faster and more professional than Jingdong and Yixun.
At present, Kangzhong has a central logistics system and cooperates with more than 700 logistics service providers across the country. On this basis, Kangzhong's central procurement can cover most of the major products.
Third, as for the price, because the rents and labor costs of the stores in different regions are quite different, Kangzhong does not make rigid demands, and generally provides guidance prices.
At present, the scale of Kangzhong's chain operation in auto parts should have gradually become effective. Shang Baoguo disclosed that during the process of formalizing the employees' uniforms such as five insurances and one gold, sales invoices, etc., Kangzhong had a painful experience from profit to loss. However, by analyzing the invalid inventory and improving various efficiency, Kangzhong can maintain a high profitability return in 2012 and 2013.
Three major difficulties in maintenance service chain
Regarding the pain points and development trend of the maintenance service chain, after the brainstorming of the AC automobile aftermarket guests, there are several conclusions:
First of all, it is very difficult for terminal services chain headquarters to gather authority. Due to the diversification of models and the variety of accessories, the regional differences are relatively large. All of these require the store managers to have a high degree of initiative. In addition, the dealer's supply capacity and inventory categories are limited, many factors are stacked together, so that the centralized procurement of the service chain headquarters can achieve 10% is already very good.
Therefore, Yao Guodong, founder of the car partner, believes that as a terminal service chain, it needs to focus on the customer's experience and marketing rather than the transformation of the supply chain.
Second, talent and management problems. In particular, managerial talents in managerial positions, under the influence of the “corporate culture of local companies” in local companies, agile store managers have accumulated experience and resources. Many people choose to do their own job as bosses, and stores that are not flexible enough to manage store managers, The performance may not be ideal. Coupled with the large mobility of industry personnel and the large differences in the quality of terminal service store management, the issue of talent has always been the short-board of terminal chain development.
The issue of talent is plainly the design issue of management and incentive systems. Each employee will evaluate and weigh their long- and short-term interests. If the company has a clear set of incentives, it is also a platform with great potential for growth. Many talented individuals will choose between risk and possible benefits.
Finally, after problems with vehicle maintenance, the responsibilities were unclear and the claim became a problem. In the end is because of accessories back problems, or because of maintenance problems caused by improper operation, or improper use of the owner, but took the opportunity to find repair shops "pay" problem? It is difficult to define the clarity, so it leads to wrangling. The owner of the vehicle for rights protection has nothing to do with its pole, the most affected is the maintenance of the store (4S system because the vehicle brand endorsement, this type of problem is exposed most of the owners and the media), many times, are paid by the terminal in order to Major issues to minor ones out.
Where is the future?
Although there are many problems mentioned above, can the chain of post-market maintenance services develop, and what direction will it develop?
First, there will be real development of the maintenance service chain with the real auto parts chain. Auto dealer chain, in order to help the maintenance service chain better centralized procurement and logistics and distribution (auto parts B2B e-commerce is the same business logic). Someone described the relationship between maintenance service terminals and accessories dealers, which is similar to the relationship between hospitals and pharmacies; pharmacies can be chained and hospitals are difficult to develop into chains. Even in mature markets such as Europe and the United States, aftermarket terminals are still mainly joined, and the signs are similar to NAPA and other auto parts chains in order to seek advantages in procurement and logistics and distribution.
Second, terminal maintenance will enter structural adjustment, and the rapid repair and maintenance of beauty terminals based on community services will become the mainstream. After the Internet information is developed, the more consumers understand and the more rational, the 4S shop model will become increasingly difficult to survive - the high-end brand 4S stores are relatively strong (but the future threat will be great, 4S shop's technical director will have a lot of themselves out Opening the maintenance terminal, diverting some customers, the middle end is more uncomfortable, and the low end is difficult to survive.
Third, in the first-tier cities, fast repair chains will replace integrated repair shops to become mainstream (especially after bus reform and insurance tightening). The larger the city, the fast pace of life of consumers, the expensive rents and the limited area of ​​the facade, the comprehensive repair shop can only survive in relatively remote areas, and the rapid repair terminal established around the community will usher in a good momentum of development. .
In third- and fourth-tier cities, because of low-grade vehicles and limited number of similar models, it is difficult for fast repair chains to have scale advantages. In small-scale cities, the “acquaintance economy” will allow the relationship between owners and repair shops to be closer. The trust relationship is easier to establish.
Finally, in the automotive aftermarket, the success rate of direct replication of foreign capital models to terminal chains will be very small. We can see that the higher the proportion of services, the lower the probability of foreign investment in China. This point has been verified in supermarkets, 3C stores and other fields. On the other hand, NAPA and Autozone, which are relatively successful in the American automotive aftermarket, are difficult to become bigger and stronger in Europe. Similarly, Treasurer has not established a foothold in the North American market. However, they can invest at the capital level, indirectly participate in and enjoy the growth of China's auto aftermarket.

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