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Are traditional car parts dealers panicking? Survival is not optimistic... Among the many ways of transformation, it is particularly important to pay attention to brand advancement

Publish Date: 2023.06.26

  "The sales volume is invisible, the inventory is increasing month by month, the price is chaotic, the customer will never return..." Traditional auto parts dealers are facing more and more pressure and challenges, and the business development is also facing more and more resistance. Especially in the high-speed development of the The Internet Age, transformation, upgrading, optimization and innovation have become the problems they have to face.

  

  In recent years, the transformation of the automotive aftermarket can be said to be unprecedented, and traditional automotive parts dealers have also fallen into a fork in the road of turning left or right. However, they are in a huge automotive aftermarket, covering areas such as automotive repair, maintenance, modification, and accessories, and their market size is also unparalleled in many other fields. In the future, with the increase of car ownership and consumption upgrading, the size of the automotive aftermarket will continue to expand. The market volume is large enough and there are enough opportunities for survival, which is also a huge opportunity for traditional automotive parts dealers.

  

  Five major transformations in the channel transformation of the automotive aftermarket

  

  In the transformation of the automotive aftermarket, channel transformation is one of the factors that have the greatest impact on traditional automotive parts distribution channels. Let's take a look at the main aspects of channel changes in the automotive aftermarket.

  

  Firstly, the rise of e-commerce channels: With the rise of e-commerce platforms, more and more automotive aftermarket products are starting to be sold on e-commerce platforms, such as JD, Tmall, Suning, etc. Consumers can easily access various automotive parts and services through e-commerce channels.

  

  Secondly, the direct operation of 4S stores: Some automobile manufacturers have begun to directly incorporate 4S stores into their management, achieving direct operation, improving service quality and brand image, while also reducing the cost of intermediate links.

  

  Thirdly, the rise of car owner communities: In recent years, car owner communities have gradually emerged, becoming an important platform for car owners to communicate, consult, and purchase automotive aftermarket products. Some automotive aftermarket enterprises have also begun to carry out marketing activities in car owner communities.

  

  Fourth, the development of mobile Internet channels: With the popularization of mobile Internet, more and more consumers have begun to purchase automotive aftermarket products and services through mobile Internet platforms such as mobile APP and WeChat, such as DiDi's automobile maintenance services and insurance services.

  

  Fifth, optimization of logistics and distribution channels: Some automotive aftermarket enterprises have begun to optimize their logistics and distribution channels, improve delivery speed and service quality, such as JD's "Jisuda" and "JD Home" services.

  

  These channel changes are driving the upgrading and development of the automotive aftermarket, providing consumers with a more convenient and high-quality service experience.

  

  Traditional auto parts dealers are facing increasing pressure and challenges, as well as increasing obstacles to their business development. The industry often uses the term 'the current situation of survival is not optimistic' to describe the situation, as' sales are invisible, inventory is increasing month by month, prices are chaotic, and customers have no return. '. Especially in the high-speed development of the The Internet Age, the channels of traditional auto parts dealers have been constantly optimized, and the customer source has been constantly divided. Transformation, upgrading, optimization and innovation have become a problem that has to be faced.

  

  The survival status of traditional automobile parts dealers: not optimistic

  

  Traditional auto parts dealers face multiple challenges such as market competition, channel transformation, and industrial upgrading, and their survival status is not optimistic. The reasons are as follows:

  

  1. Intense price competition: With the intensification of competition in the automotive market, the price competition in the automotive parts market is also becoming increasingly fierce, and the profit margin is becoming smaller and smaller;

  

  2. Channel transformation: With the development of technologies such as the Internet and intelligence, the automotive aftermarket is also constantly changing, and the rise of online sales channels has an increasing impact on traditional automotive parts dealers;

  

  3. Product homogenization: Many automotive parts products have severe homogenization, making it difficult for consumers to distinguish between product quality and performance, and price has become the main criterion for their choice;

  

  4. Differentiated service levels: Many auto parts dealers have differences in service quality, with low service levels that make it difficult to win the trust and loyalty of consumers;

  

  5. Supply Chain Risk: Auto parts dealers face supply chain risks, such as supplier delays and parts quality issues, which can affect their service quality and customer satisfaction.

  

  01. Service upgrade:

  

  Traditional auto parts dealers need to upgrade their services to provide more professional, efficient and high-quality services, including repair, maintenance and installation.

  

  02. Product Upgrade:

  

  Traditional car parts dealers need to upgrade their product models and quality, introducing more high-quality, high-performance, and environmentally friendly car parts and tools.

  

  03. E-commerce Channel Expansion:

  

  Traditional auto parts dealers need to actively expand their e-commerce channels, establish their own e-commerce platforms, or sell products on third-party e-commerce platforms to meet consumers' online shopping needs.

  

  04. Intelligent upgrade:

  

  Traditional auto parts dealers need to strengthen intelligent upgrades, introduce intelligent equipment and technology, and improve production efficiency and product quality.

  

  05. Diversified Services:

  

  Traditional auto parts dealers need to diversify their services, expand their product lines, carry out businesses such as automotive finance, insurance, and second-hand car trading, and improve their profitability.

  

  06. Brand building:

  

  Traditional auto parts dealers need to strengthen brand building, improve brand awareness and reputation, and enhance the competitiveness of products and services through brand effects.

  

  The above directions are the focus of the current transformation of traditional automotive parts dealers. Through upgrading and improving in these directions, the competitiveness and market share of enterprises can be improved, and sustainable development can be achieved. Here, the author would like to focus on brand building. "To transform, one must do a good job in brand building." This is not only for manufacturing enterprises, but also for traditional auto parts dealers. It is more important to achieve brand advancement, break through the historical impression of traditional auto parts dealers, and change their original state.

  

  Traditional Auto Parts Dealers: A Leap from Selling to Branding

  

  The core of a brand is the product, and users are the key link in polishing the product. The value and attractiveness of a brand lies more in whether the product can provide real value to users and solve practical problems. Only by meeting the needs and pain points of users can brand recognition and loyalty be established, thereby forming brand attractiveness.

  

  Traditional auto parts dealers should also strive to build brands and achieve a leap from selling to branding. The several aspects of brand building for traditional automotive parts dealers are summarized as follows:

  

  Firstly, determine brand positioning: Traditional automotive parts dealers need to determine their own brand positioning, including the core values of the brand, brand image, brand culture, etc. By positioning, consumers can have a clear understanding and impression of the brand.

  

  Secondly, valuing product quality: Auto parts dealers need to value product quality. Only by ensuring quality can they gain the trust and recognition of consumers. Achieving quality assurance in terms of quality is also an important part of brand building. By improving product quality, we can enhance brand image and reputation, and enhance customer trust and loyalty to the brand.

  

  Thirdly, establish brand image and reputation: You can establish a brand image by designing logos, image colors, store decoration, and other methods to create a unique brand style and improve brand recognition. You can also establish brand reputation through customer word-of-mouth, media promotion, and other means to improve brand awareness and reputation.

  

  Fourthly, carry out brand promotion: Traditional auto parts dealers can carry out brand promotion through advertising, promotional activities, sponsorship activities, and other means to increase brand exposure and influence.

  

  Traditional automobile parts dealers need to pay attention to brand positioning, brand image, product quality, brand reputation, and brand promotion when carrying out brand building, actively promote brand building, and enhance the brand value and market competitiveness of the enterprise.

  

  The many changes in the automotive aftermarket have brought us many new insights, and the value of the automotive aftermarket is also evident to all. With the transformation and upgrading of the industry, a channel system without professionalism, technical content, characteristics, and services will inevitably have the fate of being eliminated. "Internet plus" has been implemented in China with unprecedented efforts. Without online support and market expansion, the profit space of physical stores will only be thinner and thinner from "business" to "e-commerce". The transformation of traditional auto parts dealers is imperative, and we will work tirelessly along the relatively correct path to meet the challenges!

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