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Sunday, April 26, 2009

Automotive aftermarket industry profits decline, increasing competition

By Zou cheaponsale

A fiscal critical purpose in order that many of businesses are in difficulty, as a "sunrise industry" while the motor vehicle market has been none about the risk of a extensive shrinking in the auto industry's high-profile instances, is still singing. But the surge did not last long into the year 2009, we discovered all over the motor vehicle after the market stridently worse yield, some auto after-sales service enterprise struggle, enterprise annoyances, embracing some mend outlets, automotive prettiness shops.

Market descent in yield

Decreased repair repair works to reduce profits

The outbreak of the financial crisis would have made most people look tight wallet, change the frequency of slow, natural vehicle repair will be a problem. This seems to be a good repair company message. However, according to a survey in March this year the majority of auto repair works are under pressure from customers to reduce, downward pressure on profitability. A small number of the most profitable auto repair factory declined 50 percent, some 30 percent decrease. Mainly affected by a number of small and medium enterprises, their technical, financial, etc. are inferior to the larger, stronger, better Auto Repair Service Factory. Operational difficulties at this time, many enterprises are faced with the danger of collapse.

Some large auto mend production vegetation while still adhering to, but weighed against with the earlier size of mend is still extensive shrinking. Most of the prevailing allotment of mend from the aged customer before, supervised to uphold running margins. In augmentation the automotive market with the struggle, after-sales service as the first motor vehicle manufacturers in the homogenization of differentiated competent tools for fighting, to enhance service contentment, manufacture brand label has become the concurrence of Service. Mercedes-Benz "Star Service", "Buick Care" hippocampus in addition a "sun holiday" and "autumn tour," These are the brand labels in today's Service of representatives. Auto mend facility which has a certain impact.

Beauty stores vying for highly comparable charges

Beauty shop situations encountered a more tragic than the repair works. Cosmetology car owner to do if the car wash, waxing services. On the technical and financial requirements are lower. And even some beauty stores only a small surface. Car wash services are carried out in the street outside. The threshold is so low one time led to beauty shops multiplied, competition is self-evident. The original 30 yuan a car wash, and now to 20 million; original waxing a 150, now reduced to 120. And less and less the number of owners of car wash, car wash business also appears to store a lot of light. Even some of the scale there is profit automotive beauty chain fell by 10%. - 18780

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