Market Research > Energy > The Changing Face of Passenger Car Servicing and Emerging PCMO Sales Channels in China

Market Research Reports: Passenger Car Servicing and PCMO Sales

The Changing Face of Passenger Car Servicing and Emerging PCMO Sales Channels in China
Published October 2017
Base Year: 2017
Forecasts to 2022

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  • Description
  • Regional Coverage: China

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    Alternative channels are emerging that can reshape how passenger car motor oils (PCMOs) are sold. These alternative channels take on various forms like blenders partnering with insurance companies, car-hailing companies, and O2O (online-to-offline) platforms. These emerging channels share one common theme: they connect blenders directly with end customers, thus eliminating the need for distributors. This trend might revolutionize how PCMO is sold in the future, especially given the impact car-sharing will have on the auto industry. This new report assesses the current state of PCMO sales channels, how they will likely evolve, and what PCMO distribution will look like in the future.

    This report helps subscribers to:

    • Understand how technology can impact the future of the consumer automotive lubricant market in China
    • Understand the size and growth of the traditional and alternative PCMO channels in China
    • Highlight the opportunities and challenges for PCMO marketers
    • Evaluate how distributors will be affected
    • Identify the leading companies and startups in these emerging channels and evaluate their competitive position
    • Analyze how customer expectations and purchasing criteria and practices will change over the next five years
  • Contents
  • Introduction

    Executive Summary
    • An Overview of Key Findings
    Passenger Car Motor Oil Market Overview
    • Overall demand and share of different viscosity grades and quality levels
    • Penetration of synthetic and semi-synthetic products
    • Current distribution structure and PCMO volumes through different channels
    • Market trends (electric vehicles, fuel economy and emission regulations, drain intervals, ride sharing, other)
    • Demand outlook
    Profiles of Leading and Emerging PCMO Channels
    Detailed profiles are provided for the channels listed in Table 1, covering the following information:
    • Channel definition and structure
    • Supply chain and key participants
    • Key growth drivers and restraints
    • Current and projected PCMO volumes
    • Assessment of opportunities and challenges
    Profiles of Leading Market Participants
    • Company background
    • Business model – product and service offerings, key business focus, regional coverage
    • Key market alliances
    • SWOT analysis
    • Company appraisal

    Table 1: List of Channesl Profiled
    Mainstream channels Alternative channels
    OEM dealer Automotive insurance companies
    Online Car sharing platforms
    Other direct Online-to-offline platforms
    Distributor Other
  • Scope
  • Lubricant blenders (both foreign and local) have long adopted a distributor-heavy approach as their go-to-market strategy in China. This model provides a number of benefits to blenders, including reduced payment risks, expanded warehousing capabilities, and a way to reach out to fragmented customer base, such as the independent repair garages. However, this model is largely inefficient and costly. First tier distributors rarely sell to end customers directly. There are simply too many middlemen involved before products reach the end customers. Besides high costs, problems such as counterfeit products, can arise as a result. This new report provides a detailed independent appraisal of the emerging PCMO sales channels. The study explores the opportunities available to PCMO marketers operating in China. The study provides subscribers with a comprehensive, accurate assessment of opportunities for growth and the relative importance of alternate sales channels compared to traditional sales channels. Specifically, the study provides the following:

    • Overview of the current and projected PCMO market demand
    • Overview of PCMO demand by viscosity grades and penetration of synthetic and semi-synthetic products
    • Overview of current and projected PCMO distribution channels
    • Analysis of the PCMO supply chain and profiles of key stakeholders
    • Profiles of emerging channels for PCMO sales
    • Analysis of the market potential for alternative channels, and the opportunities and threat they represent
  • Key Benefits
  • This report assists lubricant blenders, marketers, and other market participants in identifying opportunities and challenges within the industry. It also serves as an invaluable tool in the strategic planning process. Specifically, the report helps subscribers:

    • Develop channel strategies by understanding the trends and developments driving the Chinese lubricants market
    • Remain updated on the trends that might reshape how lubricants are sold to consumers
    • Evaluation of market opportunities and challenges
    • Understand economic and other market drivers and the impact on demand outlook
    • Design and develop products and marketing strategies for the emerging channels by assessing unmet needs and barriers to entry
  • Methodology
  • Kline’s approach places the principal emphasis on primary research techniques to ensure that the foundation of business intelligence and insight is accurate, current, and reliable. Building on our 50-plus years in the business and leveraging our worldwide network of offices, our teams of seasoned professionals draw upon pragmatic industrial and commercial experience to understand and interpret global impacts and local perspectives.

    Primary Research
    We Know Who to Talk to. We Know How to Listen.

    A high number of in-depth discussions are conducted by each analyst. Up to 60% of interviews are done with the true industry insiders!

    Kline’s analysts draw upon pragmatic experience to understand global impacts and local perspectives. Our interviews engage experts across all pertinent fields and sectors including:

    • Marketers/manufacturers
    • Distributors
    • Government agencies
    • Retailers
    • Suppliers
    • Trade organizations

    Secondary Research
    We Know Where to Look – Mining the Details.

    Analysis is further supplemented by secondary research, consisting of constant tracking of annual company reports, national statistics bureaux, trade/ industrial/professional associations and the like.

    Relevant developments are diligently followed and their impact closely monitored. Reports also draw upon non-confidential data from Kline’s internal database, consisting of over half a century’s syndicated research.

    Comprehensive Market Intelligence
    We Know How to Verify.

    Data are rigorously analyzed, cross-checked, distilled and validated. Kline’s proven methodology allows exceptionally effective, precise and reliable market intelligence procurement and assessment, giving subscribers a solid foundation on which to grow, refine and expand their business with confidence.

    Kline Credentials

    Kline is a leading global management consulting and market research firm offering the complete spectrum of services. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years.

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