The Changing Face of Passenger Car Servicing and Emerging PCMO Sales Channels in China

The Changing Face of Passenger Car Servicing and Emerging PCMO Sales Channels in China

Base Year: 2017
Published October 2017
Regional Coverage: China

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

Report 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 Channels Profiled
Mainstream channels Alternative channels
OEM dealer Automotive insurance companies
Online Car sharing platforms
Other direct Online-to-offline platforms
Distributor Other

Scope & Benefits

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

 
 

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

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