Auto parts to do cross-border e-commerce is the way out?
Auto parts to do cross-border e-commerce is the way out? What are the hidden business opportunities and challenges？
The booming global automotive industry has propelled the auto parts cross-border e-commerce market to become a bright spot in international trade. In recent years, the popularization of Internet technology and the improvement of global logistics system have contributed to the strong growth of auto parts cross-border e-commerce business.
As an important auto parts production and exporting country, China's auto parts sales in the cross-border e-commerce channel continue to climb.2024 In the first half of the year, China's auto parts exports amounted to 324.6 billion yuan, and the role of cross-border e-commerce platforms is becoming more and more critical. Take eBay for example, its annual turnover of more than 10 billion U.S. dollars, China's auto parts sellers of all kinds of products sales growth is remarkable. Over the past decade, headlight and tail light assemblies have grown rapidly, highlighting the huge potential of the market.
In terms of trends, the steady growth in global car ownership has laid a solid foundation for the auto parts market. Demand for automotive repair and maintenance continues to be strong, while the convenience of cross-border e-commerce has prompted more consumers to purchase auto parts online, driving the expansion of the market. In the future, the popularization of automobile consumption in emerging markets and developing economies will lead to explosive growth in demand for auto parts, bringing opportunities for cross-border e-commerce enterprises.
I. Analysis of the market for wearing parts
1.Product Features and Advantages
Vulnerable parts such as filters, brake pads, wiper blades, etc. are consumed frequently in the daily use of automobiles. The replacement cycle is short and the market demand is stable and continuous. For example, filters need to be replaced after traveling a certain mileage, and the purchasing frequency of car owners is high.
The degree of product standardization is high, and the generality is strong. In the same brand or series of models, many wearing parts have similar specifications and models, which facilitates production and inventory management, reduces costs, and is conducive to cross-border e-commerce sales on a large scale.
In the cross-border e-commerce market, the demand for wearing parts is widely stable and less affected by the fluctuation of the automobile market. Its small size, light weight, low logistics and transportation costs, easy distribution, and large profit margins. The consumer group covers car owners and repair stores, and the cross-border e-commerce platform helps enterprises expand their global market share.
2.Market Competition Pattern
The cross-border e-commerce market for perishable parts is highly competitive and diversified. Chinese auto parts companies occupy a certain share by virtue of cost and supply chain advantages, with enterprises in Jiangsu and Zhejiang regions being particularly prominent. However, international famous brands dominate the high-end market by virtue of their brand influence and quality advantages, such as Bosch and Huimen.
Meanwhile, market competition has intensified, with some enterprises competing at low prices, affecting profits and quality. Inferior quality products flood the market, damaging consumer rights and interests and the industry's reputation. Chinese companies need to capitalize on their strengths and improve their quality and brand image to cope with the challenges.
II. the whole car parts class market analysis
1.Product characteristics and challenges
Full-vehicle parts, such as engines, transmissions and other large parts, have high technical content and complex production processes. Involving multi-disciplinary technology integration, engine manufacturing requires high-precision technology and strict quality control.
Strict requirements for product suitability, large differences between different models, the need to accurately understand the vehicle information, otherwise it is easy to lead to installation and use of the problem, increasing the risk of the enterprise.
In the cross-border e-commerce market, the logistics and transportation of full vehicle parts are difficult, large volume, heavy weight, special packaging and transportation, high cost and easy to be damaged. After-sales service is complicated, requires professional technical support, affected by time difference, language and other factors, high cost.
2.Market Potential and Opportunities
Despite the challenges, the market potential of total vehicle parts is huge. The global automobile ownership and average age of vehicles are rising, and the maintenance market demand is growing, especially in the developed regions of the automobile industry.
Technological advances and the popularization of the Internet bring opportunities. Digital technology improves product suitability, cross-border e-commerce platforms improve to provide convenient channels, integrate service resources, reduce enterprise costs and thresholds, and promote the development of cross-border e-commerce business for all-vehicle parts.
III. Analysis of Consumer Demand and Purchasing Behavior
1. Consumer demand characteristics
Consumer demand in auto parts cross-border e-commerce market is diversified and personalized. In terms of wearing parts, consumers are concerned about quality, price and suitability, tend to well-known brands or certified products, pursue cost-effective and suitable products, and focus on price comparison.
In addition to the above needs, consumers of all-vehicle parts have high requirements for after-sales service and technical support, because of the complexity of installation and maintenance, and the need for enterprises to provide guidance and protection. Some consumers have demand for personalized full-vehicle parts, such as customized appearance parts and high-performance components.
2. Purchasing behavior influencing factors
Brand awareness affects consumers' decision-making, and well-known brands are more trusted. Price is an important consideration, and consumers in the consumable parts market focus on price comparison. Product evaluations and recommendations have a big impact on purchasing decisions, and consumers often check them before purchasing. Platform service quality is also key, including logistics, after-sales and payment, affecting consumer satisfaction and loyalty.
IV. Supply chain and logistics analysis
1. Supply chain management key points
Supply chain management is key in auto parts cross-border e-commerce business. Manufacturers need to cooperate stably with raw material suppliers to ensure quality and supply. Optimize the production process, reduce costs, manage inventory based on demand forecasts and sales data to avoid backlogs and stockouts.
Informatization is important to establish a management system to realize monitoring and management of each link, improve transparency and collaborative efficiency, and dock information with partners to ensure on-time delivery.
2.Logistics solutions and challenges
Logistics is the core link and has many challenges. The transportation cost of perishable parts is low, but we need to ensure the timeliness and accuracy, and often cooperate with professional companies and use express parcel transportation.
The logistics of full vehicle parts is difficult, overseas warehouse mode can shorten the delivery time and reduce costs, but face the challenges of inventory management and capital utilization, need to accurately predict the demand for inventory control. At the same time, it is necessary to solve the problem of customs clearance, familiar with the regulations of each country, to prevent the risk of damage and loss of goods.
V. Market trends and outlook
Upgrading of the global automotive industry and the development of new energy vehicles have pushed the auto parts cross-border e-commerce market to show new trends. In terms of products, the demand for new energy vehicle parts is growing, and intelligent and lightweight products are favored.
Market competition, brand building and technological innovation into the core, enterprises need to increase investment in research and development, enhance the added value of products, and strengthen cooperation between industry, academia and research.
In terms of service, one-stop service has become mainstream, and the platform integrates resources to provide technical advice, installation guidance and other services to enhance consumer experience.
Auto parts cross-border e-commerce market has great potential, but many challenges. Chinese enterprises should give full play to their advantages and enhance their competitiveness, and the government and industry associations should support and guide the market, standardize the market and promote the healthy development of the industry, which is expected to play an important role in the global automotive aftermarket in the future.