Research On Channel Design Of China Automotive Aftermarket Parts Manufacturer

The number of Chinese vehicle ownership exceeded 200 million in 2017,and the average age of the vehicles is more than 4 years.Vehicle repair and maintenance in Chinese aftersales market reached 1.3 trillion,which is next to the United States and it is becoming the second largest automotive aftermarket in the world.Although the market is huge with potential business opportunity,competition among parts manufacturers is increasing with improvement of Chinese industry policies,narrowing product technical gaps,higher market transparency and the entrance of emerging business,e.g.internet.As the most important market for auto parts,workshops are also being merged,integrated and upgraded in current fierce competition.The demand for auto parts suppliers is not limited to parts only,but also to the related supporting services.On the basis on the marketing channel theory,this essay sorts out of current automotive after-sales market channel behavior and organization,conflict and management;make the comparison between mature market and Chinese aftermarket analyzing by target market demand according to the research organization data from 2016-2017,this essay stablished the market by the marketing environment internally and externally to establish the target market;based on market demand-oriented channel design theory to analyzes the manufacturer channel design and relevant optimization plans.The author choose Bosch Group,a well-known multinational auto parts manufacturer,as the example,with consideration of focusing of customer demands,product quality,price,supply chain services,and the matching degree of various levels and types of channel providers,it is concluded that first,manufacturers with brand influences determine to establish brand image corporate strategies,should improve the stickiness of workshop customers and purchase from its own brand products in a longterm and stable manner.Second,Manufacturers should choose distributors and retailers with qualified ability to provide the workshops one-stop services as channel dealers.At the same time,it should be recognized that the supply chain and smooth logistics are the cornerstones of the channel.Therefore,the manufacturer should not only focus on the maintenance of the retailer or workshop relationship while neglect the management of the first-level dealers,or sell-in management of the first-level dealers.It means that manufacturers need an omni-channel refined management mechanism.Third,Manufacturers should improve their service,incentive policy,market campaign and organization chart to promote the omni-channel set-up and improve its efficiency.The author expects to inspire auto parts manufacturers who have plans on branding,marketing and market penetration through the essay.