Why China's Spare Parts Enterprises Have Been Left Behind


“The export volume of China's spare parts companies has increased significantly, but the level of attention paid by international buyers at overseas shows is far less than in previous years. This case shows that if the products do not have characteristics and only rely on price, the export will not last long. "After returning from the 2005 Las Vegas International Auto Accessories and After Sale Service Exhibition, an industry source told reporters.

From November 1-4, this exhibition was held at the Sands Exhibition Center in Las Vegas, USA. Foreign giants such as Bosch, Delphi, Denso, and Lear participated in the exhibition, and there were more than 460 domestic Parts companies exhibit.

Chinese exhibitors "unexpected" were left cold

"This year's show was very special. The number of visitors to the China booth was reduced. It was far less popular than in previous years." Liu, a businessman, told reporters with deep feelings.

The Las Vegas Showcase's exhibition hall is divided into two floors, with more than 2,000 exhibitors participating. The first floor is mostly exhibitors from China, South Korea, India and other countries, and the second floor is the stand of European and American parts companies. To some people's surprise, the Chinese booth that was very lively in previous years was "cold before the door."

“When we went to the exhibition last year and the year before, the audience before the Chinese booth was definitely not less than the European and American booths.” Chen Xufeng, general manager of Zhejiang Longzhong Machinery Manufacturing Co., Ltd. has participated in this exhibition many times and he told reporters. “Last year we were still in a corner of the pavilion. There were quite a lot of people coming. This year we deliberately picked a booth at a central location. It was not as popular as last year.”

Fan Zhuoying of the China Council for the Promotion of International Trade Machinery Industry Branch once took part in the Las Vegas Accessories Expo. She said that many participating companies stated that this year's exhibition is not as effective as last year, and many of the original old customers are gone.

“If there are only a few visitors in the entire exhibition hall, then it is understandable. But there are many audiences on the second floor, but there are fewer people on the Chinese stand. This is a problem. Moreover, among the current audience, there are fewer people in North America and Europe. Most of them are customers from Central and South America and Africa," Fan Zhuoying told reporters.

“Last year our book sold very well at the Shanghai Auto Show. This year we went to Las Vegas to expand our sales, but the results were not satisfactory.” Song Shaohui, general manager of Beijing Xishiyi Auto Books Co., Ltd., said that they had a new version. The China Automotive OEM Supplier Handbook was made in both Chinese and English. It meant to “export” but did not expect to experience a cold spell.

Chinese exhibitors increase but have few features

As one of the most important exhibitions in the global auto parts industry, the Las Vegas Accessories Show attracted many parts and components companies around the world. More and more Chinese parts and components companies have discovered that overseas participation is a short-cut to promoting brands, understanding industry technology, connecting customers, and expanding markets.

“The exhibition hall on the first floor of this year is simply the ocean of Chinese parts and components companies.” A professional described the growing number of Chinese parts companies in this exhibition.

However, many people in the industry also found that when more and more Chinese parts exhibitors “go out”, they also brought another problem. “Now Chinese exhibitors are more 'miscellaneous', and the small and medium-sized private enterprises participating in the exhibition have a low technological content. They rely on prices to win and have no real characteristics,” said He Liu of Chongqing Changjiang Bearing Industry Co., Ltd.

The reporter looked at the show's directory and found that parts and components companies in Ningbo, Ruian and other places took part in the exhibition and occupied a larger exhibition area, but the vast majority of exhibits have low technological content, such as plastic seals, wipers, car belts, Rubber tubes, light bulbs, etc.

“They can get some orders. Dozens of people's factories can achieve tens of millions of dollars worth of exports, but only companies with price characteristics are equal to no characteristics. With such a growing number of Chinese companies, foreign buyers are flooded In a sea of ​​low prices, it is difficult to find which company or product has received special attention,” said a professional.

In fact, many professional visitors have questions about Chinese exhibitors: "Are you a foreign trade company or a manufacturer?" This is because more and more Chinese foreign trade agencies are exhibiting. According to reports, the products of the trading company's agents are of lower grades, asking what they have, and even sending quotation lists directly to the consulting professional audience, just like a stall.

It's important to catch the gap and catch up

After returning from Las Vegas, Chen Xufeng and his colleagues analyzed that the quality of Chinese products is low, and their quality is lower than that of foreign countries. This may be one of the reasons why this year's China Pavilion has less passenger traffic.

"According to our analysis, although China's spare parts and related products purchased by overseas customers in previous years were lower than those in South Korea, Japan, and Turkey, they may not meet the requirements of buyers for performance and quality. Those Chinese products are not what they want. They couldn't satisfy them and reflected this year's show, that is, they did not come to visit China's booth." He said.

“Many of the companies I have not heard at home have also appeared at the show. The small booths of the factory are very large, which makes it impossible for foreign customers to distinguish the grades of products. Although foreigners know that the quality of 'Made in China' is It is gradually getting better, but the key is that they do not know which parts and components companies are of good quality. At present, there is a considerable gap between the quality and level of small and medium-sized parts and components companies." A long-term work in the domestic spare parts industry The person said, "Foreign companies once purchased poor quality Chinese parts and components will have a lingering fear for all Chinese products, so they would be discouraged."

According to the analysis of relevant experts, China's auto parts exports are a good thing to promote and a trend for future development. But if you just export for "sales," then you lose meaning and you get only short-term benefits. In addition, parts with poor export quality over a long period of time will also have a long-term negative impact on the entire parts and components industry in China.

“In the long run, the price advantage cannot bring long-term benefits, and this low-cost, low-tech product cannot be recognized by foreign buyers.” said Hu Jin, manager of the import and export department of Shandong Jin Qilin Company. “The most critical One point is that in the process of participating in the exhibition, we must find our own advantages, find the gap with competitors in the industry, and make up for our own deficiencies, and try to meet the requirements and standards of international customers so that we can truly achieve the goal of long-term export.”



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