2019 is finally about to pass. What is going to happen to the lubricant industry in the coming 2020? How should we respond?
In the past 30 years, there has been almost no price war in the lubricant industry. Even if it is, it is only a change in the normal base oil level. The ex-factory price is used to benefit from policies. However, in 2018, many special prices appeared. In 2019, special prices became Normally, the prices of some high-profile brands have also fluctuated greatly. Total and Shengpai successively put the prices directly in place, and the prices between manufacturers have fluctuated.
Under the influence of emerging forces such as Land Rover, Beijing Maintenance, and Ali Cars, the retail price has become loose. The customer base of the repair shop has been affected. The dealers have been forced to profit. In order to maintain reasonable profits, many dealers have started to promote their brands. In order to improve profits; some well-known brands, in order to avoid price bottom, also launched new brand series, unified launch pure, Denver launched bio-based.
In the past, many "bricks" said that there are only a few thousand brands. To tell you the truth, I can use a responsible saying: In the Chinese lubricants market, there are as many as 50,000 lubricant brands on sale. In the future, in the foreseeable future, There will only be more brands, not less!
Under the influence of national environmental protection policies and safety management, the operation of small and medium-sized lubricant blending plants will become increasingly uneconomical, and high labor costs will also make the profit of the blending plant as thin as a blade, and the sales will not reach 30-40 million. It is better to entrust third-party processing; even if the annual sales volume reaches tens of millions, considering the logistics costs and distribution cycle, I am afraid that it is more cost-effective to distribute and OEM.
Since 2018, several lubricant blending plants in Shandong have been shut down, and the brand has moved to a large lubricant blending plant for repacking. Instead, the development has been smoother. In the future, the lubricating oil industry may be the same as color TVs, air conditioners, mobile phones, and computers. There are limited factories in the country. Many brands come from the same factory. There will even be "Foxconn" in the lubricating oil industry.
Brands increase and factories decrease. This is the trend.
Under this trend, how do lubricant companies or brands develop? From July 17th to 19th, the China Lubricants Brand Summit will reveal the answer for you. In the same period, we will host OEM matchmaking and arrange a visit to a modern lubricant blending factory. Classic books and corporate visits. At the same time, the conference will invite super dealers to share their practical experience and needs for us. Registration hotline & WeChat: 18901594840, Mr. Zhang.