BEIJING, Aug. 9 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, analyzes China's domestic auto parts situation.
As China's import tariffs are so high, local procurement provides a great reduction in cost, and many foreign automobile enterprises do all their procurement in China's spare parts market.
Buyers are main traders, distributors, importers, exporters and retailers. Among these groups European and US chains and small traders from the Middle East region account for the major share. This makes the situation of China's domestic auto parts market optimistic.
Previously, purchase volumes were more or less according to each specific situation; and general procurement of finished product has been different to supporting procurement, as buyers will not pay for mold development costs, and rarely do product development. In addition, in contact with international buyers, parts manufacturers try to provide a rich product catalog with price lists and product photos in an effort to provide convenience for buyers and good identification for facilitating quick orders.
Methods and channels for domestic spare parts procurement in China are changing. Data shows that current dealings through exhibitions have a success rate of less than 30%, and the number of exhibitors is limited, with products, categories and businesses appearing uneven, thereby hindering the procurement process. Through B2B platforms or enterprises, cooperative strategies are effectively expanding China's spare parts enterprises' sales.
Since the 2008 financial crisis, purchasers mainly consider cost reduction as paramount, and have started to filter enterprises in accordance with demand, comparison and matching. Quality assurance and quickness of service with the use of catalogued product lists have also been important. This not only saves time, but costs are also minimized through the guarantee of purchasing quality. This model has been widely recognized by international buyers as effective. Market prospects for Chinese spare parts enterprises utilizing this business model remain positive and optimistic.
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