Chapter 476 Las Vegas Auto Parts Show, the first in the alternative industry
When the domestic auto parts industry caused a large number of car companies to recall problem vehicles due to the failure of Denso's fuel pump, Cao Yang and Dai Hanbiao flew to Las Vegas, USA, to participate in this year's auto parts exhibition.
Compared with the auto exhibition, the parts exhibition has received very little attention from ordinary consumers.
However, the Las Vegas Auto Parts Show is actually the world's largest professional parts exhibition, which has a very different influence in the auto parts industry.
As the exhibition with the best trade effect in the auto parts industry in North America, it can reach many buyers with super strength in the global auto parts industry; It is the fastest and most convenient way to enter the world's largest auto parts and after-sales service market.
"Mr. Cao, the North American market is the world's largest auto parts demand market, only the market capacity of auto parts products in the United States has 60 billion US dollars, and more than half of them rely on imports."
"According to statistics, the American market accounts for one-sixth of the global market in annual sales."
"The United States is a major importer of auto parts, and the auto parts in the aftermarket are mainly imported."
"With Huaxia's accession to the WTO, domestic auto and motorcycle parts companies are strengthening the development of the domestic market at the same time, but also pay more and more attention to the development of foreign markets."
"In the American market, which is the world's leading level in the auto parts industry, professional buyers are paying attention to low-cost and high-quality Huaxia auto parts products."
"In recent years, in addition to our Nanshan auto parts, many domestic companies are also actively participating in the Las Vegas auto parts exhibition."
Zeng Tingting sat next to Cao Yang and introduced the situation of this exhibition to him.
Dai Hanbiao made some supplementary explanations from time to time.
"Traditional auto companies have their own relatively mature supply chains."
"For example, General Motors, Ford Motor and DaimlerChrysler, their supply chains should be relatively complete."
"Even if you go to the parts exhibition, it's more about understanding the situation in the industry, and you don't necessarily have any real purchase needs, right?"
"Even if they understand the industry situation, they don't need to go to the parts exhibition, and the suppliers themselves will use all their skills to find the contact information of the other party's procurement personnel and visit the door, right?"
Although Cao Yang is also a professional in the automotive industry, he does not attach much importance to the auto parts exhibition.
This can be regarded as a kind of thinking inertia.
After all, in the domestic OEMs, there are few manufacturers who want to find new suppliers by participating in parts exhibitions, right?
There are a lot of suppliers on the initiative, who needs to find potential suppliers by themselves?
This should also be the reason why the domestic auto parts exhibition has not been carried out.
Even if there is, it is mainly accompanied by the Magic Capital Auto Show, the Imperial Capital Auto Show and the Yangcheng Auto Show.
But in the American market, the situation is clearly quite different.
"Mr. Cao, it is indeed the same as what you said in China, but in the United States, the situation is a little different."
"Due to the high labor costs, many times in the United States, the car is repaired by itself after it breaks."
"Even if you go to a car repair shop to repair your car, there is a high probability that the other party will not use the original parts."
"Considering the huge car ownership in the United States, the market for this aftermarket parts is huge."
"And this market, in many cases, has no special relationship with the original supplier, at least it is not limited by the original supplier."
"Many parts companies from all over the world come to participate in the Las Vegas Auto Parts Exhibition, looking at the opportunity not for the mass production and supply of large car companies such as General Motors and Ford Motor, but for the aftermarket opportunity."
"Larger auto repair companies or some local parts dealers from all over North America will come to participate in this auto parts exhibition."
"As long as they are recognized, it is enough to survive for many parts companies that are not very large."
"For example, in Yangcheng, there is a manufacturer that makes bellows on the exhaust pipe, and ninety percent of their business relies on export business."
"A bellows supplier will sell it for more than 100 yuan, but their export business may only cost 50 yuan."
"If the amount is relatively large, it may be further reduced to thirty or forty yuan."
"Although there may be some differences in the specifications of the parts in between, as long as the functionality can meet the requirements, those dealers will be interested."
"After all, for the American aftermarket, they don't have a special pursuit of original parts, and many times it is enough as long as the function can meet the requirements."
Dai Hanbiao seriously explained the significance of the Las Vegas Auto Parts Exhibition and the different situations in the Chinese and American markets.
"In addition to the aftermarket, the tuning market is also a focus of the Las Vegas Auto Parts Show."
"There are a lot of car tuning manufacturers in the United States, and they all need to order some special parts."
"These custom-made parts are often very expensive if they are made in the United States."
"Therefore, many companies have set their sights on overseas spare parts suppliers, and our Chinese manufacturers have begun to enter each other's field of vision in recent years."
Zeng Tingting also introduced the content of a subdivision that she paid more attention to.
Modified cars are still in a relatively initial stage in China, but Zeng Tingting feels that this may be a more promising industry.
In particular, Xingchen Automobile produces high-end luxury models, and many consumers have some modification needs.
The profit margins in this part of the market are very high.
For example, the production cost of a spoiler may be hundreds of dollars, but the price can go to several thousand yuan.
If it is a carbon fiber spoiler, the production cost may go to several thousand yuan, but the selling price is tens of thousands of yuan, and you can earn more.
"The expansion of export business is more difficult to continuously expand the market by simply relying on mass production support."
"Unless we can build factories in places like the United States and Europe, and we can localize them."
"However, in the aftermarket and modified car market, there is no particularly large demand for near-local support."
"This may be our next market breakthrough."
Dai Hanbiao further explained the reason why he attaches great importance to this exhibition.
The development of Nanshan auto parts in China is relatively smooth.
As long as the sales of self-owned brand car companies can continue to increase, their business will also expand.
However, in overseas markets, in addition to orders from General Motors and Ford, there are not many orders from other car companies.
Dai Hanbiao did not want Nanshan Auto Parts to be too dependent on GM and Ford, so that it would be easily affected by each other's sales.
At this time, it is important to develop a market that can be comparable to the mass production of GM and Ford vehicles.
As long as the BMW car is equipped with a stabilizer bar, it can cause such a big impact, and it is also because of this special background.
In addition to GM and Ford, other OEMs are gradually supplying some parts around the world.
Even if this share is not very high, it can constantly put eggs in several more baskets.
Continuously improve the anti-risk ability of Nanshan auto parts.
Otherwise, it is very refreshing when it is cool, and it is also very painful when it is painful.
……
Smith is the President of AutoZone, Inc.
AutoZone is the largest retailer of the auto aftermarket in the United States.
Founded in 1979, the company, which most Chinese people have not heard of, has 6,168 stores in all 50 states and thousands more in the rest of the Americas.
Each AutoZone store has an extensive product line for automobiles, sport utility vehicles, vans and light trucks, including new and refurbished automotive hardware components, maintenance supplies, accessories and non-automotive products.
Many stores also offer commercial sales programs that provide products such as commercial credit and timely delivery of parts to local, regional, and national repair shops, dealers, gas stations, and public sector customers.
It can be said that at the annual Las Vegas Auto Parts Exhibition, AutoZone is the big customer that many parts companies are looking forward to.
However, as the president of the largest auto parts retailer in the United States, Smith also has a relatively high vision.
For general auto parts, they have already found more mature suppliers.
Like small brackets and small plastic parts, Smith had no intention of continuing to develop new suppliers.
At least not in the short term.
However, there is still a lot of room for expansion in some functional parts with high technical difficulty.
The threshold for these parts is generally relatively high, and it is not possible to produce them by just one manufacturer.
Because of this, the price of these parts is also relatively high.
However, for after-sales maintenance, the profit margin of these functional parts is the most impressive.
Smith came to Las Vegas today with James, the director of purchasing, to see if he could make some breakthroughs in functional components.
"Smith, from our experience in the past few years, the prices of parts produced by Huaxia's parts manufacturers are the most competitive."
"Overall, the quality is acceptable."
"And in recent years, the automotive industry in Huaxia has developed rapidly, and the development of the corresponding parts business is also relatively rapid."
"I think if there is any unexpected gain today, it will most likely happen to the Chinese exhibitors."
As soon as James entered the show, he began to introduce Smith.
"The organizer should have sent you all the information about the exhibiting suppliers before, right?"
"Do you have any potential targets?"
Smith was very smart, and he was able to infer a lot of things from James's words.
"Really, aren't we always looking for new suppliers of functional parts such as high-pressure oil pumps, fuel pumps, oil pumps, water pumps, and starter motors?"
"I really found a manufacturer that might be more in line with our expectations, and it can produce this series of parts."
As soon as James said this, Smith immediately frowned and said: "The parts that can make these parts are none other than manufacturers such as Bosch, Valeo and Denso, and their prices have always been relatively expensive." ”
"It's not like we're not looking for them to buy parts right now."
Smith's point of view should represent the ideas of many auto parts sales manufacturers.
Auto parts are not so easy to make.
Especially for those functional parts, the threshold is higher.
If you could make one of these pumps or something, wouldn't be surprised.
But if this series of difficult parts can be produced, it is not an ordinary manufacturer.
"I was a bit surprised at first, but after some research, I found that this company could really be a perfect match for our needs."
James looked at his boss with clear eyes.
He now does not get a single dollar of benefits from the other party, and completely relies on an objective and professional attitude to screen potential suppliers.
In this case, his confidence in speaking is also very sufficient.
"Is there really such a manufacturer?"
"What's its name?"
Smith still knows James well.
Although this guy should have some small actions from time to time and get some benefits from his work.
But where is there a tiger that doesn't eat meat?
"Nanshan Auto Parts, this is a supplier in China!"
"They supply both Ford Motor and General Motors, and they are the largest auto parts companies in China."
As soon as James said this, Smith immediately couldn't help but say: "Is it the Nanshan auto parts that belong to the Nanshan Group with the Nanshan engine and Nanshan transmission?" ”
Obviously, in the American auto parts market, Nanshan Group still has some influence.
After all, the name of Nanshan engine and Nanshan gearbox, you just want to ignore it is a bit difficult.
Not to mention that Ford and General Motors still have a lot of parts supplied by Nanshan Group.
Spare parts manufacturers such as AutoZone must need to understand the situation of the original manufacturers of parts of various OEMs.
Otherwise, if you can't figure out who is the real Li Kui and who is the fake Li Kui, you will definitely be in a passive state when talking about the price.
"Yes, it's this Nanshan auto parts."
"Their high-pressure oil pumps, fuel pumps and other parts are very good, and the products produced by Nanshan Engine are all turbocharged products, and the high-pressure oil pump is also one of the key parts."
Seeing that Smith should know some of the situation of Nanshan Auto Parts, James breathed a sigh of relief.
Wait a minute, you should be able to save yourself a lot of effort.
"If it were, I can basically believe that it will technically meet our requirements."
"But companies that can meet our requirements in terms of technology often have no advantage in terms of cost."
"If it weren't for the high prices of Delphi, Bosch and Denso, we wouldn't have had to develop new manufacturers."
"As the largest auto parts company in China, this Nanshan auto parts is estimated to be cheaper, right?"
As soon as Smith said this, James couldn't help but refute and said: "The current situation is that no matter what it is, as long as the Chinese people can produce it, the price will definitely be much lower than the original." ”
"It's a similar story with auto parts."
"For example, the cost of an ESP system used to cost four or five hundred dollars to load a set, but now it has been reduced to less than two hundred dollars."
"A few years ago, it would have been unimaginable."
"However, after Nanshan Auto Parts localized ESP, Bosch's ESP price could only be greatly reduced."
"The situation is similar for these parts of the high-pressure oil pump."
"For example, Bosch's high-pressure oil pump will sell for more than 100 dollars, but as far as I know, Nanshan auto parts can cost about 50 dollars."
"As a car that often needs to be replaced, oil leakage failures will occur at every turn, and the cost can be reduced by half, it is still of great significance."
"The situation with other starter motors is similar."
"The main market of Nanshan auto parts before was in China, and they should be very eager to open up the American market."
"It just so happens that we also want to introduce Huaxia's suppliers to reduce procurement costs, and everyone's needs are the same, so we can have a good connection."
As soon as James said this, Smith was really interested.
Soon, under the leadership of James, he came directly to the booth of Nanshan Auto Parts.
Compared with the parts manufacturers next to it, the booth area of Nanshan Auto Parts is several times larger.
There is no way, there are many exhibitors of Nanshan auto parts, and if the booth area is small, it will not be able to be placed at all.
"AutoZone, O'Reilly, Advance Auto Parts, NAPA, these are the big four players in the American auto parts market, each with thousands of stores across the United States."
"The successful experience of the four giants in the aftermarket of American auto parts comes from building their own warehousing and logistics systems, such as the number of front-end warehouse outlets, stocking rate, offline system, delivery time, data and system, diversification of procurement and supply chain, and share of private brands."
"If we can become a supplier of AutoZone, we will officially open up the American auto parts market."
When Smith and James came to the booth of Nanshan Auto Parts and had a brief exchange, Dai Hanbiao hurriedly whispered to Cao Yang on the side.
made Cao Yang realize that the foreigner in front of him was a big customer.
When dealing with large customers, it is natural to have the attitude of large customers.
Cao Yang soon went into battle in person and communicated with Smith.
"During the installation of the high-pressure oil pump, all the holes on the parts should be covered to prevent debris from falling into the machine."
"Put the parts on the foundation of the anchor bolts, and use pairs of wedge pads between the base and the foundation for correction."
"Correct the concentricity of the pump shaft and the motor shaft, and the allowable deviation is 0.1 mm above the outer circle of the coupling road."
"The gap between the two coupling planes should be 2~4 mm, and the gap should be uniform, with a tolerance of 0.3 mm."
"After connecting the pipeline and determining the direction of rotation of the motor, connect the coupling and check the concentricity of the shaft again."
"As long as the correct installation method is adopted, our high-pressure oil pump can ensure that there will be no problems for at least 100,000 kilometers, and even the entire life cycle, there is no need to replace it."
The high-pressure oil pump of Nanshan Auto Parts was designed by Cao Yang himself, and he is very familiar with many of the requirements inside.
Don't look at the part on the car engine, which is the size of a fist, but the parts inside, each one is important.
Take it apart and it looks like every part isn't unusual.
But it is such a part, domestic parts companies, except for Nanshan auto parts, other manufacturers have no way to produce qualified products.
The entire market was basically monopolized by Bosch, Delphi, Valeo, Hitachi, and Denso.
A fist-sized high-pressure oil pump can sell you seven or eight hundred yuan.
If it is imported from abroad, then the price will go directly to more than 1,000 yuan.
But in fact, the simple production cost of this part only needs less than 200 yuan.
Nanshan auto parts can be sold at a price of three or four hundred yuan, and they can also make a lot of money.
"OUR HIGH-PRESSURE OIL PUMP CAN PROVIDE OUTPUT PRESSURE RANGING FROM 15MPA~30MPA, WHICH CAN FULLY MEET THE NEEDS OF ALL DIRECT INJECTION ENGINES IN THE MARKET."
"And we can produce not only high-pressure oil pumps for gasoline engines, but also high-pressure oil pumps and high-pressure common rail systems for diesel engines."
"As long as the customer has the parts in demand, we Nanshan auto parts can be produced."
In front of Americans, modesty is not in vogue.
If you're too modest, people will take it seriously.
Just like Americans don't have the fashion to say "sorry," a lot of times you have to do as the locals do.
If you "sorry" at every turn, then people will look down on you.
In the same way, you must be confident when introducing your own technology.
To make people feel that Lao Tzu is the best in the world!
In fact, the high-pressure oil pump of Nanshan auto parts is said to be the first in the world, and there is no big problem.
In particular, when Smith learned that the price of the high-pressure oil pump of Nanshan Auto Parts can be more than 30% cheaper than that of Bosch and other manufacturers, the interest was even greater.
Not seeing the big picture!
A high-pressure oil pump can do so competitively.
Then other various fuel pumps, water pumps, oil pumps and other parts are obviously worth looking forward to.
This is something that AutoZone is very much looking forward to.
Soon, Smith and James sat in the corner with Cao Yang each holding a cup of coffee and had a detailed exchange.
On the first day of the entire Las Vegas Auto Parts Show, Smith spent time in the Nanshan Auto Parts booth.
He had a detailed understanding of the various parts of Nanshan Auto Parts, and then finally signed a super big order.
Of course, there is a premise for this big order, that is, Nanshan Auto Parts cannot sell parts to O'Reilly, Advance Auto Parts and NAPA, the main rivals of the three AutoZone.
Cao Yang thought about it for a while and agreed to this request.
The export business of Nanshan auto parts can be carried out not only in the United States, but also in Europe and other places.
Engaging in a major partner in a country, and remaining in support with a number of small customers, this combination is also acceptable.
(End of chapter)