Research Report on Chinese Auto Distribution, 2010-2011

17 Nov 2010 • by Natalie Aster

London - Detailed market research report “Research Report on Chinese Auto Distribution, 2010-2011” has been published by China Research and Intelligence.

China’s brand franchise system was introduced from Europe in 1998, which was firstly set up by Buick, Guangzhou Honda and Audi, etc. It is mainly represented by 3S shops (whole vehicle sales, supply of spare parts and after-sales service) and 4S shops (whole vehicle sales, supply of spare parts, after-sales service and survey of information).

4S shops are moving toward recession in Europe and USA, but they are still growing vigorously in China. This mainly benefits from the superior hardware of Chinese 4S auto shops. The scale and grade of Chinese auto 4S shops rank the Top in the world, even surpassing that in the most developed USA. However, Chinese 4S shops lag behind that of foreign countries in the aspect of software construction. This can be reflected from the situation of “sales come before service” in Chinese auto marketing. Distributors are expected to improve their quality, create and maintain their brands, establish mature sales process and provide facilities with the concept “customer first”.

Report Details:

Research Report on Chinese Auto Distribution, 2010-2011
Published: May 2010
Pages: 40
Price: US$ 2,140.00

Report Sample Abstract:

Before the reform and opening-up in 1978, China’s auto circulation sector was under the strict planned distribution system, so there was no auto marketing. From 1978 to 1990, though the planned economy still dominated China’s auto circulation sector, some market regulation factors also began to emerge. Auto manufacturers started the establishment of their own national marketing system, but they focused on production and R&D instead of sales because autos were in short supply at that time. Afterwards, with the transformation of China’s auto market from the seller’s market to the buyer’s market and the intensification of market competition, auto manufacturers pay more attention to the sales of their autos, leading to the appearance of auto distributors. They provide services for auto manufacturers.

In 1998, Shanghai GM and Guangzhou Honda introduced 4S shops into China, symbolizing the advent of franchise period of China’s auto market. Auto distributors play a decisive role in the auto circulation sector. They stand in the front line of the auto industry, so they are the most powerful promoters to realize the gigantic profits of this industry. Furthermore, auto distributors are also the terminals for the information collection of the auto industry, providing important references for auto manufacturers to make product and operation decisions. Presently, the number of auto distributors in China enjoys an annual growth rate of 2-3%.

Numberd of Audio Distributors in China, 2005-2009

Source: China Research and Intelligence

More information can be found in the report “Research Report on Chinese Auto Distribution, 2010-2011” by China Research and Intelligence.

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