Scattered, chaotic, and small are the current status of China's lubricants market. There are thousands of lubricant manufacturers in the country. In the high-end market, foreign brands dominate, while the vast majority of domestic brands are in the low-end market. However, many Chinese lubricant companies have begun to adjust their strategies to upgrade from low to medium-grade, and the industry reshuffle has begun quietly. Recently, the 12th China International Lubricants and Applied Technology Exhibition opened in Beijing. This exhibition changed the situation of international brands to occupy the first place. In addition to the widely known international brands, a large number of domestic brands such as Dongfeng GS, Dongyi Oil Products, Gold Engine, Beijing Lefi, Fujian Jiamei, etc. performed well and formed a competitive pattern for the future. The challenge, the reshuffle of the lubricant industry has quietly begun. High-end market is occupied by foreign brands The development of the Chinese automobile industry has developed a huge treasure for vehicle lubricants. According to industry insiders, it is expected that by 2020, China will replace the United States as the world's largest consumer of lubricants. However, Chinese companies do not have a "get close to the water before they get off the ground." They get a slice of the huge market. Looking at the domestic market, “scattered, chaotic, and small†is the current status of China's lubricants market. There are several thousand lubricant manufacturers in the country, and foreign brands in the high-end market dominate, while the vast majority of domestic brands are In the low-end market. At present, the domestic market for lubricant oil has exceeded 100 billion yuan, of which high-end products account for 20% of the profits, and thus rise to the main battlefield of lubricants competition. Foreign brands such as Mobil, Shell, and Castrol have launched a new round of competition with local brands such as Great Wall Lubricants. Other local brands have only been “bystanders†for some time. In an interview with the media, an executive from an international oil company’s China region stated: “In the next 10 years, China will fully enter the automobile era. Whoever wins the Chinese market will win the future of the global lubricant market.†Shuffle has begun At the 12th China International Lubricants and Applied Technology Exhibition, reporters saw that many Chinese lubricant companies have begun to adjust their strategies to upgrade from low to medium-grade. Dongfeng GS Lubricants' booth was crowded. According to the person in charge of the company, Dongfeng Group has made clear its determination to impact the international brands. Not long ago, Dongfeng GS lubricants jointly launched by Dongfeng Oil Group and South Korea's GS Caltex Co., Ltd. have just been listed in the country. South Korea GS Caltex Co., Ltd. Minister Kim Ying-sik told reporters that he is very optimistic about China's high-end lubricant market. “We are full of confidence in participating in the competition in the Chinese market. Dongfeng GS Lubricant will combine South Korea’s advanced technology with China’s huge market and take the formal pace of development,†Jin Yingzhi told reporters. The Spanish oil company Runshuo will sign a cooperation agreement with the Shunchang company under the UMW Group in Guangzhou in late October. The two parties will jointly promote and develop the Lubrizol specialty lubricant brand and top product line in the Chinese market. Both parties hope to develop the Lubrizol lubricant distribution network through cooperation with professional dealers across China to meet the expectations of high-end consumers. As one of the leading companies in the lubricants industry, Kunlun Lubricants is committed to developing lubricants suitable for China's vehicle conditions and road conditions. According to the person in charge of the booth, Kunlun Lubricants has introduced a variety of service modes to meet the needs of different automotive manufacturers, which will allow the automotive companies to recommend users to select the appropriate standard products to meet the diversification of different types of lubricants. demand. The rise of domestic brands began to compete with international brands. At the exhibition site, a lubricant dealer stated that he has been distributing international brand lubricants for three consecutive years. The participation in the exhibition is to focus on understanding the domestic brands, on the one hand to understand product quality, on the other hand to understand profit margins. From the first day of the visit, Dongfeng GS, Dongsheng Oil Products, and Gold Engine have attracted a lot of attention. Analysts pointed out that the future of the Chinese lubricants market, mergers and acquisitions is not new, and the rise of high-end brands is a development trend of the lubricant market. After a long period of development, the gap between domestic brands and foreign brands has gradually narrowed, and foreign brands will gradually lose absolute dominance over high-end markets.
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Products seeking to upgrade the lube industry started shuffling