Interview with Nicola Lorenzo Frambrosi, COO of Brembo Aftermarket
The focus of the automotive industry has shifted backwards, and the Chinese automotive aftermarket has become a blue ocean, but it is clear that this blue ocean is rapidly turning red. How companies stand out from the rest depends on how Brembo responds.
In 2018, the sales volume in the Chinese market witnessed a historic inflection point. For the first time, there was a negative growth. This trend has continued to this day. The stall of new car growth has directly led to the decline in profits of new car value chain participants. In order to survive, the eyes of players and capital in the industry have gradually shifted to the aftermarket with the increase in car ownership and average car age.
What is the potential of the Chinese automotive aftermarket?
China's auto industry started late, but under the blessing of a huge population base and an open market environment, China's automobile production and sales have surpassed the United States in 2009, China has been ranked number one in global automobile production and sales for ten consecutive years. The "Market White Paper" shows that China is expected to surpass the United States to become the world's largest market by 2020.
At the same time, behind the current year-on-year decline in new car sales, the proportion of cars with a car age of more than 3 years has continued to increase, but the average car age in China is only 4.9 years, which is at a relatively low level compared with other large markets. The overall car is showing an aging trend, and the demand for maintenance and repair of each car is just needed.
All kinds of data are proving to the world that the Chinese automotive aftermarket has huge development potential. "For the future development of the Chinese automotive aftermarket, we believe that it will be a continuous growth trend, not a short-term prosperity," said Nicola Lorenzo Frambrosi, chief operating officer of the Brembo Aftermarket Division.
Mr. Nicola Lorenzo Frambrosi, Chief Operating Officer, Brembo Aftermarket
In addition to its huge potential, there is still room for improvement in the Chinese automotive aftermarket. Due to the relatively late development of the Chinese automotive aftermarket, there is still a certain gap with developed countries such as Europe and the United States in terms of channel structure, market concentration, and service quality. However, this phenomenon is gradually improving. Mr. Nicola Lorenzo Frambrosi said that China's after-sales distribution network is still fragmented, but with the trend of integration, it may move to a mature market model to a certain extent. All these changes are happening and they will bring Chinese car owners To better products and services.
In the automotive aftermarket, there is another phenomenon that cannot be ignored. As car ownership rises year by year and new players and capital continue to integrate into the industry, it is gradually breaking the traditional automaker dealer service network, and more and more independent aftermarket participants have appeared in this field.
Mr Nicola Lorenzo Frambrosi pointed out that in the coming years, many different dynamic factors will affect the allocation of spare parts. In general, as long as car ownership increases, we expect auto dealers' dealer network weights to decrease and independent aftermarket players to grow. But this highly fragmented, younger market is still undergoing profound evolution; it is neither mature nor stable, and the balance between different distribution channels has not yet been determined.
The fast and brutal way of growth has made the traditional marketing model the Red Sea. New business models are still being explored, but more participants are already at the center of this crossroads of transformation. It is difficult to decide where to go in the future, but they have a common purpose-in this fierce competition Survive.
| How do you gain a foothold in the market when the blue ocean turns red?
As a global leader in automotive braking systems, Brembo has been involved in the aftermarket 11 years ago, and has won recognition from consumers worldwide with its original product quality, high performance and continuous innovation. This also includes the Chinese market. "In the past few years, the Brembo aftermarket business has achieved an annual growth rate of 30% in China," said Mr. Nicola Lorenzo Frambrosi.
Prospective technology, Brembo aftermarket, China automotive aftermarket
In their view, in the future fierce competition, "customer experience will be a key factor driving the evolution of the Chinese automotive market." Therefore, it is important to improve the marketing channel system, deepen services, and allow consumers to enjoy quality services more intuitively and experience better product performance.
Because of this, in terms of product channel marketing, unlike many auto parts suppliers that extend their reach to the aftermarket fast-food chain, Brembo has set its sights on the brand with a common business philosophy, passion, and passion for the brand Strongly recognized business partner.
As of now, "Brembo's aftermarket has 50 dealers in China, and the marketing network has covered 70% of major cities." Nicola Lorenzo Frambrosi revealed, "In the next step, we will continue to expand the coverage of the marketing network, and Deepen penetration to ensure consistent standards of delivery. "
At the same time, in order to satisfy more and more young users who are keen on searching for products and services online, the Brembo aftermarket has also landed on e-commerce platforms such as Tmall and JD.com to establish official flagship stores. Aiming at offline marketing networks, the “Brembo Expert” program is continuously launched. Through training, certification, and store image support, high-quality products, state-of-the-art technology, and use techniques are presented to end consumers through offline stores.
What kind of product should I win in the market?
As a manufacturer known for high-end braking systems, Brembo's name is commonly used in top-level events and high-end luxury models, but for Brembo, high-end is not the same as high-cold.
"When we talk about high-end products, it refers more to the product itself and supporting services," said Nicola Lorenzo Frambrosi. "Especially for brake components, quality determines safety or not. Consumers need to consider whether the price is reasonable. Rather than whether it is cheap, premium prices are usually in line with consumer perceptions and market rules. "
Brembo invests 5% of its operating income in research and development every year, and 10% of its employees are engineering and technical personnel engaged in research and development-related work. In the process of creating high-quality, high-performance and high-security products, we strive to find the best solutions . Because, in the recognition of Brembo, continuous innovation breakthroughs are one of the key factors supporting its leading position in the industry.
At the same time, listening to the needs of each consumer and professional, and tailoring products to suit different market needs, is equally important in the Brembo aftermarket.
“We strive to understand the needs of the Chinese aftermarket and try our best to provide the most suitable products,” said Mr. Nicola Lorenzo Frambrosi. Based on the widely recognized LOW ME (low metal) brake pads, NAO ceramic brake pads with lower noise and dust have been introduced. "
In addition, it also includes original quality brake discs with UV-cured surface coating, brake fluids with low viscosity and high boiling point advantages, and XTRA series products to meet customers seeking a high-performance driving experience. .
Among them, the new Brembo XTRA brake pads officially released in the first quarter of this year are made of more than 30 different components of BRM X L01 material. This material was developed by Brembo and was originally used in high-performance sports cars. Compared with the mixed materials used in the standard brake pads of the original products, this new product has a higher coefficient of friction, and can achieve more timely and stable braking in low and high temperature environments to ensure the driving Comfort and improve the accuracy of the brake pedal, but it does not affect the mileage.
At the same time, in order to expand the scope of use, this product series introduced more than 100 different models of products to cover all types of medium-sized cars, including newly launched and major compact, medium-sized cars and sports cars on the market, such as Mazda 3, Honda Civic, Volkswagen Lavida, and some Mercedes-Benz and BMW models.
"In the future, we will continue to develop more high-quality products that meet market needs and expand the application range so that more users can experience Brembo's high-quality braking system products," said Nicola Lorenzo Frambrosi. "Every car is worth it Have better security. "