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Chinese automotive aftermarket holds huge potential, LED lights will become a “bright spot” for development

Osram has not only explored new directions in the automotive front-loading market, but also has continued to expand its channels and upgrade its products in the automotive aftermarket in order to seize current and future development opportunities.

In 2018, the sales of new cars in the Chinese market declined for the first time in 28 years and into 2019, this situation does not seem to have improved significantly. However, despite the decline in new car sales, China still maintains a high level in absolute increments. According to the "2019 China Automotive Aftermarket White Paper", China is expected to surpass the United States to become the world's largest market by 2020. And based on the continuous increase of China's car ownership and the increase in average vehicle age, the automotive aftermarket will usher in a period of development explosion and become the new focus of the automotive industry.

Against this background, many companies are scrambling to lay out the aftermarket for automobiles. For example, as a high-tech innovation company with more than 110 years of brand history in the automotive lighting industry, OSRAM has not only been exploring new directions in the automotive front-loading market, but also continuously expanding channels and upgrading products in the automotive after-market, with a view to Seize current and future development opportunities.

"In the automotive aftermarket, the core of an enterprise is to be able to control its own channels, and the product has to make different changes." Zheng Kangzheng, senior sales director of the Asia-Pacific region of OSRAM Automotive, recently introduced this at the new product launch conference of Xunliang Exclusive Edition LED upgraded car lights, "From the previous halogen bulbs to the current LED lights, to the water turn lights, modified lamps and We will have new products step by step to take the market to different fields by modifying the dual-light lens headlights, so that OSRAM can continue to maintain its leading position in the automotive market. "

LED peak is approaching

With the increasing volume of the automotive aftermarket, its products are also constantly undergoing changes. For example, automotive lights are in the cycle of replacement of old markets and new opportunities. Take LED headlights as an example. In 2017, the penetration rate of China's LED headlight market reached 21%. Consumers are familiar with the use of LED headlight technology from luxury brands such as Audi, Benz, and BMW. As LED technology continues to mature, The cost of LEDs has continued to decline, and configurations that may have been available only in high-end models in the past are now more and more appearing in the "public view".

"Considering the proportion of the entire Chinese automotive lamp market, we believe that the highest peak of the LED automotive lamp market should be around 2021 to 2022", Zheng Kangzheng stressed, "We not only have a full range of LED automotive lamp products, we also have a series of supporting installation Service, we hope to use high-quality LED lights to more ensure the safety of car driving. "

It seems to verify this statement. Osram recently introduced LED upgrade lights. Compared with ordinary halogen lamps, the new LED lights have a 50% increase in the distance and width of the low beam, and an 80% increase in the distance and width of the high beam. The visual blind spot area has been reduced by 20%, and 90% of the models on the market can be easily and non-destructively installed.

Osram Xunliang Exclusive Edition LED Upgraded Lamp Products

Channel outreach

In recent years, with the development of e-commerce and the acceleration of industry-to-industry integration, after-sales channels have shown a trend of diversified development, and OSRAM is constantly making new attempts in this regard.

Recently, OSRAM announced that it has reached a strategic cooperation with the Chinese auto parts chain pioneer Pioneer Auto Parts. The two parties announced that they will focus on customers and open up sales and service barriers. They will provide high-quality cars to car owners from product technology and installation services. Light upgrade experience. This move can be seen as a strong cooperation between the brand and the channel supplier, creating a new model of integration and cooperation.

Ubisoft is one of the earliest companies that represent international brands in the aftermarket. It has more than 300 directly-operated branches across the country, covering 20,000 offline repair shops, and online coverage of JD.com, Tmall and other channels. Use the quality of international brands to provide car owners with safer and more reliable parts and components, and comprehensively enhance the customer experience to further enhance consumer loyalty to the brand.

"The overall channel change in the automotive aftermarket is becoming more and more obvious, and it is a great challenge for both our brands and channel dealers." Zheng Kangzheng said, "Effective industry integration between related industries is the general trend of corporate development today. The strategic cooperation between OSRAM and UPE is the strong cooperation between the brand side and the channel supplier side. We will find joint partners to create a market together with our partners. "

Ambitions in smart cars and autonomous driving

The automotive industry is in a period of change. Such changes will be driven by many trigger points. Smart cars and autonomous driving are the areas of great concern. OSRAM is also keeping up with the industry's major trends. As the car moves towards intelligent cars and autonomous driving, it is also finding its own positioning and direction.

In the automotive front-loading market, OSRAM focuses on the research and development and innovation of laser headlight technology, smart LED headlights, and OLED technology. In the aftermarket, in addition to the upgrade of automotive headlights, it will further target the research and development of automotive visible and invisible light and products upgrade. It can be said that, to a certain extent, OSRAM has achieved "look forward and look back".

It can be seen that no matter whether it has previously acquired a 25% stake in the Lidar company LeddarTech or established a joint venture with Continental Motors, in the uncertain auto market, Osram seeks to diversify the development of enterprises and give more intelligent and functional lights .

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