Nigeria's Largest Auto Parts Market Is Closed Indefinitely

Nigeria's largest auto parts market is closed indefinitely

According to today's newspaper, in the early morning of July 30, the Lagos waste management authority (lawma) executed the government's order and closed the largest auto parts market in Nigeria - ladipo market indefinitely. The market is located in the local government area of Mushin, Lagos. Therefore, the Lagos State government accused traders of dumping garbage auto parts indiscriminately in violation of environmental warnings.

With the progress of society and the increasing attention paid to the environment, some manufacturing enterprises are increasingly subject to environmental requirements. For example, in our automobile industry, the pollution of the surrounding environment caused by large washing and foundation protection plants and auto parts cities has been paid more and more attention. They can only move far away from the city and constantly upgrade their business model in continuous rectification and standardization, And amaze everyone.

What kind of transformation are auto parts enterprises making?

Looking at domestic enterprises, it is reported that 70% of the top 100 auto parts suppliers in the world have come to China to carry out business and have occupied more than 60% of the market share in the Chinese market. Domestic brands such as Yanfeng, Beijing Hainachuan, CITIC daika, Dechang motor, minshi group and Wuling industry are among the top parts brand enterprises, Because auto parts are in a huge industrial chain, there are suppliers of non-ferrous metals, steel, electronic components, plastics, rubber, glass and other raw materials in the upstream, and vehicle factories, 4S stores, auto parts cities and repair shops in the downstream. Therefore, it involves the coverage of the large field of pre-sales and after-sales, which is also the link closest to raw materials. We all know that the cost of foreign trade raw materials has also increased a lot, Vehicle sales and after-sales service are still recovering. Under the attack of manufacturing end and supply end, most of China's auto parts enterprises are in a tense position. In addition, foreign auto parts enterprises continue to penetrate the market, and the living space of parts manufacturing enterprises is further squeezed.

There are many kinds and complex auto parts, but the scale of the enterprise is small, which is characterized by low industry concentration and fierce competition. In addition, with the transformation of enterprise model and the rapid momentum of platform and e-commerce, the current development of auto parts industry is in a period of great transformation. Driven by market changes and science and technology, many new innovative operation modes and benign development opportunities will be derived.

For example, several changes have taken place at present:

1. Transformation from agent to service provider. Many post market chain enterprises are working as service providers. After a certain stage, some channel agents cover the functions of many service providers. Therefore, the simplification of channel model brings great efficiency to parts enterprises.

2. E-commerce / online platform transactions. Integrating the strength of advantageous enterprises gives buyers and partners a wider choice, increases brand exposure, and even expands e-commerce to overseas trade.

3. Restructuring resources. The market competition of auto parts suppliers is very fierce. Jumping out of the traditional idea of cooperation with joint ventures as the carrier and resolutely reorganizing and disposing of the traditional business in a weak competitive position is also to eliminate some risks that may be faced in the future.

4. The rise of new energy components. In the rising tide of electric vehicles such as the "new four modernizations", the after-sales parts market of new energy vehicles is also expanding. With the strengthening of laws and regulations to achieve carbon neutralization to overcome climate disasters, a large amount of funds are also invested in electrification technology.

In the second half of 2021, despite the heavy rain and repeated epidemic attacks at the beginning, it is always necessary to regroup and continue to walk. Parts suppliers need to consider adjusting their strategic development ideas. Due to the increasingly strict equity and traditional financing schemes, the traditional continuous cost optimization strategy can appropriately shift the focus and take advantage of the current popular marketing model suitable for themselves, Integrate the characteristics of enterprises, obtain high-quality schemes for capital and cost return, and explore diversified cooperation modes in R & D, product supply and capital.