​The China Aftermarket: Beware of ‘Cut and Paste’

Date: March 28, 2019
Every business in every industry has an imperative to grow. This is true for the Automotive Aftermarket Industry and all of its participants in it. For companies looking to grow outside of their home markets, China is the place to be.
 
The key indicators are good: the China aftermarket is projected to grow in excess of 10 percent per year; the car parc is surpassing five years into prime aftermarket years where vehicle maintenance and repair matters more as does consumer value and quality. More important, this growth rate is expected to continue for some time.
 
This is a compelling scenario for companies to enter the market, or for companies already there, to grow their market position. When a company is pursuing global expansion, a typical approach is to implement their traditional business model as this is what brought success in their home market: “Copy, cut and paste,” or “Plug and play.”
 
But, in an AASA-exclusive white paper, Dave Barbeau, CEO, Barbeau Consulting, says, “No, maybe not.” Successful business models in a developed market may not work in a developing market.
 
Barbeau’s white paper, The China Aftermarket: Beware of “Cut and Paste,” can be downloaded here.
 
About Barbeau Consulting / AMI Insight
 
Barbeau Consulting is an associate member of AASA and Dave Barbeau, a past chair of the AASA Board of Governors, is its CEO. He has extensive experience in the China aftermarket having led the global aftermarket business units of two Tier One manufacturers, and their development and growth in the China aftermarket. Barbeau Consulting partners with China based AMInsight Consulting, which provides added market intelligence, expertise, support and insight into the China aftermarket from their office in Shanghai. For more information, visit www.BarbeauConsulting.com
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