Entrepreneurs within China’s blossoming aftermarket arena are eager to step up the distribution and sales of imported performance and customization products. The nation’s flourishing middle class of motorists is especially attracted to automotive add-ons that carry an enriched branding presence.
Mindful of some of the inefficiencies experienced by overseas vendors attempting to venture into the marketplace, a partnership between YASN International Exhibition Co., Ltd. and Messe Düsseldorf (Shanghai) Co., Ltd. aims to provide an exhibitor-friendly welcome at the Aug. 9-11 All in Tuning Show (AIT), which runs concurrent with the Beijing Auto Show.
Now in its third year, AIT 2014 is being redesigned to meet the specific needs of aftermarket operations originating in the U.S., Canada and Mexico, according to Karen Fierst, YASN’s Maryland-based North American representative.
“This is the first year YASN and All in Tuning are making an effort to develop the All in Tuning name and attract North American visitors,” she says, pointing out that the alliance between YASN and Messe Düsseldorf combines two reputable trade show producers capable of delivering a credible sense of knowhow and competence to exhibitors arriving from across the Pacific.
“We’re developing a climate that is favorable to foreign visitors,” says Fierst. “We have the opportunity to work with North Americans to further develop this show specific to the tuning industry.” (“Tuning” is the overall term used in China to define the performance and customization categories.)
To accomplish this mission, “They are going to have a value-added package for North American exhibitors wanting to participate,” she says. “They will arrange business-to-business, face-to-face meetings to find and increase their distribution networks in China.”
A lineup of bilingual Chinese/English conferences and seminars is also being scheduled.
“We’re listening; we want to hear what is important to exhibitors and we want to meet their needs,” says Fierst. “They want to provide what the visitor wants, so it’s very exciting.”
Building a brand
Discounts for booth construction and an accelerated atmosphere of collaboration and cooperation are prime objectives of the show’s management.
“The goal is that North Americans can get there and have a turnkey operation,” she says. An English-speaking staff dedicated to connecting sellers with motivated Chinese buyers is an important attribute, along with providing expert aid to ease the various issues associated with navigating China’s patent laws and customs regulations.
“They look at this as a long-term investment in helping exhibitors develop brand name recognition and channels of distribution,” says Fierst. “They have an extensive database of companies that are potential distributors and sales outlets.”
An array of trained representatives will be on hand to assist in arranging meetings relevant to the product or service segments being pursued while generating domestic publicity directed toward an enthusiastically brand-conscious population. More than 300 media outlets are expected to cover the event. “YASN will focus them on the important players,” she says.
“We’re on the ground floor with AIT,” Fierst continues. Aftermarket executives can gain valuable insight by exploring aisles of the China National Convention Center. (Tickets are valid for both AIT and the vast Beijing Auto Show.)
“Anyone who wants to do business in China needs to see the market – they need to know the touch and feel,” she notes. “People in China are very status- and brand-aware – really much stronger than in the U.S.” Building up acceptance of a brand name is thus a critical element for building aftermarket sales.
And while China hosts numerous automotive trade shows, AIT aspires to be the most beneficial of them by focusing on the aftermarket. “We have the opportunity to work with North Americans to further develop this show specific to the tuning industry,” says Fierst. “It’s in its infancy, but the growth potential is huge. The brand names need to be developed in China.”
Rising discretionary incomes
Last year’s AIT attracted nearly 20,000 visitors eying the wares of 69 exhibitors; 35 percent of the attendees were business-to-business executives, reflecting the Chinese tendency to admit the general public to trade shows. A larger level of international participation is expected to increase the amount of industry professionals going through AIT 2014’s turnstiles.
According to the state-backed China Association of Automobile Manufacturers, in 2013 China became the first nation in the world to annually sell more than 20 million vehicles, amounting to a 14 percent uptick over 2012’s figures. A 10 percent growth rate is projected for 2014.
Some of the more popular nameplates include Volkswagen, Ford, General Motors, Chrysler, Subaru, Toyota, Subaru, Nissan, Mitsubishi and BMW.
“There is a stratum of the population that is very tuned into high-end sports cars such as Lamborghinis and Ferraris,” says Fierst. “They will probably not be tuned, but a segment of the population likes high-end.”
A significant portion of the nation’s car parc remains under warranty, yet pre-owned vehicles are revving up as a viable source of revenue – a relatively recent surge in used cars among the populace is jumpstarting demand for specialty add-ons and service offerings.
“The market really started to explode in 2003,” Fierst reports, explaining that up until the 1990s a typical Chinese citizen was not permitted to have a personal vehicle. “People who were driving had a company car, and that car was owned by the government.”
Describing a cultural propensity of maintaining personal prestige, Fierst points out that “until five years ago having a used car was frowned upon.”
That trend, though, is rapidly going by the wayside. “As more and more people are getting a new car or maybe a second car, people in smaller cities are buying used cars. It’s no longer frowned upon like it was before,” she says.
“The mid-range is taking off now. There is a huge demand for North American products because they have a reputation for quality and people like the brands,” according to Fierst.
“As China’s population becomes wealthier people have higher discretionary incomes, and all of these factors are leading to an increased interest in tuning,” she says.
Successful aftermarket inroads are likely to be positioned by acknowledging that do-it-yourself repairs and customization are mostly eschewed in favor of do-it-for-me services.
“There is very little DIY in China,” says Fierst. “People don’t have a history of working on cars and they don’t have garages, so it is expected that most of the work will be DIFM.”
For more information, Fierst can be contacted at (888) 240-7223, (301) 455-8820 or [email protected]. The exhibition’s website is www.atcshow.com. A North American-specific URL is scheduled to be launched at a later date.
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