Lubricant Industry Turns Around in Market Revolution

Lubricant oil is the most mature oil product in the Chinese refined oil market. Before the 1990s, the lubricating oil industry was a small role in the entire petrochemical industry chain. Along with the vigorous development of the Chinese automobile industry, lubricating oil became a petrochemical company at home and abroad in a short period of time. Race to seize the market.

In the field of refined oil, lubricating oil is the youngest little brother. However, from the planned economy to the socialist market economy, lubricating oil has become a dazzling star.

After the liberalization of the market

Lubricating oil is the most commonly used petroleum product. From bicycles to cars, from agricultural pumps to manned spacecraft, it can be said that where there is machinery, there is the presence of oil.

According to the data released by the National Bureau of Statistics on February 1, 2009, the apparent consumption of lubricants in China reached 7.792 million tons in 2008. Although the international financial crisis has a greater impact, it is still growing, compared with the same period in 2007. , an increase of 4.8%. From January to December 2008, the total amount of lubricants produced reached 6.408 million tons, which represents a year-on-year increase of 2.8% compared to the same period of 2007, with an import volume of 1.636 million tons, a year-on-year increase of 18.2%, and an export volume of 25.2 million tons, a year-on-year increase of 37.9%. .

Lubricants are the earliest open petroleum products in China as a type of refined oil with rapid growth in consumption and comparatively rich profits. In the early 1990s, a variety of domestic lubricant blending plants were established, and international lubricant companies also rushed to the Chinese lubricants market.

At that time, the Chinese market did not have much knowledge of lubricants in terms of professional subdivision. In addition, the lubricant oil was modulated on the base oil, and the initial technical threshold was not high. Due to the low profitability of the base oil, there is a high profit margin. For a time, lubricating oil has become a trend.

According to incomplete statistics, by 2003, there were more than 4,000 reconciliation factories in China, and there were more than 6,000 kinds of lubricating oil brands; private enterprises mostly occupied middle and low-end markets, and foreign brands entrenched the high-end market. The Chinese lubricants market has risen together and mixed. The quality of lubricants is also uneven, causing many annoyances for users.

Market share comes from specification and reputation

When you drive, most of you will look for PetroChina, Sinopec or a joint venture gas station.

Vehicle maintenance, using lubricants, consumers will seek more professional brands.

This is the current consumption trend in the refined oil market after more than a decade of market ups and downs.

In recent years, with the gradual maturation of the lubricants market and the gradual development towards standardization, a three-tiered market structure has been formed: First, large-scale state-owned lubricants companies represented by PetroChina and Sinopec have occupied about 60% of the market. Market share; Second, multinational lubricant companies represented by Shell and ExxonMobil accounted for 60% of the market share of high-end lubricants; third, local private lubricant companies represented by Lake, etc., with flexible operations The mechanism in the market has formed a compelling ability to compete.

Chen Jun, China Petroleum Lubricant Company's director responsible for the rapid oil change project, believes that at present, the lube oil market shows two major characteristics: in terms of product supply, the supply main bodies are increasingly concentrated among large-scale manufacturers, and thus the original Decentralized competition changed to concentrated competition. In terms of market consumption, the consumer groups have increasingly demonstrated their reliance on auto production and maintenance organizations, and the characteristics of entrusted consumption have become increasingly apparent. This is very different from the previous “autonomous” consumption.

10 years after the opening of China's lubricants market, the emergence of a large number of foreign brands, local companies have entered, dazzling brand surging in the market, China's lubricant companies have begun to awaken. In 2000, CNPC set up a lubricants company; in 2002, it also integrated the lubricants business, put the lubricants business of Liaohe and Yumen refinery companies under the lubricants company, and established the Northeast, North China, Northwest, Central South, 6 sales centers in East China and Southwest China. In May 2002, Sinopec Corp. also set up a lubricants company to fully integrate the lube oil business of its subsidiaries, unify resource allocation, and unify its brand image.

This kind of regulation and integration brings about an increase in market share and consumer acceptance.

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From quantitative change to qualitative change in pursuit of maximum efficiency

The lubricant marketing market experienced a transition from resource monopoly competition to full competition. During the period of full competition, the lubricant industry has been continuously upgraded in technology, and the market has transformed its bulk from bulk oil to easy-to-use packaging oil. All lubricating oil manufacturers from the competition for dealers to dealers to maintain and develop the OEM market, and finally, with the automotive lubricant market changes, some manufacturers ahead of the consciousness directly into the service terminal.

The current fierce competition in the lubricant market has reached the level of market segmentation. In an interview with Kunlun Lubricant Company, the reporter saw that their product catalog had exceeded 1,000 kinds, and the packaging oil was as small as toothpaste, and was as large as a few tens of kilograms of barrels. When 90% of the products were bought on base oil, they were already sad. No deposit. According to the person in charge of the company, at present, just the opposite, base oil sales have been less than 10%, mainly to buy the various series of packaging oil, for different markets, the pursuit of maximization of profits, a consensus of the company's employees.

This is in line with the different markets for gasoline and diesel oil and different labels.

From the statistics of the first 11 months of 2009, China’s car sales have exceeded 11 million. With the continuous increase in car ownership, the market share of automotive lubricants will continue to increase. Due to the majority of joint-venture vehicles in China, correspondingly, international brand lubricants have occupied most of the high-end market for automotive lubricants by OEM.

With the launch of national brands such as Kunlun and Great Wall, the lost high-end lubricants market is gradually recovering, and its market share is steadily rising.

Enlightenment

The marketization of lubricants is a process from disorder to order and from disorder to governance.

The disorder in the initial development of the lubricants market led to uneven quality and shoddy prevalence. Many motorists have also encountered poor quality lubricants, gasoline and diesel, causing vehicle breakdown. In fact, it is not just the consumers that are hurt. The sellers have also been damaged. The reputation has been lost and the market has been lost. Judging from the integration process of domestic gas stations, it should be said that it is also the process of recurring from the chaos to major governance of the lube market.

The standard and order of the lubricants market has improved the market's maturity. Lubricant oil market from the chaos to the process of governance, for the refined oil market reform, also has a good reference.

To be big and powerful, it is not only necessary to regulate and order the market, but more importantly, to have market awareness. Market awareness, in a nutshell, is the adjustment of production according to changes in market demand and the development of market economy. China has made progress in the socialist market economy with Chinese characteristics for several decades. However, in many state-owned enterprises, there is not a strong sense of marketization for turning products into commodities.

The change of products to products is easy to say. It is very difficult to really do things. The market consciousness is ultimately a sense of efficiency and service awareness.

The service is gold. As long as the service is done carefully, the market will not be lost.

In responding to the international financial crisis, the state introduced the trade-in policy of automobile replacement and automobile to the countryside. In the vast rural market, how to plan ahead and expand the market is not just a matter for the lubricant companies to do, but also for the refined oil sales companies.

As the saying goes, there are comparisons to identify. When we sum up the success and failure of lubricants in the market, we are also paying attention to the road to marketization of refined oil in China. After all, "preparing for rain" is always better than "repairing sheep."

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