Lubricants industry took a look at how SMEs survived

In 2012, the development of China's lubricant industry is quietly changing. After experiencing rapid growth for more than a decade, China's lubricants industry showed a trend of slower growth in 2011. The annual output was 8,265,500 tons, a decrease of 0.325 million tons from 2010. Although there was a negative growth in total output, the competition for the market share of lubricant oils has become more intense.

This is particularly manifested in the competition in the high-end market of lubricants. Major foreign brands such as Shell, Castrol, and Mobil all rushed to invest and build in China. In the case of Shell, a leading brand of foreign investment, it has established six lubricants distribution sites in various cities in China, which is expected to cost 100 million yuan. The Tianjin Nangang project established by the US dollar has also started construction in recent days. However, the national brands such as the Great Wall, Unification, Kunlun and other national brands are doing their best. The Kunlun and Great Wall are still the preferred brands for consumers, and they firmly control the market share of domestic lubricants by 60%. In 2012, these two major national brands are achieving their basic and brand strengths through development, keeping pace with development trends and vowing to compete with foreign brands in the high-end market.

Given the fierce competition in the market, what kind of measures should be taken by SMEs located in the vulnerable groups in the lubricants industry?

New ideas for SMEs

Has always been adhering to the "integration of the industry first, made the only industry," the concept of the development of Kunshan, the United States and the United States lubricants, the use of the company is located in Kunshan (the country and even the world's most important base of machine processing, machine manufacturers must compete for the geographical advantages) Through careful research on the product breakdown and market research, we accurately positioned the product's focus on the “green lubrication of machine tools”. Committed to quality-based, machine tool lubricants industry's high-end brands.

The Okinawa Lubricant Company, which uses synthetic oil as its main product, recently put forward a technical plan for the use of waste oil to synthesize eco-friendly lubricants, which has aroused widespread concern in the society. With the success of primary and secondary amplification tests and the anticipated installation of Augina's three-stage amplification test equipment, the next step in the design and construction of the corresponding industrial production equipment will be to have the most reliable parameter basis, and this also signifies Ogilvy's Nana has mastered the process and conditions for conversion of waste oil into eco-lubricant oils, marking that the Augina Trench Oil project is about to embark on an industrialized production process from the laboratory. This project is not only a very successful product positioning transformation and upgrading, but also a good extension of the national-level Spark program key project “Utilizing the development of vegetable oil for all-round eco-friendly agricultural lubricants and industrialization”.

National brands need innovation

Dongfeng Lubricant, a leader in the national brand of Lubricating Oil, under the fierce competition in the face of the high-end lubricants market, through careful investigation and scientific analysis of market conditions, seized the industry’s “28 rules,” positioning the product. In the "energy saving, environmental protection, green, innovation" this new area. It has successively developed a series of products with high-efficiency, energy-saving and green environmental features such as Dongfeng DFL, Dongfeng DFT, and Dongfeng DFP, which have gained wide recognition in the market and have been highly praised by consumers.

The rapid development of China's lubricants market has become an arena for foreign oil companies to compete with each other. The game between national brands and foreign brands in the high-end market will be the main theme of China's lubricant industry for a long period of time. For small and medium-sized lubricant companies, medium and small enterprises do not mean that they do not have the strength to compete. To compete, SMEs must learn to better integrate their own resources and create an accurate and reasonable position for their products to promote The local market has formed a strong driving force. This point, the general SMEs can do it.

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Jiangyin Metallurgy Hydraulic Machinery Factory , https://www.ecobalingmachine.com