Chapter 86 What went wrong? (Please follow up)

Author: Rabbit who loves drinking black tea

Chapter 86 What went wrong? (Please follow up)

SKF entered the Chinese market for the first time as early as 1912 and started its business in China through agents.

In 1997, SKF (China) Co., Ltd. was formally established, starting its comprehensive and in-depth development in China.

As one of the world's largest bearing manufacturers, SKF and NTN account for 70% to 80% of the world's automotive wheel bearings.

In China, due to the late entry of Japanese automobile companies, SKF alone occupied more than 60% of the market share.

Whether it is Volkswagen or General Motors, or Shenlong and Fiat, they are all using SKF wheel bearings.

As a wearing part, the mass production supply and after-sales supply of wheel hub bearings basically maintain a two-to-one ratio.

But in terms of profits, it's the other way around.

Under normal circumstances, automobile companies do not allow suppliers to sell after-sales parts for their own models on the market.

They have to do this business themselves.

But for special parts such as tires, wheel bearings, and engine oil, various suppliers sell parts to the aftermarket.

This point is clearly stipulated by some powerful suppliers when they sign basic transaction contracts with automobile manufacturers.

Slightly weaker manufacturers will make a few marginal moves.

When the time comes, I will replace it with an equivalent brand and sell it, and there will be nothing you can do against me.

Therefore, in terms of after-sales parts for wheel hub bearings, the OEM and SKF each hold half of the share.

One can imagine how important changes in after-sales bearing orders are to SKF (China) Co., Ltd.

Basically, it is the content that needs to be reported within the company every month.

"Xue, can you tell me, is this data wrong?"

"I know the Spring Festival is coming soon, and you are all anxious to go home for the New Year."

“But we can’t let the work that needs to be done fall behind.”

Holm is the sales director of SKF and has an independent office of more than 50 square meters in an office building in the center of Shanghai.

Life was definitely much more comfortable than living at the headquarters.

"Holm, I also hope this data is wrong."

"When it was compiled, I immediately felt something was wrong."

Xue Wenqiang gave his answer with a wry smile.

The data is correct, there are only so many orders this month.

"That's not a mistake?"

"The order quantity of wheel hub bearings has dropped by 50% compared with the same period last year, and it has dropped by more than 60% month-on-month."

"Such a huge drop, you tell me it's not wrong?"

"Xue, you have to understand that today is not April 1st."

Holm put down the coffee in his hand heavily, obviously in a bad mood.

"This year, many automobile manufacturers are making every effort to promote the sales model of 4S stores."

"Most of the after-sales parts in 4S stores are shipped from the automobile factory."

"This has had a very big impact on our aftermarket parts sales."

Xue Wenqiang quickly found a reason that seemed quite convincing.

To a certain extent, this can be regarded as an objective reason.

It's just that as the number of cars increases, and 4S stores and car repair shops are increasing, theoretically their after-sales parts sales should not drop that much.

"I'll give you a month."

"This problem must be clarified and effective countermeasures must be taken."

"Otherwise you don't have to come to work anymore."

For a moment, Holm wasn't sure what to do.

But the problem has arisen.

Definitely.

…

When SKF was worrying about changes in wheel hub bearing orders, Bu Defan was also discussing this matter with Li Jianfeng in Shanghai Volkswagen.

"Li, the after-sales service department asked us to help confirm whether SKF is selling SP parts to our dealers without authorization."

"You should pay attention to this matter."

"The best thing is to go to SKF in person and have a good communication with them."

"Also go to their warehouse to have a look and learn about their recent shipments."

The sales of after-sales parts is also a piece of fat for OEMs.

The purchase cost of most after-sales parts is exactly the same as mass-produced parts.

But the price sold to 4S stores requires at least 30% management fee.

This so-called management fee is actually profit.

Although the overall sales volume is not exaggerated, the profit contribution it brings to the company is considerable.

The most important thing is that as the number of possessions increases, this piece of the cake will automatically become larger.

Therefore, there are people at Modu Volkswagen who are keeping an eye on the changes in after-sales orders for some major parts.

"Bu Defan, SKF sells SP parts directly to agents and dealers. This is not a secret."

"It's not like the after-sales service department doesn't know."

"It's like Continental Tires and Michelin Tires. They also sell tires on the market."

"They even have their own agents selling tires of various specifications."

"If we go to SKF to investigate, I'm worried that it will end badly."

Li Jianfeng speaks very directly and doesn't like to beat around the bush.

The sales KPI of after-sales parts has nothing to do with the purchasing department.

So he doesn't really want to get involved with this.

Especially since he heard a story some time ago.

In order to choose the engine oil dealer, the game between several leaders of the company was very fierce.

After all, there are stories behind these agents.

This game almost turned the story into an accident.

Although the situation of wheel hub bearings is definitely not as complicated as engine oil, he doesn't want to touch it.

"If they were still selling wheel bearings at the same volume as before, we would have been normal at that time."

"If they have significantly increased the sales of SP wheel bearings in the past month, it will be equivalent to invading the interests of the public in Shanghai."

"We will definitely stop this kind of behavior."

"Otherwise, the after-sales service department will report this matter to the management, and we will have no way to deal with it."

Li Jianfeng is deeply trusted by Bu Defan.

So Bu Defan also said some things quite clearly.

With this general principle, Li Jianfeng has confidence in his heart.

"Then I'll contact SKF's sales first and see what they say."

"Then go to their site to confirm."

For suppliers, we should beat them when it is time to beat them.

Li Jianfeng has a clear understanding of this.

Like SKF, you can choose to do some things, but you can't cause trouble for me.

Or for this matter, I also want to be able to enjoy the benefits.

Otherwise, why should I take the blame for you?

Everyone is very realistic.

"It would be best if we could figure this out before the Spring Festival holiday."

"Otherwise it will be postponed until next year."

Bu Defan felt that SKF was cheating the public and must be taught a lesson.

Otherwise, it will be difficult to control other manufacturers in the future if they follow suit.
Chapter completed!