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Monday, April 13, 2009

Automotive aftermarket commerce earnings down turn, expanding affray

By Professional editor working for cheaponsale.

A economic urgent position in order that many of commerce are in problem, as a "sunrise industry" while the vehicle market has been not anything about the risk of a considerable shrinking in the auto industry's high-profile situations, is still singing. But the rise did not last long into the year 2009, we perceived all over the vehicle after the market harshly smaller earnings, several auto after-sales service enterprise affray, enterprise adversities, encompassing several fix stores, automotive attractiveness shops.

Market decline in profits

Decreased fix repair works to decrease earnings

The outbreak of the financial crisis would have made most people look tight wallet, change the frequency of slow, natural vehicle repair will be a problem. This seems to be a good repair company message. However, according to a survey in March this year the majority of auto repair works are under pressure from customers to reduce, downward pressure on profitability. A small number of the most profitable auto repair factory declined 50 percent, some 30 percent decrease. Mainly affected by a number of small and medium enterprises, their technical, financial, etc. are inferior to the larger, stronger, better Auto Repair Service Factory. Operational difficulties at this time, many enterprises are faced with the danger of collapse.

Some large auto repair factory while still adhering to, but compared with the previous volume of repair is still substantial shrinking. Most of the current amount of repair from the old client before, managed to maintain operating margins. In addition the automotive market with the competition, after-sales service as the first car manufacturers in the homogenization of differentiated competitive weapons, to improve service satisfaction, build brand has become the consensus of Service. Mercedes-Benz "Star Service", "Buick Care" hippocampus also a "sun holiday" and "autumn tour," These are the brands in today's Service of representatives. Auto repair facility which has a certain impact.

Beauty outlets striving against for highly competent costs

Beauty shop positions came across a more tragic than the fix works. Cosmetology vehicle proprietor to do if the vehicle clean, waxing services. On the mechanical and economic obligations are lower. And even some attractiveness shops only a little surface. Car clean services are conveyed out in the road outside. The threshold is so reduced one time directed to attractiveness stores multiplied, affray is self-evident. The initial 30 yuan a vehicle clean, and now to 20 million; initial waxing a 150, now decreased to 120. And less and less the number of proprietors of vehicle clean, vehicle clean enterprise furthermore seems to shop many of light. Even some of the scale there is earnings automotive attractiveness string of connections dropped by 10%. - 18423

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