Car audio retail market has great potential


Audio equipment is the first electronic product used in automobiles. Its development is closely related to the development of the automotive industry. The development of China's automobile industry has led to the rapid development of car audio. In 2003, China's auto production reached 4.444 million, an increase of 36.7% over the previous year, of which car production was 2.020 million, an increase of 85.0%, becoming the fourth largest automobile production and consumption country in the world, and total sales of car audio exceeded RMB 4 billion. By 2010, China's auto market will reach 10 million cars, surpassing Germany and Japan, becoming the second largest automobile production and consumption country after the United States. With the global car purchase and sales boom starting to shift to the Chinese market, China’s auto industry has grown rapidly each year, and the market potential of car audio is also very large.

Car audio retail market has great potential

The car audio market is mainly divided into two major blocks: First, the original supporting market, it refers to the car manufacturers in the car's production process, OEM brand as its standard car audio configuration. The second is the retail matching market, which refers to the consumer terminal retail market, mainly car audio stores.

In the domestic car audio market, the scale of the after-sales market is relatively small, and the OEM market for the automotive OEM occupies most of the market share. The annual demand for the OEM OEM car audio market is about 4 million sets. China's auto audio OEM market is highly concentrated. Jiangsu Tianbao, Siemens VDO, Philips, Shenzhen Hangsheng and other major manufacturers have reached more than three-fourths of the domestic automotive OEM market share.

At present, the scale of China's car audio retail market is still relatively small, but with the pursuit of audio quality and personalized demand for car owners, its development potential is huge. Less than 10% of car users in China have replaced their audio equipment. The scale of the aftermarket of foreign developed countries accounts for more than 70% of the total market. The major goal of the world's larger car audio manufacturers is also for the aftermarket. It can be said that China's car audio retail market is still in its infancy. With the increase of residents' income and the change of consumer attitudes, the demand for domestic car consumption will increase, and people’s pursuit of high-quality audio will become more and more intense. It can be predicted that in the future, The proportion of China's car audio aftermarket will continue to increase and it will usher in a period of rapid development. In China's car audio retail market, a newly-developed virgin land, foreign brands have occupied more than half of the country. Among them, the Japanese brand has a market share of 50%-60% in China, and its main products are the host computer and speakers. The well-known brands in Europe and America, including Philips, Siemens VDO, KICKER, Laifu, MT, JL, MA, and major earthquakes, have occupied 30%-40% of the market share in China, leaving only less than 10 domestic brands. % of the market.

China's car audio manufacturers are actively preparing for the war

At present, China's domestic car audio manufacturers mainly have the following three types:

One category is electro-acoustic enterprises. They rely on their technological and financial advantages to occupy a certain position in the market. The products of such enterprises are mainly for the automotive OEMs. In recent years, they have also begun to enter the retail market for car audio, such as Jiangsu Tianbao, etc. More than 10% of car audio OEM support companies come from the retail market.

Followed by a number of car audio agents, they mastered a set of technologies in the agency, formed a number of outstanding technical R & D team and marketing team, with its technology, channels and service advantages, began to operate independently of the market. For example, the rise of brands such as Free-way, Ultrasonic, Ruisheng, Botu, and Wan Hualong.

In addition, due to the intensification of market competition, some home audio manufacturers in China have further reduced their profit margins and started to enter the car audio market. With their brand advantages in the field of home audio and their comprehensive and mature channels, they believe that they will soon become Another important force in China's car audio market.

With the transfer and expansion of the global car audio industry, China is becoming the main production base of global car audio and the main ground for industrial transfer, and the specialization of labor has become increasingly evident. The production of important components of car audio, such as IC, TUNER, DECK, etc., has relatively high technical content, mainly in Japan, South Korea, and Taiwan Province of China. Car audio production and processing areas, such as circuit boards, BONDING, SMT, etc., are mainly concentrated in China. The production of finished products is mainly concentrated in Hong Kong capital and Korean and Japanese companies. Hong Kong and Korean companies are mainly engaged in the production of medium and low-grade products. Japanese companies are mainly engaged in the production of medium and high-grade products.

The auto market will continue to show rapid growth in 2005, but to adapt to this trend, domestic car audio companies must step up two steps: First, we must further integrate and reorganize, and it is impossible to conduct small-scale, low-grade operations that are now decentralized. Win in the fierce market competition in the future. Second, we must strengthen the power of technological development, give full play to the advantages of the combination of production, education and research, and narrow the technological gap with foreign brands. In this way, we can use the lower cost advantage to make breakthroughs in the economical car and refitting market, and promote the progress and development of China's automotive electronics products.

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