Research Report On Auto Beauty Industry In China, 2014-2018

Auto beauty consists of car washing, restoration of finishing paint, waxing, polishing, maintenance of tires and glass, and sales of automobile accessories.The auto beauty industry originated from developed countries in early 1930s, representing the initial development of automobile after-market. After the Second World War, global economic growth led to rapid development of automobile industry, which promoted the development of auto beauty industry.

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The auto beauty industry began to develop as auto CD players and car alarms were introduced into China in the 1990s. The industry gained further development as leather seats and bursting disks appeared on the market in 1995. Chinese economy develops rapidly after the reform and opening-up. The automobile industry surges after China joined WTO. The sales volume and production volume of automobiles in China maintained top of the world in 2009-2013. The auto beauty industry becomes increasingly popular as the number of automobiles, especially private cars, increases in China.

The civil automobile reserve was 137 million (including 10.58 million three-wheeled automobiles and low-speed trucks) by the end of 2013, which increased by 5.7 times from 24 million in 2003. The market size of auto beauty exceeded CNY 300 billion in China in 2013.

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The most notable features of Chinese auto beauty market are the average small scale of enterprises, lack of funds and low brand awareness. Blind operations are adopted by domestic auto beauty enterprises. Chinese auto beauty market possesses uneven scales due to low barriers to operation and lack of regulations. Small-scale and low-end stores on roadsides continue to run with low standards.

Famous international auto beauty brands, such as Cinep and 3M, enter China and establish operation network of chains. On the contrary, domestic auto beauty enterprises lack competence due to the small scale. In China, few enterprises (chains or independent stores) can reach certain scale and establish famous brands.

Automobile owners pay more attention to auto beauty as resident incomes increase in China. Automobile is no longer the symbol of social status but a way to express personality as automobile industry develops in Chinese cities. The expansion of automobile industry into Chinese households brings great opportunities to auto beauty industry. According to CRI, the average expenditure on auto beauty is CNY 3,000 when Chinese consumers purchase the cars, while the annual expenditure exceeds CNY 2,000 afterwards. Over 70% of owners of luxurious cars (sales price higher than CNY 0.5 million) maintain the habit of auto beauty while over 30% of owners of low-end cars (sales price lower than CNY 0.1 million) begin to realize the importance of auto beauty.

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According to statistics in developed countries, the proportion of profits in sales, part supply and auto service industry is 20%, 20% and 50%-60% respectively in a mature automobile market. The sales revenue of automobile service industry exceeds that of whole vehicles in the U.S. The annual value of production exceeds USD 300 billion in auto beauty industry in the U.S. The sales revenue exceeded CNY 5 trillion in Chinese automobile industry in 2013 while potential market size will exceed CNY 1 trillion if the proportion of sales revenue in auto beauty industry reaches 20%. The auto beauty industry enjoys huge potential for growth as the sales revenue and automobile reserve increase in China.

Table of Content

1 Related Concepts of Auto Beauty Industry

1.1 Definition and Classification

1.1.1 Definition

1.1.2 Classification of Modern Auto Beauty

1.2 Status of Auto Beauty Industry

1.2.1 Status of Auto Beauty Industry in Automobile Industry Chain

1.2.2 Influences of Auto Beauty Industry on Economy

2 Analysis of Global Auto Beauty Industry, 2009-2013

2.1 Overview of Global Auto Beauty Market, 2009-2013

2.1.1 Operation Environment of Global Auto Beauty Industry

2.1.2 Overview of Global Auto Beauty Industry

2.2 Business Modes of Auto Beauty Industry

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