View From The Bridge - Sept 18

View from the Bridge - September 2018

The subject of OEM/supplier relationships is one that's very close to the heart of not just OATS, but its parent company HaynesPro.  At HaynesPro, providing OEM-based technical data to the independent aftermarket ensures cars and heavy vehicles can be serviced, maintained and repaired according to manufacturers specifications.

So, it was interesting to read the latest Kline research on consumer loyalty to OEM lubricants in aftermarket sales and service. In particular, the fact that consumers are clearly discerning and loyal to their vehicle-specific OEM brand. Clearly there is a combination of dealer pressure, habit and education at work here.  Whatever the reason, it is encouraging for our industry that there is an apparently strong level of consumer awareness and active choice regarding service-fill lubricants.

Amongst other eye-catching items in this OATS Bulletin, is the inevitable fall-out of the trade-war now simmering between the US and China and the potential impact it could have on the additives sector.

Meanwhile, China continues to drive the emmissions reduction agenda as hard as it can, with the introduction of the China 6 Standard in 2020.  In fact, the city of Shenzhen is moving even faster, announcing it will roll-out the standard as early as 2019.  This rapid tightening of regulations could have significant impact on the R&D and business development models for both domestic automakers and overseas producers looking to capitalise on the massive Chinese market.

It is, perhaps, less surprising that the digital automotive marketplace is also moving ahead a rapid pace. OATS has been working with lubes producers for several years to develop their online 'what oil?' offerings.  This digital approach to auto-related sales is reinforced by recent data regarding the rise of digital and omni-channel approaches to the sale of new and used vehicles, particularly in the fleet sector.

Providing accurate data for digital-based marketing continues to be a key strand of our work here at OATS, along with our constant innovation of data to drive lubricants development strategies.  As always, we are happy to offer our advice or expertise, as well as discussing any item in this Bulletin.  You can contact us via e-mail or call us on +44 (0)1793 616138.

Peter van der Galiën and the OATS team.