Five Trends in China's Industrial Lubricants Industry in 2019


China's lubricant industry has shifted from the high-speed growth stage to the high-quality development stage, and is in the attack period of changing the development mode and transforming the growth momentum.

China's lubricant industry has shifted from the high-speed growth stage to the high-quality development stage, and is in the attack period of changing the development mode and transforming the growth momentum.

   High-quality lubricant demand in the overall demand for lubricants is rising year by year, and in the future, high-quality development of lubricant brands is the only way out.

   1. Environmental protection storm swept the country, policy factors to promote the rapid increase in the concentration of lubricant production capacity

   Beijing, Tianjin, Hebei and Shandong areas, traditionally belong to the production capacity concentration of lubricant production enterprises, subject to the influence of the country's strict environmental protection policy, hundreds of small lubricant plants in this region, are unable to do. In fact, not only Beijing, Tianjin and Hebei, the country is facing a similar situation to varying degrees, and it is increasingly difficult to get an environmental assessment. The whole environmental protection storm has a great impact on the lubricant industry.

   2. The downstream demand structure of the entire lubricant industry will also undergo extremely obvious changes, the reasons for which come from the following aspects.

   (1) Supply-side structural reform 

  In simple terms, it means that the low-end production capacity, backward production capacity and small scattered production capacity of various industries are facing centralized elimination, and the grade and level of oil for lubricants will be significantly enhanced. 

  (2) Intelligent production

   (2) Intelligent production, agriculture 4.0, industry 4.0, is no longer a legend, but a fact that is happening in all walks of life, and the varieties and grades of oil will revolve around this change.

   3. The original small oil factory brands and distributor OEM brands are facing a longer period of pain 

  The more lubricant brands are washed, the more they are washed, and the survival strategies of the small oil companies themselves and the brand fission at the distributor level have a lot to do with it.

   At present, batches and batches of small oil plants are being forced to close, and new plants are having a hard time getting environmental assessments, so the biggest impact is on those "small oil plant brands" and "distributor OEM brands" that have more stable customer resources in their hands. system is in a very unstable state. They are "forced" to find a new, stable supply chain system. 

  4. "Small and medium-sized manufacturers" and "distributor brands" are facing a "new situation" in their business model and need to be reshaped. The supply capacity is stable, but the question of what kind of "solution" to adopt between supply and demand and who can provide a better "solution" is prominent.

  For the former "small and medium-sized lubricant manufacturers" and "distributors operating brands," the business model is challenged by the "new situation" and needs to be reconfigured. This also means how to re-frame the industrial chain and value chain system of their own brands, and how to make people, money and materials, production, supply and sales, in a better controllable state.

  5. Building block innovation is no longer far away, and will become the force behind the reinvention of the lubricant industry

  The "building block innovation" represented by Apple and Tesla has become a major highlight under the wave of industry reshuffle nowadays. The biggest characteristic of "building block innovation" is that the company seems to have just been established, along the value chain, industry chain, in the form of strategic alliance or ecosphere, integrating the most professional resources on each module in the industry, killing the original "big brother" in the circle.

   For lubricants, the first-class base oil and additive resources in the circle, super technical bull, reliable production bases that can get environmental assessment, dedicated and professional supply chain solution teams, and marketing planning geeks who have been working in the industry for nearly 20 years are all available, and the competition is who can take the lead in integrating these resources.

  In the coming Industry 4.0 era, Hermes Lubricants believes that with professional quality and excellent technical and marketing teams, it will respond to the development trend of the times, innovate and upgrade cutting fluids and lubrication products, and help cooperative enterprises successfully enter the Industry 4.0 era.