The study provides a comprehensive demand matrix for HDMO (Heavy-Duty Motor Oil) by product and channel in China. It aims to:
Identify change drivers at the channel level.
Highlight channels poised for growth.
Recommend strategies for success in these channels.
Despite a projected decline in HDMO demand from 2024 to 2029-driven by economic slowdown, trade uncertainties, EV penetration, and premium lubricants-opportunities remain in premium products, varying by channel.
Key Messages
Understand attractive channels from both volume and premium penetration perspectives.
Learn how to serve these channels effectively via product/service offerings and route-to-market strategies.
For HDMO blenders to succeed in a stalling market, they must:
Evaluate and capture future opportunities.
Prepare for change and strategize effectively.
Strategic Insights
The study helps businesses by revealing:
Current market share in each channel.
Competitor product strategies and route-to-market approaches.
Opportunities in premium products and how to maintain/enhance market position.
Product and Channel Drivers
Product - Viscosity Grade:
Influenced by national emission standards and EV/premium lubricant penetration.
Product - API Grade:
Driven by engine design advancements and performance requirements.
Channels:
Traditional Retail: Influenced by brand loyalty, availability, and regional economics.
Online: Driven by e-commerce growth and digital-savvy consumers.
Direct Sales: Preferred by large fleets and construction firms for customization and bulk benefits.
Recommendations
Recognize that premium product opportunities differ by channel.
Leverage insights to prepare effective strategies for growth.
Understand and act on key demand drivers by product and channel.