Over the past two years, the OATS' China Bulletin has strived to provide high quality insight into one of the world’s fastest-growing and complex lubricants markets. Our wide-ranging brief has allowed us to deliver timely and relevant journalism on a diverse range of topics; from global oil mega-deals to small changes in local lubes specifications.
Change happens quickly in this internet age - and it happens even quicker in China where rapid socio-economic growth has made the business landscape almost unrecognisable from even a decade ago. It follows, then, that the focus of these Bulletins should also change to meet our readers’ needs and interests.
While the OATS China Bulletin will continue to provide detailed economic analysis and technical insight, we are shifting our focus to meet the lubes marketing challenge - both online and offline – whilst covering a wider range of OEM topics.
Starting this month, our new topic headings will be Lubes Technical; OEM Equipment; Lubes Marketing and Internet Marketing. We believe this new direction will help our readers deepen their understanding of the challenges and opportunities to be seized in China.
For example, the state-affiliated China Internet Network Information Centre (CNNIC) claims there are now some 464m users nationwide, while mobile e-commerce is forecast to reach 130bn Yuan ($21bn) by the end of the year.
The rapid growth and increasing importance of mobile internet use is now an undeniable fact. An abundance of cheap smartphones, some of which are selling for just 500 yuan ($83 has contributed to a startling rise in internet penetration nationwide – especially in rural areas. According to CNNIC, mobile internet users now make up almost 80% of total users.
The growth of the mobile internet segment is a trend that is unlikely to slow anytime soon. Even Apple are trying to broaden their consumer base with a moderately less expensive iPhone 5C, which will has gone on sale for 4,833 yuan ($733).
Companies are catching on. Shanghai VW has developed an iPhone App that allows users to book test drives, check out car specs, look at pictures and even book maintenance appointments. Citroen also provide a similar offering to mobile users.
Mobile access will provide many challenges to lubes marketers in China, as well great opportunities to reach their customers. From a design perspective, websites will need to be responsive, working seamlessly on a range of tablets and mobile devices. Having a downloadable app would also solve this issue.
Technically speaking, keeping and maintaining a database and product portfolio that is up to date, accurate and compliant with emissions standards across various cities, will be difficult. For example, a truck driver in Beijing may need a cleaner HDDO than one in Shijiazhuang.
Fortunately, OATS is working hard to develop accurate databases and programs for use with mobile and tablet devices.
We hope you will enjoy the new format of the OATS China Bulletin, and, as always, are keen to hear any feedback or suggestions you might have. We would also be happy to discuss your online or offline marketing needs in detail. Simply contact Diana Shen. We also invite you to share the OATS China Bulletin with your colleagues and contacts.
Sebastian Crawshaw
Chairman, OATS