Service parts management in China

Abstract

Aftermarket service parts can be an extremely lucrative business, yet most OEMs only capture a fraction of its profit potential. The situation is even more pronounced in China and other emerging markets, where cultural behavior, infrastructure limitations and market barriers make it hard for foreign OEMs and their dealers to compete with unauthorized service parts providers. This chapter examines the unique challenges of selling and distributing service parts in an emerging market, and offers foreign OEMs specific advice to make their service parts operations more efficient and profitable.