Focusing on vertical categories, Chongqing has developed a cross-border e-commerce giant

Online sales of auto and motorcycle parts are very hot, and related players are facing new development opportunities in the international market.

The e-commerce market for auto parts and motorcycles is booming. Data shows that the growth rate of the online auto aftermarket is close to 16%, which is twice the growth rate of the offline market. Currently, the global penetration rate of e-commerce in the auto aftermarket is only about 10%, and it is expected to grow to 20% to 30% in 10 years, and the scale of auto parts and motorcycle e-commerce will reach US$200 billion to US$300 billion.

China's auto parts exports are strong, with exports expected to exceed US$100 billion in 2024, marking five consecutive years of rapid growth and doubling of export volume.

Chongqing Auto Parts Industry Belt is an important production base for automobile and motorcycle parts in China, and the auto and motorcycle parts industry is booming. Standing on the shoulders of the giants in the industry belt to explore overseas markets, Chongqing Guogui Racing Technology Co., Ltd. (Guogui Technology for short) has maintained rapid revenue growth, and its own brand MaXpeedingRods has become a world-renowned modified car brand, successfully attracting more than 5 million overseas consumers.

Promote brand building and continuously increase profits

Guogui Technology was officially established in 2006 and started selling high-performance auto parts on the cross-border e-commerce platform eBay. Its products mainly target the modification market.

Data from the "SEMA Industry Status Report" shows that the global automobile modification market is worth more than US$52 billion, while the US market's nearly 290 million passenger cars and DIY culture have brought about a large demand for modification.

Jennifer, deputy general manager of Guogui Technology, believes that cross-border e-commerce has successfully promoted the rapid development of the auto parts modification market. "It was difficult to export modified products in large quantities in the past, because modification is a very personalized thing, and it is difficult for sellers to fully penetrate the market. As a result, the sellers' costs in production, logistics, and sales remain high. The cross-border e-commerce model helps the company directly reach a large number of consumers who love modification. It allows the company to centralize production and delivery, reduce logistics costs, and promote the rapid development of the business."

Currently, cross-border e-commerce channels account for 90% of Guogui Technology’s sales, and its revenue is growing rapidly every year.

When Guogui Technology was founded, cross-border e-commerce was in its early stages, and sellers did not need particularly advanced operational skills to successfully sell their products. However, the founder of Guogui Technology firmly believed that branding of cross-border e-commerce would be a major trend in the future, so he continued to invest in research and development and build his own brand, MaXpeedingRods.

"The importance of brand building to the growth of an enterprise is self-evident. The company has gradually accumulated a large number of loyal fans, and the repurchase rate of its products is very high." Jennifer said that MaXpeedingRods, the independent brand of Guogui Technology, now has more than 5 million modified car enthusiasts in the global modified car market, and maintains rapid growth every year, gradually developing into a world-renowned modified car brand. The brand's air suspension, high-performance shock absorbers, electronic control systems, engine forging and other performance products have covered the mainstream market.

It is understood that during the brand building process, Guogui Technology will continuously innovate and iterate its products based on customer needs, and by collecting feedback and optimizing product design, it will not only improve product quality but also enhance brand awareness and loyalty.

Deepen overseas markets and promote differentiated development

The global e-commerce market for auto parts and motorcycle parts has promising prospects. The global car ownership exceeds 1.5 billion, and the annual global new car sales are close to 100 million. The average age of cars in Europe and the United States is close to 12 years, which continues to rise. The US auto aftermarket is worth more than 300 billion US dollars, and Europe is also close to 300 billion US dollars, with an average growth rate of 8%.

The rapid growth of the automotive aftermarket has brought more online purchasing needs. Currently, Guogui Technology has established sales channels in more than 170 countries and regions including the United States, the United Kingdom, Germany, and Australia.

Jennifer believes that if the company wants to further expand into overseas markets, it must work hard in areas such as product lines and compliance to build a moat for the entire company.

First, we will continue to expand our product range based on customer needs and continue to increase our R&D efforts in key parts such as engines and suspensions to ensure that our products have unique advantages in performance, quality and functionality. Currently, the company has developed more than 5,000 high-performance parts.

Secondly, ensure product compliance. The tariff policies and product standards of different countries vary greatly. The company needs to ensure that all products comply with the regulations of various countries, and do a good job in product certification in the EU, the United States and other places to avoid compliance risks.

Finally, we will continue to increase our investment in the brand and enhance brand awareness by collaborating with overseas influencers, KOLs and KOCs.

The ever-increasing revenue and profits are the best rewards for Guogui Technology's continuous efforts.

With obvious advantages, sellers from the auto parts industry are collectively heading overseas!

Chongqing is an important auto parts industry belt in China, with a strong production capacity for complete vehicles and their accessories. Guogui Technology takes advantage of the abundant resources of complete vehicles and accessories in the surrounding area, and has obvious advantages in logistics and procurement costs.

China is currently the only country in the world that can export all categories of auto parts for international cars, with a manufacturing richness that exceeds that of Germany. In terms of details, North China, East China, South China, and Central China have multiple auto parts industry clusters. Relying on the mature core advantages of each industry, industry sellers have embarked on the road of cross-border e-commerce overseas expansion, driving the rapid growth of auto parts sales.

Data from the eBay platform shows that, benefiting from the continued strong demand for traditional auto parts, Chinese sellers have performed well in the sales of suspension and steering, engines and accessories, gearboxes and transmissions, exhaust systems, air conditioning systems, ignition systems and their accessories. The sales of the above categories have achieved double-digit growth year-on-year, among which the sales of air conditioning system-related categories have increased by more than 20%.
In addition, the rapid growth of the automotive aftermarket in Germany and the UK has also brought a wave of new opportunities. The sales of headlight assemblies by Chinese sellers on eBay UK increased nearly 20 times year-on-year; on the German site, the sales of charging pile equipment increased by 60% year-on-year, and the growth of taillight assemblies and turbochargers exceeded 10 times.

As more sellers in various industries begin to turn to cross-border e-commerce sales, new opportunities and challenges have arrived as expected. However, they always believe that there is a very broad international market for auto parts exports.

The fined sellers will suffer a lot, but if they can get through it, they will usher in long-term victory and hope.