Product Code: Y827C
Scope of HDMO Channel Analysis
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.