The “production + service” model is becoming the direction for lubricant companies.

发布时间：2022年01月08日 15:18

In the post-pandemic era, as demand for lubricants declines, the “production + service” supply-chain model should become the development direction for domestic lubricant manufacturers and distributors. This was the key message conveyed at the second session of the second general meeting of the Shandong Province Lubricant Industry Association, held in Jinan on June 27. At the meeting, experts pointed out that due to the impact of the COVID-19 pandemic, both domestic and international demand for lubricants has declined. Specifically, domestic demand for lubricants is expected to drop by 7% to 10% year-on-year. However, China’s current oil-grade structure lags behind the evolving environmental standards for vehicles; thus, there remains considerable room for improvement in China’s oil-grade levels in the future, which could lead to an increase in demand for lubricants. Zhang Chenhui, deputy director of the Specialized Committee of the National Lubricant Enterprises Alliance, noted that, amid the decline in lubricant demand caused by the pandemic, lubricant companies need to innovate their production and sales models—shifting from a focus on quantity growth to one emphasizing quality enhancement and efficiency improvement. They should develop high-quality, specialized, and niche products, moving away from a single-product structure toward product diversification. At the same time, lubricant companies should also enhance the service levels provided by their sales networks. According to Da Jianwen, head of the expert panel of the Specialized Committee on Research and Application of Special Oil (Wax) Production Technologies, the impact of the pandemic will see domestic sales replacing imports, making it more important than ever to expand domestic sales channels. Nevertheless, in areas such as specialty oils—for example, oils used in vaccines and nuclear power—China still largely relies on imports. Therefore, domestic lubricant companies must persist in pursuing a path of differentiation, specialization, and high-end development, continuously enhancing the added value of their products to meet the new demands of the post-pandemic era.

At the meeting, experts pointed out that, due to the impact of the COVID-19 pandemic, demand for lubricants has declined both domestically and internationally. Specifically, domestic demand for lubricants is expected to drop by 7% to 10% year-on-year. However, the current grade structure of motor oils in China lags behind the evolving environmental standards for vehicles. In the future, there remains considerable room for improvement in the grade structure of motor oils in China, which could lead to an increase in demand for lubricants.

Zhang Chenhui, Deputy Director of the Specialized Committee of the National Lubricant Enterprises Alliance, pointed out that, at a time when the pandemic has led to a decline in lubricant demand, lubricant companies need to innovate their production and sales models—shifting from an emphasis on quantity growth to one focused on improving quality and efficiency. They should develop high-quality, specialty, and niche products, moving away from a single-product structure toward product diversification. At the same time, they should also enhance the service levels provided by their sales organizations.

According to Da Jianwen, head of the expert panel of the Specialized Committee on Applied Research in Specialty Oil (Wax) Production Technology, the impact of the pandemic will be the shift from imports to domestic sales, making it more important than ever to expand domestic demand. However, in the area of specialty oils—such as those used in vaccines and nuclear power—China still largely relies on imports. Therefore, domestic lubricant companies must persist in pursuing a development path characterized by differentiation, specialization, and high-end positioning, continuously enhancing the added value of their products to meet the new demands of the post-pandemic era.

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