Xiaoyuan, a journalist working for a newspaper company, recently bought a new car. At first, he didn’t pay much attention to its maintenance or appearance. He simply bought a floor mat for over 100 yuan and used the car film provided by the dealer to install on his new vehicle. However, the problems that followed made him rethink the importance of car beauty.
Soon after the film was applied, Xiaoyuan noticed that it wasn’t seamless and had uneven edges at the seams. Even more frustrating, the film started bubbling within a short time. What’s worse, an unpleasant odor filled the car. To combat this, he tried placing sliced pineapples inside, but it didn’t help much. Eventually, when he replaced the film and the floor mat, the strange smell disappeared.
Despite being a practical person, Xiaoyuan still felt uneasy. “This car film costs one or two thousand yuan, and the floor mat is around 700 or 800 yuan. But what exactly are we paying for? How much real value do these products offer? Consumers don’t know enough about this industry, and after buying a car, there's no clear guidance from dealers.â€
Xiaoyuan’s experience is not uncommon among many car owners. After going through several lessons, they begin to understand the auto beauty industry better and realize that it’s not yet well-regulated. As a result, they’re willing to spend a little extra money to ensure quality and reliability.
The automotive beauty market holds great potential. In mature international markets, 50%-60% of profits in the auto industry come from the aftermarket, with car beauty services accounting for about 80% of that. In the U.S., the annual output of the auto beauty industry has surpassed $350 billion. In China, the profit margin for auto cosmetics is around 40%. Experts predict that every 1 yuan invested in the automotive industry can drive 24-34 yuan in after-sales spending, with mid-range sedans costing between 5,000 and 6,000 yuan annually for maintenance and decoration.
China’s auto market is growing rapidly, and with increasing vehicle production and ownership, the auto beauty market is expected to expand significantly. By 2008, it’s estimated that China will have 50 million vehicles on the road. With more private cars, car maintenance is shifting from "just keeping it running" to "enhancing its appearance." A survey shows that over 60% of high-end private car owners now regularly take their cars for external beauty care, while over 30% of low-end car owners are starting to adopt similar habits.
According to Lu Zhixiong, product manager at 3M China Limited, “Most consumers treat their second car more carefully than their first, which creates numerous opportunities for professional car beauty service providers.â€
However, with such a huge market, many companies are entering the scene. In Beijing, local chains like Youfu, Aiyixing, and Yuefu have already captured some of the market. International brands such as 3M, Teflon, and Yellow Hat have also entered the Chinese market through franchising or selling products in 4S stores.
But even big names face challenges. Lin Lei, president of Xinhuaxin Group, explains that there are four types of auto beauty shops: product-focused, service-focused, product-integrated, and service-integrated. Yellow Hat, for example, focuses mainly on product sales without much emphasis on service or education. Yang Fu, chairman of Youfu, points out that many Chinese car owners lack awareness about car cosmetics and often don’t know how to choose the right products.
As a pioneer in the industry, 3M has been active in China for 13 years, operating over 200 licensed centers across 101 cities. The company emphasizes brand building and provides training on products, business practices, and technical skills. Liao Jiajun, general manager of 3M China, says, “Chinese consumers are still relatively immature in terms of car beauty knowledge and brand loyalty. So while we promote our products, we also educate customers on how to use them effectively and make cost-efficient choices.â€
Technology remains a key factor in winning the market. Local chain Youfu has gained popularity by introducing advanced technologies like explosion-proof solar films and non-knife installation methods. They also offer services like paint sealing and chassis protection. This year, Youfu plans to expand beyond Beijing using technology transfer.
Meanwhile, 3M continues to lead in innovation, offering a full range of automotive beauty products tailored to Chinese conditions. With over 5,000 products in its Automotive Aftermarket Division, including more than 20% patented high-tech items, 3M emphasizes a “one-stop service†model. Its Shanghai R&D center, established in June, is one of five global centers, helping to localize products and reduce costs.
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