As many industry professionals know, the U.S. aftermarket will improve its own competitive power with support from Chinese suppliers. Purchasing from China, directly and indirectly, has become more prevalent within a number of categories. According to official statistics from the China Association of Automobile Manufacturers (CAAM), China has exported 5.2 billion aftermarket products to the United States, and the number continues to grow. However, some challenges remain.
Sino-U.S. product trading obstacles
Most Chinese auto parts and accessories companies are small in scale. More than 90 percent have less than $10 million in sales volume per year, according to CAAM. Most manufacturers have specific advantages in only one or two product categories, which means buyers have to work with many suppliers at one time.
Chinese manufacturers lack R&D capacity; most exporting parts are low-tech products. In addition, a number of manufacturers need help in protecting their intellectual property rights.
Manufacturers are in need of trust, respect and brand exposure. Meanwhile, they need a platform for effective information exchange, business service and after-sale service information. Traditional U.S. aftermarket distributors are, for the most part, inexperienced in how to obtain better communications with Chinese suppliers and then reduce the trading costs.
The Sino-U.S. solution
To help solve these challenges, the Ningbo government in China has established an international purchasing center for automotive parts and accessories with the support of the China Federation of Industry and Commerce Auto & Motorbike — the Ningbo International Auto Mall. We have formed strategic partnerships with several first-rate buyers and organizations such as NAPA China, PAC Group and Heritage Capital Group Inc. (HCG). We are dedicated to enhancing training and support to suppliers, regulating their behavior and ensuring product quality.
Features of the purchasing center
Location. Ningbo International Auto Mall is located at the International Trading Platform district of Ningbo, which is one of the most famous manufacturing and port cities and one of the most suitable cities for habitation in China. We are a three-hour drive from Shanghai Pudong International Airport and also close to the second biggest port in China — Ningbo port.
Size, structure and function. We have more than 1 million sq. feet of structural areas, including an office building for business and administration and an apron mansion for trading. The first floor is the exhibition hall for medium- and top-grade automobiles. The second and third floors are the International Sourcing Center for auto parts and accessories of the Ningbo International Trading Platform.
It will emerge as the most comprehensive marketplace for thousands of auto parts and accessories suppliers, buyers, manufacturers and dealers looking to establish their business bases, offices and exhibition and distribution agencies for their products.
The fourth floor contains a multi-functional hall and four conference rooms for an international symposium and trade fair, where we often organize purchase conferences for further discussions between suppliers and buyers. The fifth through 15th floors are the business and administration areas.
It is a comprehensive market solely for auto parts and accessories, with multiple functions such as exhibition, international purchasing, wholesale of auto parts and accessories, store and distribution, information exchange, financing and settlement. Our aim is to be the international sourcing center in China for auto parts and accessories.
Partners. The Shanghai International Auto Parts Purchase Club will also tap into the Ningbo International Auto Mall. By then, members such as NAPA China, Honeywell, Johnson, Delphi, TRW, Faurecia, Dura, Volvo, Tenneco and others, along with the Tier 1 global purchasers, will emerge in Ningbo International Auto Mall and publish their purchase information, as well as placing purchase orders monthly. As the partner of the Shanghai International Auto Parts Purchase Club, we are sanctioned to recommend to and choose the suppliers in the mall for the club and assist its member buyers in completing their purchase orders. Heritage Capital Group Inc. will provide business negotiation, foreign exhibition, capital placement, enterprise evaluation and on-list services. PAC will provide manufacturing technology, enterprise management, purchasing processing service, and as instructed by China Automotive Technology & Research Center and the Society of Automotive Engineers (SAE), we are improving production management systems for suppliers.
A host of prospects
More than 1,000 Chinese auto parts and accessories manufacturers and professional foreign trade companies have purchased booths and offices in the mall. We have built connections among thousands of auto parts and accessories manufacturers in and around Ningbo.
The Ningbo International Auto Mall welcomes the top 25 aftermarket buyers in the United States, along with other automotive parts and accessories manufacturers, aftermarket jobbers and distributors, automotive dealers and automotive aftermarket service providers. For distributors, we ensure general and specialized services: survey and selections on suppliers, quality control and management and document and customs agents.
Ningbo International Auto Mall will shorten the gap between China and international research, manufacturing and business styles, which will help China to be an integral part of the international purchasing chain for auto parts.
A 'one-stop' service
Ningbo International Auto Mall is the key project supported by the Ningbo government. The International Auto Parts Purchasing Center is the "Sea Route Export Base" appointed by the China Auto Parts Business Association.
We promise to provide a one-stop service for launching a local purchase office and ensure strong support from other fields like logistics, finance, communications and e-commerce. We also supervise suppliers' behavior to protect intellectual property rights and to avoid counterfeiting of parts.
We will help you reach quality Chinese suppliers to improve your lasting competitive strengths. Ningbo International Auto Mall is now offering sales and rental space.
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