Since 2004, China's lubricants market has entered a period of more than ten years of rapid development, which is the "Lubricant 1.0 era." Nowadays, with the changes in the economic environment and the maturity of the market, the lubricants market has also entered the "Lubricants 2.0 era" with brands, services, and technology. In the new “Lubricant 2.0 eraâ€, people also hope that China's lubricants market will usher in a new era of quantity to quality breakthrough. In addition to the factors of changes in the economic environment, technological progress is also an important factor in pushing the lubricants market into a new era: With the dramatic increase in the quality of lubricants, the frequency of oil changes has been greatly reduced compared to the past, which has also led to a reduction in total market demand. . In such an environment, companies that rely on price advantage to dominate the market will face greater pressure for survival, and companies with core technologies will be more able to survive: Even though the frequency of replacement of lubricants in factories and companies and even the automotive industry is getting lower and lower. However, people are more likely to see China's high-quality lubricants including high-precision technology products and high-end equipment manufacturing such as Shenzhou spaceships and oceanic polar survey ships. High-quality lubricants, while ensuring that high-quality companies get enough profits, also allow these lubricants have the ability to look to the international market. Taking Great Wall Lubricants as an example, in 2013, Great Wall Lubricants invested in factories in Singapore and realized a new international expansion model of “overseas production and overseas salesâ€. Today, Great Wall Lubricants has established oil supply outlets in more than 60 ports in 20 countries. Its products and services cover more than 50 countries and regions in the world and its annual growth rate exceeds 50%. With the development of the "Belt and Road" development strategy, there will be more and more Chinese lubricant companies moving toward a broader global market. The brand new "Lubricant 2.0 era" holds the dream of every industry practitioner, and it also bred the desire and breakthrough of China's lubricant industry.
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Great Wall Lubricants
Entering the 2.0 Era, China's Lubricant Market Demand Increases Year by Year
In 2016, the Chinese lubricants market remained relatively stable and the industry was already in a clear adjustment period. Here, the author visited the China Lubricant Market leading company, Sinopec Great Wall Lubricants, and learned during the talks that the total demand for China's lubricants market was about 5 million tons in 2016, a slight drop from 15 years ago. The industry has entered a clear adjustment period. Lu Jian, chief marketing officer of Lubricant Industry at Sinopec Great Wall Lubricants, said that as China enters the “new normal economy,†emerging industries have a relatively limited ability to drive the lubricant industry, and a slight decline in overall market demand will continue for some time. . Despite this, Xu Jian is still optimistic about the future of the lubricants industry: He believes that China's lubricant companies already have world-class technology and market development capabilities. Those powerful lubricant companies can lead the lube industry into a new “2.0 era†by making higher profits in the high-end market.