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Market Research on the A/C Line Industry in China

Client profile

Our client is a multinational manufacturer and supplier of fluid handling systems, high-pressure die castings and industrial heat exchangers to OEMs and Tier 1 suppliers. The company has manufacturing, engineering, R&D, and customer support centres in the US, Canada, Mexico, Europe and China with a large team of over 4000 employees covering 8 countries.

Objective

They reached out to Daxue Consulting to gain an in-depth understanding of the A/C line market and competitive environment as well as gain insights of OEMs & Tier 1s’ procurement expectations and requirements.

We focused on three key elements:

  • understanding of the market environment and structure
  • tier 2s’ sales and distribution strategy towards tier 1s’ and OEMs
  • OEMs and tier 1s’ procurement expectations and requirements.

Research process & methodology

Our research was divided into three steps:

Step 1: Market overview

Step 2: Competitors Benchmarking

Step 3: OEMs & Tier-1 suppliers’ expectations and procurement requirements

Our first step was centred around estimating market size, growth, trends and dynamics and segmenting the A/C lines by classification and application. We also identified potential market barriers and limitations.

We carried out research and 5 market insiders in-depth interviews to map the key market players, and analyse their competitive advantages, distribution and sales strategies. We also qualified key selection criteria and satisfaction points of OEMs & Tier-1 suppliers.

We used the same methods as in step two, this time to identify key market players’ regularly purchased A/C lines and related products and estimate their procurement volume. We also qualified their procurement expectations and requirements and application trends of current fluid pipelines on fuel and electronic vehicles.

Outcome

Our key findings, apart from an extensive market overview, included the identification of key opportunities for our client, and recommendations for the next steps in the Chinese market.