New marketing channels, changes in the OEM industries, new trends and challenges the lubes industry is facing currently. Pavel Kirichenko, Director of Industrial Development from Obninskorgsintez, shared his opinion about changes in the Russian lubes market.
Our professional approach to work means that we seek professional advice on market analysis. I mean, among others, GFK analytics of the consumer market and PRI reports for B2B.
According to their data as well as our own sales figures, the consumer market is now more and more focussed on vehicle service stations and lube bays rather than on small shops and outlets.
his is particularly true in large cities that are our main market for motor oils. The transformation in motor oils is about a pronounced increase in demand for 5W-40 and 5W-30 viscosity products whereas customers are turning away from 10W-40 and mineral oils are a thing of the past. The consumer market has shifted towards synthetic oils. The same trend is observed in B2B.
While the Russian OEMs are keeping up with the global environmental requirements, the rate of vehicle fleet rejuvenation exceeds all expectations and foreign carmakers invest significantly in localizing their production in Russia which is becoming a significant driver of technical modernization of the B2B market in Russia.
Besides, a number of industries can use but high-tech synthetic oils because of the climate. Most miners and processors are located in harsh climate areas of Russia and it rules out the use of mineral oils to avoid risks of vehicle breakdowns. We have market offers for these cases too.
As far as a new market and strategy development go, Internet is definitely the future. We are introducing innovative services that allow any online buyer to place an order with a delivery to a place and at a time of their choice, to track their shipment, to earn promotion bonuses that can be used for future purchases, and more.
Let’s take the channel of vehicle service stations – we have started so-called investment programmes there.
It means that we conclude agreements, whereby the stations that assure stable sales of our lubricants and process fluids to the end consumer receives from us, guaranteed investment in their development, from designing corporate identity to set up a centralized motor oil station. The same is due to be implemented in B2B in the longer term.
We offer our B2B end customers controlled operation services for vehicles that use our oils and process liquids. We engage an independent research laboratory as an arbitrator and use their objective evidence to provide the customer with the final performance report detailing the criteria for evaluating both oil performance and vehicle condition.
In the long term, we plan to supplement these analytical studies of lubricant performance under controlled operation service with endoscopy of mechanical components which will allow for improved evaluation of the lubricant performance in a particular component.
Director of Industrial Development
will present a case study of the independent lubricants manufacturer in producing high-quality oils at CIS Base Oils and Lubricants in Moscow
April 25, 2019