China : Alliances create power

These national flagships are at the heart of the system, from parts suppliers to the workshop and right through to the loyal customer via multiple services just a click away. These marketplaces will seek strategic alliances with manufacturers, equipment suppliers, etc., to anchor themselves even more deeply at the heart of the needs of a customer who has become addicted. Here is a quick overview with two examples...

Created in 2018, the Chinese flagship Tmall Autocare is itself an example of multiple collaborations: Firstly, Tmall is a joint venture between the web giant Alibaba and the parts leader Carzone.This pure player has 2,000garages under its Tmall Autocare brand and more than one million customers in 30 provinces and more than 300 Chinese cities spread across the country. This basis gives it wings to forage with other equally powerful players, ensuring unparalleled visibility and a dominant position. Among these collaborations is the XPeng Motors vehicle brand. In 2022, Tmall Autocare created the first XPeng-Tmall Autocare service centre in Huanggang, Hunan province. Tmall Autocare aims to provide a range of comprehensive services beyond maintenance and repair. In 2022, it also joined forces with TELD, a manufacturer of charging stations (3.7million terminals in 350 cities in China). Tmall Autocare centres now offer battery analysis, recharge services, and other after-sales services. In early 2023, its owner Alibaba even entered in to an agreement with the Chinese oil group Sinopec to open comprehensive service centres nationwide, combining service stations and key repairs called “Tmall Autocare ejoy Autocare.” 

Founded in 2011 in Shanghai, the Tuhu marketplace boasts more than 100,000 references across 40 logistics centres, providing delivery services in 302 cities. The platform has a network of 5,000 franchised workshops, 20,000 independent partners, and has amassed 100 million registered users, with an average of 10.2 million monthly active users. Tuhu’s turnover reached close to $890 billion, marking a 19% increase in the first half of 2023 compared to the previous year, with a net profit of $29 million. At the core of its concept are spare parts and various services accessible through its application. With a simple click, customers can purchase parts online and schedule an appointment at the Tuhu counter, situated within the partner workshop, where the fitting is carried out. It’s worth noting that, until recently, the policy involved delivering the part invoiced online directly to the repairer, who only charged for the labour. To attract new members, marketplaces like Tuhu share parts turnover with their partners. Tuhu has also entered into collaborations with manufacturers of parts for electric vehicles. In September 2023, Tuhu initiated an IPO on the Hong Kong stock exchange, aiming to raise up to $150 million!

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