Hidden Opportunities for All Players Behind Low Volumetric Demand for Finished Lubricants, Observes Kline

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Hidden Opportunities for All Players Behind Low Volumetric Demand for Finished Lubricants, Observes Kline

Parsippany, NJ – Finding opportunities in the global finished lubricants industry is becoming increasingly challenging as volumetric demand growth in many of the leading countries has been flat as Kline’s Global Lubricants: Market Analysis and Assessment report shows. This market situation asks for an aggressive plan when all marketers must watch for the far-out signals. Savvy marketers can then decode these signals into an actionable plan to grow lubricants sales and market share for years to come.

“For example, new vehicle sales and an evolving vehicle parc in markets such as India, Indonesia, and Thailand drive volumetric PCMO demand, while a continuing shift to synthetics in the United States and Canada suppress volumetric growth, but boost revenues and opportunities for suppliers,” comments George Morvey, Industry Manager in Kline’s Energy Practice. “These trends are filled with clues about where and how to place your products, marketing strategy, and sales efforts.”

“An evolving parc in India can mean a shift from 2-wheelers to passenger vehicles, more lower viscosity grade PCMOS, such as 5Ws and 0Ws, growth in the franchised workshop channel during the warranty period, and opportunities in the independent workshop channel post warranty. Even in the 2-wheeler parc, vehicle demand is growing in the scooter segment, with OEMs targeting female and elderly owners,” observes Morvey. “Does¬† your product portfolio and market message resonate with this class of customer? Could a fresh strategy and approach to scooter engine oil sales create a new sales channel for your brand? What impact will alternative-fueled vehicles have on demand for automotive lubricants?”

Smaller local brands and large multinationals alike must be watching for such clues in order to grow their business. In terms overall, global supplier rankings remain fairly stable in i2016. Having just successfully celebrated its first decade as the leading global supplier of finished automotive and industrial lubricants, Shell begins its journey once again in the #1 position in 2016, followed by ExxonMobil and BP.

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