Inspirational Leadership and Future Growth Potentiality Focusing on Vertical Market Expansion, Distribution Channel Optimization, Higher Transparency, and Procurement Flexibility
Tuhu is a leading service aggregator in the Chinese automotive aftermarket. It has developed a vertical value chain, by interconnecting domestic and international automotive parts manufacturers, distributors, small and medium aftermarket workshops, and consumers - moving from online sales involvement to offline service presence.
In 2019, the registered users of Tuhu accounted for 21.7% of the private passenger vehicles in operation, equivalent to 45 million people. With direct operation and cooperation structures, more than 14,000 Tuhu’s workshops are operating in 405 cities in China.
Tuhu is highly concentrated on the tire business. It provides a variety of brand choices, through direct supply or authorized cooperation. Brands include Bridgestone, Chaoyang, Continental, Dunlop, Giti, Goodyear, Hankook, Kumho, Linglong, Maxxis, Michelin, and Yokohama, among others. It also provides 1-year tire insurance (without additional charges) and unlimited free nitrogen filling services.
The main sources of revenue include: commissions from automotive parts procurement (ranging from 5-40%) and franchise fee from cooperative workshops. Automotive parts procurement includes supplying automotive parts directly to the workshops and end-users. Franchise set-up cost includes comprehensive technical and software supports.
Tuhu aims to further focus on authentic assurance and greater transparency, such as a full chain traceability system for automotive parts. Consumers can check the status of their shipment in the entire process - from factory production to terminal consumption. Tuhu will further penetrate offline retailing, with a special flagship store of leading automotive parts brands.
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Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Tuhu
