Shell Lubricants "bets" the Chinese market to impact domestic brands

Wu Ruizhen, vice president of business fuel oil and lubricants business of Shell Asia Pacific/Middle East Region, said in an interview with reporters on December 7, 2011: “Traffic jams and flight delays indicate that there are more and more Chinese automobiles and civil aviation aircraft, and more and more ships I am very confident about the prospects of China's lubricants market."

Shell has already regarded China as the key region for the company's business growth and competition. “China will be the growth engine for the lubricants industry in the Asia Pacific region. We expect that the demand for lubricants in the Chinese market will increase by 5% per year from 2010 to 2020,” Wu Ruizhen said.

Wu Ruizhen introduced that Shell’s share in the Chinese market is 8%, which is inferior to China’s Kunlun lubricants and Great Wall lubricants. The current market share has increased 10 times compared with the market share in 1999. In the future, Shell will compete fiercely in the Chinese market with Kunlun Lubricants and Great Wall Lubricants.

"Although China's Great Wall and Kunlun Lubricants are deeply entrenched" and are the consumer's preferred brand, it is still difficult for Shell to shake up their position. However, in the long run, the future may create a three-footed competitive landscape." Sun Kai, Analyst Analyst, China At present, Kunlun and Great Wall lubricants account for 60% of the Chinese market, and Shell and some international lubricants account for 20%. Shell Lubricants will have further actions and will have an impact on Chinese domestic brands Kunlun and Great Wall Lubricants.

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