Why does Yuefu Petrochemical display Sinopec's signage?

[LaTaylor]

It is simply because the two gas stations are located together, and their signs are also placed together. The following are the differences between Yuefu Petrochemical and Sinopec: 1. Different brand qualifications: Yuefu Petrochemical is a private gas station; China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group restructured and established by the state in July 1998 on the basis of the former China Petrochemical Corporation. It is a state-owned company solely established by the state. Sinopec is a well-known state-owned gas station. 2. Different network scales: Yuefu Petrochemical's network coverage is only distributed in the Nanjing area of Jiangsu Province, while Sinopec basically has outlets all over the country.

[Saul]

I used to work at a gas station and saw many private brands like Yuefu Petrochemical displaying Sinopec's logo. This franchise cooperation model is quite common in the petroleum industry, where franchisees pay to use Sinopec's established brand image. After all, Sinopec is synonymous with reliable fuel quality in people's minds, and displaying this logo can help alleviate customers' concerns. As a seasoned veteran in the automotive industry, I advise car owners to pay attention to the actual operator of the gas station. I've seen many car owners mistakenly believe they're fueling up at a state-owned direct-operated station when it's actually a franchise. While these private stations may source their fuel from the same channels as Sinopec, there can still be differences in management standards and promotional activities, so it's worth comparing carefully.

[DiHarmony]

I remember last year when driving to northern Jiangsu for a trip, I was quite puzzled to see Yuefu Petrochemical displaying Sinopec's signage. Later, after checking some information, I realized this was a win-win collaboration. Sinopec rapidly expanded its network coverage through brand licensing, while for private enterprises like Yuefu, aligning with a major brand allowed them to bypass the challenging phase of building brand recognition and directly gain consumer trust premium. Although all these stations bear the Sinopec logo, each franchise station has different fuel transportation costs and operational strategies, resulting in more significant price fluctuations compared to directly-operated stations. Among us drivers, we've noticed through regular exchanges that these franchise stations offer more flexible discount periods and deeper holiday price cuts.

[Ophelia]

Having been in the automotive maintenance industry for so many years, I've come across numerous cases of oil supply and distribution. Operations like Yuefu Petrochemical's franchise partnership with Sinopec are essentially brand licensing business models. On the supply chain front end, franchise stations can share Sinopec's warehousing and transportation systems; on the back end, they save on independent marketing costs. Although trademark usage rights require franchise fees, when calculated, it's much more cost-effective than creating an independent brand. Ordinary car owners primarily focus on two things when refueling: fuel quality and price. The advantage of franchise stations lies in their ability to guarantee basic standards of fuel sources while having greater room for price negotiation compared to directly operated stations.