[Editor’s note] from July 1, the new “Car sales management approach” landing implementation of the New Deal, sales of motor vehicles are no longer required to obtain authorization Car brands, Auto consumption market has become more open, no doubt, which for the healthy development of Automobile consumption industry, Is a positive. Under the policy-induced, Automotive after-market Is likely to usher in a reshuffle.
December 14 Thursday afternoon, the California-billion euros Will be held in the United States Grand Hotel “201.9 billion Annual Meeting of the European Innovation Summit Automotive after-market”, the market Will then line service, product innovation, mode expansion, profit (realized) capacity, investment and financing primary market dynamics, fusion of industrial and other topics, and work with the industry to share large coffee exchange, welcome everyone’s attention!
Previously, under the traditional brand licensing system to the brand of 4S stores as the main body of the traditional Car market, a certain degree of monopoly and rigid. Poor service on Auto 4S shop, the price of opaque incident came to light after another, simply run a certain brand, leading to low efficiency and high cost of malpractice, user experience and service levels can not meet modern consumer demand.
reshuffle on the eve of
the face of the dividend policy, the traditional 4S shop as the main Automobile market Will usher in a period of change the industry, more retailers and commercial enterprIses, plans to join the Car consumer force, to seize market share.
January 2016, Suning announced a comprehensive strategic cooperation and joint electric, for the first time the electric Car introduced home appliance chain stores, and implementing the concept of “electric Car Is big appliances”, Carried out a major exploration in the sales channel . Coincidentally, close to the end of 2016, Gome stores next line Will be changed to “Car + household appliances,” the integrated store model, and the United States original online Car center has been expanded for the Automotive divIsion, previously planned in January 2019 prior to most of its 1,700 stores (included Dazhong Electronics) stores, all transformed into one Car showroom, layout began selling electric vehicles.
traditional 4S shop dealers Will be the impact?
from the system since the introduction of 4S sales, Car dealer has been in the United States of “brainwashing” Education OEMs, the sales volume as a top priority, even more dealers to sell Cars only know that, ignoring the construction work on sustainable profitability, in order to “sales Is king”The “guiding spirit” under the guidance of, and often make decIsions contrary to the nature of the business. Unknowingly, became OEMs “puppet puppet” and eventually loss of independence, no more time and effort to optimize the management, and thus mIssed the opportunity to explore a lot of profit, let alone to promote their own brand.
“The US Auto brand satIsfaction survey” The report shows that more than 80 percent thIs year, Car dealers face shortage of funds, operational difficulties of pressure, 43% of dealers face death in the face funding strand breaks.
In addition to the current status of “World Car” of the industry, competition in the future OEMs must be white-hot situation, many OEMs are becoming increasingly terminal layout in their store experience, further squeeze the living space 4S system.
at + Internet era, the emergence of various roadside shop and on-site maintenance of O2O, to provide consumers with a variety of choices. From both sides Gome, Suning point of view, the United States Will define their own Car for a new Car dealer management companies, by enabling the platform in the form of the exIsting sales system, the system Will shift up, in addition to the United States as a Car online platform also Carrying the functions of supply chain management. Suning Is mainly relying on safe Car steward, to create a one-stop Automotive ecosystem and Automotive service outlets in the O2O mode.
The main way for now, both sides obtain the source of the Car Is still with dIstributors, sales commIssion charged rent and vehicles, the integration of exIsting resources allocated to the respective sales network to sell, though, outsiders still in the stage and knock, yet deep inside, stir the competitive landscape of the industry. But change channels, diversified sales model across the board.
Internet Car finance may not be the way out
In the Automotive industry, commercial chain, OEMs always occupy a strong position. Car business model Is the production of Automotive OEMs, and then handed over to 4s shops and Car dealers as sales channels to the user. OEMs always grasp the strong control of the channel, and thus are often reluctant to provide the Car source in direct competition with Auto electronic business platform. In a time not only to OEMs trend has become increasingly evident in the aid of their exIsting channels 4S shop to expand the line at the electricity supplier, electricity supplier website to expand down, the future of the Automotive industry variables Will increase.
Suning has said that the layout of Car sales, its main advantage Is the Auto finance and O2Omode. Suning Car in the supermarket to buy new and used vehicles are to be paid by the counter Suning, Suning’s financial holding with a Willful pay, you can open up the flow of vehicle and Car hire products to consumers online and offline. At the same time, in March 2019, the United States finance its Automotive financial services brand – the United States formally launched easy Car. In September, the United States finance the US has easy Car loan business has Carried out nearly 20 provinces, Inner Mongolia, Liaoning, Xinjiang, Ningxia, Henan, and Shaanxi.
Previously there are many intermediaries properties P2P platform, promIsed to reveal all the details for bad implementation of measures, which Is to attract investors and to relieve the worries of its strategy, but also the ability to protect the reputation of the rigid payment. But it also tested the platform’s own financial strength, once the bad debt ratio exceeds the red line, after the capital chain scIssion platform and customers Will suffer. In the first half
2019, the domestic Automobile financial sector generated a total of 18 pen financial financing more than 18 billion yuan, with the giants reached, thIs Is not a high penetration of financial markets more room for maneuver narrow, all involved in the 1093 Car loan business platform, the normal operation late last year, only 491, in other words, more than 55% of the players have been from out. Market size and push giants
one trillion of financial standing makes the Car cusp. But as more and more companies have joined, Auto finance slowly into the Red Sea, and its development has entered a bottleneck period, Gome, Suning thIs time choose to enter the Automotive finance, fear open to question.
the United States, the pace of Suning after the market needs to steady
According to the US industry Information Network released “2015– 2020, market research evaluation and development trends report after the American Car” in the domestic Auto market sales, the accessories accounted for 37% of manufacturers and 43%, 8% retail, services accounted for 12%. Domestic Auto sales in the manufacturer’s specific gravity Is still too large, while the share of services Is too small.
In addition to finance, leasing and other Automotive service needs to be strengthened, the Car service at least there are still nearly 10% upside.
from two business point of view, these were already outside arrives to knock bring significant impact to the traditional 4S channels, dealers and even some brands of a joint protest to protest the factory for online sales and other new channels and more on the price concessions, unfair.
On the other hand,According to statIstics by the end of 2016 “Car maintenance and driving” magazine, 48.7% of vehicle owners choose to do maintenance in accordance with the maintenance manual cycle. While the proportion of owners of vehicle maintenance as recommended period of 4S shop staff also reached 38.1%, indicating that most of the owners have developed a habit of regular maintenance. It Is worth noting that there are 62.1% of the 4S shop owners Will choose to do maintenance to the Car, which Is sufficient to reflect the consumption of large Cars such dependence transaction services sectors under the line, causing the outer arrives to knock those very difficult in a short time stir within the industry pattern, only slowly infiltrate.
Suning, Gome, we need to open channels of thinking, no need to rigidly adhere to treat thIs as a competitor of fixed ideas, through channel partners, sharing the platform the way the market after hundreds of thousands of service providers linked , thus breaking the state of each array.
Another feature Is that the Auto parts industry category complex products, each composed of a Car consIsts of tens of thousands of parts, and the multiplier effect of hundreds of Car models in dozens of Car brands Will be produced generate huge inventory, and once because the product information Is opaque, the homogenization of serious competition, millions of product categories Will make the whole industry stocks doubled.
cost of capital
occupied by a huge inventory, and stores the line rents, labor costs lead to high repair business operating costs. In order to maintain profit industry, Auto parts manufacturers, dIstributors and service providers on the one hand to be conservative with asymmetric information between each other, on the other hand fall into a price war among peers Is difficult to extricate themselves, and ultimately lead to the consequences terminal Car users more mIstrust.
one of the Internet’s core
Is standardized, from products to services, standardized processes, and thIs Is exactly what the pain points of traditional Automotive aftermarket. Car as a consumer durable goods, consumers are more likely to experience, but thIs time Suning and Gome advantage can play, but there are certain to promote sales.
When the dIspersion of supply and marketing are gradually integrated, can also form a brand, improve bargaining power, to help customers win more concessions space.
explore Suning, Gome, as the representative of the new Car sales channels should be encouraged in the future, the channel Will be moving in the direction of diversification, but it can not go through to the consumer but also can really belt to facilitate and concessions. Foreign Car sales in the side channelsThere are a lot of innovative faces, even lack of coin buyers, Car dealers and other innovative robot mode, but can eventually survive or depend on customer satIsfaction.