4S shop is not the only choice for car sales

At this global auto forum, various new phenomena and new trends in the Chinese auto market have become hot topics for the guests. In recent years, domestic joint-venture car companies have launched second-hand car brands, and the potential displayed by the used car market has aroused the attention of the guests. After several years of tentative expansion, the independent road has become a The general consensus of the participating guests, but the lag in the after-sales service network and the vicious price slaughter caused by homogenized products have become problems that need to be solved in the process of expanding overseas markets; with the increasing scarcity of land resources, the cost of building 4S shops The high, 4S shop is the only choice of car sales model also sparked heated discussions of the guests. These issues are directly related to the interests of manufacturers and consumers, and will greatly affect the direction of the Chinese automobile market in the next decade.

The cost of the 4S shop is too high The controversy over the high-speed China's auto market has been on a two-year drive. This year, the Chinese auto market has come to a big brake. Different types of car dealers face different living conditions in this cold winter: the luxury car brand is not affected, queuing Such as the increase in the price of cars to luxury car dealers flies quite moist, but many joint venture brands are feeling pressure, their own brands is more difficult, selling cars lose money, not selling cars lose money ... ...

In the current market environment, the pros and cons of the 4S shop car sales model have become the focus of the guests hot discussion. 4S stores have been franchised by manufacturers and have professional assessments and certifications from manufacturers. As a result, they have guaranteed the brand and quality of goods and services provided by consumers. However, with the advancement of urbanization in China, land resources are increasingly scarce and expensive. In particular, the continuous downturn in the auto market this year has made the high construction costs and operating expenses of 4S stores subject to extreme pressure on dealers. Is 4S shop the only choice for car sales? Can different levels of cars try different sales models? The guests of the forum heated their speeches and expressed their own opinions, which brought us more inspiration.

Dong Haiyang, deputy general manager of Beijing Automotive Group, said that the 4S model is a relatively expensive distribution model, it will become one of many options, not all. For luxury brands, Dong Haiyang believes that the current single 4S model can also support, but always build repair shops in luxury commercial areas is a waste of resources, not in line with economic laws. Perhaps for luxury cars, the future direction is a business district characterized by customer rights. For example, this person likes to buy Aston. Martin, who also likes Chinese mahogany furniture, is a shopping district that consists of such elements as food, clothing, housing, even yachts, and even aircraft clubs.

“The cost of constructing 4S shops at every turn is extremely abnormal.” For dealers, the independent brand Lifan Automobile Chairman Yin Mingshan deeply feels that he believes that in the third or fourth line of small cities or even county-level markets, 2S The rise of 3S stores and hypermarkets will become inevitable. In these suburban counties in Chengdu Shuangliu, hypermarkets can also be used as an attempt. Dong Haiyang, deputy general manager of BAIC Group, also believes that as the market sinks and township construction accelerates, the hypermarket model and online shopping model will become an option for the following A-class models. Due to the scarcity of land, small brands will be forced to accept the mixed hypermarket form.

For the rise of hypermarkets, some guests expressed disagreements. Feng Xingya, deputy general manager of GAC Toyota, said that only through franchise authorization, after the manufacturers certification and assessment evaluation, such distributors can rest assured that he will be able to sell qualified products in order to provide consumers with reassuring services. There are differences in the trust between buying a car from a hypermarket and buying a car from a sales shop.

The road for overseas brands to expand overseas is due to the fact that the domestic market has been firmly dominated by joint venture brands, and the price advantage that independent brands rely on has also gradually disappeared as the price range of joint venture brands continues to decline. The use of overseas markets to break through has become increasingly important. The more independent brand choices. Asia, Africa and Latin America have a vast market space for the development of industries that are poor, automobile consumption has just emerged, and consumer demand for brands has not been high. This has brought many opportunities for independent brands.

In recent years, Chery, Jianghuai, Lifan and other independent brands have made great strides in overseas markets and their achievements have been widely recognized. Chery’s overseas exports in the first three quarters of this year have completed its annual export targets, and Lifan’s overseas sales also accounted for 55% of total sales.

Yin Mingshan, chairman of Lifan Motors, frankly stated that foreign sales profit margins are higher than those in China. Going out is inevitable, but the pace of progress must be steady. In the process of expanding overseas markets, Lifan will increase investment in branding and technology to increase the bargaining power of brands and reduce the dependence on foreign technology. Lu Jianhui, deputy general manager of Chery Automobile, said that Chery invested 500 million U.S. dollars in Brazil and established a wholly-owned Chery subsidiary with an annual output of 150,000 cars. Zuo Yanan, chairman of Jianghuai Automobile, also said that JAC will continue to build its plant in Brazil.

In the overseas expansion of self-owned brands, the extensive delay in taking orders, selling products, lagging after-sales service networks, and homogenizing products has become a pressing problem in the process of expanding overseas markets. In addition, the technical barriers in developed countries, tariff barriers in developing countries, and policy restrictions also hinder the overseas road of independent brands. Regarding how to get rid of the relatively passive export of self-owned brands, Zuo Yan'an stated that export must be flexible and follow the rules. Brands can not grow in a short time. Must be based on the pursuit of quality, through the promotion of product power to support marketing power; brand marketing power at the same time supporting the marketing power of the product, while supporting brand power. When the company's technology and brand can negotiate, they can participate in this market competition.

The second-hand car and car rental market are still in their infancy. Last month, GAC Toyota launched the “Hearty Used Car” brand, which added a new member to the domestic brand used car fleet. Prior to this, several joint venture car companies launched Used car brands such as FAW Toyota's "Confidential Used Cars", GAC Honda's "Joyed Used Cars", Dongfeng Citroen's "Longxin Used Cars" and Shanghai GM's "Chengxin Used Cars".

With the advancement of consumer attitudes, the preserving value of used cars and the convenience of car rental have been increasingly valued by ordinary consumers. The adverse market trend of the SUV market shows that early car buyers have already reached the stage of upgrading the car, a large number of used cars are waiting for the market to digest; from buying a car is a symbol of status to pay attention to the practicality of travel, the rationality of consumption concept makes the used car high The hedge rate highlights value. Different from the real estate's living value and investment value, the diversity and loss of automobiles make it become more and more consumers' choices in the next two to three years. Car lovers who are keen to drive by themselves have also increasingly found that self-driving tour, especially remote self-driving, is a great loss to the car, and the cost of maintenance and use is also very high. It is much more convenient to choose a rental car.

In the mature automobile consumption regions such as Europe and America, the used car and rental car market has been operating for many years, the market is developed, and there is a stable business model, and the domestic industry is still in its infancy. Professor Di Ruipeng of Tsinghua University's School of Economics and Management said that from the perspective of buying models, many US buyers choose to rent a car instead of buying a car, and our car rental market is not yet very developed. This piece has great potential. Dong Wenci, general manager of Wei Wenqing, believes that the use of certified used cars and related extended business is an important driving factor in the current automotive market.

“The demand for cars is not just a demand for new cars,” said renowned British academic Professor Garel Rhys. In the US and European markets, only 20% of the total car ownership is new cars, and the remaining 80% are used cars. In the developed countries, the average automobile age is 15 years, and changing a car every two and a half years is the norm. This means that a consumer can drive five or six different cars. If a consumer only buys a new car, he will never get a car. The market is only one-fifth of what it is today. Therefore, paying attention to and promoting the development of the used car market is conducive to the growth of the entire automotive industry.