Completely change the "sales price difference" model, the new car retail

Abstract: In the era of new retail, the new chapter of Auto Internet+ started, and the hope of reform in the automobile circulation industry was once again ignited.

Image Source: Vision China

Once upon a time, the e-commerce model engulfed the Chinese consumer market, but it alone could not shake the foundation of the automobile circulation industry. The auto e-commerce experiment ended in a mass extinguishment.

While the automobile Internet+ road was in a chaotic state, in early 2017, the explosive car finance product “bounced a car” was born. This car financing lease product for C-end customers quickly swept the country, followed by various similar products. Such as springing up, this has opened a new chapter in the new era of car retail Internet +, and the transformation of the automobile circulation industry hopes to be ignited again.

The evolution of new retail automobile

For now, the new retail automobile path can be divided into two:

One is represented by auto consumption financial platforms such as “car bomb”, “big white car” and “new soybean” and uses financial leasing as a financial tool to intelligently package automobile retail sales into auto finance products so that they can efficiently realize those that pass online. Underlying multi-channel access to automotive professional traffic replaces low value-added transaction liquidity with high value-added financial liquidity. Since then, the attributes of these platforms are no longer based on e-commerce companies with retail transactions at their core. Financial companies with vehicles as their carrier (the new retail of automobiles is far more than just "retail").

Second, the platform dedicated to B-side supply chain services such as “car source service”, “supply chain financial service”, “car warehousing logistics service” and “off-line store service” (such as Suning Automobile Supermarket) “unprompted trial service” is Representatives have fully empowered the B-side customers of non-authorized automobile distribution channels (including the above-mentioned Internet car direct rental platforms, and second-line dealerships, etc.) to help these relatively weak market players to embark on the new automobile retail road and become The traditional authorized sales system is a powerful supplement.

The common business logic behind the evolutionary path

The above two roads appear to be similar to each other. the reason is:

The Internet car rental platform is based on finance, integrates socialized car supply chain resources, and efficiently realizes C-side traffic under the online and offline lines. It is a financial + supply chain + C-side traffic model.

The automotive supply chain service platform is based on supply chain services. It cuts into the auto supply chain financial scenario and efficiently realizes the B-side traffic on the online and offline lines. It is a "supply chain + financial + B-side traffic" model.

It can be seen that the core of the new retail automobile is a “two-wheel drive” model at either the C or B end, namely, supply chain service innovation and financial product innovation. This two-wheel drive model is that of the automobile e-commerce that has been annihilated. The fundamental difference is that the online flow element is the essence of the Internet economy. No matter whether it is e-commerce or new retail, the Internet economy cannot live without online traffic.

Four New Innovations at the C-end of New Automotive Retail

The mystery of the above-mentioned new retail "two-wheel drive" is mainly reflected in the following four aspects in the C-side Internet auto-rental model (After the B-side new retail gameplay, there is a special article analysis):

(1) Innovations in Source Channels

Car sources are the lifeline of players in the automobile circulation industry. The revolution of automobile circulation is primarily the reform of the car source channel. Under the rent-to-rent model, the platform adopts the collective procurement approach to the purchase of car sources in the name of the leasing company, effectively circumventing the internal resistance of the traditional licensing channel, and gaining the collective acquiescence and understanding of the “pro-son” 4S shop group of the host plant. The rental platform can purchase the same vehicle source as the 4S store, fundamentally solves the problem of unlicensed car sources, and promotes the host plant to actively relax the car source control under the premise of protecting the interests of the system. Hope came.

(2) Innovation in Automobile Warehousing Logistics

In the era of automotive e-commerce, China's auto warehousing logistics and other supply chain infrastructure is still lagging behind. Extremely limited auto warehousing logistics resources are concentrated in the traditional licensing channel system. Auto e-commerce providers often need to build auto warehousing logistics to respond to customers. The demand for car purchases is high and the efficiency is low.

However, China's automobile warehousing and logistics industry has made great progress, its socialization and openness have been significantly improved, and its service quality and volume have improved significantly. For example, long-term, good car sales and other auto supply chain service platforms have set up specialized sections for non-authorized entities. Provide specialized logistics warehousing services. Compared with the previous car e-commerce business, the Internet car direct rental platform has significantly reduced the cost of warehousing and logistics, and its supply efficiency has significantly increased.

(3) Innovations in offline retail stores

The car e-commerce business is struggling because it has no offline retail system. The new car retail platform often pays special attention to the offline retail store construction to complete the closed loop of automobile transactions. And, the offline retail stores in the new retail platform of the automobile are also different from the traditional 4S stores. They have made innovations in three aspects:

First, it has a powerful online traffic portal, which can accurately divert traffic to offline stores through Internet technologies such as big data, and dilute the average traffic cost of offline stores. Most of these new retail platforms for automobiles are linked with BAT and other traffic giants. Compared with traditional 4S stores, they have obvious advantages in traffic aggregation and transformation.

The second is offline store-opening strategy and 4S shop differentiation layout. 4S stores are mainly concentrated in the suburbs of first- and second-tier cities. Internet car direct-rent platforms choose to avoid their edges, and they are laid out in the city of 456, and in order to attract young people this target group, they often choose the cities in the 515 cities. The center opened the store to increase the exposure of the store and shorten the customer's perception of the service and brand.

The third is to significantly reduce the cost of opening stores. Unlike the 4S shop, the cost of opening a store is different from that of tens of millions. Internet car rental platforms often control the cost of building a store at 300,000. They do not display cars, do not set up maintenance plates, and give up luxury lounges, dining areas, and other services. Facilities, censorship is simple, just provide a customer to understand the comfortable environment of financial products. This store-opening strategy can greatly increase the rate of opening stores and quickly capture the target market (also self-built stores, Dabai Auto has built 175 stores in one quarter, and China Grand Dealer Group has established 691 stores in 15 years). .

In addition, it is worth noting that, along with the emergence of new types of auto retail finance such as the “Suning Auto Supermarket,” many internet car rental platforms do not necessarily need to build their own storefronts, and they can choose more convenient and efficient cooperation in building stores. The model drastically reduces the rent and operating costs of the shop, and it also enjoys the centralized introduction of the online and offline traffic on the Suning ecological line.

(4) Innovation in financial realization

The essence of the Internet economy lies in the use of Internet technologies to tap traffic resources as much as possible and realize efficient realization. Financial realisation is the top of the Internet economy because of its large scale, high efficiency and profitability.

The biggest advantage of new retailing over pure e-commerce and traditional offline retail is the reconstruction of the triangular relationship between “people, goods, and market”, which breaks the boundaries between online and offline consumption scenarios, and can instantly generate consumer demand for consumers. Timely delivery of intelligence. The combination of online and offline wisdom naturally leads to extremely rich consumption scenarios, which will stimulate more traffic and consumer demand. How to efficiently realize these stimulated traffic resources is the core of the new retail business model innovation.

Obviously, under the new auto retail scenario, financial liquidity is more efficient, profitable, and more scale than the auto-realization of advertisements in the era of Autocar (the most successful car internet business model as of now). Traditional 4S stores and other car retailers are selling cars that do not make money in the retail sales curse (the ratio of new car retail gross profit to car service is 3:7, see below).

Therefore, as a typical representative of the new retail business model in the automotive industry, the internet car rental platform has long been more than retail sales. It is an integrated automotive Internet service system with high value-added that integrates supply chain services and financial services. , which has revolutionized the retail business model of "selling cars to earn a price difference", and evolved into an efficient business model for the production of traffic and an efficient Internet cash flow. It evolved from B2C transactions to S2C (Service 2 Customer). .

Conclusion

With the rise of new automobile retail, in the near future, every car buyer can enjoy the world's most high-quality, convenient and affordable new car retail service. By that time, buying a car is as simple, casual, and agreeable as buying a mobile phone.

Well, as a super car, I hope that the day will arrive sooner.

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