Address: 1, Zhenxing North Road, Tanzhou Town, Zhongshan City
A few days ago, Wang Zhengyin, a member of the Guangdong Provincial Committee of the Chinese People's Political Consultative Conference, proposed to break the monopoly of automobile 4S stores from the legal level, and received a reply from the Provincial Industry and Commerce Bureau: Guangdong will recruit 4S stores. The auto market is sluggish and the growth rate is declining. Some people cannot afford to buy a car, while others cannot sell a car. The contradiction between manufacturers and dealers is constantly intensifying. The quality is declining, the price war is endless, and the market is severe. Trust in dealers.
Will the dealer model currently dominated by 4S stores change accordingly to adapt to the new situation in the automotive market? In the light of the market, how to fight the dealers in the front line of sales to reflect on the road at the foot? In response, the reporter conducted a survey on various automobile sales models that may appear now and in the future.
Mode 1: Take 4S shop mode as the core
The current situation of China's auto market is a seller's market in short supply, that is to say, production enterprises have a stronger right to speak, while dealers and consumers are in a subsidiary position, and the distribution model is based on the core interests of production enterprise brands and interests.
This business model of 4S shop has been in China for more than ten years. More than ten years ago, in order to establish a brand, automobile manufacturers vigorously supported the 4S shop model. Therefore, 4S shops have grown from small to large, weak to strong, and few to many. To date, there are six or seven thousand 4S stores across the country. According to incomplete statistics, there are nearly 400 in Guangzhou alone. However, in the context of the rapid development of China's automobile market, the 4S store sales model that has undergone unconventional development for more than ten years has begun to reveal various drawbacks.
Li: Brand and after-sale protection
As far as pre-sales are concerned, brand certification 4S stores are subject to franchise authorization and factory certification assessment. The products sold by such dealers are reassuring to consumers. The services and values included are even trusted by other general auto stores. Difference.
Some people say that the advantages of 4S stores are in equipment, and the disadvantages are in price. In a word, the obvious advantages of the 4S store model in the after-sales market of automobile repair and maintenance are its main advantages. , Ternary catalytic cleaning agent and other maintenance equipment manufacturers cooperation and technical support.
Many consumers have tolerated the relatively high repair and maintenance prices and insisted on choosing 4S stores for the reason that their “pure original accessories, technical personnel professionalism, hardware facilities, one-stop after-sales service” and other private small repair shops are unmatched. Traits.
In addition, the repaired parts of the 4S store are guaranteed for one year or 20,000 kilometers (more for individual brands), which is also an element that allows consumers to choose with confidence.
Disadvantages: maintenance price is too "pit father"
The cost of building a store is high, and it has covered up its shortcomings in the rapidly growing buyer market of the auto market. Once the car market is down, this kind of abuse is exposed. For dealers, the manufacturer does not discuss the task at all. If you say rewards, you will be rewarded. If you are punished, you will be punished.
In terms of the relationship between consumers and 4S stores, consumers are still disadvantaged. In the face of powerful 4S stores, many consumers choose to remain silent after losing money. Even complaints are mostly lost. 15 is the peak of the problem outbreak, and most of the dissatisfaction comes mainly from two aspects-maintenance and car prices.
"Light service, heavy sales" has become the crux of the 4S shop. The quality of repairs is not enough, the price of parts is too high, the quality of professional personnel is not high, and the unstable team constitutes the main part of the after-sales complaint. The unstable system is another major focus of consumer complaints.
Discussion: Cancel 4S shop model
Feasibility parameter: 20%
Under the current market conditions, this existing dealer model is difficult to fundamentally change. There are two obstacles: First, the "Brand Sales Management Measures" formulated by the Ministry of Commerce basically restricts the distribution system. This system gives the production company a monopoly position, and all business activities of distributors are regulated by the production company. No size ", dealers simply have no room for their own commercial capabilities.
If you want to get rid of the current dealer system, you must revise the regulations on the relationship between automobile manufacturers and dealers in the brand management measures. For example, whether it is qualified to distribute automotive products is no longer the responsibility of the manufacturer, but the third party or the competent authority. Once this qualification is obtained, it can distribute any brand of automotive products.
However, judging from the current supply and demand situation in the automobile market, even if the brand management method is changed, it is difficult for dealers to obtain a more independent status. This is because whether the dealer model has changed or not is related to the market supply and demand relationship.
The second is the brand management method, which is a man-made rule, so there is still the possibility of change, but the market supply and demand is not shifted by the will of the person. The position of the dealer and the production company changes, and we can only wait for the market Changes in the situation.
Mode 2: Auto hypermarket
Automobile hypermarkets are not really new concepts. Racetrack Automobile City, South China Automobile Trade, Guangwu Automobile Automobile City, Nanling Automobile City, etc. can all be regarded as very typical auto hypermarkets, which can accommodate multiple car brands and many 4S stores. Dwell in or accompany it.
Drilling sales channels is the general trend of brand sales, but the model selection is worth considering. The sales volume of a single brand in small and medium-sized cities cannot reach the scale of corresponding 4S stores. If there are no 4S stores in large and medium-sized cities nearby, these small and medium-sized cities will become a blind spot in the market. Under the trend of increasing saturation of large and medium-sized cities, car companies will undoubtedly not give up these markets, but the cost of building stores is too large. Manufacturers urgently need a relatively low-cost sales model, and the form of hypermarkets has emerged.
Profit: reduce operating costs
Because there is no need for an independent business site, the property cost and human resources with land as the main body are controlled, and the average selling cost of a single brand and car is significantly lower than that of 4S stores. This is most obvious in changing the status of OEMs and dealers. The volume, monthly car volume, rebate points and subsidies are all more advantageous than a single 4S store. Some local dealers told reporters that holding more brands in their hands will have more conditions to "speak" with the OEM, market competition The downforce will be relatively small.
As the strength of auto dealers continues to increase, the number of auto dealer groups that represent multiple brands is increasing, and auto hypermarkets will also become a new model that auto dealer groups pay more attention to.
For consumers, the convenience of purchasing models is enhanced. Competing models of the same level may be where they are encountered on the left and right hands respectively. There is no need to compare the south and north of the city and the car and Marlton, and large groups usually have a higher reputation. Degree, have a relatively high protection before and after sale.
Disadvantages: high capital operation requirements
Under the current situation of "one inch of land and one inch of gold" in first- and second-tier cities, dealers often find it difficult to find "favorable" locations for laying outlets or even large-scale stores. Guangwu Group and Heli Group started to develop new outlet layouts in Lishui, Foshan last year, Nanling Group focused on the development of Shenzhen, Dongguan and Huidong areas, and Meilun Automobile also built a brand new automobile city in Zhaoqing earlier this year , "Going out" has become the only way for dealers to expand their location.
After finding the right place is the real test of strength, need to know where there is no strength to dare to drop such a large plate. Last year, it was revealed that Foshan Kia brand dealers lost funds in their entire auto brand stores due to real estate project losses, and the boss ran away from money. Therefore, there are more than 20 brands operating hypermarkets to dealers ’capital operation ability and operation ability. , Cost control has very high requirements.
Discussion: Development hypermarket
Feasibility parameter: 80%
It cannot be said that the car hypermarket is the retrogression of the 4S shop model. It can only be said which is more suitable for a particular consumer and which is more in line with the cost and effect considerations of the merchant's specific sales behavior. The choice of model is suitable for time, place and sales target. If you need to build a hypermarket, you need to build a hypermarket. You need to build 2S and 3S.
Mode 3: 3S, 2S and other branch systems
When the growth of the domestic automobile market is dominated by the shift from southeast coastal and first-tier cities to second- and third-tier and western cities, this high-cost 4S model is also not suitable.
In the past two years, many car companies have begun to promote 3S, 2S and other franchise stores to meet the downward demand of the channel. Therefore, under the franchise agent, 4S dominates and multiple models start to coexist. FAW Toyota was the earliest manufacturer to open a branch model. Two distributors in Guangzhou are brewing to explore channels to build branches and share sales tasks.
Profit: Reduce high cost of building a store
Now the change of the channel model of China's auto industry has indeed reduced the cost of the intermediate links of automobile transactions, thereby reducing the amortization of the intermediate links in the transaction price. 3S and 2S, which are less invested than 4S, are indeed more in line with this trend of the downward development of China's auto market.
For the current car market, the essence of channel reform is not only to reduce the cost of intermediate links, but also to transfer the channel dominance from car companies to the market.
Disadvantages: still dominated by manufacturers
Whether it is 4S, 3S, or a secondary dealer authorized by the manufacturer, it is actually a franchise store that is authorized by the manufacturer to sell. For these franchise stores, from construction to operation, it is completely manufacturer-led.
Discussion: Cancel the branch system
Feasibility parameter: 90%
The root of manufacturers' leading sales channels lies in the fact that brand management methods are caused by policies. As the auto market is changing now, as long as the policy does not change, then pure market promotion is still limited. After all, it is impossible for manufacturers to voluntarily give up this dominance, but for now, this solution is the fastest and most feasible way to save costs and reduce dealer pressure.
Mode 4: Manufacturer-built channels
In order to prevent dealers from having too strong a right to speak, auto vehicle companies are planning to build their own channels to ensure their sales channels are safe, efficient, and profitable. Self-built channels are adopted. At present, many domestic auto companies have begun Directly or indirectly set up its own sales channels, involved in the sales and display of new and used cars.
Profit: Effective price control system
As far as an enterprise is concerned, there is only one incentive for self-built terminals, that is, the imbalance of the profit distribution system. Whether it is to control the market, to promote the brand or to change the experiment, the only purpose of the enterprise is to make profits. Dealers who have always been in a disadvantaged position in cooperation with manufacturers, the increase in their strength also means increased voice, which makes vehicle manufacturers begin to feel the pressure.
Luo Lei, deputy secretary general of China Automobile Dealers Association, told reporters that such a phenomenon is already very common. "On the one hand, the profits on the retail side are very substantial, and manufacturers will penetrate into the retail side in pursuit of profits; on the other hand, the authorized dealers are not the same as the manufacturers after all, so the manufacturers also hope to cultivate their own soldiers, compared with authorized dealers. , These personal soldiers can effectively implement the manufacturer's business strategy. "
For consumers, since there is no stock car since the establishment of the channel, consumers and manufacturers establish a one-to-one order production and sales relationship. It is simple and fast, and there is no longer the high-end and low-end terminal confusion.
Disadvantages: triggering channel turmoil
Unlike the home appliance market, how much courage the auto industry needs to build its own channels. Enterprises are a little careless and do not handle the relationship between channels well, or try to replace the original channel model with self-built channels, which will cause continuous channel conflicts and may cause channel turbulence. In this case, how to effectively integrate the channel model and resolve channel conflicts has become a challenge for enterprises.
Discuss: manufacturers build channels
Feasibility parameter: 50%
For a long period of time in the future, even the outlets that realize self-built channels can only appear in the form of auxiliary, because the base of 4S stores is too large, and it takes a lot of capital, manpower and time to fully collect power. As an effective supplement and adjustment of conventional channels, self-built terminals give full play to their brand promotion and reform pilot functions. The two are effectively integrated and the advantages are complementary. Isn't it a two-pronged strategy?
Mode 5: Online car sales
"Online car sales" is a form of self-built channels for car companies. However, as a consumer product, cars are tens of thousands to hundreds of thousands. I am afraid that it is difficult for consumers to order through the Internet. This is a too insecure thing. At the same time, a sense of security and pleasure brought by the entire service process in the car purchase may not be experienced by the computer.
Profit: Reduce the cost of building a 4S store
"Online car sales" for car companies can reduce the cost of building 4S stores, improve control of the overall market, broaden consumer groups, and increase the popularity and attention of brands and models.
Although it cannot directly promote sales, the establishment of online 4S stores and the promotion of online car purchase models are undoubtedly a good marketing model for brands and models. For car companies, it is possible to get rid of the entanglement with dealers, and truly achieve strict control of each link, and choose this wide-coverage, interactive and flexible advertising form, it is not bad.
Disadvantages: The online consumption environment is immature
As a consumer product, autos are still a big deal for today's Chinese. At every tens of thousands of hundreds of thousands, I am afraid it is difficult for consumers to dare to order through the Internet. How to pay? How to mention the car? How to guarantee the quality of the new car? Who are you looking for? How to protect your own rights and interests? All kinds of real problems are before us.
In recent years, I have often heard such sayings. "We are not only selling cars, we are offering a lifestyle of cars."
Now that car companies and dealers are paying more and more attention to the service quality of the car sales and after-sales system, and the extended value-added services of various car life, the "online car sales" model seems to ignore the consumer ’s experience of service and guarantee The pursuit of car life.
Discussion: Selling a car online
Feasibility parameter: 20%
In the long run, although the model of online car sales is a development trend, it has not yet had sufficient credibility. The online model of car sales still has a long way to go, and it is a bit premature to do it now. As the saying goes, one step in the fast market is "advanced", two steps in the fast is "pioneer", and three steps in the fast becomes a "pioneer".
The manufacturer cannot decentralize in the short term
Reflection is a kind of expression that is common in the light of the market, and thinking change is the positive attitude that should be taken when the industry market is sluggish.
The formation and change of the car sales model are not the sole responsibility of any manufacturer or distributor.
address：1 Zhenxing North Road, Tanzhou Town, Zhongshan City