During the annual meeting of China's automobile circulation industry on December 2-3, 2021, on the afternoon of the 3rd, the association released the "2021 Second-hand Car Operator Business Environment Report", which analyzed the current business environment and living conditions of used car operators through detailed data, and had a relatively accurate portrait of the entire industry for reference.
Luo Lei, deputy secretary-general of the China Automobile Dealers Association, pointed out in the report that the release of the Report has a benchmarking and guiding effect on the development of second-hand car dealer enterprises to a certain extent.
The survey data reflects the overall operation of the enterprise, the long-term stability of the enterprise operation, and the maturity will be higher. From the perspective of company age, enterprises that have been operating for more than 10 years, that is, before 2012, the gray area shows that the gray area in the following figure accounts for 31.5% of the total used car dealer enterprises, less than one-third; while the enterprises in the period of 2012-2018 account for 44.6% of the total; after 2018, the second-hand car dealer enterprises account for 23% of the total; from this data statistics, it can be seen that most of the companies in the current used car dealer enterprise group are relatively young.
Second-hand car dealer enterprise format research and distribution. At present, the second-hand car dealer enterprises are still relatively concentrated, and most of them are still based on the on-site operation in the second-hand car trading market, accounting for more than 80% of the total. Mainly in the brokerage company, distribution company, individual merchants three types of business formats exist; brokerage company format accounted for 11.9% of the total, with the release of second-hand car policy dividends, second-hand car dealer companies accounted for the proportion of year by year, the scale accounted for 40.6%, and individual merchant formats are still the main form of existence, accounting for 47.5%.
Analyze from the perspective of business area and employee situation. Used car dealers under 500 square meters account for the vast majority, accounting for 75% of the total, showing that the overall scale of used car operators is small. Judging from the situation of single store employees, companies with less than 3 employees still account for the highest proportion.
Analysis of the main business income of used car operating enterprises. The survey is divided into 1 million, 1 million - 5 million, 5 million - 10 million and more than 10 million categories of analysis, it can be seen that most of the surveyed used car dealers operating income is relatively small, most of the annual income is concentrated below 1 million level. In 2020, companies whose sales fell year-on-year accounted for 84% of the total, and companies with an overall decline of more than 10% accounted for 62% of the total. It can be seen that due to the impact of the epidemic and other factors, the overall industry situation of used car dealer companies last year was not very good.
With the development of the second-hand car industry and the establishment of industry norms, used car operators are paying more and more attention to product construction and brand value. The report is divided into two dimensions for research, one is the maintenance of complaints, and the other is the dimension of providing tripartite testing services. According to the data from the dimension of complaints, most of the second-hand car dealers were complained about less than 5 times accounted for 97% of the total, the enterprises that were complained about 5-10 times accounted for 2%, and the enterprises with a complaint rate of 10-20 times accounted for 1% of the total number of abnormal enterprises in the industry. From the perspective of providing test report services, the pie chart on the right side of the figure below shows that 42% of the second-hand car operators that provide third-party test reports account for 42% of the total, 30% of enterprises without test reports, and 18% of enterprises provide self-inspection reports and 10% of enterprises provide third-party certification. From this data, it can be seen that the current development of the second-hand car industry tends to be standardized, the service is gradually improved, and most of the second-hand car dealers can provide test reports to consumers with vehicle condition information.
The exploration and survey of the second-hand car distribution model shows that with the increase in car ownership year by year, the landing of second-hand car related policies, and the optimization of the business environment of the second-hand car industry, it can be seen that the distribution model has gradually become the mainstream model chosen by second-hand car operators. The proportion of conversion from self-employed households and brokerage companies to distribution companies is increasing, 40% of used car operating enterprises have changed from the original brokerage model to distribution mode, and 19% of enterprises plan to switch to distribution mode for operation, indicating that they will maintain the status quo, and the proportion of enterprises that do not change their business model is 41%.
Analyze from the perspective of operating indicators. In 2020, 80% of the second-hand car operators operated smoothly, the data showed that 50% of the second-hand car dealers were profitable, 32% of the enterprises were flat, and the proportion of enterprises that clearly stated that the loss was 18%.
Analyze the profitability of used car dealers from the category of operating entities' car prices of operating indicators. It can be seen that enterprises operating mid-to-high-end brands are more likely to achieve profit growth and have strong profitability. As the profits of second-hand cars become more and more transparent, in the actual business process, operating more than 100,000 vehicles, especially vehicles between 100,000 and 200,000, are the most profitable, the worst profits, and the cheap cars within 30,000 are shown through research data. Also from the perspective of loss, 30,000-100,000 vehicles are also the highest losses. It can be seen that 80.6% of the profitable enterprises in 2020 sell mid-to-high-end brand vehicles, and 100,000-200,000 mid-range vehicles are the preferred vehicle source for enterprises.
Analysis of the financial situation from the operating indicators. Second-hand car dealers are still mostly their own funds, still the state of the data "cash king", such as through banks, financial institutions to obtain a small proportion of development funds, the current industry as a whole, relative to the use of other funds to operate the cost of the main body is still high, so for second-hand car dealers, with the help of external funds and the use of their own funds in the process, is still at a disadvantage. The same survey data shows that the dealer companies with the best profits use their own funds, but the same loss-making companies are also dealers who use their own funds. Therefore, under the current optimization of the operating environment, the use of own funds or mixed funds is a problem worth thinking about by the majority of second-hand car dealers.
Analyze from the perspective of the source of the operating indicators. The survey shows that at present, obtaining car sources through offline channels such as individuals, peers, and 4S stores is still the main source. The data shows that most dealers have the highest proportion of online advertising, followed by physical advertising in the local area and the emerging new media industry, the lowest ranking of radio advertisements. Channel profitability, the bar chart on the right side of the figure below shows that the blue is a single offline channel sales, the orange one is offline + auction channel sales, and the gray is offline + Internet sales model as the main body. It can be seen that most dealers are still relatively single in sales channels.
Inventory management analysis from operating metrics. From the data shows the dealer inventory turnover, the average monthly inventory is less than 10 vehicles, through comparison, it can be found that the smaller the inventory, the easier it is to make a profit. Most of the used car dealers with the best profitability are in the range of 10-30 vehicles.
Analysis of the after-sales situation from used car dealers. During the downturn in the industry after 2018, we have seen that most used car operators have increased their after-sales service, and their profitability has gradually improved after providing after-sales service. The data shows that when the epidemic situation was very severe in 2020, 37.5% of used car operators achieved profitability through after-sales service.
Look at the opportunities for financial cooperation. What is the concept? Second-hand car dealer partners, because in the past few years, basically do finance, even if you don't do a lot of financial companies, they chase you to do it, so that many business friends don't sell cars, they will only use finance. In fact, the survey data shows that the enterprises using finance have increased compared with 2019, and the proportion of enterprises with financial income of more than 300,000 has reached 32.3%, an increase of 10% over 2019. According to the companies surveyed, they have gradually begun to focus on the use of financial tools to achieve their profitability goals.
In this regard, Deputy Secretary-General Luo Lei proposed to the majority of second-hand car dealer enterprises that the first strategic planning, the second trend, the third is innovation and development, the fourth enterprise positioning, and the fifth closely follows the five suggestions of the industry trend.
WeChat public number: used car wisdom Pan Pan (id: carman228)
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