Text | Xu Cheng
From December 2nd to 3rd, the 2021 China Automobile Circulation Industry Annual Conference was held in Haikou. 2021 is the year when the automotive industry turns around and seeks change. This year, second-hand cars continued to accelerate the pace of development, and the transaction volume is expected to reach a new high; new energy vehicles are soaring, with cumulative sales of domestic new energy vehicles in the first 11 months of 2.99 million units, an increase of 1.7 times year-on-year.
At the same time, the development of new energy vehicles has also led to the innovation of the automotive channel model, the direct sales model has emerged in an endless stream, the agency model has begun to test the waters, and the automobile dealers have paid more and more attention to digital transformation, and have begun to use short videos and live broadcasts to create private domain traffic...
A series of changes have not only brought new challenges to the automotive industry, but also brought new opportunities. As the largest industry event in the field of automobile circulation, the annual meeting of China's automobile circulation industry reflects the microcosm of the changes in China's automobile market under the new pattern.
Watch point one
The used car market is growing better than the new car market
In August this year, the Ministry of Commerce and other three departments jointly issued the "Notice on Promoting the Registration of Used Car Transactions Across Provinces and Facilitating the Cross-provincial Communication office to Facilitate the Transaction of Used Cars in Different Places" to accelerate the formation of a unified national market for used car transactions. At present, the relevant departments are studying and formulating relevant policies to optimize the transfer registration of second-hand cars, standardize the management of second-hand car sales, vigorously develop the second-hand car distribution business, and comprehensively open up the blockages and pain points of the second-hand car market.
Shen Jinjun, president of the China Automobile Circulation Association, said that the introduction of the above relevant policies will inject new vitality into the development of the second-hand car market, and the circulation of second-hand cars will be as convenient as the circulation of new cars, thereby creating a larger market space for new car consumption and promoting the sustainable development of the entire automobile market.
According to the China Association of Automobile Manufacturers, from January to October 2021, domestic passenger car production and sales reached 18.879 million units and 19.06 million units, respectively, an increase of 6.9% and 7.1% year-on-year.
According to data from the China Automobile Dealers Association, in the first 10 months of this year, the cumulative transaction volume of the national second-hand car market was 14.4232 million units, an increase of 30.41% year-on-year, which not only far exceeded the growth rate of new cars, but also exceeded the 14.3414 million units in 2020. Used car trading volume is expected to exceed 17 million units this year.
As an important contributor to the volume of used car transactions, whether it is dealer groups, used car dealers or used car markets, they reflect their current characteristics in different segments:
1. Dealer group to develop used car retail
Zhang Jie, General Manager of Yixin Used Car of Yingzhong Group, pointed out the contribution of used car retail business to the profit of dealer group and the value of used car brands when sharing the operation of Used Cars of Yingzhong Group at the Dealer Group Used Car Development Forum.
According to reports, Yingzhong opened the exploration and layout of the second-hand car business at the beginning of its business. In 2003, Yingzhong established a second-hand car strategic brand and began to develop the second-hand car trading agency service business; in 2014, Yingzhong built the first Yixin second-hand car store, relying on more than 60 4S stores under Yingzhong, and began to form a management system support capability; in 2021, Yixin Haoche laid out four chain retail stores in Xiamen, Zhangzhou and Quan to accelerate the pace of brand building and system construction.
During the conference, Yingzhong's second-hand car brand Yixin Haoche announced the official launch of a new brand name and logo, upgraded the standardized service system, and began to move towards brand development.
Looking at the global market, whether it is the United States or Germany, the used car business of authorized dealers occupies a mainstream position. According to the data, the sales ratio of new cars to used cars in China's listed car dealer group is 4:1, and the average sales volume of used cars in a single store is 300 units; the sales ratio of new cars to used cars in the top 100 car dealers in the United States is 1:1. Data from DAT shows that in 2020, the second-hand car transaction volume of German brand authorized dealers accounted for 51%, accounting for half of the country. Only by developing used car retail can it be expected to further increase the share of used cars in dealer groups.
With the comprehensive cancellation of the second-hand car relocation policy, the formation of a unified, standardized and efficient second-hand car market order in the country has provided a broad space for dealer groups to develop the second-hand car retail business on a large scale.
Not only Yingzhong Group, we also see that many national or regional groups such as Yongda Group, Weijia Group, United Group, Yongtong Group are focusing on the second-hand car retail business, building the group brand and achieving phased achievements.
2. Short videos and live broadcasts have penetrated into the second-hand car industry
2021 can be said to be a breakthrough year for the new media in the used car industry. With the introduction of various favorable policies and the arrival of the short video dividend period, more and more second-hand car dealers have begun to seize the traffic monetization opportunities brought by short video and live broadcast platforms to find commercial increments.
Data from The Emperor of Understanding Cars shows that the per capita number of watch-to-air broadcasts of used car live broadcasts has increased by 61.8% in the past five months, the length of watching broadcasts has increased by 23.6%, the number of interactions has increased by 26.3%, and the user's willingness to interact is also quite strong.
Because the new car has been very transparent in price information, product information and market information, but the second-hand car is a car, for consumers, it is necessary to have a deeper understanding of the specific information of a second-hand car, so the second-hand car dealers have more advantages in doing e-commerce live broadcasting, which can break the time and space restrictions and obtain valuable clues from the traffic of the platform and channel.
Li Erwei, chairman of Shanxi One Plus One Famous Car, shared the second-hand car channel and second-hand car sales strategy in the new media period with the theme of "New Media Marketing Empowering Dealers" at the second-hand car dealer development forum, combined with his own experience in the operation of the Douyin account.
Li Erwei said that the short video operation of One Plus One Automobile is carried out with the purpose of transaction transformation, after establishing the direction, setting the video content topic, so as to assist in shooting and realize the landing of the transaction, forming online high-quality content and offline perfect experience.
Li Erwei also pointed out that douyin is a double-edged sword and a tool for the coexistence of advantages and disadvantages. If there are some dishonest business behaviors, they will be infinitely magnified. Therefore, online integrity and authenticity have become one of the key points in operating an account.
Up to now, the Douyin account fans of Shanxi One Plus One Famous Car have approached 4 million. In Li Erwei's view, high-quality and authentic content is an important direction for online marketing of second-hand car stores in the future.
3. Digital transformation penetrates into the second-hand car market
In today's automotive industry into the digital era, whether it is a new car or a second-hand car, it is inseparable from the blessing of digitalization, and the information transparency and efficiency improvement brought by digitalization have been verified in many aspects of automobile circulation.
The second-hand car trading market is the core camp of China's second-hand car circulation and bears the mission of more than 80% of the country's second-hand car trading. The need for digital upgrading in today's used car market has become more and more urgent, and digital transformation for the purpose of improving quality and efficiency is also imperative.
Liu Zenan, co-founder and COO of Xinche Zhilian, pointed out at the second-hand car trading market development forum that through the management system to sort out and integrate the business and service items in the market, present and analyze it in the form of data, the market can have a deeper understanding of the business situation of the car dealer, and then formulate a business strategy that is more in line with the car dealer.
At the same time, the market can also introduce value-added formats in a targeted manner, such as maintenance, testing and even after-sales service. Connect these services together and unify the external output in the name of the market, thereby improving the management efficiency, business efficiency and service efficiency of the market, so as to better build the brand and reputation of the market.
Watch point two
Multinational dealers associations speak out
Support the protection of dealer interests
In recent years, the auto marketing channel model led by 4S stores is evolving towards a diversified trend, and new auto distribution models such as brand direct sales and agents have been continuously landed, and the connection between brands and users is being deeply built, and the trend of auto channel transformation is becoming more and more obvious.
At the main forum of the 2021 Automobile Circulation Industry Annual Conference, the heads of dealer associations in many countries could not attend due to the epidemic, but they expressed their views in the form of videos on the channel model changes in today's automotive industry.
Chuangsha Herrenschmidt, President of the European Association of Automobile Dealers, said: "We are in a special period when the automotive industry is undergoing historic changes, which are also affecting other industries and affecting the rest of the world. All interests, large or small, often involve the whole body. In the face of changes, our countermeasure is to work together to establish a new mode of circulation, so that everyone can perform their duties, do their part, and do their best.
Paul Walser, president of the American Automobile Dealers Association, said that this year there have been many obstacles and difficulties that threaten the development of the industry, and 16,500 dealers in the United States can continue to maintain the safety and stability of customer transactions and employee work. The franchise model in the United States has withstood the test of more than 100 years, and in the era of the hoop, during the controversial period of the franchise dealer system, and during the unprecedented COVID-19 epidemic, this business model has maintained a strong momentum of development.
Now more than ever, the American Automobile Dealers Association is more willing to strengthen its support for the franchised dealer system and actively look for new ways to bring customers the vehicles they want.
Anjie Waterman, president of the German Automobile Dealers and Maintenance Association, said in response to the new sales model that the agency system has always existed in Germany, and it cannot be said that the experience of the agency system or the agency system itself is not good, the problem lies in the specific terms of these sales systems.
"We are concerned and have noticed that OEMs often try to change the details of the terms to put dealers at a disadvantage. This is one of the biggest challenges facing dealers and dealers associations today. It would be great if both sides could find a win-win solution, but I'm not naïve. I think we need the support of the market regulator. Whether it's market regulators in Germany or regulators in the European Union, perhaps we also need the involvement of the courts. Waterman said.
James Waterman, chief executive of the Australian Auto Dealers Association, said some OEMs in Australia were evaluating and experimenting with new sales models. In addition, like other markets, Australia is preparing to transition to a low-emission market environment. It is important to promote communication between distributors around the world on these issues.
The speech of the multinational dealers association actually conveyed three voices: the first is to be inclusive and open in the face of the general trend of the arrival of new energy and the new sales model; the second is to support the development of the authorized dealer system, support the maintenance of the interests of automobile dealers, authorized distribution is a mature and long-established system; the third is that the unilateral behavior of automobile manufacturers that harm the interests of dealers should be constrained, and manufacturers and dealers should actively communicate to achieve a win-win situation.
Song Yingjie, a researcher at the Automobile Division of the Department of Consumption Promotion of the Ministry of Commerce, said in a video speech at the conference that he is very concerned about the impact of other aspects of the model change, from the perspective of the automobile circulation model, authorized sales are still the main channel of automobile sales, automobile e-commerce, direct sales and other unauthorized sales are also constantly developing, and its impact undoubtedly has a positive side, which not only promotes the competition in the automobile market, but also improves the efficiency of automobile circulation.
However, Song Yingjie also pointed out that he hopes that model innovation will bring a win-win situation to all participants in the automobile market as much as possible, so that the relationship between manufacturers will be more harmonious, and all parties should strictly abide by the "Automobile Sales Management Measures" and other laws and regulations to avoid any party taking advantage of its dominant position to harm the interests of other relevant parties.
Watch point three
New energy vehicles
The rules are refactored but the service is unchanged
The development of new energy vehicles in China has become the biggest outlet for the automotive industry under the impetus of policy and market "twin engines". According to the data, the number of new energy vehicles in the country in the first three quarters has reached 6.78 million, of which 5.52 million are pure electric vehicles, accounting for 81.53%. The advent of the era of new energy vehicles has become an indisputable fact.
According to forecasts, the market share of new energy vehicles will reach 20% to 25% in 2022. Compared with traditional fuel vehicles, the rapid growth of the new energy vehicle market has formed a new pattern. In such a change, all roles in the industrial chain are facing new opportunities and challenges.
Under the wave of new energy vehicles, not only the manufacturing side is facing unprecedented changes, but the downstream dealer system and after-sales system need to reconstruct the rules. The industry is changing, but the value point of the circulation industry is more in "service".
At this conference, the "New Energy Vehicle Intelligent Service Platform" jointly developed by the China Automobile Dealers Association and General Technology China Automotive Engineering Research Institute Co., Ltd. was officially launched.
The "New Energy Vehicle Intelligent Service Platform" takes the health detection of new energy vehicle power batteries and vehicle historical data as the core, builds a new energy vehicle residual value assessment model and system, battery information service system, etc., and builds an online and offline intelligent service system for new energy vehicles that combines online and offline and combines software and hardware through information technology such as big data and artificial intelligence.
The platform can meet the needs of new energy vehicles in social public transportation safety, consumer vehicle use, insurance company product innovation, second-hand car circulation, etc., and serve the industry and users in multiple dimensions.
Not only the authoritative service platform, but also automobile OEMs and dealers are also strengthening the construction of new energy vehicle related services.
Wang Deng, director of the Market Research and Commercial Innovation Department of Jihu Automobile, introduced the business innovation practice exploration of Jihu Automobile at the New Energy Vehicle Development Trend Forum, saying that the business model innovation of Jihu Automobile focuses on "user-centered" and explores digital empowerment. In the era of smart cars, software-defined cars, the relationship between car companies, dealers and users extends to the whole life cycle. Under the demand-oriented market, Jihu is transforming into a "user center".
In terms of channel reach, Polar Fox adopts the form of experience center + Polar Fox Space + Polar Fox Cube to integrate into the user's high-frequency life contacts. For users, the concept of Jihu is to think about the needs of users with an open mind, maintain a win-win situation with industry partners, and provide users with full-time and all-scenario service worry-free guarantee.
Ni Yaxin, general manager of the brand marketing department of Euler Automobile, said at the meeting that Euler Automobile is also building a service chain connecting people and cars to the living community, and continues to expand the Internet ecosystem covering users such as fashion, beauty, sports, travel, technology and tide play.
Wang Lei, co-founder and senior vice president of Jiangsu Wanbang Jinzhixing Automobile Investment Group Co., Ltd., talked about four major structural changes in the aftermarket in the era of new energy vehicles: high degree of vehicle electrification, different types of maintenance and faults, high degree of intelligence and imperfect service system.
Therefore, auto dealers face completely different service challenges in the era of new energy vehicles. Wang Lei pointed out that the key link in the second half of the new energy vehicle is the charging facility, and the smart energy system architecture of the 4S store can realize the light storage and filling, of which the Mercedes-Benz photovoltaic demonstration project of the Xuzhou Star 4S store uses the energy cloud platform to achieve digital monitoring and management through the laying of photovoltaic modules and the CCS energy management controller, helping to achieve the goal of double carbon.
In addition, the 4S store's dedicated optical storage and charging integration station solves the problem of power expansion and power supply and demand balance of 4S stores through photovoltaic power generation, energy storage system, DC fast charging and energy control, so that 4S stores can better serve car owners and users.