From 2020 to 2022, from ToC to ToB, from ToB to ToG, "Digital Transformation/Upgrade" has completed the transformation of abstract concepts to precise landing.
The root of enterprise digital transformation is in the "industry", and the soul is in the "scene"
Domestic ToB services have gradually got rid of the low-end shackles of information gap in developed regions, and innovative services and innovative technologies have clearly locked the market demand of enterprises with Chinese characteristics - going deep into the industry and mining scenarios.
Industrialization has become a footnote to the fundamental temperament of the current ToB, and the in-depth understanding from the pan-market to the vertical field will be the main course that every ToB practitioner must study.
From 2022 onwards, T Research will begin to conduct new research and interpretation of industry-specific ToB services. The wind of digital transformation starts from the green ping of technological innovation, and will fall into the industry grass, and finally the needs of enterprises.
Among the many industries in China, T Research will conduct in-depth research on the automotive industry, a contradictory industry that is both traditional and fashionable, that is, luxurious and close to the people, that is, clear and vague, showing that digitalization brings about the rebirth of the industry.
Today, China's auto market has become the world's largest market. However, since 2018, there has been continuous negative growth, and solving the growth problem has become the number one challenge for the auto retail industry and related enterprises.
Industry players hope to explore new business models through the capabilities given by digital business systems, seek new development opportunities and competitive advantages in adverse situations, and thus overcome growth pressures.
Accelerating the pace of digital transformation is the basis for gaining new competitiveness. The disruptive forces brought about by the comprehensive digital era, continuous digital practice and innovation have become the only way for traditional enterprises.
The automotive aftermarket is increasing the context of digital capacity building
Second-hand car sales, after-sales service, auto finance derivative services and other auto aftermarket business is developing rapidly, in the traditional new car sales revenue and profit growth situation is not strong, the auto retail industry players in the auto aftermarket business to stimulate customer competition, seeking new development opportunities.
Activation of the second-hand car market with huge space: In March 2018, the State Council government work report proposed to extend the preferential tax policy for the purchase tax of new energy vehicles for another three years and completely cancel the second-hand car relocation policy. With the full liberalization of the national relocation restriction policy, the circulation in most areas has begun to be active, at present, only 3 provinces (Heilongjiang, Hainan, Tibet) have not released the second-hand car relocation policy, and the large circulation of second-hand cars in the country has stimulated the vitality of the second-hand car market and ushered in a wave of second-hand car sales growth. In 2020, the cumulative transaction volume of used cars nationwide was 14.3415 million units, and the transaction volume of used cars in the second half of 2020 from July to December 2020 comprehensively exceeded the monthly level of the same period in 2019.
Chart China Used Car Trading Volume 2019-2020 Source: China Automobile Dealers Association
The proportion of after-sales service business increased: Taking Guanghui, Yongda, Zhongsheng, Zhengtong and other automobile dealer groups as an example, from 2016 to 2019, the after-sales business revenue accounted for between 7.71% and 14.38%, accounting for 22.22%-74.90% of gross profit. Dealers have a natural advantage in after-sales service, relying on new car sales can be convenient to bind after-sales service, basically covering vehicles sold within 3 years.
Chart 2016-2019 Net Sales Aftermarket Revenue Share Source: China Automobile Dealers Association
Chart 2016-2019 Dealer After-sales Business Gross Profit Share Source: China Automobile Dealers Association
The new car business is lowly profitable, and dealers mainly rely on other businesses to obtain profits, including vehicle repair and maintenance after-sales, and the original parts used in the repair process have high profitability. For the development of customers, in addition to the old customers under their own brands, it is more necessary to attract new customers across brands and other after-sales service providers.
Chart 2016-2019 Dealer Aftermarket Business Gross Margin Source: China Automobile Dealers Association
Rapid development of auto finance derivative services: the high growth rate of financial business, taking Guanghui Automobile as an example, Guanghui commission agency business includes auto insurance, car loan and other agency business, revenue has increased year by year, and the proportion of total revenue has increased, and the proportion of gross profit and gross profit has also increased, of which the proportion of gross profit has increased to 25.04% in 2019.
Chart 2015-2019 China's Auto Finance Penetration Rate Source: Roland Berger
Chart 2015-2019 Guanghui Auto Commission Agency Business Gross Profit Ratio Source: Guanghui Auto's publicly disclosed listing annual report
The research content and key output direction of this report:
What are the key reasons for the current digital capability upgrade of the automotive aftermarket?
What is the development status of the supporting digital product and service industry chain in China's automotive aftermarket?
Which digital core capabilities, key applications and services, solutions, and digital tools (RPA, LCDP, etc.) are urgently needed for individual enterprises in the automotive aftermarket to upgrade their digital capabilities?
In the process of competing for the automotive aftermarket, what kind of digital capability upgrade paradigms have been created by players from different fields, Such as Internet giants, traditional OEMs, new car-making forces, dealer groups, and technology manufacturers for individual reference?
In several key business sectors, such as financial governance, marketing customer acquisition, store reception, etc., which technology manufacturers bring the latest ideas and masterpieces in 2022?
Under the background of the rapid development of the automotive aftermarket business and the incentive competition of various gods, what is the development logic of the supporting digital product and service industry chain? Who are the types of digital product and service technology vendors to focus on?
Welcome to the research report "China's Automotive Aftermarket Digital Capability Upgrade and Innovation Insights" launched by T Research in 2022.
Report Section Contents:
First, the upgrading and innovation of china's automotive aftermarket digital capabilities ushered in an inflection point of development, and the prospects are just around the corner
1. Inflection point: The changes in the automotive aftermarket environment are prompting the upgrading and innovation of individual digital capabilities in the industry and enterprises
2. Prospects: Multi-party positive drive the demand for supporting digital products and services in the automotive aftermarket to enter a rapid growth track
3. Long-term promotion of the policy side
Second, digital products and services and related supporting elements are constantly improving the upgrading and innovation capabilities of China's automotive aftermarket
1. The development of digital product and service industry chain in China's automotive aftermarket
2. The practice of digital product and service industry chain in China's automotive aftermarket
Third, the development and challenges of digital products and services in China's automotive aftermarket
1. Development logic and the types of digital products and services technology vendors that focus on
2. Upgrading and innovation challenges of digital capabilities in China's automotive aftermarket