Text丨 Liuyi
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In 2024, the authorization of Xiaomi Auto will be a "sweet spot" for 4S Group and independent after-sales companies.
A few days ago, Xiaomi has reached an intention to cooperate with 14 sales and service partners, including Hengxin Automobile, Sichuan Ganghong, Jianguo Automobile, Yuantong Automobile, Qingfeng and other dealer groups or regional strong businessmen.
It is reported that in the list of top 100 auto dealers released by the China Automobile Dealers Association in 2023, more than half of the dealers have applied for cooperation.
Judging from the current recruitment plan of Xiaomi Auto in 17 cities, there should be more 4S groups authorized in the future. The 17 cities include Suzhou, Chongqing, Ningbo, Nanjing, Wenzhou, Wuxi, Xi'an, Foshan, Zhengzhou, Changsha, Dongguan, Tianjin, Hefei, Xiamen, Qingdao, Haikou and Shijiazhuang.
So, what is the channel strategy of Xiaomi Automobile? Is it still worth investing in the integrated sales and service store? After the 4S Group, can independent after-sales enterprises get Xiaomi's cake?
Channel strategy
Xiaomi Auto's channels are divided into three parts: sales, delivery, and service, with the "1+N" model giving priority to covering the head market, and distributing the whole country in batches.
"1" represents the self-built and self-operated delivery center of Xiaomi Auto, which is mainly based on delivery, covering the business of "sales and after-sales service". The delivery center is the benchmark for Xiaomi's automotive omni-channel experience and efficiency.
This is similar to Li Auto, which basically has "one store in one city", such as in the first-tier cities of Beijing and Shanghai, the ideal delivery center only has one store.
As a result, the demand for efficiency in the delivery center will be high. According to the data of "Electric Vehicle Observer", there are a total of 20 people in the entire ideal Nanjing delivery center, including 1 store manager, 1 delivery supervisor, 1 logistics supervisor, 8 delivery experts, 2 logistics experts, and 7 PDI third-party personnel, and the entire delivery efficiency is 4-5 times that of other mainstream automobile brands.
The delivery center will become the main carrier for the price of Xiaomi's car control terminal and the improvement of user experience.
"N" stands for agent sales and user service touchpoints, which are divided into two parts:
First, in the mainstream automobile business circle, Xiaomi cooperates with the top 100 auto dealer groups or regional strong businessmen to build an integrated store of automobile sales and service, and operate "agent sales + authorized services".
Second, in the core commercial plaza (Mall), Xiaomi gave full play to the advantages of the existing 3C retail channels, introduced car business in Xiaomi Home in batches, further enriched store categories, and built Xiaomi technology ecological integration stores.
It is worth noting that Xiaomi's first batch of recruitment cities does not include Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, and Wuhan.
Industry insiders speculate that Xiaomi may deploy direct stores in the above-mentioned cities, which can not only set a benchmark, but also keep abreast of changes in market and consumer demand.
Overall, Xiaomi Auto's channel strategy, "direct sales" is the core. At present, the sales function is directly operated by the delivery center + Xiaomi Home (mainly directly operated) + 2S (sales agent), and the after-sales function is directly operated by the delivery center + 2S (authorized service).
Referring to the practices of other new forces, the Xiaomi car 2S network should be opened to auto service chains next. As for whether the mechanical and electrical maintenance and sheet metal spraying business are independently authorized to comprehensive repair factories like Tesla and Ideal, it is not yet known.
The picture comes from the Internet
What is the difference between a "sales and service" store?
According to the Xiaomi Auto recruitment plan, the functions of the integrated sales and service store are sales agents and after-sales service authorization, and the services include machine repair, sheet metal, painting business, etc. Special emphasis is placed on excluding the resale of complete vehicles and the delivery of complete vehicles.
This means that the all-in-one store is only responsible for sales and service, and the delivery is still completed by the delivery center directly operated by Xiaomi.
Last year, Xpeng adjusted its channel strategy, reduced the number of directly operated stores, and gradually increased the authorization ratio to introduce more dealers to second-tier cities and below.
However, the vehicles sold by Xpeng dealers need to be delivered by themselves, which is the difference between the two companies.
Looking at Huawei's channels, they are divided into two categories: one is the experience center (led by Huawei, relying on the mobile phone network, responsible for display and sales), and the other is the user center (led by Cialis, which provides integrated services for sales, licensing, finance, insurance, delivery, and after-sales).
The two centers belong to different subjects, which leads to the experience center and the user center grabbing orders from each other, and finally moving from cooperation and symbiosis to game internal friction. Until recently, Huawei implemented the "HarmonyOS Zhixing" model, and the operation rights returned to Huawei, which may improve this channel problem.
So, will there be similar internal friction problems between Xiaomi car supermarkets and 2S stores?
Apparently not. Because the orders of Xiaomi Home do not need to go through dealers, the orders of all sales channels are uniformly delivered by the Xiaomi delivery center, and the right to goods and pricing are always in the hands of Xiaomi, and Xiaomi participates in every link from vehicle sales to delivery to after-sales, which also avoids the problem of in-store friction between dealers and supermarkets.
According to the data of "Electric Vehicle Observer", there are about 3,500 direct stores in Xiaomi Home, which is much larger than the number of direct stores of Huawei mobile phones. This is the biggest advantage of Xiaomi cars.
Xiaomi sales and service store (2S) is also worth paying attention to, authorized after-sales service includes machine repair and sheet metal, and the current 4S group recruited in first- and second-tier cities basically has these two capabilities, which means that machine repair and sheet metal spraying will most likely not be authorized separately to independent after-sales service.
Of course, in the future, in lower-tier cities, areas not covered by 4S groups, regional leaders or large-scale comprehensive repair factories may have opportunities.
Is there still a chance for independent after-sales?
Xiaomi cars are already on the way. The new energy vehicle market in 2024 is bound to be more volatile than in 2023, and the level of competition is also expected to reach a new level.
Under the extreme involution of new energy vehicle companies, 4S stores will not have a good time in 2023, and delisting and lying flat are common phenomena. The inventory pressure and financial pressure brought about by the traditional distribution model have forced the 4S store to the edge of the cliff.
This also forces 4S stores to actively expand their new energy business and find transformation opportunities and growth points while maintaining the basic market of oil truck customers.
The capital, technology and site resources of 4S stores have indeed been favored by new car companies. This year, Weilai, Xiaopeng, ZEEKR and other car companies adjusted their channel strategies and threw "olive branches" to dealers.
After all, the current demand of new power car companies is to sell more cars while also taking into account customer experience, which means that partners can accept short-term losses and have the ability to accompany them in the long run.
The "olive branch" thrown by Xiaomi Automobile, the dealer group will naturally not let go of such an opportunity, even if it is a cost-effective business before the sale is exchanged.
In the era of fuel vehicles, accident vehicles contribute 50% of the profits of after-sales business, 40% of electromechanical and 10% of claims, while in the new energy era, accident vehicles contribute 70% of profits, 20% of mechanical and electrical vehicles, and 10% of claims.
It can be seen that the weight of new energy accident vehicles is getting higher and higher, which also increases the market share of the sheet metal spraying business, and the price of sheet metal and painting of new energy vehicle companies is relatively higher.
But such an opportunity has long been pocketed by the 4S Group, such as Zhongsheng Group's plan to lay out 100 sheet metal spray chains.
Up to now, Xiaomi Auto's recruitment plan has not seen an independent after-sales chain. However, according to industry insiders, there have been luxury car repair chains that have obtained the authorization of Xiaomi 2S, and they are also striving to become the second batch of authorized enterprises.
It is an indisputable fact that the licensing opportunity of new energy vehicle companies is out of reach for a single store, but the opportunity for washing and subsidizing based on new energy vehicles is worth fighting for.
In 2024, whether the belated Xiaomi car can fight its way out of the red sea of the auto market, at least until the price is announced, everything is still unknown.
For independent stores, it is better to focus on the opportunity of washing and pasting the beauty derived from Xiaomi cars, invest rationally, and then wait for the flowers to bloom.
Article source: AC Automobile, thanks to this