Text丨Lao Bai
Source丨AC Auto (ID: acqiche)
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As the washing and pasting business has gradually become the second growth curve in the aftermarket, the 4S store can't help but officially end.
According to public sources, Zhongsheng Wash Beauty has opened 24 beauty wash stores; Buick 4S store is also launching the "original invisible car clothing" group purchase activity, with a limited time of 4,999 yuan; Chery Xingtu 4S store in addition to car washing, also includes tire repair, inflation, small maintenance and other business services.
While competing for the beauty washing business, the 4S store tore off the "high-end and high-price" label, and the price performance was very "murderous".
According to the owner of a beauty washing shop in Qingdao, Shandong Province, he complained in a short video that the whole car of a local independent brand 4S store was only 1460 yuan, which pried away several of his customers, making him unbelievable how the 4S store did it.
In fact, with the impact of new energy vehicles and the continuous amplification of new car price discounts, the gross profit of 4S stores at the front end of sales has shrunk sharply, and profits have continued to decline, so they have also shifted their profit focus to after-sales business.
However, the after-sales profits of most 4S stores rely on accident cars, and the profit point is relatively simple; new cars are difficult to sell, and routine maintenance business is used as a supporting selling point, and profits are limited. At this time, the 4S store will set its sights on the washing and sticking business and decide to do it by itself, relying on the "original" advantage, the washing and beauty sticker business is more volatile and the competition is more intense?
4S does the washing and sticking business, and the king of the volume is the shot
When the profits of low-cost drainage projects such as small maintenance are broken down, the beauty washing paste is becoming a battleground for the aftermarket, and even the 4S stores that have never been in the beauty washing business have joined in.
According to the annual report of Zhongsheng Group, the Zhongsheng beauty washing sector created by it has opened 24 beauty washing stores. And on the Zhongsheng GO platform, in addition to directly purchasing car wash services in the beauty washing section, car owners can also receive unlimited brand beauty washing coupons and sheet spray coupons provided by Zhongsheng, which enhances the awareness of Zhongsheng brand services.
According to SG Auto, Zhongsheng integrates new cars, after-sales services, warranty renewals, second-hand cars and scooters into the online platform through a centralized customer service relationship management process system.
In other words, Zhongsheng Group has increased its after-sales service, whether it is to build Zhongsheng washing the beauty sector or to lay out 100 sheet metal spraying centers, the purpose is to achieve the competitiveness of acquiring and serving car owners in the entire customer operation ecosystem.
According to the annual report, Zhongsheng Group will have 3.8 million active customers in 2023, of which more than 60% will become subscribers to the Zhongsheng GO platform.
In addition to the advantages of the system, 4S stores can also achieve the ultimate after-sales service.
It is understood that while doing a good job in the car wash business, Chery Xingtu 4S store has also broadened the scope of services, such as adding tire repair, inflation, minor maintenance, changing brake pads, changing air conditioning filters and other items, and the price is lower than that of "cats, tigers and dogs".
At the same time, the 4S store also operates its own car boutiques and solar films, and also adds Bluetooth keys, whole car images, driving recorders and glass automatic lifters and other supplies to fully meet the needs of car owners.
In addition, there is also a Buick 4S store on the short video platform to promote a limited-time 4999 yuan original invisible car clothing, with the popular price and "original" concept to attract car owners to the store. There is even a brand 4S store that has hit the price of the whole car clothing to 1460 yuan, so that the independent after-sales beauty washing store feels the "pain of skin cutting" to grab customers.
More importantly, 4S is too close to new car resources, and it is not difficult to intercept a large number of new car customers after monopolizing a set of operations such as solar film, staring at color change film and invisible car clothing.
A chain owner in Shijiazhuang who has opened a franchise in the community store of washing and changing the beauty said, "Instead of grabbing customers with the after-sales of the 4S store, it is better to grab the new car of the 4S through the washing and pasting business, which is the real increment", but now with the end of the 4S store itself, the independent after-sales service will also usher in a strong competitor.
After-sales growth is sluggish, and washing and pasting is a new direction
The more difficult the situation of the 4S store, the more it relies on the after-sales business.
According to industry insiders, in the current downturn in the auto market, the ratio of after-sales service profits to dealer operating costs, that is, the zero service absorption rate, has become the most important survival indicator for 4S stores, and when this proportion exceeds 100%, it means that a 4S store can maintain normal operation only by after-sales service.
According to AC Automobile's previous report, Zhongsheng Group's zero service absorption rate from 2020 to 2023 will exceed 100%, the after-sales gross profit of a single 4S store can reach 22 million / year, and the output value of a single vehicle will reach 2691 yuan.
However, in the after-sales business sector, 4S is also under increasing operating pressure.
The first is the accident car business, which accounts for 50% or even higher of the after-sales output value of a 4S store, and originally had a unique advantage in the mode of "premium replacement and repair".
However, after the 919 fee reform, the insurance coverage has expanded, not only the new car premium is difficult to make money, but also the cost of compensation is still rising, which makes the insurance company have to "reduce costs and increase efficiency", constantly tighten the 4S claim policy, and even adjust the "maintenance structure ratio" between 4S and the auto repair plant - whoever has a low maintenance cost will guide the accident car maintenance business to whom.
Moreover, the consumption of the auto market is weak, the sales of new cars have plummeted, and the life of 4S stores with incomplete new car premiums is even more difficult.
According to the after-sales manager of a 4S store in Skoda, AC Auto told AC Auto that at present, the three major insurance companies have 7-9% discount on their damaged parts, and most of the profits from accident car maintenance are discounted, which also means that the accident car business is basically not profitable.
Secondly, 4S is used to lock in the regular small maintenance of the owner in advance, as a new car supporting selling point, and the profit is limited. It is understood that the settlement price of the Skoda 4S store with small maintenance is 300 yuan / unit, and the removal of oil products, labor and rent is also a hard support to lose money to do business.
And with the independent after-sales gradually implanted "99 yuan small maintenance" into the mind of the owner, the maintenance price has almost been broken down, and the price launched by the 4S store is also infinitely close to the head chain such as "cat, tiger and dog", but from the perspective of the operating costs that need to be amortized, the maintenance business can not bring the expected profits to the 4S store.
On the contrary, the popularity of new energy vehicles has contributed to the rapid growth of the beauty washing paste market.
Taking the demand for film as an example, according to AC Automobile's "2024 Car Coat Film Brand Store Research Report", the installation rate of invisible car clothing of several mainstream new energy vehicle brands is as high as 20-40%, and the market size of car coating film alone is as high as 3.12 million rolls, with a total market volume of about 30 billion yuan.
As one of the few after-sales businesses that can be tapped, the huge market potential shown by the washing and beauty patches is undoubtedly a lifesaver for 4S stores in distress.
The end came at the right time, but there were still challenges
In fact, more and more 4S stores are adjusting their positioning for the washing and pasting business.
It is understood that when the 4S store is in full swing, the washing business is regarded as the standard configuration of the new car sales, and in order to save costs, the 4S store outsources the washing business to a third-party decoration store to do the service.
However, since 2019, a large number of 4S cars have been sold at a loss and withdrawn from the network, and the 4S stores that are still on the table have begun to pay attention to the extension of new cars, including beauty washing, insurance, extended warranty and other businesses. Some of these dealer groups classify third parties as suppliers and service providers, on the one hand, they find suppliers to purchase products, and on the other hand, they find service providers for construction, and the change of cooperation mode has gradually reduced outsourcing costs.
A service provider told AC Auto that the previous cooperation was to collect material and labor costs with the 4S store, but now not only is the construction free of charge, but also the third-party profit must be returned to the 4S store. More importantly, once there is a customer complaint, the after-sales service is basically covered by the service provider.
On the other side of the coin, third-party decorating stores need to tap into more business if their margins are squeezed, including the use of cheap floor mats and solar films, and how inferior the giveaways of 4S stores are to "denigrate" new car buyers to lead them to buy high-end products. The 4S store not only bears the infamy, but also gives the owner to a third-party decoration store.
It is not difficult to see that the lose-lose effect of this cooperation is becoming more and more obvious.
However, for 4S stores, readjusting the "beauty washing and car coating film business" can not only reverse this situation, but also come at the right time.
On the one hand, the car wash business as a traffic entrance, by the application of the car washing machine with manual car washing, can solve the service demand of large amount of general washing, but also take into account the depth of the car wash service, improve the service experience; on the other hand, the market promotes the solar film, car clothing color change service to professional upgrade, 4S occupies the inherent advantage.
However, in contrast, independent after-sales service has been deeply involved in the washing business for many years, with the ability to meet the diversity and personalized needs of car owners, and including "cats, tigers and dogs" and other head chains are also vigorously deploying offline service outlets, as well as expanding the category of washing products online, among which Tmall has also released its own car clothing brand, and the intention of creating a "washing and beauty chain" is self-evident.
As a latecomer, the 4S store has a reputation for many years of outsourcing that needs to be reshaped, and there is an independent after-sales struggle to fight back.
Article source: AC Automobile, thanks to this