The high cost of building a shop is giving rise to changes in the sales model of automobiles. On December 6th, Pang Qinghua, chairman of the giant group, appeared in the “Extreme Outlets†automobile park in Beijing's South Fourth Ring Road. He will use the clothing brands as a discount store to sell cars.
Prior to this, Pang Qinghua had exposed the construction costs of 4S stores of certain auto brands soaring and invested more than 100 million yuan, which brought heavy investment pressures and operational risks to dealers. Under huge investment costs and operating pressures, car dealership groups represented by giants began to seek to reduce risks, and tried to promote sales through multi-brand operations and low-cost car stores.
Outlets sell cars
On December 6, “Daily Economic News†reporter saw at the “Big Outlets†automobile park that several “outdated†models of Beijing Hyundai, FAW Haima and Mercedes-Benz brands were ranked in order, with 10% to 30% Discounted sales.
Pang Qinghua told reporters, "Drawing on the popular Outlets discount store model in the current apparel brand market, the huge group will focus on the sale of the old car's 'old car', which not only handles the manufacturer's inventory, but also satisfies consumers to buy new cars at low prices. Needs."
It is understood that the current "Extreme Outlets" industrial park is still dominated by commercial vehicles, with heavy trucks, Hongyan, the liberation of major domestic commercial vehicle brands settled. It will also introduce passenger cars, used cars, auto parts, car repairs, automotive decoration supplies, on behalf of storage and transportation, business consulting and other projects.
“Now the operating risks are getting bigger and bigger, and we need to actively work around the risks.†Wang Changyu, chairman of Sichuan Shenrong Automobile Co., Ltd., told the reporter of “Daily Economic News†that “in the past, building a 4S shop only required 7 to 10 acres of land. Now Need 20 acres or even 30 acres of land, operating costs increased significantly."
“In order to reduce the risk of building an early store, we can only adopt a small-scale development model for multi-storey buildings. After a series of post-sales services, maintenance, and maintenance will be more reasonably planned and utilized.†According to Wang Changyu, the current land cost is On top of that, manufacturers' requirements for the scale and specifications of 4S stores have risen so that dealers have to think of ways to work around them.
Chi Yifeng, general manager of the Beijing Asian Games Village Trading Market, told the “Daily Economic News†that the increase in car ownership has weakened the degree of attention of the auto marketing model to some extent. With the slowdown, manufacturers and distributors will be more Focus on the sales model.
On the profit model, the relevant person in charge of the giant group told the “Daily Economic News†that “Outlets†is a retreatable business model for the Giant, and the risk is small. At the same time, sales from low-priced sales will become the main source of profit for the huge group.
Business model transformation
Since the beginning of this year, auto dealers have generally faced greater inventory pressure, especially in the commercial vehicle sector. According to the data, from January to October, the production and sales of commercial vehicles in China were 3.28.57 million and 3.406 million, respectively, down 7.65% and 5.25% year-on-year respectively.
At the same time, the situation of the passenger car market is not optimistic. Chi Yifeng told the reporter of the “Daily Economic Newsâ€. The latest data shows that there are 637 4S stores in the Beijing auto market, and about 30 companies withdrew from the market, but the total amount Still increasing.
He believes that the innovation of auto marketing model is a gradual process, and production pressure has led to the transition of single 4S stores to dealer group models. Although the advantage of grouping is that multi-brand operations strengthens the ability of dealers to resist risks, it is a group solution. There is no fundamental problem."
Luo Lei told the "Daily Economic News" reporter that similar models such as "Outlets" had already tried, and the innovation of "Extensive Outlets" was that a single legal person operated multiple brands in one park. The source of profit is mainly sales; and in the multi-brand market represented by the Asian Games Village automobile trading market, the main source of profit is the dealer's rent.
For the risk of this model, the analysis believes that it still mainly comes from the game with the car manufacturers. As a product with strong individuality, it remains to be seen whether the sales of automobile sales can be recognized for a long time. Luo Lei believes that in the short term, because China’s auto market is still in the stage of first-time car purchase, price guidance is still more obvious, so the price advantage brought by “Outlets†has a certain appeal for consumers.
According to the analysis, "Outlets" may exist in a transitional mode. Chi Yifeng believes that the transition from decentralized to collectivized automobile marketing is a kind of healthy development, but it is not the best choice. He advocated that automobile marketing be assembled in the form of exhibition halls, and that the cost should be the lowest on the basis of highlighting the brand personality.
Prior to this, Pang Qinghua had exposed the construction costs of 4S stores of certain auto brands soaring and invested more than 100 million yuan, which brought heavy investment pressures and operational risks to dealers. Under huge investment costs and operating pressures, car dealership groups represented by giants began to seek to reduce risks, and tried to promote sales through multi-brand operations and low-cost car stores.
Outlets sell cars
On December 6, “Daily Economic News†reporter saw at the “Big Outlets†automobile park that several “outdated†models of Beijing Hyundai, FAW Haima and Mercedes-Benz brands were ranked in order, with 10% to 30% Discounted sales.
Pang Qinghua told reporters, "Drawing on the popular Outlets discount store model in the current apparel brand market, the huge group will focus on the sale of the old car's 'old car', which not only handles the manufacturer's inventory, but also satisfies consumers to buy new cars at low prices. Needs."
It is understood that the current "Extreme Outlets" industrial park is still dominated by commercial vehicles, with heavy trucks, Hongyan, the liberation of major domestic commercial vehicle brands settled. It will also introduce passenger cars, used cars, auto parts, car repairs, automotive decoration supplies, on behalf of storage and transportation, business consulting and other projects.
“Now the operating risks are getting bigger and bigger, and we need to actively work around the risks.†Wang Changyu, chairman of Sichuan Shenrong Automobile Co., Ltd., told the reporter of “Daily Economic News†that “in the past, building a 4S shop only required 7 to 10 acres of land. Now Need 20 acres or even 30 acres of land, operating costs increased significantly."
“In order to reduce the risk of building an early store, we can only adopt a small-scale development model for multi-storey buildings. After a series of post-sales services, maintenance, and maintenance will be more reasonably planned and utilized.†According to Wang Changyu, the current land cost is On top of that, manufacturers' requirements for the scale and specifications of 4S stores have risen so that dealers have to think of ways to work around them.
Chi Yifeng, general manager of the Beijing Asian Games Village Trading Market, told the “Daily Economic News†that the increase in car ownership has weakened the degree of attention of the auto marketing model to some extent. With the slowdown, manufacturers and distributors will be more Focus on the sales model.
On the profit model, the relevant person in charge of the giant group told the “Daily Economic News†that “Outlets†is a retreatable business model for the Giant, and the risk is small. At the same time, sales from low-priced sales will become the main source of profit for the huge group.
Business model transformation
Since the beginning of this year, auto dealers have generally faced greater inventory pressure, especially in the commercial vehicle sector. According to the data, from January to October, the production and sales of commercial vehicles in China were 3.28.57 million and 3.406 million, respectively, down 7.65% and 5.25% year-on-year respectively.
At the same time, the situation of the passenger car market is not optimistic. Chi Yifeng told the reporter of the “Daily Economic Newsâ€. The latest data shows that there are 637 4S stores in the Beijing auto market, and about 30 companies withdrew from the market, but the total amount Still increasing.
He believes that the innovation of auto marketing model is a gradual process, and production pressure has led to the transition of single 4S stores to dealer group models. Although the advantage of grouping is that multi-brand operations strengthens the ability of dealers to resist risks, it is a group solution. There is no fundamental problem."
Luo Lei told the "Daily Economic News" reporter that similar models such as "Outlets" had already tried, and the innovation of "Extensive Outlets" was that a single legal person operated multiple brands in one park. The source of profit is mainly sales; and in the multi-brand market represented by the Asian Games Village automobile trading market, the main source of profit is the dealer's rent.
For the risk of this model, the analysis believes that it still mainly comes from the game with the car manufacturers. As a product with strong individuality, it remains to be seen whether the sales of automobile sales can be recognized for a long time. Luo Lei believes that in the short term, because China’s auto market is still in the stage of first-time car purchase, price guidance is still more obvious, so the price advantage brought by “Outlets†has a certain appeal for consumers.
According to the analysis, "Outlets" may exist in a transitional mode. Chi Yifeng believes that the transition from decentralized to collectivized automobile marketing is a kind of healthy development, but it is not the best choice. He advocated that automobile marketing be assembled in the form of exhibition halls, and that the cost should be the lowest on the basis of highlighting the brand personality.
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