Ministry of Transportation after the market triggered concerns trillion business market well into the door difficult to pick fruit

Posted on 9/7/2015 6:02:54 PM

Earlier this year, China Chain Store & Franchise Association released the "2014 China's auto market after the chain research report." The report shows that in 2014, China's automobile market size reached 600 billion yuan, the future of this market is expected to average annual growth will exceed 30%, in 2018, the market size is expected to exceed one trillion yuan mark.
Therefore, it attracted a large influx of O2O startups. Before the establishment of the first Chinese car O2O Ecological Union, including the support car, Kai Ludeng, E car wash, easy home, Bo, Pai keep a car, affordable APP, car asked nets, wheat tire, everyone vehicles, cattle car network, more than 40 car easy to shoot a number of areas related to the automotive after market start-up companies.
Moreover, nozzles with all types of O2O start-up companies "in and out" after the car market in the process of diversification of development, is gradually showing more obvious classification. According to a survey investment and financing industry, in the automobile market in O2O venture, car care, car maintenance industry's most popular, accounting for 46% of the total project; auto repair and parts industry accounts for about 15%; second-hand cars and car leasing accounted for 13% ; auto finance industry, IT industry and other types of projects accounted for 26%.
"After the car market as a huge market for a trillion level, the market potential of mining, to upgrade the industry standards established tradition of service industries are all just beginning. The future of this market will attract more and more entrepreneurs to enter, and will produce a greater variety of business forms and business models, there will be more participants in the market segments, will serve to do meticulous precision. "Yang car, founder, CEO Wang Yubo told reporters.
In addition, on August 14, the State Council also released a "State Council on promoting the public venture agreed to establish inter-ministerial joint conference system for highly innovative views" on the start-ups affirmed. Seen in this light, there are policy of encouragement, under attractive trillion market, although the market is unstable, but the growth of the automobile business barbaric market will continue for a long time.

"Most of the early start-up companies O2O is the 'burn' exchange traffic to previous experience, some small and medium companies can only get two rounds of venture financing, and finally break because of funding can not continue to operate. Moreover, automotive after market O2O mode For consumers belong to something new, lower customer loyalty, start-up companies can only price to attract users so sustained financial support and the gradual stabilization of the customer base, are two basic conditions O2O initial start-up companies to survive, but also to some extent determines the success or failure of a startup company. "Zhang Li analyzed," but most start-up companies can not survive the test passed early, so O2O venture company set up three years later, the survival rate is only about 5% is expected the next five years, this market start-ups will gradually retreat, after large inflows of capital are no longer, surviving start-up companies will experience round of merger integration, and ultimately each of the segments and only a few companies dominate the market. Earlier Earlier O2O entrepreneurship launched, such as buy site, taxi software, have experienced a similar course. "
In the previous most popular taxi software as an example: in 2012, various types of software have a taxi on the line, to seize the market, that time, "the first single free" "instant cash back" and other promotions abound. By the fourth quarter of 2014, the market has been fairly stable pattern: fast taxi 56.5% market share, accounting for 43.3% taxi drops, other types of software that only 0.2 percent of market share.
At the same time, he shook his strokes car, taxi meters, Hornet taxi, toot called the car and so had once quite hot in the market, start-up companies have withdrawn from the market. According to one of the Founders, because in addition to the withdrawal of government regulation, but also because the churn too serious, traffic can not continue to support the competitiveness of enterprises in the market.
Currently, the market staged a similar situation is after the car, "one yuan car wash," "the first single free" and other words in common in all kinds of APP. The influx of startups make the flow of the intensifying dispute, some areas of automotive after-market segment has entered a taxi software market "burn" subsidy footsteps.
"It will be a long-distance road, in the process, may continue to have new partners to join, there will be partner to leave, eventually the market will inevitably produce giant, after Ebb Tide left must be effective to provide users with high-quality the company's services, the ultimate result will be users voted. "There are industry source said.

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