Nearly six car dealers accounted for a loss of the city is the culprit

Posted on 10/20/2014 11:23:35 AM

SAIC canceled from the beginning of the record dealers, parallel imports, original pieces, such as the free flow of both policy and market performance of existing dealer business model challenges. As the main body of China's automobile circulation, auto 4S shops really want to be out of the market?
Beijing hundred profit group (called "hundred benefit" under) chairman Zhou Xiaobo in the "First Financial Daily" reporters pointed out that these problems will only allow dealers to service better and more competitive. China now has nearly six dealers losses, but the future of China's auto dealer living environment may be even worse than now, to deal with the adjustment, dealer development should be oriented to the 4S shop, go to vendor channel labels, and gradually establish a service platform the concept, by combing Group customer database by providing innovative services to its customers to survive.
Nearly six dealers loss
If 2010 was the development of China's auto dealers the most brilliant year, then starting in 2011, Chinese auto dealers began to walk a difficult era.
Figures show that in 2010 China's auto production and sales both more than 18 million, an increase of over 40%, but after entering in 2011, China's auto sales grew less than 3 percent over the previous year. But dealers are fast growth in the number, according to the China Automobile Dealers Association data, by the end of 2010 the number of dealers 4S shop of about 16,000, and by 2013 had more than 22,000, an increase of 37.5%, but in the meantime China's car only 21.7% sales growth.
Figures show that more than a quarter are now completed and the total amount of dealers in the last three years. And most of the luxury brand dealership more than 60% during this time construction is completed.
Zhou Xiaobo in an interview with this reporter said that at present there are over sixty dealers at a loss or break-even stage. And this one luxury brand dealerships are particularly affected. Because of the new investment luxury car brand stores frequently on the yuan, most dealers build stores funding comes from financial and credit liquidity, resulting in the dealer financial costs are too high, dealers said Chairman of the Board, a new Mercedes-Benz 4S shop financial year will cost over 10 million yuan.
But with the development of the market, payback period 4S shop is also delayed, starting in 2011, the new 4S shop within the first three years are difficult to profit, let alone recover their investment costs.
The dealer loss, in addition to the financial costs mentioned above, one hundred profit think the biggest problem comes from inventory management.
In fact, before 2011 the operating profit hundred brands of inventory at a depth generally around, but in 2011 began on China's stock market as a whole in greater depth, to August 2012 reached a record high 3.9 (Data Source : State machine car), although from 2013 began to ease, but the second half of 2014 began to increase.
Municipal accounting is the culprit
Division general manager hundred profit mr.jia In an interview with this reporter said, resulting in the dealer inventory increase is mainly due to the auto companies' City accounted for, "the pursuit of more and more serious.
The so-called City of accounting refers to the share of the brand or product on the respective market segments.
In order to improve the city accounted for, automobile companies tend to be achieved through the rapid expansion of the network. So it is prone to Yaku phenomenon. Dealers often in order to ensure reasonable inventory, as well as competitors (including the city with the brand and competitive brand dealers) strategy to take price war that the majority of brand new car dealers in sales already at zero profit or even a loss.
In one hundred profit, future auto companies will be more emphasis on the city accounting, market competition will become increasingly fierce. "We can not expect things do not happen, but if the crisis came to know, how are we doing?" General manager hundred profit-Benz division Linqin Song told reporters that this year's Mercedes-Benz brand is not excessive pursuit of "market accounting", so product prices are relatively strong, individual dealers are relatively better. But does not guarantee future Mercedes will regain "the city accounted for," the pursuit.
Jiayuan Li admitted that, in order to digest inventory, Decker Liao Di often have some let promotion of behavior, new car sales not only do not make money, and even manufacturers rebates have to let go.
In this state, strengthen the development of hundreds of profit in the used car area. Jiayuan Li investigation found that dealers used car leasing business development, water produced about 15 million yuan a year, the formation of more than 5 million yuan of profits.
But one hundred profit but do not think you can not make money through the new car market to fill is a normal phenomenon, mr.lin in the interview with this reporter, said that new car sales as competition becomes profit or loss, and after-sales market is may also be because competition becomes profit. Therefore, at least in the hundreds of dealers benefit is to the 4S shop, de factory channel label, but should gradually strengthen the development of the Group's database by providing consumers with innovative services to achieve profitability.
In fact, one hundred profit has begun the process of trying to 4S shop, West Fourth Ring Road in Beijing, hundreds of benefit through the establishment of the car park, Audi, Mercedes and Porsche laps together and layout clubs, cafes and other life in the park Hall, serve customers, to meet customer demand, the introduction of a number of one hundred profit version of the conversion kit, boutique products.
But this is just the beginning, the way this car park a hundred profit, many other dealers are also trying. The ability to respond to future developments, there are some people in the industry questioned the dealer can really break through the bottleneck of their own development, remains to be seen.

Post a comment

Hello guest, care to post a comment?