Traditional auto giants: the traditional electricity supplier unsustainable logic

Posted on 11/12/2015 11:16:00 AM

"Electricity supplier back an illusion", "car buy is not sustainable," "Thanks to sell much of the things I quit" - this is when a dealer tycoon and "Automotive Business Review" to explore the topic of intense electricity supplier confession. Who did not want made public the identity of the person in the field of car dealerships fought for many years, the industry has a high visibility.
At the same time, he is also "traditional electricity supplier" resolute opponents. He told us his opposition sectional habitat reasons, but also about the internal logic of its unsustainability.
If we say that the manufacturers aim is to sell cars; and electricity suppliers will be able to solve this problem, and that the dealer what is the use? Why not be replaced?
First of all, it is the service landing. For most other products sold on the Internet, the logistics home is over, but the car is logistics home service began. Subsequent repair, maintenance, the store needs to be supported. Even in the pre-market, dealers also spent a huge amount of money to conduct a trial run for the consumption experience.
Second, establish a brand image for manufacturers to task, a large part of the dealers who also falls. Who declined to be named, told the "Automotive Business Review," he's Porsche 4S shop, light to buy furniture, it spent nearly 300 million; and maintenance of professional equipment, tools, investment is one million to ten million.
In addition to these two reasons most people are aware, there is an easily overlooked reason is - auto manufacturers bear the "reservoir" function. And at this level, distributors and manufacturers is in total risk, which is the car far from the electricity supplier can not do.
When OEMs during the financial design, the most perfect situation that is both "zero" - zero product inventory, parts inventory is zero. This makes as an intermediate dealer who sometimes becomes inevitable.
At this level, transferring a part of the benefit OEMs to dealers; while at the same time, dealers bear the inventory, a vendor natural market adjustment mechanism - when faced with the decline of the global economic development, the manufacturer may have time to react.
These are the electricity supplier can not do. OEMs fancy but its set-off effect - electricity providers often perform parity on the platform, and at low prices to attract customers.
In his eyes, the traditional, low prices to attract customers only electricity supplier, would be "Banded."
Cheap electricity suppliers to enter, but also the relationship between manufacturers and dealers destroy a certain extent. In the luxury car brand, for example, a dealer operating cost of nearly 250 million yuan - cost 100 million yuan to build stores, working capital 150 million yuan, while manufacturers in the electronic business platform to attract customers low prices, the weakening of the dealer profit margins, but to sales to dealers and other aspects of the assessment indicators. In the current economic downturn, no doubt caused by the dealer dissatisfaction.
And similar questions about TrueCar contribution AutoNation, the Chinese dealers have also questioned: Although the transaction through the platform, but not the consumer willingness to buy the content in the browser platform is triggered - most consumers have been the favorite models, but seeking cheap electricity supplier on the internet.
As a result, a senior dealer group leader told the "Automotive Business Review", is located in Beijing's shop, a luxury car sales have been relatively good, able to sell more than 6,000 units of new cars each year, about 2,000 units of used cars. Sales have been good in this case, the electricity supplier to cooperate with the Internet, the effect is low.
In addition, although the transaction is completed in the electronic business platform, but in case of disputes, but can only be carried out by your dealer - reduced profits on the one hand, the other is the cost of increasingly high prices, which makes dealers more unbearable.
In addition, the low price is for OEM branding harm than good.
The anonymous source also said that such cooperation is similar Yongda Automobile and Ali cars, for dealers, will "Gaosi own."
In bilateral cooperation, although the Shanghai GM to come up with is discontinued "zombie car", but since then, Chevrolet Chevrolet pricing will face an awkward position. Not only B-class car, after Chevrolet's A-class car will be hard to sell, "Chevrolet image itself is not very good, cheap to cabbage price later, not far from the dead."
In the "Automotive Business Review" with the dialogue, some of the ideas and rhetoric may make some car electricity supplier practitioners "uncomfortable", but car dealers exist throughout the circulation areas are the most important aspect - it There is no doubt. Manufacturers, electricity providers, distributors, consumers, only a Liyijunzhan ecosystem is healthy and benign.
Perhaps, as the president of the Automobile Dealers Association, said Shen Jinjun, Internet companies and distributors fight, and ultimately forced to change, will be the former.
"Persists in the form type" electricity supplier ruining vendor relationships
Why do you deny the so-called "traditional car electricity supplier?"
I will start my spectator's point of view, and now car electricity providers have evolved into a group of manufacturers can not afford to get inventory, and went clear at the library. Electricity providers want a car that he hired a lot of people to help clean out the car, persists in the form. I say this stuff you can, in fact, a huge cost on the surface - the relationship between manufacturers and distributors are engaged destroyed. I think not so engaged, do not long.
"That's why TrueCar and Autonation fights reasons.
TrueCar beginning all dealers are kidnapped, one day, Autonation say I do not play with you - because the consumer has always been my client. You put my clients lead to my store, but also let me pay, I will not.
Why do dealers unite electricity supplier? His ability to protect its own industry continues to develop. Conventional electricity supplier platform parity mechanisms are based on win - consumers are most concerned about is the price. The parity is to destroy the manufacturers or dealers, not to make our common survival.
Taobao on now, is not that the proliferation of fakes? Because that is selling cheap goods. The only advantage to the Internet to buy something that is cheap.
US Internet also take a lot of detours, when the US Internet, the Internet incredibly large and small cars, but the auto industry is in fact the most difficult to leveraging the Internet industry.
Automotive and other products are not the same.

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