“In this industry, with so much capital, everyone ran after the wind, but when you saw the outlet, you couldn’t really catch it. The company that can really make it into a big company must have intensive cultivation.” It is said that the second-hand car e-commerce development to today, what is needed is at each node, can focus on one thing to achieve the commanding heights of the enterprise, such a company may only integrate the entire industry chain in the future.

With the help of capital and the Internet, used cars have become more popular. Contrary to the gradual slowdown in the trading volume of new cars in China, the second-hand car market in China ushered in an unprecedented period of prosperity.

At the second-hand car conference held in Xi'an at the end of June, the China Automobile Dealers Association issued a forecast that China’s used car traffic will reach 20 million by 2020, and the ratio of new and used cars in China will reach 1:1. The car enters a mature stage.

From the capital point of view, used cars and used car e-commerce have become the hot spots of capital chasing due to their combination with the Internet. Cars are used to shoot, Youxinpai, Gojit.com, Renren Cars, and Good Cars are worry-free. The trading platform rises rapidly. Not only that, vehicle companies and financial institutions represented by SAIC and Ping'an Group rely on their inherent resource advantages to further develop used cars and try to open up the entire automotive aftermarket industrial chain.

With the upgrading of the used car market, large amounts of capital have entered the used car market, and investment in the used car industry chain such as used car trading platforms, finance, extended insurance, logistics, testing and certification has been unprecedentedly high. At present, China's used car industry has already reached the air, capital influx, chaos and melee. Breakers, builders, gold diggers abound.

The hidden trouble of capital

The second-hand car 2C's money-burning war has also been started. Like the "Taxi Software" routine, the most direct performance is to subsidize users. In the Internet industry, the “universal philosophy” of burning money is also applicable to used cars: subsidies are suspended, users are still alive, and will survive; without subsidies, there will be no users, and sooner or later.

The drawbacks of capital-driven are reflected here, and the phenomenon of excessive subsidy in the used car industry is also evident. “At present, under the boost of capital, some of the preferential subsidies introduced by enterprises actually deviate from the trading rules of the used car market. These rules must be followed for the healthy development of the used car market. This is a kind of hidden concern.” July On the 25th, Shen Rong, deputy secretary-general of the China Automobile Dealers Association, said in an interview with a 21st Century Business Herald reporter.

Some industry insiders also stated that some companies have large-scale pre-financing, trying to break the traditional rules of the game with big capital advantages and breaking the rules for the operation of the used car market; then many companies in the used car industry are not able to operate normally. This kind of breakup reestablishes a new game rule or a system that is dominated by it.

“At present, I believe that no one company can completely subvert the existing and established modes and patterns of the used car industry. The O2O model has been widely recognized in practice and the Internet can no longer leave the support of traditional offline physical networks. “Shen Rong stressed that tens of thousands of dealers are not able to eat all of them and cannot be killed. This year, the radical approach of the used car industry has relatively converged and the industry has begun to return to rationality.

Another drawback of capital-driven is impetuous, lack of rigorous insistence on second-hand car e-commerce platform. The focus of second-hand car e-commerce companies has already shown differentiation. Whether it is the O2O model, offline auction model, or the C2B or B2C model, some used car e-commerce platforms will tell new stories after each round of financing.

“In this industry, with so much capital, everyone ran after the wind, but when you saw the outlet, you couldn’t really catch it. The company that can really make it into a big company must have intensive cultivation.” It is said that the second-hand car e-commerce development to today, what is needed is at each node, can focus on one thing to achieve the commanding heights of the enterprise, such a company is likely to integrate the entire industry chain in the future.

Of course, capital also has a positive effect, so that the entire society will pay attention to used cars to speed up the market and evoke consumer awareness. But capital cannot fundamentally change the balance, but for second-hand car entrepreneurs, the efficiency of capital is crucial.

In fact, after many years of development, the maturity of the used car industry has its own natural laws and capital can be accelerated, but it cannot change the fundamental process. In this process, the earlier the capital enters, the more money it needs to invest, the more depreciation of capital itself, the performance of capital is expansion, and the bubble is inevitable.

“When the capital depreciates, the bubble is the biggest, the key is who can do the best.” On July 21, Che Yipai CEO Yang Xuejian said in an interview with a 21st Century Business Herald reporter: “We insist on letting capital input and output. It is most reasonable that the capital efficiency of Che Yipa is twice that of its competitors."

Outbreak and profit points

The used car e-commerce platform is still burning money, but the unprofitable business model is obviously unsustainable. The arrival of the second-hand car explosion period, for the e-commerce platform to a certain extent, means the beginning of profitability.

"China's used car market does not have large-scale car sources, and it is difficult to see a blowout period similar to the 47% increase in new Chinese cars in 2008, but there will be a period of rapid expansion. This phase will exceed the average annual growth of used car sales in the past. Speed, reaching 15%-20%.” Shen Rong told the 21st Century Business Herald reporter.

According to the estimation of the China Automobile Dealers Association, theoretically, this growth of more than 15% should appear in 2015. However, due to the influence of many factors such as the economic environment, policies, and stock markets, the growth has not come. “The policy level has the opportunity to loosen used cars.” Shen Rong emphasized that the biggest bottleneck in the development of used cars is the relocation, taxation and temporary property rights.

However, policy breaking ice is not impossible. It is understood that the Guangdong National People’s Congress has recently promised to urge the Guangdong Provincial Department of Environmental Protection to adjust the policy of restricting relocation for emissions issues so as to ensure the free circulation of used cars in Guangdong. “If this policy can be achieved and it can be promoted nationwide, the used car may have a large market,” Shen Rong emphasized.

In fact, with the growth of second-hand cars, the biggest problem plaguing second-hand car retailers is profitability. “At present, the size of the used car market in China is not enough to support profitability, and everyone is looking forward to the scale of profitability in the future. We feel that to achieve profitability, the net trading volume of the entire used car market should not be lower than 20 million. This 2000 “Million refers to the scale of real transactions,” said Wu Hong, general manager of Shangxiang Motors, in an interview with the 21st Century Business Herald.

In fact, as far as the used car industry itself is concerned, its value chain and how much money it makes can be expected. For a used car platform, how much it can charge depends on how long its service chain is, and whether it can be charged depends on market competition.

“When I received a service fee of 3 points, and the other did not accept or post 3 points, my path would not be able to go.” Yang Xuejian told reporters that with the intensification of competition, the ability to make profits depends essentially on What is the market size and market share of this company?

"The degree of market leadership determines the right of a company to speak on pricing. This is why people are competing for the number one key reason. When you are truly number one, you can make money." Yang Xuejian emphasized .

Scramble for car sources

With the collection network into the second-hand car e-commerce field, previously used to focus on the B2B used car e-commerce platform car Yi shot and excellent letter shot follow-up, 2015 should be used car e-commerce 2C war in the true sense of the first year.

The second-hand car electricity supplier accelerated the 2C terminal business layout, which is the vehicle source. Previously, the e-commerce platform was doing B2B, but it found that the car source was not reliable, so it turned to C2B, and it also turned to B2C with some e-commerce platforms. Now, the e-commerce trading platform has reached a consensus: whether it is C2B or B2C. To turn the direction to the consumer level, whether it is to buy a car or sell a car, the person who gets the car will have the world.

Even the e-commerce platform that traditional car companies invest in is very secretive. Shanghai Motors Co., Ltd. is also stepping up its efforts in deploying C2B. The first step is mainly in Shanghai, because Shanghai has network advantages. "There is not enough manpower to meet the needs of customers at all." Wu Hong believes that C2B business has strategic significance for car enjoyment.

“The used car e-commerce platform will eventually involve C, and it will involve C to accelerate the typification. After the C-end customer comes, it can help us improve the quality of the car source. As a result, some mid- to high-end used car dealerships will also Become our downstream customers. Thus, the product structure and customer structure of the entire industry chain can be improved.” Wu Hong’s views are representative.

The market for used car 2C is already open. Yang Xuejian thinks, “How to form a healthy transaction cycle of 2C is the key. More than 60% of the work in used cars is done in service, and the seamless connection of services and online information penetrates into the entire service link, and the entire service is closed to the best. The key to victory."

"Everyone has 2C, the difference between Che Yipa 2C is that we insist on online trading as the core and continue to improve offline service packages." Yang Xuejian emphasized that "the core of Che Yipa is to run a report. This report is based on The condition of the car is the core credit system, which represents the confirmation of the quality of the vehicle condition. It is the Alipay of the used car industry."

A week ago, Che Yi Pai's website was fully upgraded. The core of this is that the open-to-close trading channel for buyers and sellers was fully open to the outside world. This is an important step in its 2C strategy.

Obviously, the real-time production mechanism for trading prices requires that buyers be active enough to focus on transactions. "Why do we dare to do 15 minutes of open trading. In fact, every car at that point, without the attention of 200 people, there will be no formation of dozens of bids and the transaction will not be active. Your sales force will be very large. "Yang Xuejian told reporters.

Different from the focus on second-hand cars, Che Yipai is a point for SAIC. Used cars are only one point. In the future, SAIC must open up the entire automobile rear-market industrial chain. “We plan to open 10,000 stores for the independent after-sales market. This plan may be opened up in the second half of the year and we will call the car to enjoy our homes. We will add the accessories business. These shops will be able to get through in the future. These terminals may do car washing, Beauty, maintenance, and car enjoyment will be used to trade used cars. At the same time, we also have a time-sharing leasing company that rents the company's electric piles and transfer car network points at different times.” Wu Hong stressed that online is an Internet entrance, offline To set up outlets, the post-market for cars must be underwired. However, the large circulation of used cars, SAIC must first solve the brand's exclusivity.

Previously, the battlefield that B2B started to compete for was mainly the old cars that were replaced in the 4S shop. Now we need to connect our antennae to consumers, transform the advantages of resources into direct sales for greater profits, and extend the business chain from B2B to C2B and C2C. This is a new approach that many e-commerce companies are adopting at this stage.

It is worth noting that the biggest enlightenment to the e-commerce platform after the large number of capitals entered last year is that it seems that there are e-commerce providers that can solve everything in an all-encompassing manner. “Internet+” can solve all the problems, but in practice it is found that due to the use of used car transactions. Characteristics, O2O mode is required for both experience and service. "Whether it is to collect cars or sell cars, C2B or B2C, all need the root of the offline entity service system." Shen Rong finally said.

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