Which is more important in the aftermarket professionalism and scale?

Automobile service is the largest profit “cheese” in the automotive industry chain and is called the automotive aftermarket. In recent years, due to the great potential of China's auto aftermarket, many well-known auto service companies in foreign countries have entered the Chinese market. They rely on capital, technology, channels, and other advantages to introduce the mature foreign brand chain model into China. However, under the current situation of the crowded deft market, there are no leading companies in the domestic auto market. The auto market is still in a melee state: Is it focused on market segments or providing one-stop full service? Is winning in professional or scale winning? This issue of the entrepreneurship circle will focus on these issues in-depth discussion.

One of the dilemmas, the dispute between professional and scale, how to improve the cost performance

Question: At present, as many international giants begin to snatch the domestic market, the car service market has entered the stage of mixed combat. 4S stores have high operating costs and are technically strong, but they have too few outlets. While roadside shops are the “mainstay” of the market and have many outlets, brands are scattered and services are not standardized.

Weapons: After-market shops in the auto market will develop in the direction of a one-stop shop or a specialty store with professional advantages. In comparison, the quick repair chain will have a price and cost advantage over the 4S shop, compared to the roadside shop. There are also brand and service advantages. Therefore, it has a higher price/performance ratio.

Wang Haiying: At present, the domestic auto aftermarket is basically composed of two types of enterprises: one is a roadside shop, which is currently the “main force” in the automotive aftermarket, characterized by multiple outlets and scattered brands; The category is a 4S shop. The vehicle manufacturers directly cooperate with distributors, which is characterized by high operating costs and too few outlets. In terms of demand, what the market really needs now is a new type of automotive after-service enterprise. If such a company has the technology of a 4S shop and the fast and cheap price of a roadside shop, it will be like the “home” of the hotel industry. Grow up fast.

Wang Bin: Yue Fu has been operating independently since the opening of its first store in Beijing in the 1980s. During the period, there are no lack of internationally renowned brands actively requesting cooperation, but we have all refused. One of the reasons is that foreign experience does not necessarily suit China’s national conditions. In China's auto service chain enterprises, although services and quality are increasingly valued by consumers, prices are still a key factor in determining the source of customers. In terms of price, the advantages of international brands are not obvious. Parts on the market can be divided into different grades and prices are different. Because consumers have different requirements on the quality and price of accessories, auto service company chain stores often require various accessories. While international chain brands are subject to a standardized distribution system, stores only provide the best accessories, and prices are uniform. However, whether this normative model can adapt to the huge but unregulated Chinese market still has great doubts.

Zhou Penn: From the current situation, comprehensive stores are developing in both the scale and professional direction. Generally, small shops are changing to specialty stores, and medium-sized ones are changing to large-scale stores. Many services begin to have a certain brand awareness. Chains must be the trend of the future, and one-stop service will be one of the ultimate models of auto service shops, but they all need to be adhered to. The automotive aftermarket may seem to be large, but because of the large number of brands and the large number of models, many auto-related products or accessories are dedicated to cars, and it is difficult for merchants' products or services to make scale effects. The rapid repair of the car's tiny depressions and bruises mainly uses automotive refinish paint and accessories, irrespective of brands and models. Opening such a specialty store can theoretically provide services for all owners. The potential space for the market is large enough. Inventory only needs some paint and accessories, and the capital needs are not large.

The second dilemma is that the business model is ambiguous.

Question: In fact, whether it is an international foreign brand or a domestic domestic brand, finding a business model that suits domestic consumers is a difficult and tortuous path. This stems from the fundamental difference between domestic consumers and foreign consumers.

Weapons: Auto chain companies cannot copy foreign experiences, but must try to find a business model that suits the Chinese auto aftermarket. Now, it is more agreeable that the Chinese auto after-service market should change the “factory-led market into a consumer-led market”.

Wang Bin: Whether it is a domestic-funded enterprise or a foreign-linked fast-tracking company, the most important issue currently faced by the domestic auto aftermarket is survival. From the perspective of the current national market, domestic chain fast repair companies still rarely have successful samples, and at most some companies that have done well in a certain regional market. In foreign countries, there is a car aftermarket first, followed by a 4S shop controlled by a vehicle manufacturer. Basically, in China, the current Chinese car owners accept the 4S shop service first. Under the strong influence of the 4S shop, the car after market independent of the 4S shop is malnutrition and developmental delay. Companies in China's auto market need to find a clearer business model to gain more living space. In the future, the goal of the development is to develop chain operations in areas where the service market after the auto market is large but the employees are relatively weak, such as Jinan and Taiyuan.

Kong Junhua: Nielsen has been in China for more than 20 years. Our company began operating the civilian market in China in 1994. It is mainly for the automotive industry and is a professional brand that has entered the Chinese market relatively early. At the end of 2009, we made a market transformation because we have been developing nationwide franchise chains during the past decade or so. Due to the large number of franchised chain stores, the competition in the franchise market is relatively large, and the follow-up services appear to be too late. Since 2010, we have adjusted the market mechanism and established provincial-level operators in various provinces and regions, through the first half of the year. Operation, market development has made great progress.

Xing Aiyi: In the field of automotive after-service market, Beijing's level has been the world's leading, but why do not come to the industry's big crocodile, I think that the occupation of the automotive aftermarket, the company must have three major elements: professional service level, convenient outlets The diversification of the contents and contents is the direction for the development of China's automobile after-sales service network in the future. It is also an element of whether an automobile service company can occupy the market. I analyze that the 4S shop is more of a brand-oriented car. Basically, a network only maintains a car of its own brand. This is a requirement of the manufacturer. The professional service network can provide different brands of auto parts and services. Now many auto service companies are engaged in chain operations. This is indeed a more professional service approach. It can not only present a complementary relationship with 4S stores, but also is very close to consumers. Companies that serve the automotive aftermarket will only be able to determine the appropriate business model for domestic development after understanding the development factors of the industry.

The dilemma of the third brand grows slowly, and the international big names are not satisfied

Question: In foreign countries, there is a car aftermarket first, followed by a 4S shop controlled by a vehicle manufacturer, and China is basically the reverse. Then, the auto aftermarket that is independent of 4S stores faced a “low threshold” and a melee-battled situation without technical barriers. The characteristics that emerged were that the brand grew slowly and the international big names were not satisfied.

Weapons: At present, domestic automotive service companies have become increasingly aware of the importance of the brand. After a price war, the real competition of auto manufacturers will be the "soft power" such as service quality, and the realization of the brand. To promote the rapid growth of domestic and foreign brands.

Wang Haiying: At present, domestic automotive service companies have become increasingly aware of the importance of the brand. After a price-mixed battle, the real competition of auto manufacturers will be “soft power” such as service quality and branding. . The sub-sector industry and new service methods appear in the auto after-service market, which shows that the diversified service model will gradually become the development direction of China's auto after-sales service market. China's current automotive service industry is still in an era dominated by vehicle manufacturers, and many OEMs have turned automotive services into another important source of profits.

Wu Hong: In the early days of entering the country, Anji yellow hats expanded rapidly. However, due to the management and human factors, coupled with the immature market, many franchise stores have been closed, and the franchise business has stopped since 2009. We believe that it is impossible to give franchisees a good profit guarantee before they have formed a core competitiveness; and as a brand with a foreign investment background, Anji yellow hats also need to make adjustments that suit local development, so In line with the principle of being responsible for the franchisee and the protection of the brand, the Anji yellow hat has become very cautious in joining and expanding. This is also our confidence in building the brand for the future.

Gu Zhaoguang: China's auto aftermarket is a very large market. Au De Bacchus entered China and it has also experienced many storms. From the opening of the first store in Shanghai in 2004 to the refinement of the franchise system, 13 franchise stores were formed. From the reorganization of unprofitable stores to the opening of the first direct sales store in Shanghai this year, after years of exploration, we have The Chinese market has some basic understanding. In the future, how to fit the Chinese market and copy our accumulated experience quickly will become our focus.

Xing Aiyi: To become a car service industry, we must do the same as the predators of the United States to establish a foothold. When Yiyixing just established a chain development road in 2002, there were only two stores. To date, there are 100 chain stores in the country and 15 chain stores in Beijing. From a certain point of view, I have been doing "car washing" for 10 years, which is exactly 10 years after the car entered the homes of ordinary Chinese people. In the early stage of development, we took the approach of joining and strictly controlled the management. In the later period, we worked hard to open up the direct-operated stores. However, it should be noted that the speed of expansion of the chain network is not the most important, but more important is the quality of service and the professionalism of the services you provide, because it determines how much your brand can win in the market. In the future, Aiyixing will develop into a multi-brand and scale business model.

Dilemma 4 Focus on market segments or one-stop service

Question: According to authoritative statistics, the average number of bruises per car per year reaches more than three times, and the market turnover of micro-wound repairs on the surface of automobiles is as high as 55 billion yuan, and it grows at a rapid rate of 20% per year, thus forming a A huge market segment. However, China's car ownership is still not high, and only doing its own strengths or characteristics cannot support the profitability of fast repair chains, and it takes a certain amount of time for customers to accumulate.

Weapons: The individualized consumption of automobiles will become the mainstream of automotive supplies consumption. Small businesses will choose a sub-sector that is suitable for their own specialization to make profits more easily; and Wal-Mart's "one-stop service" is more suitable for large-scale and powerful ones. Business enters.

Gu Zhaoguang: When the process of transforming the automotive aftermarket from being a manufacturer owner to a consumer-led one is completed, the concept of consumers will fundamentally change. Historically, the United States and Japan have all experienced market segmentation. However, it now appears that apart from the fact that there are individual professional technologies that cannot be replaced (such as sports modification, fever sound, etc.), "one-stop service" has become the mainstream. The desire of the average consumer to hope that the maintenance of his car will be completed at the same time and space will accelerate this change. If the rapid repair of tiny depressions and bruises will become the development focus of the automobile maintenance industry, then the personalized consumption of automobiles will become the mainstream of automotive supplies consumption.

Xing Aiyi: Love Yixing’s support at the beginning of development relied on car washes, and it has been proponent until after 1998 to be profitable. Everyone may think that when passing through the front door of the Yiyi line, there are hundreds of cars lined up every day. Larger stores handle 500 cars a day, and now there are nearly 10,000 cars in Beijing every day. So we Sometimes called the "car wash king." In fact, our main business is not a car wash. A car wash is actually a loss-making project. There are a lot of people talking about the rain as if we were making money. In fact, what we are most afraid of is the rain. There is a commercial marketing technique here. If we do not insist on cheap car washing, our other projects may not be able to get along. We all think that car washing is very convenient. It is convenient to carry out one-stop or comprehensive consumption, for example, to put tires in the car wash. Changed, or on the insurance, or some customers are repairing cars while purchasing automotive supplies.

Zhou Bin: The threshold for doing Wal-Mart's "one-stop service" is very high. The average small business can't do it. It can only choose to work in market segments. Market segmentation is a sign that market competition is maturing. From the perspective of market demand, the rapid growth of domestic new car sales and the lagging consumption of the automotive aftermarket have led to a high-risk period in the current domestic one-stop shop model. There are not many shops that are truly profitable. In 2002, Baiyuan and Tefler cooperated to promote the franchising chain of Teflon automobile service brands across the country. It also affected the moment. However, in 2005, due to the increasingly fierce competition in the traditional car beauty business, Baiyuan began to peel off Tefler's business, and introduced the American automotive service pioneer brand, “Cyclone”. At present, Sailang has more than 100 franchised chain stores nationwide. Its main business is quick repair of vehicle paints and maintenance of car paints. We proposed the concepts of “8-minute American car wash” and “99 yuan car paint quick repair” to make the previous small-scale car wash. Beauty decoration shop has a new business model and way out.

Business Watch

Several factors to increase the profit

It is not uncommon for the confusion and conflicts encountered in the automotive aftermarket. These problems also exist in other service industries. The key issue is that, even if the factors of other market prospects are not taken into consideration, service chain stores must also address the site selection in advance. This is an important prerequisite for the development of automobile chain enterprises. Like traditional enterprises, how to give extra points to corporate profits, and at the same time determine the survival conditions of the company in the future.

First of all, site selection is particularly important for the success or failure of the automotive after-sales service market. Wang Bin, director of operations planning at Beijing Yuefu Automobile Decoration Co., Ltd., believes that driving a chain of stores does not require selecting a particularly bustling commercial downtown area. But as long as it is close to the main road, the traffic is easy, and it is convenient for the vehicle to park. Therefore, it is necessary for auto chain stores to have more space. However, the rent must be as low as possible, which will help recover the investment as soon as possible. Secondly, auto repair has high technical requirements, and it is best for investors to have technical skills. Conditions, if not within the industry, should at least be familiar with the industry, be proficient in management, look for profit from the details, and have sufficient maintenance technicians under their hands so as to ensure the normal operation of the business. In other words, if there is no ideal business venue and excellent technical personnel, then the operation in the automotive aftermarket market will be hindered.

Yang Bo, an expert in the automotive sales market, believes that the car repair shop, as a form of business in the automotive aftermarket, is a new form of business services. At this stage, it is difficult for China's auto market to completely separate from the control of the entire vehicle manufacturing industry and become an independent market, and this phenomenon will exist for some time. In the long run, the auto aftermarket will not be subordinate to and dependent on the pre-market for a long time. Because the needs of auto consumers will not only determine the direction, scale, business model, and service method of the auto aftermarket, but will also in turn form the pre-market. The decisive influence. On the other hand, at present, domestic manufacturers have become increasingly aware of the importance of services, and good services will directly bring “return customers” and increase profit ratios. Now, after the price-fighting competition "hardware", the auto manufacturers will really compete in the future will be "soft power" such as service quality.