Online sales and offline services have heavy assets

The recent "double eleven" has given Internet e-commerce companies another wild ride, and the market has made new progress in the post-car market. The so-called "double eleven", which claims to be the largest Internet car in the world, has seen sales of more than 100 million yuan on the day.

Some experts say China now has nearly 200 million cars, or more than a trillion cars. In the face of such a huge market, China's auto market after the current state of the small scattered already can't adapt to, and the "online and offline service, its own assets" of the new pattern is gradually clear.

Huge potential to rush the market fair

The latest data from the China association of automobile manufacturers showed that 2.65 million vehicles were sold in China in October, up 3.4 percent month-on-month and 18.7 percent year on year, up from 6.9 percent a year earlier. From January to October, more than 22 million vehicles were sold, up 13.8 percent year on year, up 12.3 percentage points from the same period last year.

According to the ministry of public security, China's car ownership totaled 184 million at the end of June. According to experts, China will overtake the United States in car ownership by two or three years at current rates. The increase in the number of cars naturally provides a huge space for the post-car market. Insiders believe the market will continue to grow at more than 30 per cent this year.

The popularity of the post-car market has also led to a growing number of fairs. Over the first time at the 2016 Frankfurt international exhibition of auto parts and after-sales service, there are more than 900 Chinese enterprises, more than 2014 more than in 2014, the Chinese enterprises exhibition area and amount to an all-time high, compared with 2004 with 400% growth. It is understood that the Frankfurt international auto spare parts and after-sales service exhibition is the world's largest post-car market exhibition.

After the domestic automobile, the market exhibition is more popular. Frankfurt exhibition (Shanghai) co., LTD., vice general manager of Zhou Shao aperture, held in May this year in chengdu auto parts and after-sales service, with a total of from 11 countries and regions, more than 700 enterprises, attracted from 24 countries and regions, nearly 20000 professional visitors.

"As a regional exhibition d on and serving the southwest market, the huge demand in the southwest market has become the strongest driving force for the development of the chengdu exhibition," zhou said.

In addition, the Shanghai international auto parts exhibition, which will be held at the end of November, will also have 5,700 exhibitors from 39 countries, and 120, 000 professional spectators from 140 countries and regions will participate in the exhibition. The car communication, parts and intelligent network connected with car network become the highlight.

Malaysia chamber of commerce association President Wang Rongfeng machinery and vehicles parts, said after China's auto market is developing rapidly in recent years, not only in local companies, global suppliers are bullish on China's car market after the huge potential in the future.

There has been a "small fragmentation" in the post-market

At the same time of rapid growth of car ownership, by 2018, China's auto cars is expected to be an average of more than 5 years, and according to the development experience of developed countries, once the cars more than 5 years, after the car market will usher in prosperity, especially auto parts manufacturers and service suppliers, will have the opportunity to obtain high business value.

But the market has been small, scattered and chaotic since the Chinese auto market has not been fundamentally changed.

At present, the 4S shop is still the main channel for auto repair and maintenance, but there are some defects such as excessive price and opaque service. And more roadside shops are the main form of independent repair shops, the service scope is narrow and maintenance quality is difficult to control.

According to the introduction, at present domestic officially registered automobile cosmetology decoration maintenance factory about 300,000. Although the quantity is large, but mostly small scale, lack of unified standard, the car maintenance level is different, the price is also unstable, seriously restricts the development of the market after the automobile.

In addition, the rise of the Internet has brought about new changes, and a large number of Internet companies have begun to enter the post-car market. According to industry statistics, in 2015 alone, the financing events that took place after the car market is as high as 342, was born a day on average nearly 1 companies, 1 financing incidents happen, but so far, for the most part these enterprises have withdrawn from the market. For example, bopai, which valued at $600 million and $1 billion in valuation, declared bankruptcy this year.

Domestic and foreign enterprises seek model innovation

The money-burning Internet model is hard to sustain, but the model of "online sales, offline services and self-worth" has been recognised.

"We can't even Internet companies, road tiger is the main focus on offline services, takes heavy assets model", the road tiger overhead CEO of psoriasis, said road tiger currently registered users reached 12 million, covering about 8% to 10% of the country's owner. At the same time, the way tiger created their own logistics system, business category covers tires, maintenance, beauty, automotive supplies, etc., covering 31 provinces and municipalities directly under the central government, 405 cities, offline proprietary stores more than 1 m and cooperation.

Instead of offering door-to-door services and heavily subsidized Internet car service, the tigress has been undoor-to-door and unsubsidized.

"Door-to-door service business logic is not very clear, on-site service this should be a high-end, high premium service, because the tool is less complex, call the mechanic level is higher, low utilization rate means that the cost will be higher and time, but now some Internet service providers to the door of the price was cheaper than to shop, this model has deviated from the business nature. As for subsidies, because companies are essentially need to make money, rely on subsidies for traffic and not sustainable".

The entry of traditional giants also partly explains this model. The world's leading lubricants company, America's no. 3 by sales, has reached a strategic partnership with tihu to expand its B2C channel model in China.

As an established lubricants enterprise, sheng brand has a mature chain of car service system in the United States. It is because of the proximity of the model, such as a world-renowned century-old store and a five-year-old company that has only five years' history.

In fact, not only the winning card and road tiger, more and more domestic and foreign traditional automobile service enterprises are seeking mode of innovation and integration, using traditional enterprise and Internet platform strengths of both parties to participate in the competition.

On January 1 this year, the implementation of the new management measures for the implementation of the new vehicle maintenance technical information was implemented, which provided policy guarantee for the diversification and full competition of the post-car market.