Easy to beat Yang She Jian: Second-hand car electric dealer, from America you can't learn

    November 28, 2013, the fourth session of China auto industry investment and Financing Forum, hosted by China Automotive Consulting Center Network, was held in Shanghai. China used car Electric dealer first brand Yang She Jian CEO Ms. Ma was invited to give a speech at the forum to discuss the development model and bottleneck of China's second-hand vehicle electric dealers. The following is a transcript of the speech:     Used car dealers, from the United States you can not learn     guests good afternoon, first of all, thank the organizers, as the moderator said, I and the organizers should be old friends, 7 years ago we have not commercialized, only one idea, A prototype of the technology we discussed together about second-hand car industry. Since the organizers started the forum, I remember it should be 09, I began to participate in their forum, but to participate in this investment forum is the first time. We used to participate in the industry forum, are doing second-hand cars on the road. I remember 09 years ago I said that the second-hand car industry and other industries are not the same, with one sentence to generalize is "the future of the second-hand car industry is beyond doubt." But that was a lot of people questioned, but I believe that come today, go to this forum, go to the investors so enthusiastic attention, and in this year's top ten auto industry investment hot cases ranked second is the second-hand car industry, is really to confirm the view of 4 years ago, the future of second-hand cars industry is beyond doubt. When you have been questioned before, will ask the industry's hot when will arrive? There is a definite answer to this question today. Today we are going to discuss the topic is in such a hot spot, how do we go to the other shore, what kind of model can win, what kind of business can win?       Car annual sales breakthrough 5 billion     I used "second-hand car electric dealer, from the United States you do not learn" as the theme of the speech. What I want to share with you today is that since we can't learn, how do we get there? In the past 6 or 7 years, our team has often explored how to standardize the condition and how to make the transaction scale. The first thing we decided to do was to standardize the condition of the vehicle. After we finished the standardized work in 2010, we started a business model attempt, we launched the easy to beat trading platform, from the 2010 test run to today, we have from the annual trading volume of 700 units increased to 100,000 this year, at the beginning of last December, Our platform's trading volume broke through 1 billion, in fact, we have completed nearly 30,000 last year, we actually reached almost 1.2 billion of the way, this year our turnover has exceeded 5 billion yuan. But we think the turnover has not represented anything, especially the big era of electricity, Taobao will be 30 billion a day, so we say we to 5 billion are not counted. But as we look at our growth curve, we've spent 3 years developing from 700 to 100,000 cars. 100,000 service times     We value 100,000. Here I am happy to tell you that in the next 2 weeks we will reach 100,000 vehicles, we strive to achieve double 12 before the goal. We're in the auto industry, who's 100,000 cars? Beijing Mercedes-Benz 2012 sales of more than 94,000, the NYSE listed dealers group of three-year sales of nearly 100,000, according to the field sales to calculate 100,000 of the second-hand car market basically ranked the first two in the country.     Trading volume from a certain point of view it illustrates a problem, used cars can be large-scale circulation, but more important or we are more concerned about a core of the national integration of the circulation network. Last week I checked a data, 100,000 cars traded on our platform, we were sold to 163 cities across the country. 65% of the vehicle source directly to achieve Cross-border transactions     China's second-hand car consumption is the source of vehicles and the source of consumption is inconsistent, for our company three car source City, sell only three core cities, such as Ningbo, Wuxi we are doing, but not concentrated. Our real car source output, or call the car source only three cities, Beijing, Shanghai, Hangzhou. The 100,000 used cars produced in these three cities were sold to 163 cities nationwide and more than 6,000 buyers. They look at the report from our trading platform without looking at the real car and make the deal remotely. In the past 3 years we have achieved a breakthrough from 700 to 100,000, more important is the national more than 6,000 buyers have developed from the car easy to shoot the platform, our trading website, online to buy second-hand cars, to achieve a buying country such a trading model.     car easy to shoot growth     Although we have the same amount of growth, along the way, along with our volume of growth, attention to more and more people, attention to the car easy to shoot people generally have repeatedly asked me two questions. First, they asked me if the United States has not emphasized the use of second-hand car online trading, why China must be used? This is a question that people in the car circle often ask me. The second issue is that I am often asked by investors, investors see us ask three questions one of the questions must be: Who is your label company? For more than three years, our own original pattern has not changed until today. A little gratifying is the first question, often asked in the industry, the United States does not emphasize the use of second-hand car online auction why should China? As the facts speak, the industry is less asked, they are more discussing how we cooperate, how to embed second-hand car auction online transactions into China's second-hand car industry, we began to explore this issue. The second question, the car easy to beat the Enterprise is who, this question is still frequently asked by investors, I always tell investors, China's second-hand cars are China's. China's second-hand car dealers or China's second-hand car industry program now you'reAmerica can't learn. Just now a guest mentioned that it is time to go to school. In fact, I think the real difficulty is from now how to go with the foreign mature mode docking, in the process of the United States model is not learned. Why? Let's look at it from a few angles. The great enterprise is oneself     First, I think the really great business model, especially the electric business, because the electricity business is the basic service, the service solves must be localization problem. Localization Services The only thing that's clear to you is that really great electric dealers and really great business models, especially internet-linked business models, must have been created by themselves. We look at several of the greatest enterprises, the early generation of the three major portals, always ranked first is Sina, he never said I was the United States who, Sohu often said I was the United States Yahoo, so its strategy has been called forever as the second, never said I was a leader. Today's three mountains, Ali, Baidu and Tencent, Ali and Tencent have never said that I am the United States who who, Ma Yun from the former said I want to build a Hong Kong online, he did not say I want to do China's ebay. We look at the latest rise of the internet industry nova Millet, Millet Triathlon, he came out of the time is also questioned, who are you? Do you have the hardware and software in one? A truly great business model the internet era in China is the leader of the enterprise itself, is fundamentally not learned, this is from the development of business models. From the traditional industry, for example, the automotive industry, we have to learn the maturity of Europe and the United States is understandable, because they do these industries ahead of us for decades or even hundred years, but once the service and Internet link, in fact, the world is synchronized, so we have no reason to say we must copy the model of others, this is The American second-hand car electric business enterprise is the electric Dealer's primary edition     concrete to the second-hand car industry's American electricity quotient, we look at the United States to have two big representative enterprises, one is called Manheim (US han), the second is called Ebaymotors. Manheim Many people know, it is the largest second-hand car auction companies in the United States. Its auction volume and trading volume of more than 10 million vehicles a year, Manheim has been to China, in Shanghai and the National Film cooperation in Beijing and Baic Peng Long cooperation, did 3 years later withdrew. I said why the investors asked me today I do not think I was Manheim, although it did 1000多万辆, it did not go public, it cash flow is very good, but is not listed, because it feels I am very cattle I do not want to let everyone to share. It can benefit more than 10 points in a car, the net profit is over 33-40%, but I still think I'm not Manheim. It's operating conditions like 5 years ago, Su Ning, they have done a strong ERP system, the product information began to put online, it did not do enough information, not fully open. It just said that a traditional enterprise to do some Internet information, not a real electric company. It's not what we're talking about.Line of online services under the integration of O2O Electric Company. Such an electric company has gone down. Today, Su Ning was forced to fully open, the whole Ali also began to turn to O2O, they are already the old generation, if we learn from the elderly we have no future. The second company in the United States is called ebaymotors, I think it is very regrettable thing, I 06, 07 in North America, the investment circle a hot topic, if ebaymotors from ebay will be how, we think it will become a top ten of the electric business. But Ebaymotors made a choice, it's like Taobao today, because I am a big platform, so I can not do vertical solutions for vertical areas, so my second-hand car trading it to apply to my entire large platform of the trading rules, Ebaymotors was killed. This is an annual millions of second-hand car online trading companies, but did not really grow up, as a substitute for Manheim of second-hand car power business leaders.     China second-hand car electric business history is equivalent to second-hand car industry history     I always wonder why America's used-car electric business enterprise always stays in the primary edition, has not been so prosperous like China? In fact, it and China's retail industry is very similar. Their industry has completed an efficient integration. The value of the electricity quotient and the Internet is to integrate the fragmented market, so we say that the long tail market is the Internet market and the hotbed of electricity business. Such integration has been done quickly in the United States, and their demand for efficiency is not that high. Even do not have an essential change, this is the 1th. Second, the automobile electric dealer is the typical O2O, whether it is a new car or used cars, it line under the service chain is particularly long, professional barriers are very high, so online can only complete the exchange of information, the real service must be completed online, so all the O2O service is also the two years before the real walk to the front. So in the field of O2O, China is synchronized with the United States, and because of China's industrial characteristics, it will certainly walk in the world at the forefront of the United States. specifically to the characteristics of this industry, we do not   have reason to go to the United States to learn second-hand car dealers.


    Why is China's second-hand car industry a hotbed of electricity business     Next discusses why China's second-hand car industry is the internet and why is it a hotbed of electricity business? What is its characteristic? What are the problems that China's second-hand car dealers need to solve in order to stand out? Let's look at the characteristics of China's second-hand car industry. First, highly fragmented. In the second-hand car industry we often say, particularly typical is that we do not do C2B, we specifically add a B1, bn to C2, there are two links with the United States is particularly big difference. First, is the Che Yuan generation link, is C1 to the B1 state, in the United States B1 Most is born, is 4S shop or financial institution, why? In the United States, we know that new car sales are done in financial leasing, it is a buy-back marketing plan to solve the new car sales, it will tell you now buy 100,000-dollar car, 3 years later, 50,000 dollars, I give you every month to open a 8000-dollar bill, you start a new car. The new car sales that day, it has been locked 3, 5 years after the source of vehicles, so the United States car source 80% are owned enterprises, the right to dispose of the individual is limited. So C1 is missing in America. Yesterday I saw the forum voted the top ten investment hotspots this year, ping a good car is the list is everyone saw it 80 million of auto insurance customers, see C1 in China's second-hand car industry chain value, so it quickly on the list. There is no solution to the problem of how Che Yuan is centrally marketed, and the solution is solved by financial institutions as the auto industry matures. And in China cars are personal to consumers, they are willing to find their own way to deal with vehicles, today I am very happy to see our industry to open new help to sell the forest is here, they are to help such a group of consumers, I believe that this model in the United States does not exist, in the United States this is not tenable, this is China's own model. This is the first state.     The second state is the so-called B, we think from B1 to B2 are both B, are car dealers, 4S Shop is only one of the special individuals. In the car easy to shoot we call these B e car dealers. But China's characteristic is that these B have 100,000, each month they traded in 7-8 units, here to correct, the moderator said this year they think the second-hand car trading volume is 5.006 billion, I know this data is the circulation Association reported data, but from the experience of our employees we think it should be 70 % of the statistics, we would like to believe that the Ministry of Commerce's data, the Ministry of Commerce last year said 8 million vehicles, we think this year is approaching 9 million of the data, this volume than we expected to be more active, a larger amount. In 8.009 billion of the vehicles were digested by 100,002 Handcart, only 7 to 8 one months of trading volume, a highly fragmented distribution. This situation does not exist in the United States. Che Yuan and buyer both sides are highly fragmented in the industrial environment, which is the InternetThe best living environment. The most important thing is who can provide a service plan to bring them together for platform trading. This is the first feature of the second-hand car industry.     China's second-hand car industry "three pain"     Why is this industry so highly fragmented? Why is it so hard to integrate? It's the root cause in China, in the second-hand car industry, in the second-hand car trade value chain, the most core is the condition and the car price, and the price is based on market prices and the condition of the case, if there is no suitable condition, the price can not be drawn. In fact, this is the same as our other industries to solve the problem of product procurement quality. Formerly used car industry has a typical words, the company can do much to see the boss one day can pout a few times, procurement is the most basic part of the operation of the core, as long as the person with the ability to open their own business, once the ability to independently assess the people will do a company. So it has been said that China's second-hand car industry has three major information opaque constraints on its large-scale development, the first fundamental obstacle is the condition of the car, the condition is not transparent, the procurement link can not live. The second is the question of the price of the car. So the core problem can not solve, this is the second-hand car industry has been the core problem of fragmentation. Third, China's second-hand car consumption in fact, as with automobile consumption, there is a distinct feature, called gradient consumption. The first-tier city cars are very different from those used in three or four-tier cities, as half of the cars in Shanghai are sold outside Shanghai. The real proportion is higher, because people will be transferred after they get the car. From our trading situation in Shanghai and Hangzhou, Shanghai 65% of cars are sold to the field, in Shanghai second-hand car areas have Anhui help, as well as Jiangsu help, they took the car after all sold back to Anhui, Jiangsu. So this is the gradient feature of Chinese urban consumption, and its source is not the source of vehicle consumption. The easiest thing to do is to sell these cars all over the country. From the place where the car is sold to the most needed and most willing to purchase these vehicles to go. This is another feature of China, called echelon consumption, need to use the Internet method to solve.     Car easy to beat "four" solution     How can you connect from the seller to the party closest to the buyer? Let's take a look at the car. What do we do to solve this problem? Here is a brief introduction to the "four" solution of the car. The first is a commitment to the condition of the vehicle. The standardization of the quality of the condition, has the commitment of standardization. All the cars we traded on our platform were tested, and after the test we made a commitment to report that if you see the real car and our test report is different, the middle of the loss, the price difference by us to pay. You can return the car if you don't accept it. All our deals are actually selling reports and selling credit. We have always called the quality of the car as the core of the credit system is easy to beat the platform lifeline. The second thing we do is call service standardization. Former second-hand car handEasy is a person from beginning to end, from buying seeds to sell out, all business chain a person to complete. In our company from the front-end detection to the transaction flow control to the end of the transfer after the transfer to the logistics, even for these dealers in the process of operating credit, we have these services to the product, made a standard service program, and the buyer and seller here in the transaction behavior also made a commitment to the terms of service, Service standards, this is our service base. The third is the information synchronization, we do a high efficiency of information transmission, this is the simplest. What is the efficiency of our trading? We detected in the scene half an hour to 40 minutes, after testing we quickly put the car online, the entire bidding time of 15 minutes, so we have been to consumers that is, your favorite service is what, one hours at home to sell the country. I for my buyer is you do not bowed buy the whole country, this is our service. In this way we have reached the 4th transaction of National. Here I tell you a little story, we merchant one day the couple brought us a cart of drinks, into the office put, why? Merchant Special thanks to us. That is a merchant in Hubei, how to do business in a second-hand car? Generally are pop, the husband perennial outside purchase vehicle source, wife at home to the car, family stability is very poor. After using our long-distance trading, the two of the couple stayed at home and sold their cars. They sell cars two people are kept in the shop, every month to Shanghai to see, it turns out they are to Shanghai to get the car. The husband and wife 21 up, also sent a drink to our company, told us that now he can finally watch his wife, but also a beautiful young wife. Then we laughed and said, "What's the advantage of the easy racket?" Conducive to family harmony and unity, to create a harmonious family. We did this "four" after the real realization of the online flow of information and passenger flow, which makes the online section and the line of service standards highly docking. So we four project to realize the typical O2O closed-loop docking, this is what the car is doing, always emphasizing the line under the service synergy and the national integration of the large circulation.     Used car national integration transactions easier     We started with the test system, and we always say what we're going to do? We want to make the second-hand car trade easier. To a lot of people now we are trying to make the second-hand car trade easier, each has its own solution. We have intensified again this year, saying what we do, we call the second-hand car the national integration transaction easier. Because now try all kinds of models of the second-hand car enterprises more and more, this year the focus of the capital on used cars is also more and more deep, but the real can let the car business sitting at home can buy a national trading platform, it is only easy to shoot a home. We are particularly concerned about the number of cities in which we have achieved networking transactions. Back to what we said just now, although we only have three of cart source cities, the future of our car source cities will increase, but our constant concern is that theseThe car dealer sits in the shop and can buy the number of vehicle sources nationwide. From our current platform, our used car dealers cover 163 cities, and they are in our place to pay the security, the real from our platform to get the car dealers, they are highly active. Every month, including half of the car dealers continue to take the car here, three months or less than 75% of the car operators here to get the car, more than 90% of the car in the month we landed here. The local transaction is only 35%, and the sale to the field is basically 65%. In the last year, because we mainly do Beijing, we often discuss a topic with us, said it is because of Beijing's limited purchase, so the demand for foreign trade? We always believe that second-hand car consumption is a city gradient consumption, let us most surprised that the city is Hangzhou, because Hangzhou is relatively a mature two-class city, we were thinking of the Shanghai car may be sold to the periphery, so we shop in Hangzhou, we were in order to do car business. After doing so we found that only 30% of Hangzhou's cars were sold in Hangzhou, with sold to Shanghai, and the rest of the landfilled sold to other places. Which cars have been sold to Shanghai? We know that many white-collar workers in Shanghai, so about 10.25 million of the car, we call the mid-range white-collar car walk Shanghai. We also know that the car in Hangzhou license plate is opened in Shanghai, these Hangzhou cars to Shanghai. These cars are competitive in Shanghai. The other landfilled cars are the old cars, sold to all parts of the country, formerly Hangzhou car sold in Guangdong is normal, now sold to Sichuan, Guizhou, Yunnan, and even the Qujing of Yunnan and other places, are very far from the small city, the old car because of various policies of the impact of its price is really pulled down, The center one or two-line city could not go, it was sold to the remote area. We have started to try the various models of second-hand cars, we adhere to the national integration of large transactions, solve the core bottlenecks, leading to the largest transaction activity, and we put together buyers and sellers, the price of people to sell more reasonable, buy people business more convenient. This is what the car is always doing.     China car easy to beat     finally give yourself an advertisement, what is the car easy to do? National integration of circulation, so we call the Chinese car easy to clap, we can also understand as "Chinese car, easy to beat." This is what I want to share with you today, the real value in China's second-hand car electric dealers are really solve the localization problem of the enterprise created, and realized. So I said the second-hand car electric business model in China can not learn, vehicle easy to beat will insist on all industry chain customers to provide the services they need to achieve the national integration transaction.