Pure Internet This road is different, the second-hand car how to change direction

Eric Consulting The new China second-hand car industry research report shows that the first half of this year's second-hand car trading volume has reached 4.7 billion yuan, 82,000 vehicles, and last year, the size of the deal only 50,000.

Second-hand car dealers are about to become the next giant's "Tuyere", starting early last year to spark the multifaceted of entrepreneurs and investors. Among them, this year just joined the Battle of the excellent car sincerity is one of the most eye-catching performance, last December, access to the millions of angel investment, one months after the IDG capital nearly million dollars a round of financing, the first flagship store since May, 3 months has reached the monthly average of more than 100 sales figures, Also in the monthly rate of 30% increase.

Although 2014 was only a "successor" to the industry, but the founder and COO William Tu, who has been focusing on second-hand car dealers since 2006, has witnessed the fall of martyrs, the rise of the Internet platform, and the uniqueness of the Chinese market relative to the United States: here, Use pure Internet way to do second-hand car "blocked".

In a recent interview with Titanium Media, William Tu said he believes that China's second-hand car market is entering the buyer's market, only to the maximum close to the consumer side, in order to seize the most lucrative industrial chain profits. and O2O mode will break through the traditional second-hand car market regional barriers, skip the line open shop "store period", let 1.5 months out of a shop possible. In the Internet Cross-border era, trading Commission will no longer be the only source of profit, automotive services, automotive finance and other derivative services will have a broader space for imagination.

As early as 2006, China's second-hand car dealers exposed the tip of the small Lotus point, some consumer-to-consumer (copy to China) company began to appear. At that time, William Tu was reading the feasibility of Mba,ebay motos model in the United States has been validated. One of the people in the American investment circle was: if ebay motos from Eaby, it was agreed that it would be the top ten U.S. electric-business. The bright future of America's second-hand car dealers has given William Tu a chance to see the Chinese market. He has invested in a second-hand car dealer in Shanghai called the two-degree vehicle, hoping to replicate the success of ebay Motos in the United States.

However, the two-degree car after several modes of adjustment of the "Toss", or died.

William Tu summed up several lessons for titanium media: First, the time to cut into the market is still a little early, the domestic second-hand car market is not how to get up; second, the use of pure Internet to solve the problem of second-hand market "blocked", users can not see people, can not see the shop, can not see the car, will not be relieved to order.

From 2006 to 2013, William Tu's gaze has not left the field of second-hand car electric business, he witnessed the rise of many later, such as Cheiling, excellent credit for such a business-to-business auction platform, happy to help sell such C2B auction platform, and fair price such as valuation tools. However, the industry has not grown up a whole industry chain of the Giants.

In 2000 years or so, the new car sales is a very small number, by 2010 years, the top 10 4S shop group, are tens of billions of of the scale, in other words, in the past 10 years, the Chinese car market growth dividend, are new car sales.

According to William Tu's judgment, in the next 10 years or 20, the next round of growth in the dividend must be used in second-hand cars, in the second-hand car industry, the emergence of several Bai companies is not surprising. In the United States, the size of the second-hand car market is one year 4000多万辆, China last year only 500多万辆. In the past 5 years, sales of new cars have averaged 18 million vehicles a year, that is, a total of 90 million new cars have entered the market and will become used cars in the next 5-10 years.

The investment of William Tu believe that the market will always be 1 to 2 years earlier than the market, but not too early, he believes that the turning point in the market will come in 2016, so excellent car prudential goods in 2014 years into the market-the current second-hand market in a seller's markets, But in 2016 years it will become a buyer's market.

In the seller's market, the most important thing in the second-hand car transaction is to solve the "vehicle source", who can solve the vehicle source, who is the most cattle. In the buyer's market, who can fix the consumer, sell the car, who is the most bull.

"If we think this market will always be a seller, we should go to do the car easy to clap, excellent letter clap of things, the two solve is upstream (Che Yuan) problem, even we go to do happy to help sell things; if it is the buyer's market, then we must do retail, so that we can leave the consumer recently, In the value chain can also make the most lucrative profits. William Tu said.

In fact, from the beginning of the 2013, this round of second-hand electricity trader investment Heat also confirmed William Tu's judgment. The car king and search vehicles, founded at the end of 2011 and the end of 2012, were all aimed at second-hand car retailing, both of which were favored by investors within a few months of their establishment. As a late arrival of more than a year later, excellent car products rely on what from behind?

"Everyone actually wants to do something like the American CarMax, but the specific path is different." Car King to buy the main, big search car and we consignment mainly in the mode, we are not some particularly big differences, more critical is in the implementation of the details. "For example, O2O, one of the" Offline "-store location. The store is located next to Empark Grand, the largest shopping centre in Asia, and millions of passengers are enough to support the store's operations. and excellent car finished but the opposite, chose to stay away from the busy crowd, in the 4S store cluster near the village.

"Behind this is our differences over the use of the Internet: If you are in a busy area, the natural flow of people will be very important, if open in a relatively remote place, the Internet requirements are relatively high, and this is our advantage--our team has the internet background. William Tu thought that the idea of location would reveal their understanding of O2O.

William Tu has been a retail expert in the business of the retailer. In the traditional retail industry, the preparatory period of opening a shop may be long years, but also have Yinianbanzai "store period", and excellent car finished also Zhuang shop only in less than 1.5 months to open up. Because it is from the Internet Low-cost access to users, so do not need a long "store period", do not need to go in the golden section of the land "Squeeze Broken Head", "location is always open shop above the biggest bottleneck, and then cattle retailers may make mistakes in the location, but with the Internet, even if the site made a mistake, The internet can also help us make up. William Tu said.

There is no doubt that this is a typical O2O2 mode: Let a originally very "heavy" business plug in the wings of the Internet, to develop faster.

At present, excellent vehicle prudential products per month telephone consultation volume has been close to 10,000 people, this indicator is already the industry first. And for the retail, turnover rate is also a very important indicator, the user in the excellent car consignment vehicles, has been done in 20 days to sell.

Alipay's appearance swept away people's concerns about online shopping integrity issues, only to make "Taobao" become a Chinese way of life. In the second-hand car market, the trustworthiness question manifests more prominently, in the economics, the second-hand car is a typical because the buyer and seller information asymmetry causes the adverse choice, Liepin expels the good product "the lemon market". Therefore, whether in the United States or China, people often from the vehicle information transparency to start to cut into the second-hand car electric dealers, so as to win the trust of users. The difference is that the transparency of us used car information has started long before the advent of the Internet, in which Carfax, the largest vehicle historical information provider in the United States, has over 6 billion historical data records, which can be traced to the historical records of all U.S. vehicles since 1981, with or without traffic accidents. , mileage and handling. The Chinese traditional second-hand car market lacks the third party inspection organization such as Carfax to inspect the vehicle, and can not understand the historical maintenance and insurance and maintenance record of the trading vehicle.

In the words of William Tu, America's Used-car market is much more advanced than China's, and Chinese entrepreneurs can only lift their sleeves and start from vehicle testing. Excellent car prudential products generally from three aspects of a second-hand car to understand the basic situation. First step, Hango, through the conversation with the owner, to understand the basic information; The second step, each car into the entrance, will carry out 798 full test, more than 10 people's testing team to detect more than 200 vehicles a month, the test pass rate of only 30%; the third step is from 4S shop, Repair shop and other channels to understand the history of vehicles, maintenance, maintenance records.

Excellent car prudential products strong inspection capacity has been recognized in the industry, now has become 58 with the city and net the only certification vehicle inspection agencies, Baidu second-hand car industry only partner. This is also closely related to their marketing strategy. Compared to the big search car in the subway ads on the extravagantly, marketing budget limited excellent car prudential products are more willing to "good steel in the Blade", select from the transaction process closer to the network platform cooperation, in the traffic station, underground car park, such as close to the consumer's occasion to put ads. Users hang in 58, the market on the car, can come to excellent car to do inspection, here consignment. Now, every month from 58 of the same city over the second-hand car has reached more than 100 times.

On the surface, the goods are closer to a traditional second-hand car retailer, but the support of more than 100 sales per month is behind the "invisible" IT system. Excellent car prudential products of the four founders, CEO Groves is the original 58 with the city information System Vice President, CTO is the original 58 with the city CTO, the first two rounds of investment in the early stage of the investments in a lot of IT system construction. The simplicity and ease of use of the site's pages is underpinned by a set of it decency, including store sales systems, vehicle management systems, telemarketing systems, vehicle valuation systems, workshops, and garage management systems. At present, excellent vehicle prudential products have been in the mobile internet layout of a second-hand car valuation applications, there will be more products from this system "growth" out, become their "secret weapon."

Open Shop only to the third month, also stores July sales have reached more than 30 million, at present, and competitors, excellent car prudential goods mainly from the profit point of 3% of the consignment fee. As a wide range of products, excellent car prudential products in the future will certainly not stick to trading commissions to live.

"We will provide more value-added services to our customers in the future, which may include some post market services such as maintenance and repair." The future of car maintenance, maintenance above will be a huge market, the business synergy will be very strong. In the future, we will also have cross-border cooperation, for example, we provide car loans for peer-to-peer services, owners can be in our mortgage, the car can be sold in our cars. Jingdong's profits are also very low, its future profits may come from the financial, I believe that the car in the imagination of the financial above is certainly more than Jingdong. William Tu is full of confidence in the future.