China Auto website survey: better than expected

The powerful traditional industry is like a vast ocean, it is easy to absorb the new Internet into its own body. But from these traditional industries in the ocean accidentally will evaporate a little steam, when the water vapor hits the internet, they melt into a pearl, or crystal clear or radiant.

In some industries, we have seen such pearls, beautiful people such as Ctrip, Art Dragon, 51job, and yet to be further processed and polished such as Sunco real estate, search rooms, Chinese elite, Zhaopin. However, let us slightly regret the place is that these expensive pearl-like enterprises are still connected to the traditional industrial chain. Even the example of Ctrip is not an exception: it is only one end of the airlines, hotels, such as traditional enterprises.

The main reason for this phenomenon lies in tourism, human resources management, real estate and other industries and not many links can be truly independent, and the Internet to find a good interface.

The auto industry is a little different. The long chain of the auto industry has many links that are relatively independent, such as car supplies, road rescues, used cars, and so on. These links themselves often can be further subdivided. This feature of the auto industry makes it possible to find more independent internet interfaces.

As a result, the collision between the Internet and the car to form a pearl may be enough to make a necklace that is "car." Com ".

Car. Com

The internet has once again started a marriage to traditional industries.

The object of this marriage was the auto industry. With the previous Internet and tourism, human resources services, real estate and other industries in the "single point" on the combination of different ways, this time the internet and the automotive industry presents a comprehensive combination of the situation. China's automotive industry chain (especially the service side) on the various links, such as marketing, automotive supplies, second-hand cars, insurance, membership services, etc. have become the Internet scrambling to "transform the object."

As in the past, the Internet and the automobile industry in the marriage between the VC received a lot of "gifts", more VC still waiting in line to pay "part of the money." Of course, the VC's money will not all be white, they expect to be able to from the Chinese auto industry and continue to grow the cake is divided into a piece of their own, "and the more butter is better!" ”

The world's second largest car market

"In 2005, China overtook Japan to become the world's second-largest car market." "This year, China's domestic sales of new cars (including imported vehicles) reached 5.92 million vehicles, and Japan only 5.8 million." Although there are still differences in the comparability of car sales between the two countries, it is clear from the people's Daily that this way of reporting has expressed China's desire to become a superpower.

Although due to the impact of the "market-changing technology" policy over the past 20 years, domestic auto manufacturers generally have weak capacity for independent research and development, lack of global operational capacity and small economies of scale, but as per capita income continues to grow and the willingness to spend on cars continues to increase, in 2006, China has further strengthened its runner-up position in the global auto market.

According to the latest statistics of China Automobile Industry Association (CAAM), 2006 years ago three quarter of China's auto production and marketing situation to maintain a stable development, production and sales both broke 5 million, reached 5.2832 million and 5.17 million respectively, the year-on-year growth of 25.74% and 25.01%. More optimistic estimates that According to current development trend, 2010, China will surpass the United States as the world's largest car market.

The traditional automobile industry chain

Although China's goal is getting closer to the world's largest auto market, it is perhaps because of this that the imbalance in the domestic auto industry has become more and more prominent.

According to the data provided by SAIC, the total value of China's auto industry was 350 billion yuan in 2000, and the automobile service industry accounted for about 1/3 of the gross output of the auto industry, and about 100 billion yuan in market size. 2005, also based on the data from the SAIC study, it is expected that the 2015 Chinese auto industry forecast is worth 1.462 trillion yuan. Automobile service industry accounted for about 1/3 of the total output value of the automobile industry, about 540 billion yuan market size.

In a mature automobile market, the service has developed into an important pillar and main profit source of the automobile industry in developed countries. Japan's Toyota Motor Company, for example, employs nearly 100,000 of its more than 7,300 sales and service outlets around the world, more than twice times its manufacturing staff.

Comparing the composition of automobile value chain between China and mature market, it is not difficult to find that the current situation of China's auto industry "reserves" a broad space for future industry integration action.

The "Morgan-like" boom

The industrial integration movement of the United States was initiated and completed under the leadership of J.P Morgan, led by financial capital. In the History of American industrial development, there is a saying that "Columbus discovered the New World, Morgan restructured the New World". and June Venture consulting company chairman Wang Mingfu once on this basis, came to a judgment: at the current stage, including automobiles, most of China's industries are in the "class-Morgan era", that is, the eve of large-scale industrial integration.

According to the data provided by the China Automobile Industry Association, there were 145 registered car manufacturers in China in 2005, body manufacturers, 536 modified plants, 16 and 20 respectively, compared with 2004. But only about 10 of them have produced more than 100,000 cars a year, and another 30 automakers have produced more than 10,000 annually. The same year, the domestic size of more than 4,447 auto parts enterprises, total sales revenue of 344.9 billion yuan, to achieve a profit of 20 billion yuan, a decline of 11.1% from 2004.

On the service side, China's auto repair companies are up to 300,000, employees 2.4 million, but also in the annual 10%~15% rate of increase, professional car beauty maintenance enterprises only more than 9,000 (the experience of developed countries, an average of 500 cars need a beauty maintenance enterprises, to this calculation, In 2014, China's auto beauty maintenance industry should have at least 100,000 companies, with less than 150,000 employees and a value of about 0.07% of the United States. The average American car service company has a huge market for 1100 cars, while the average Chinese company serves only a poor 82 car.

At the same time as the profit of auto manufacturers shows a downward trend, the profit margin of the domestic auto service industry is as high as 40% in standard disorder, lack of regulation and uneven distribution.

Integration Power

The so-called "Morgan Age" appeared in North America in the late 19th century and early 20th century. At that time, there were hundreds of steel mills and two hundred or three hundred automobile factories scattered all over the country, the market showed a state of near complete competition, no one on the scale, the overall efficiency of the industry is very poor. Then the financial giants, led by JP Morgan, began the industrial integration campaign using capital means. One example of a typical approach to exaggeration is the reorganization of all steel mills into a national steel company.

A whole century later, although many of China's auto makers, which are also plagued by economies of scale, have yet to embark on large-scale mergers, the Chinese car service chain has taken the lead in its own way into the era of integration.

Data from the US Department of Commerce show that 95% of franchise companies will succeed in the U.S. auto repair market, while 65% of independent stores will close within 5 years. Internationalization is one of the important ways for international automobile service chain giants to gain economies of scale.