Car after the trillion market who will be the last winner?

Absrtact: Black Horse China, the world's biggest engine of the auto industry, is still roaring fiercely. In the past 2014, the Chinese bought more than 23 million cars and kept the world number one for six consecutive years. The Chinese with the wallet bulging are turning the car dream into a present

Brother Black

China, the world's biggest engine of the auto industry, is still roaring fiercely. In the past 2014, the Chinese bought more than 23 million cars and kept the world number one for six consecutive years. The Chinese who are bulging with wallets are turning the car dream into reality. Before big cities such as Beijing began to limit their purchases, private cars experienced blowout outbreaks in many Chinese cities. At the moment, there are 160 million cars driving along the streets of China. When the cars were delivered to the owners ' hands, they drove into a market called "the rear of the car". To meet the owners are turned into reality black-boxes operation, shoddy, high quality and low price disease.

A group of people, they saw the mobile internet power to change the world, they believe that the introduction of mobile Internet in the automotive market, is to solve the current "pain point" begotten. A group of giants saw the auto market as the biggest gold after the real estate, and it has barely been mined.

In this article, we will explore a variety of O2O entrepreneurial models that introduce the internet and mobile Internet into the automotive market, what do information tools bring to this heavy industry? Who are the most likely to be the last winners? Which model is the most likely to win?

1

The market is still early, but don't worry, it's about to explode.

The Chinese automobile industry is changing from the increment economy to the stock economy, the automobile market will usher in the outbreak period, once the 4S shop monopoly mode is relieved, the market is expected to grow faster.

After the car market, is destined to be a piece of land can grow golden fruit. According to the "2014 China auto Market chain Operation Research Report" issued by the China Association of the elite Capital and the Chinese chain operators, 2014 China auto market size reached 600 billion yuan, an increase of 30%. The future annual growth rate is expected to exceed 30%, 2018 market size is expected to break through 1 trillion yuan.

The big environmental change is the necessary soil for the automobile after the market entrepreneurial opportunity erupts. "The car industry used to sell new cars, now from the incremental economy to the stock economy, second-hand cars, car market after the rise." "said Shuo Congfang, founder of the car. At the same time, people's understanding of the car has become from luxury to transport, car owners of the attitude is also changing-before the car when the baby tribute, wronged the people can not wronged the car, now the car as a mule, all to provide convenience for people. At this point, is not the first choice to repair the car 4S shop? Do you have to use the original parts? When the original service pattern has been difficult to meet the owner, the huge demand means entrepreneurial opportunities.

Compared with the market space in the future, China's auto market entrepreneurship is in a very early stage. Kang Binghua, the founder of the elite capital, described it as "the spring and Autumn Period", on the one hand, a large number of participants, on the other hand, "mature entrepreneurial projects and a very small team."

In fact, China's auto market is highly dispersed and has not yet emerged as a dominant giant. In addition to 4S stores, the mainstream is the auto parts city, the repair shop, and countless roadside shops. According to the study of the AutoZone investment, the largest auto company in the United States has an annual revenue of about $8.6 billion trillion, accounting for 3.7% of the market, while China's largest auto company's annual revenue is only 500 million yuan, accounting for about 0.1% of the market share.

Why is this situation happening? One of the important reasons is that China's car services still take the iphone shop as the main channel, and 4S stores through the joint with the insurance company, successfully maintain the majority of the warranty period (usually 6 years) of vehicle maintenance and maintenance, and in fact become a car market monopoly. The whole plant only allows the qualified parts factory to the designated 4S stores supply spare parts, also exacerbated this situation, making the whole depot, 4S stores, insurance companies become the largest beneficiaries of the industrial chain.

Chinese car owners are actually being held hostage. Although the fraud and profiteering of 4S shops have been widely criticized, people do not have a better choice, because other repair shops are unable to guarantee the authenticity of accessories, nor to obtain the general trust of consumers. The general manager of an accessory distributor said that once the monopoly of the vehicle industry was lifted, the development of the automobile aftermarket would usher in a great opportunity. The distributor's spare parts pricing constraints will be liberalized, the automotive market quality will be significantly improved, the 4S shop outside the maintenance business will be more equal access to technical information, as well as the owner to provide maintenance authority.

2

The Giants are here.

In the introduction of the market, the Giants have been pouring in, they largely closed the standard products and standardization of services to the entrepreneurial space. Entrepreneurs should work harder on non-standard products and quality control.

January 7, the NYSE listed company Auto launched the car maintenance O2O platform "car home." Car owners can buy car maintenance, beauty services through the app or Web site of their home, and then go to the online merchant to provide the service. Although the diversion platform is the most primary vehicle after the market O2O mode, but relying on auto huge flow, the cost of the home from the online drainage is extremely low-this is difficult to contend with the resources of start-up companies.

Another NYSE-listed company will not miss the layout of the car market. January 9, Easy Car network and Beijing-east, Tencent signed tripartite Strategic Cooperation Agreement, Beijing East and Tencent amounted to about 1.55 billion U.S. dollars investment. While the move is interpreted as a transformation of the for-profit model and its huge ambition in the automotive electric business, there is plenty of room for imagination if it wants to exert its power in the back of the car market.

Entrepreneurs are more nervous than that. At the end of December last year, Tencent, PICC and Ka-Many of these three major areas of the Giants jointly launched the I maintenance products, purchase insurance car owners can be free of charge for a year of maintenance opportunities, maintenance by the contracted in all parts of the line shop to provide. It is hard for the entrepreneur to think that the giant's moves were so early. This is not good news for startups that provide standardized door-to-door care.

Some start-up companies began to feel a chill, and some have been angry with the Giants. Road Tiger Car Network (hereinafter referred to as the Road Tiger) is headquartered in Shanghai, a company of tire manufacturers. When the owner buys the tires on the internet and makes an appointment to install the store and time, the pedestrian will deliver the tires and pay the store an hour fee. The ultimate goal of the store is not to earn work hours, but to turn the owner into a long-term customer and return when the car needs repair.

At present, the road tiger is already the first tire electric dealer, 2014 sales can reach 400 million yuan, its tires, warehousing, logistics are self-employed. However, the tyre is a highly standardized product, Jingdong is also in the same way to sell tires, and capital, warehousing, logistics are the advantages of the East Beijing. It can be said that the pedestrian tiger and Jingdong in face-to-face competition. The pedestrian tiger has already completed by the June joint capital to take the investment the B round financing, its partner Wang Tailin told "the entrepreneur", the pedestrian tiger now has to do is in the line experience achieves the best.

As you can see, it's hard for startups to compete with the Giants for highly standardised services such as daily maintenance and part of the maintenance business, and the Giants can turn these services into Low-cost, even free, traffic portals after big players enter. How do entrepreneurs find their way out?

Car Ant founder Li Liheng that the car after the market profit margin is repair, the more scarce is the maintenance of technology and skills, it requires good technicians and non-standard parts of the procurement and distribution system, which is similar to the relationship between fast food and high-end restaurants. This is the area that the Giants are temporarily not covering. For the entrepreneur, if the quality control to explore a set of effective and cost-effective way, there will be a chance to withstand the impact of the Giants.

3

It's not enough to understand the line.

In this business, the Internet-born entrepreneur is not the mainstream, but the action is bold, the traditional industry people are more cautious, and the good team must have both knowledge of the auto repair and understand it in two categories.

There are very few industries that have been like cars, and the internet has exploded, but the proportion of internet-born practitioners is low. "Entrepreneur" has counted more than 30 O2O entrepreneurs in auto market, they come from three areas: traditional industries, automobiles and surrounding industries, the Internet. There are only 7 people born in the internet industry, less than One-fourth.

In the "entrepreneur" interview of the founder of the door-to-door car company, Mocha I car founder Zhang, e maintenance founder of the peak from China Mobile, formerly engaged in technical and business work, Carradine founder Ji Cheng in the insurance industry has been fighting for nearly 20 years. They do not know before the start of the car market, often from their own pain point, to find the direction of entrepreneurship. Ji Cheng in the United States, the control manual gave the car a gasoline pump, found that the car maintenance threshold is not as high as expected, and maintenance of a large amount of time. So he returned home and founded Carradine.

The founders of these traditional industries, set up a team standard is a motor repair veteran plus a knowledge of it technology partners. For example, Mocha I car's founding team has three people, Zhang is responsible for online products and technology, Nenchenvoux is a veteran mechanic born, responsible for research and repair technology, Zhao Liangjing originally in the auto parts industry, responsible for spare parts procurement, scheduling and technician management.

An interesting phenomenon is that although there are most entrepreneurs in the background of the automobile industry, few of them come from the traditional car market. Car Easy Ann founder Shuo Congfang is an exception she

1996 into the auto parts circulation industry, as the Shanghai Auto Parts Circulation Industry Association vice president. In her view, because the traditional car after the practitioners to the industry too deep, the problem to see too much, so that "feel all the problems are no solution."

She opted for light mode: the maintenance store's information management tool plus the business-to-business online platform. It also comes from her understanding of the aftermarket: small bosses have low cultural standards, but are eager to use the Internet to improve management efficiency and purchase authentic spare parts.

"My position on the enterprise is never pure Internet enterprise, because O2O must have two teams, one must have the Internet thinking, one must have the deep understanding to the traditional industry, this road can gradually gradually move forward." "Shuo Congfang said.

4

The line shop is very panic, the Internet red flag inserted everywhere

This is for both the B-and C-end of the entrepreneurial opportunities, but the Internet is an essential means; B-end emphasizes the quantity and precision of the data, the C-end pay more attention to the user experience.

The internet, like a long, eager downpour, poured into the black land of the car market. Black, is the color of fat soil, is the color of oil, but also the most common color of the technician's overalls.

"This market than the original home appliances, FMCG products under the offline market still lag behind." "Kang Binghua said. A veteran of the consumer-chain industry, he found that the impact of the internet on the car market was earlier than the impact of offline Ultra. "In the traditional retail industry, chain supermarkets to the wholesale market shocks, it is again the impact of the electric business." After the car market is still the wholesale market-led, it has not been under the line more advanced mode, but the internet has come. ”

"I would very much like to have more companies like Carradine," he said. "Zhang Kaixin, founder of Wei Niu car-repair, said excitedly. His company provides a maintenance store with a software that manages business and solicits customers on a mobile phone, "I told them that Carradine came, half of them knew, the other half didn't, and they were scared!" ”

Since 2013, a group of Latin American companies have emerged, robbing the repair shop. Zhang Kaixin told the panicked bosses, it's the internet age, someone is robbing your business, and I'm here to help you. Such "salesman" There are many, from Alibaba out of the Li Liheng in Hangzhou, founded a company called the car ants, for the cooperation of the repair shop to provide on the Internet Sales service platform, but also for the owner to guarantee the quality of service. "The street repair shop is like a small hostel, a guesthouse, I want to use the Internet way, the guest house into a hotel, we are like Ctrip." "Li Liheng said.

Backward, complaining of profusion, the pain dot everywhere. "Entrepreneur" interview found that the car after the market participants have varying degrees of pain points.

For car owners, the quality of the 4S shop has not been too expensive. However, the roadside fast repair shops, repair shop is not reassuring, most of the time is a chance, the reason is very simple, car owners lack of relevant knowledge.

For the 4S shop, it must use the entire plant designated suppliers of accessories, this is not only the advantage is also a burden: the maintenance quality is relatively secure, but the price let the owner is difficult to accept, led to many owners in the warranty period after the "Escape" 4S shop, this number can reach 70%.

There are more pain points in the quick repair shop and the garage. First, the overall service quality of the industry is lower, resulting in the whole industry being pulled down by trust. Second, the management level is backward, the ability that maintains the customer relation, the service standard degree is not high. Third, spare parts procurement problems, the boss may not be able to identify the authenticity of spare parts, upstream parts supply is not timely. Four, the flow is not stable: usually no car, weekend car queue, but the station capacity is limited.

With the Internet as the core, for each role in the car after the different pain points, there are different service patterns.

For owners, the birth of door-to-door maintenance business, such as e maintenance, Carradine, etc. there are online sales tires of the road Tiger Car Network and sales accessories car worry-free network, to online import, offline services for the entrance, there are car ants, car worry-free, as well as product plus service for the entrance, that is, online platform, selling spare parts, Offline stores for a supplier, such as the SAIC investment of a station.

For fast repair shops, repair shop, there are middle-chi auto parts, Amoy car, such as the online spare parts procurement platform, there are car Yian, Granville cattle repair vehicles such information tool providers. and a car. The company that makes the information management tools and accessories database for the repair shop.

5

O2O no shortcuts, heavy vertical

The mainstream model of China's cars will be O2O, which is also suitable for heavy vertical theory: It can take root in a niche to do dirty work, and companies that operate on a large scale based on mobile internet and IT systems will be the winners.

After the car market is a service market, not only a wide range of services, the volume of service output is also very large, even if the same service, its demand level is also very much.

More than 10 years ago, Su Ning, Gome started, behind their support is not only consumer demand, but also Haier, Konka, Changhong These home appliances manufacturers, they have in every province has logistics, warehousing, to be able to distribute products in place. Today, the same infrastructure has underpinned the development of Beijing and east. However, after the Chinese automobile market infrastructure is still very backward, the supply chain is not perfect, coupled with the diversity of service demands, leading to the practitioners are facing a more complex business.

The internet hits the back of the car market, facing hundreds of thousands of of isolated small repair shop owners. "You do not integrate objects, China's auto market has not been a large-scale chain of business, completely isolated hundreds of thousands of stores, is not a family to integrate it?" It is not like a standardized product can be integrated by the electric business platform, this is not tenable. "Kang Binghua said.

Therefore, to do heavy is the inevitable choice of car after the entrepreneur. Do hard work and dirty work, not only to control the quality of service, but also in order to deeply rooted in the industry, the establishment of the system. More and more according to the library is the first way to avoid the past threshold. "I was in this industry dumbfounded, each car has tens of thousands of parts, the same kind of car different from the factory years, different exhaust parts are not the same." "Zhang said.

He used the most primitive method: Manual collection. Send a large number of staff to 4S shop or on Taobao each request, buy different models of technical manuals, manual input computer, and then each accessory and its several manufacturers of information matching consistent. The work cost more than two years and invested tens of millions of dollars. Now, the China-chi auto Parts database covers the domestic 40 mainstream brand models, online parts products to reach 5 million to 10 million SKU (inventory unit).

The elite capital in 2013 invested in Kang Zhong auto parts, this is a chain of car accessories, currently in the country has more than 130 distribution points, a total of more than 10,000 car repair shop. In 2014, Kang Zhong Auto parts and Minsheng cooperation, the beginning of the line, integrated operation under the line. Kang Binghua that, after the car market O2O "is built in the whole chain, network terminal system are set up, including internal management processes, ERP are mature situation."

After several attempts, the headquarters of the car ants in Hangzhou is no longer a simple online matchmaking platform, it built a group of more closely related model repair shop: Responsible for site selection, uniform design appearance, training technicians operating procedures, supply spare parts. The line operation team of the vehicle ant divides into the investment, the quality management and so on several parts. Li Liheng said: "How do we control some of the social income is not high, education is not high blue-collar staff, this is our team the greatest value." ”