NET 100 million dollars into a second-hand car deal

December 2, Net announced the online market good car, officially entered the O2O field of second-hand cars. On the same day, net CEO Yang Hao-hu in an interview with the 21st century Economic report, said that, unlike other second-hand car companies in China, the market is the model of good cars consumer-to-consumer, while the other business model is the enterprise. Because Consumer-to-consumer can get through all the intermediate links, reduce transaction costs, the ideal situation is 0 cost.

Yang Hao-hu said it would invest 100 million of dollars, mainly for market promotion and development of business partners.

The 100 million-dollar destination is mainly car insurance: When users buy a car, they will need to wash the car, waxing, car maintenance, maintenance and other services. Through NET's app, net can know the location of the users and provide offline service providers. Through the good car project, the market has built up a platform: a car users, second-hand cars sellers, a variety of car service providers (waxing, car washing, tire sales, inflatable and other services), 4S shop, including a platform, so that sellers and buyers 0 distance interaction, 0 cost interaction.

For these services, net charge 3% of the service charge. In the short term, because of the need to improve the ecological chain, the need for a variety of promotions, 100 million of dollars to make the first investment, according to the need for more investment in the future.

In the short term, second-hand car O2O can provide a huge turnover for the market. Yang Hao-hu said: 2015, the Fair Car project plan reached 10 billion yuan turnover. If you sell 10,000 cars a month and sell 120,000 cars a year, it will be 12 billion yuan for the average price of 100,000 yuan. Yang Hao-hu said this is not a difficult goal: 2013, Beijing second-hand car trading market 700,000 vehicles. In the first half of the year, the total second-hand trade was 2.819 million vehicles, up 12.77% from a year earlier.

Yang Hao-hu that as a classified information service provider to enter the O2O domain, is the natural extension of the business, because O2O itself point to the classification of information field, has a natural advantage. He said: The classification of information in each category is likely to produce O2O entrepreneurial opportunities, and the market of life services related to hundreds of categories.

Used cars are the largest category, more than the real estate, which is the reason for Yang Hao-hu to choose the car. such as the car to do a solid, to build a perfect good based on the Consumer-to-consumer model of the O2O platform, the market can be extended to other categories. Like Taobao, the original is clothing, now Taobao can sell anything.

Trading volume is another reason why Yang Hao-hu choose to enter the O2O through the car, and its competitor, 58, chooses domestic service "58 arrives". Yang Hao in comparison, home economics Aunt one hour price is 25 yuan, a single is an hour, the car is 100,000 yuan, a single car is equal to 4000 single domestic.

But in the second-hand market, the participants are not just fairs. The market provided data shows: In the first half of this year, the second-hand car dealers have accounted for 3% of the total marketing, including safe cars, large search vehicles, the first car network, they are currently the main players in this market.

Compared to these companies, the market model is consumer-to-consumer, and other companies ' models are business-to-business or more complex.

The business model is to centralize the use of second-hand car information on the Internet, users can query the information of these vehicles, selected, through these platforms to complete the transaction. These second-hand car information is mainly from the offline second-hand trading market, the network platform can be through advertising, or collecting intermediary fees to profit.

NET is Consumer-to-consumer: The owner to provide information, including their own contact, by the owner and consumers to complete their own transactions. How to lock the user, prevent the jump single (that is, the transaction between the two sides skip the platform direct transaction, the result is the platform can not profit) phenomenon, net is the practice of risk guarantee: If the car out of the problem, then the net responsible. If the transaction is skipped, the buyer faces the problem of the after-sale risk.