NET CEO Yang Hao-hu: Used-car O2O destined to be a field of burning money

Or an important selling point for the IPO story. NET CEO Yang Hao-hu said that the second-hand car o2o destined to be a burning area of money, has been prepared for long-term investment, 100 million of dollars in investment is just the beginning

or IPO story important selling point


NET CEO Yang Hao-hu said that second-hand car o2o destined to be a burning area of money, has been prepared for long-term investment, 100 million of dollars in investment is only the beginning


in the domestic new car sales market for many years, the second-hand market also turn to a period of explosive growth. As the "cake" of the second-hand car trade becomes bigger, the Internet enterprise also lose no chance to lift the knife and fork. Since last year, a large number of Internet companies engaged in second-hand car trading rise rapidly, its selling point is basically around two: one is to ensure the quality of used cars, the second is to remove the price of the transaction process is opaque. These two points, is precisely the line under the second-hand car intermediary has long been criticized for two short boards.


in the words will talk about the era of O2O, has been content to do platform business Information classification website, also want to do it himself. After 58 with the city of the United States, home economics, moving and other O2O business, net his first O2O business selected in the second-hand car transactions, and named it "fair cars."


as a platform company, why choose the bitter and tired second-hand car "self-and", net Vice President Zho Shiyong in the "Securities daily" interview with reporters explained: "The proprietary mode will make us to the overall good vehicle business control more powerful." NET itself also has the self strength, we have in the country nearly 400 cities have the cloth point, the talented person reserve is also sufficient. ”


net burn money to rob customers


at the end of last year, the start of a good car, net CEO Yang Hao-hu announced that the market will be a good car investment 100 million U.S. dollars. A few days ago, Yang Hao-hu again, used car O2O destined to be a burning area of money, has been prepared for long-term investment, 100 million of dollars in investment is just the beginning.


How to spend 100 million dollars? Will it affect the profit before net IPO? In this respect, Zho Shiyong explained: "This 100 million dollar investment will be used to expand the market, get more car source, layout more cities, in addition to include advertising, education users." The investment time depends on the competition of the market. For second-hand car business, net take the ' all in ' strategy, the investment does not set an upper limit, our goal is to occupy used cars Consumer-to-consumer trading 80% of the online share. These 100 million dollars were the money that the market had been able to make last August and would not affect the company's 2015 profit. ”


Like the Internet taxi market, "big" after entering the market to rob the way has always been "simple rough", is the burning of money. Although the market good cars and many second-hand car o2o similar, according to the transaction price of 3% charge for service, but in the initial promotion, the market good car in order to rob the second-hand car source, for both buyers and sellers to provide up to 10,000 yuan of all kinds of subsidies, is to make ends meet. "Our subsidy to the user includes the vehicle inspection fee, the extended warranty service, the follow-up maintenance service and the subsidy of 3000 yuan to the seller, the subsidy of 1000 yuan oil card to the buyer and so on; these values sum more than 10,000 yuan," Zho Shiyong said.


from the net data show that the market good car on line three months, the monthly composite growth rate of more than 300%, has become a second-hand vehicle consumer-to-consumer the boss. "March, we have expanded to 15 cities nationwide, the volume of foreign trade has surpassed Beijing." Specific transaction volume inconvenience disclosed, is currently the core data. 2015 Our goal is to achieve monthly trading 10,000 units, the annual turnover of more than 10 billion yuan. ”

What is the concept of
10 billion yuan? China Auto Circulation Association released data show that 2014 domestic second-hand car trading total of 6.0529 million vehicles, an increase of 16.33%. Turnover of 367.565 billion yuan, an increase of 26.03%. In other words, the market good car growth space is still very large. Changjiang Securities Research and Development reported that by 2020, domestic second-hand car turnover reached between 21 million to 29 million, the market scale of 1.2 trillion to 1.5 trillion yuan, the annual composite growth rate between 22% to 27%.


Second-hand car electric business path is very different


even though the market good car think oneself has become the boss of second-hand cars, but still dare not say that they are the boss of second-hand cars consumer-to-consumer. The reason is that Consumer-to-consumer is just a new business in the second-hand car industry, and there are also the modes of "C2B", "business-to-business" and "mixed".


C2B Auction mode, on behalf of the company is ping an group of peace and good car and open new help to sell, through individual auctions, intermediary bidding can effectively solve the problem of personal selling car, business-to-business auction mode, on behalf of the enterprise is the car easy to beat and excellent photo, is the intermediary between the flow, the two companies recently won the Baidu, Renren investment , and started the business of business-to-business; business retail mode, on behalf of the Enterprise is Canton Motor, large group, excellent car prudential goods, Che Wang, and so on, the former both are a-share listed companies; Consumer-to-consumer retail mode, on behalf of the enterprise is net, everyone car, big search car, Zho Jie, etc. In the Consumer-to-consumer mode, there are two models, including ordinary consignment and virtual consignment, the general consignment on behalf of enterprises are large search vehicles, Zho Jie, Virtual Consignment Representative Enterprises: Fair car, everyone car. The difference between the two is that the general consignment mode, the seller needs to put the car real consignment in the Consumer-to-consumer website offline store, and virtual consignment mode, sellers can sell while open, do not affect the use.


Changjiang Securities Research reported that the biggest difference between Consumer-to-consumer and business-to-business, C2B, and the client is to completely mediate, C-end sellers and C-end buyers direct dialogue, so that two C-terminal can achieve maximum benefits. The difficulty is that the C-end coordination process is long and requires a large number of personnel.


"Consumer-to-consumer mode can remove the middle of a number of B-side links, will have been iphone shop, second-hand car cattle, second-hand car business to share the profits of all let the second-hand car buyers and sellers. We are optimistic about Consumer-to-consumer, and that Consumer-to-consumer is the ultimate model of second-hand car electric dealer, any complex opaque intermediate mode should be overturned by the Internet, the Internet is to give users the most benefit and the most convenient service, Zho Shiyong revealed that the traditional second-hand car trading links in each of the B-side of the profit is probably the price of 20% Above。


However, the second-hand car trade is not the net of the auto industry's ambitions. "Second-hand car trading is a low-frequency business, but its cycle with the changes in consumption habits, has become more and more frequent, two or three-year change in the number of users on the increase." The second-hand car trading module itself is not the only profit model of the market good cars, we attach more importance to the development of second-hand car trading ecological chain, we have the hands of the car consumer users, the imagination of their own space, around these users we can extend to the new vehicle trading, automotive finance, insurance, maintenance and other business, Zho Shiyong said. It is reported that the market good car has been with the north bank consumer finance company reached a cooperation, the latter is the first national consumer finance company, controlled by the Beijing bank. All along, the second-hand car transactions are based on the whole paragraph, the two sides after the cooperation, users choose to go to the market good cars, can enjoy 0 interest rates, 0 of the first payment and other convenient services.