Strategy of expanding operation of automobile dealers in the era of integration

The basic strategy of expansion

0 Introduction

1998 China's auto market into the franchise era, Shanghai GM, Guangzhou Honda and other first 4S shop model introduced to China, as at the end of 2006, the National Register of Http://www.aliyun.com/zixun/aggregation/5850.html " > Car dealers have about 30,000, of which iphone shop has more than 10,000, the current data is still growing, but the life of dealers is not easy. 2006, China's auto industry profits increased by 46%, the whole country's car dealers is a dismal "333 pattern": 1/3 profit, 1/3 losses, 1/3 struggling to support. 2007, the auto industry profits increased by 65%, China's tens of thousands of car 4S stores more than 50% losses, the dealer group has been plunged into a collective dilemma. Dismal business has forced some dealers sadly out, at the same time, in the fierce competition, a group of regional and even national large-scale dealer group is rising rapidly, which means that the domestic auto sales of the era of integration has come, the industry reshuffle will continue to accelerate.

Survival of the fittest. At present, dealers have been caught in the factories, peers, consumers, such as the chain of fast repair and other competitors surrounded by the siege. Large distributor group can not only increase the right to talk to manufacturers, dissolve the risk of a single vehicle brand, but also in the face of peers, consumers and other competitors, can integrate the resources of the group, improve the efficiency of single shop synergy, enhance competitiveness. In today's merger and reorganization, segregation polymerization of the era, distributors to large group of expansion and development has become an unstoppable trend. Dealers in the growth of the group on the way to expand operations, in today's integration of the tide has become the focus of automotive marketing research.

1 Basic strategies for expansion

1.1 Brand expansion

(1) The initial stage of expansion--single brand layout. In the same region to select a single brand expansion strategy, which can increase sales, increase the right to speak, from the manufacturers to obtain greater resources support, and the brand does not exist in the management of the concept and organizational structure of the conflict, conducive to the successful management of replication.

(2) Expansion and growth stage--the same level competition brand layout. Monopoly of a brand has a great risk, last year, Nanjing Fiat disintegration incident is a good proof. Multi-brand layout can increase the ability to resist risk, dealers should choose a reliable brand with development potential, both sides may be mutually beneficial and equal cooperation. Brand Choice is also best first of the same level of competitive brands, which can expand the share of the same customer group, and the same type of car in the same way more similar, easy to obtain business success.

(3) Late expansion-different levels of multiple brand layout. Different levels of multiple brands can meet the needs of customers to upgrade the model, reduce the group's customer turnover rate.

1.2 Dot Expansion

The dealer scale is different, the network layout strategy is also different, as shown in Figure 1.

Fig. 1 different network layout strategies for distributors of different sizes

Single-store dealers in their own not yet mature to take a trans-regional operation or mergers and acquisitions of measures usually have certain risks. The feasible way is to first practice the internal strength, development for the Community boutique distributors, build community advantages, and then plan for future development.

Regional groups may need to set up a regional capital holding company to support the growth of branch offices. The structure of holding companies not only helps to circumvent policy constraints, but is also a tool to broaden the range of car dealership services.

Cross-regional groups need to be backed by a strong development group in the city market. The steady development of the city market and the level of automobile consumption is the base of automobile distribution group expanding outside the region, and the capital base of the merger, which makes the automobile distribution group expand without any worries at the same time.

Regardless of the size of the dealer size, in the network layout, should first form a regional advantage, and then to the external radiation networks. When choosing a city, the local economic development level is an important Gunzo, the first tier city is not necessarily the layout of the primary choice, the economy developed car consumption level of two cities can also be considered.

1.3 Business expansion

From the figure 2 of the automobile industry chain map can be seen, dealers into the car after the market area is the inevitable expansion. The new car delivered to the consumer hands, to the car scrap, around the use of cars, can still derive a huge service market. "As long as there are 1 of dollars of cars running on the road, it will involve at least 8 dollars in CAR service!" ", in Europe and the United States automotive market, after-sales service profit has been close to the entire automotive industry chain profit 20%~30%." Now, the domestic car dealers have also been aware of the great potential of the market, especially the current fierce competition, the car profits meager, after the car market is a lifeline.

Fig. 2 Auto industry chain map

Therefore, dealers in the business choice, should be in the past, based on the purchase and sale of cars, "from birth to death" of the sale and purchase service marketing model. Among them, the purchase and sale of business as a platform, the extension of the service business as the main business, big and deep car after the market, making it a major source of profit.