The combination of second-hand cars and electric dealers, the second-hand market ushered in a big outbreak

Source: Internet
Author: User
Keywords Commerce

March 6 News, the combination of second-hand cars and electric dealers, brought the entire second-hand market explosion. In the past year, a total of 5.6 billion dollars of capital poured into the field of second-hand car power, the relevant investment and financing reached more than 10.

 


In addition to the car easy to beat, excellent letter to shoot these old-style second-hand car platform, from 2013 to 2014 focused on the birth of excellent cars prudential products, car search, car, and so on a number of emerging second-hand cars, electric business platform. And in the original line of business has accumulated user resources of Ping ' an group, net, also have launched their own second-hand car platform.


 


continued to climb the number of cars, is the second-hand car market to accelerate the development of the driving force. According to the Automobile Circulation Association data, 2014 domestic trade second-hand car 6.0529 million, turnover 367.565 billion yuan.


 


But unlike the capital's favor, the average consumer's perception of used-car electricity seems to be in a blank state, with most owners still opting for 4S stores or selling cars to second-hand cars. According to the third party statistic data, the second-hand car electric Commerce Platform 2014 volume amount is 600,000, the transaction amount is 34 billion yuan, only occupies the entire used car market 10% share.


 


Although offline used-car trading still dominates the mainstream, but the entire market is in an extremely decentralized state. At present, the number of second-hand car dealers in more than 100,000, compared to 600 of the annual trading volume, of which the vast majority of the volume is very small, the average number of second-hand cars per month of the trading volume only single-digit.


 


is a very complex and long second-hand car trading chain behind a highly fragmented trading channel. At present, the mainstream second-hand car trading process, basically according to C1 (used car main)-B1 (4S Shop/distributor)-B2 (second-hand car)-c1 (the buyer) of the chain in the market circulation. Car owners first replaced second-hand cars to 4S stores or to dealers, dealers through the form of auction and other sales to engage in retail second-hand car dealers, and then sold to consumers.


 


It is because of the complexity of the trading chain that any one of these links is likely to achieve the big players in the industrial chain. For example, seize C2B, help car owners to sell second-hand cars, open new Help to Buy, set up business-to-business links of the car easy to beat, excellent letter beat, as well as shorten the trading link, to create Consumer-to-consumer model of everyone car, fair car and so on.


 


among them, the Business-to-business model to control the current second-hand car dealers most of the shares, but also the capital market is the first focus on a subdivision of the field. The Consumer-to-consumer model, as an innovative form, integrates the industrial chain and becomes the next market with considerable imagination.


 


Market Good car: its own flow +c2c


 


"We (used car) traffic for nearly 2 million a day, a large number of users in our classified information platform to buy cars to sell cars," the own second-hand car flow, which is net CEO Yang Hao-hu (Weibo) to choose to plough into second-hand cars is an important reason.


 


December 2014, net High-profile announced into the field of second-hand cars, officially launched its second-hand car electric platform "market good cars." At the press conference, Yang Hao-hu said he would invest 100 million of dollars in second-hand cars and service providers such as maintenance and finance.


 


Market good car choice of the Consumer-to-consumer model, the value is to reduce the original used car complex trading links, the first vehicle source from the local second-hand vehicle owners, the market good Car evaluation division after on-site assessment to provide testing reports. And buyers can contact the market good car under the line to take a look, after the market good car charge 3% of the turnover as a commission.


 


as a result of the shortening of the trading chain, the cost of intermediate links is reduced, the transaction costs can be given to both buyers and sellers, "sellers can gain more than the market price buffers, the buyer will save the cost of law car," Yang Hao-hu said.


 


and in Beijing market, net use existing flow to become the second-hand car business has also begun to receive results, "the first month, about 30 vehicles, more than 70 vehicles in December, nearly 200 in January, the growth rate is very fast."


 


Although the project started only three months, the fair car has begun to plan rapid expansion to the national market, Yang Hao-hu revealed that March will enter 20 cities, at the same time will start a nationwide subsidy program, "The target is to enter 40 cities in the first half of this year, the end reached 50 cities above."


 


Yang Hao-hu that the ability of the market to push the line in the classified information age is the key to ensure the expansion speed. "[Used Cars] Many city managers are brought in by direct sales, so we are very efficient and entrepreneurial teams can hardly be so quick." In the current net structure, north of the wide-depth direct sales team of nearly 2000 people, the channel team tens of thousands of people.


 


to promote the market good car rapid expansion of the direct impetus, from and 58 years of struggle with the city experience, "we realize that in the early time to put into the markets, if not with the opponent quickly open the gap, later both sides entangled in spending more money." So from this point of view we can't make the same mistakes in used cars.


 


man car: consumer-to-consumer virtual Consignment


 


also choose Consumer-to-consumer model of everyone car, start early in the fair car a few months time. Compared to the emergence of some earlier Consumer-to-consumer second-hand car electric platform, the biggest change in the vehicle is to change the entity consignment mode, but through door-to-door service to solve overcharging and the scene of the link.


 


founder Li Jian, the traditional consignment model for the owner is not good to accept, "in the restricted city, only to sell the car to have a license, if the consignment mode, then the consignment of two or three weeks without car owners."


 


and from the cost of consideration, the entity Consignment model is the car owners will be placed online store for sale, which means that the following line of parking costs, "the platform to consider the turnover efficiency of parking spaces, in the pricing may not be particularly conducive to car owners."


 


Although has been the first to run through the model, but Li Jian's troubles are, how to omit the intermediate business-to-business circulation, throw out the form of the entity shop consignment, to find the owner of the car demand, and then through the line of the next series of services, matching to have to buy the user demand for second-hand cars


 


Unlike NET has its own platform flow, everyone's traffic in the early days mainly rely on Baidu, 58 with the city and other platforms on the ads. In the face of the market good car ferocious offensive, Li Jian does not recognize this volume far exceed their opponents in the flow of the advantage, "fair in the flow of second-hand cars, the entire industry accounted for only 10 to 15 points, they can use the flow is limited to this." But we can all cooperate with the remaining 85% traffic platforms.


 


from advertising to buy users, to offline services, and then to the conversion of transactions, the middle of the transformation is quite complex. "This is a difficult point, the whole process has dozens of conversion links, each link than the other difference 10%, 20%, may eventually be four to five times times the gap." The key is to be able to intensively in each link, beyond all the peers, "Li Jian stressed."


 


after more than half a year of operation, Li said that the current vehicle monthly turnover of two hundred or three hundred vehicles, the transaction cycle is basically weeks.


 


and the second-hand car electric platform similar to each other, everyone vehicle also provides various testing services, "each test with our after-sales service together, each test results is a commitment." We provide 14 days no reason to return the car commitment, 20,000 kilometers a year warranty, as long as you find that this is an accident car, scrap car, can be back at any time.


 


Despite the current sales share, the Consumer-to-consumer model is difficult to contend with the business-to-business model, but Li still believes that the Consumer-to-consumer model is more imaginative: because it connects the owner and the buyer, caught the most critical side of the second-hand car trading chain.


 


car easy to beat: Off-site sales car +c/b2b


 


car easy to beat just a few days ago announced a new round of 110 million U.S. dollar financing, the C/B2B model of the Used car platform has been established for nearly 5 years, and finally from last year began to usher in the entire industry burst.


 


Although the current models of various used car platforms vary, it can be found that most companies still use B-end enterprises as a service object. One reason is that business-to-business is similar to a wholesale model, and trading links are easier to control.


 


More importantly, China's second-hand car market, the main source of vehicles from the north-canton and other first-tier cities, while the consumption of second-hand cars is concentrated in the vast number of three or four-tier cities, which means that off-site transactions occupy a large part of the second-hand market. However, it is very difficult to go through the Consumer-to-consumer mode, the current second-hand car in the off-site circulation of the basic through the Business-to-business Model docking field vehicle operators to achieve.


 


therefore, in the current second-hand car manufacturers in the field of Business-to-business model-led vehicle easy to beat, excellent credit beat also accounted for the majority of the share of the deal. This also makes capital the first to focus on the business-to-business model of second-hand electric power platform, the amount of financing in this model of the top two companies.


 


in the new round of financing, car easy to shoot CEO Yang She Jian Tencent Technology said, second-hand car trading "the biggest difficulty is to verify the condition, the vehicle is doing is to ensure the real existence of the car, using data to provide the quality of the condition commitment."


 


in order to achieve quality certification, car easy to shoot currently has 800 people's testing team, and this figure is expected to soon reach 2000 people. Inspection personnel on-site inspection, and issued a test report. Car dealers can save the scene of the link, directly through the mobile phone orders.


 


This is also the biggest difference between the car's easy to beat and the same model used in the platform, the latter is more favored by the on-site centralized auction. According to the statistics of the third party, the proportion of the trading volume on the car is about 90% of the total transaction, while the proportion of the online transactions is only 44% of the total transaction.


 


Heavy line service, which also means that the car is a heavy asset company. In the face of a huge potential market, the prerequisite for winning is continuous investment. Yang She Jian said that in the next 3-5 years, the car will be easy to beat the volume of hundreds of billions of platforms, "car easy to beat to use 10个亿来 pry market."


 


Investor Reviews:


 


Bertelsmann Asia Investment fund Wang Tianfan Long-term focus on the second-hand car industry, in the face of different models of second-hand car electric business platform, he said:


 


1. The growth of second-hand car dealers will accelerate, the main driving factor is the increasing number of Chinese owners and replacement demand, is an annual volume can reach tens of millions of large market.


 


2. The existence of electronic business is to solve the information transparency, as well as related logistics and financial services. For the second-hand car industry, the above three points are pain points, through the electrical and commercial services to solve the most suitable.


 


3. C2B, business-to-business, consumer-to-consumer the boundaries between the various modes will not disappear, the industry will be covered by the industry-wide chain of platform, there will be professional vertical players.


 


4. The second-hand car market is too large and has the characteristics of trans-regional, so there will be no single mode of single company dominant market pattern in the short term.

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