The auto and easy net of mutual occlusion, all need to go to trade

The intermediary transaction SEO diagnoses Taobao guest stationmaster buys the Cloud host technology Hall

Chinese auto sales are accelerating, according to the China Automotive Industry Association. 2013, China's auto sales of 21.9841 million vehicles, an increase of 13.87%. 2014, the estimated car sales will reach 24 million, the equivalent of the United States, Japan, Germany and the 2013 market size of the sum! In addition to car services, second-hand cars, car rental, the market size reached trillions of, except real estate can not find such a "money" of the industry. The real estate market jittery, the automobile consumption will take the responsibility which stimulates the domestic demand.

Internet companies ' involvement in the auto market is still on the surface, gathering information and displaying advertisements. Auto and Easy Car Network is a representative of them, such as to play the capital, technology, brand advantages, from the booming car market a lot of money, become a billion-dollar enterprise. Over the years, the United States of the two car sites have the opportunity to say that no one is more likely to win.

Website content

Open the homepage of the Auto or easy car network and see the same two car vertical websites. In fact, in terms of content, the establishment of the first easy car network is the auto of the pursuers.

Founded in 2005, Auto, is a complete network of media, rely on content to attract traffic, and then through the advertising show will flow of liquidity. Auto operating cost of the bulk is content editing, 2011, 2012, 2013, respectively, 43.94 million yuan, 62.87 million yuan and 95.99 million yuan. In 2013, auto updated an average of 600 articles, 1200 photos and 10 videos a day.

Easy Car Network early business is to develop distributor software for car manufacturers, brilliance is its first customer. Founded in 2003, the new interactive, is specifically for car dealers to provide internet marketing services advertising companies, mainly to help businesses will be models, prices and other information to various sites. November 2004, Easy Car Network began positioning itself in the first shopping cart, to provide consumers with car shopping guide for manufacturers, distributors to provide marketing services. Easy car network operating costs of the big head is to Baidu, Tencent, NetEase, 360 and other 600 partners to pay the cost, in exchange for advertising to show 14,000 car dealers upload information (dealers through easy car network can directly participate in Baidu bidding rankings)

According to the Alexa data, the average daily visitor IP reached 10.5 million, the page reads PV to 31.5 million (March average), the vehicle daily average visitor only has 2.99 million, the page reads the quantity to reach 59.76 million (March average).

Easy car net buys the traffic at high price, the reader sees 3 pages to walk away; auto is mainly natural flow, the average reader to read 20 pages. The comparison between the two phases shows that the content of the easy Car network is far from the auto.

Economic Benefits and valuation

In terms of revenue, Auto has always been the Chaser of the Easy Car network. 2009 Auto Revenue, gross profit is equivalent to half of the car, by 2013 has been quite the car more than 85%, the gap is getting smaller.

Although the revenue is backward, but Auto's profitability is far better than the easy car net. In the 2009, the two pre-tax net profits (excluding share incentive costs) are basically the same. In 2013, Auto's pre-tax profit reached 555 million, equivalent to twice times that of the easy-car network.

Despite a two-year delay, Auto's valuation was ahead of the market, at a rate of $4.9 billion trillion (almost three times times that of the easy net).

But the capital market does not discriminate, on the contrary, it seems more tolerant of the net. According to the Friday closing price, the 56 times-fold price-to-earnings ratio, auto only 44 times times.

The root of profitability gap

2013, auto net profit was 456 million yuan, net profit margin reached 37.5%. In the same year, net profit of easy car net is 235 million, net profit margin is 16.3%.

The revenue is leading, the margin is similar, the easy car net loses in the high cost expense. In particular, the market and administrative costs (easy car network will be listed two mergers, some different) accounted for the proportion of revenue as high as 50%, to 750 million yuan.

Of course, the effort to control costs is not without success, with net profit margins rising from 8.8% in 2011 to 16.3% in 2013. Compared with the city where, 58, people see hope.

The cost control of auto is always good. 2013, the market cost and the administration together only for 26% of the Revenue (excluding the share incentive cost).

Auto City Fermi's main body is the personnel salary, 635 market personnel distributes in the national 69 cities and the Beijing Telephone Sales center. 2011, 2012, 2013, the auto market cost is 67.5 million yuan, 130 million yuan and 245 million yuan respectively.

Easy Car network market costs in the staff remuneration and auto equivalent, but 2011, 2012, 2013, "Marketing fee" is 130 million, 235 million and 334 million, the cost is mainly used to purchase from Baidu and other sites to buy traffic.

Media-born auto embraced content as king, relying mainly on content to attract "natural flow", with less investment in traffic. But easy car network leading the market, hit the money to buy traffic, active layout moving end, let auto belief shaken, last December listed after the listing of the UC, such as mobile port flow entrance. June 3, 2014, auto to 200 million yuan sky-high from the easy car nets hand Baidu pc end Aladdin. The flow costs of auto will rise sharply this year and net profit margins will fall.

Scramble to get involved in trading

Unlike the purchase of clothing cosmetics, the average person before buying a car will have 3 months to half before the gestation period, the main "homework" is the bubble website, forum diving, get proximity auto, Easy Car Network has the possibility from the automobile marketing platform to upgrade to "Marketing + trading platform".

In this regard, for car dealers to provide more than 10-year service of the Easy Car network has a great advantage. April 29, 2014, Easy Car network launched a new car sales platform "Hui buy a Car", through the collection of consumer clues for dealers to charge a transaction commission. At present, the daily average number of car-buying cars is about 1700 people. If the conversion rate reached 2%, each charge 500 yuan, annual income will exceed 6 million.

Although the loss of the PC end of Aladdin, the easy car but successfully bid to move the end of Aladdin. In the May 2014, the traffic trail from the mobile end accounted for 55%.

Look at auto again. Its income consists of advertising and reseller membership service fees, advertising revenue accounted for more than 2009 young 94% to 2013 years of 74%. Dealer member Service Some like the search house "listings", is to a port, so that members will be models, prices and other information published to the website. The essence of both revenue is the flow of cash, reflects the auto media attributes.

June 20, Jingdong and auto jointly announced "Car Mall" will be fully access to Jingdong Mall and Pat Net. From June 24 onwards, users can buy more than 20 brands of the entire car in the Auto Mall on the east of Beijing. Obviously, Auto is also not satisfied with a dozen ads to drink some soup, but with the confluence of electric dealers directly involved in car sales, steps even more than the easy car network.

Although both are clear to intervene in the direction of car sales, but are still in the exploratory stage, I think soufun intervention in new house sales practices can be used for reference. SouFun to the user to sell "search Room card", when buying a house, the user can obtain the discount according to the amount of the card surface several times (for example 10,000 to 20,000). Developers can extravagantly the cost of "trading leads" with only a few percentage points for conversion, and when the house offers 100% real buyers and thousands of deposits are received. 2013, the "House-search card" sales revenue amounted to 188 million U.S. dollars.

Easy Car network and auto can draw lessons from soufun experience, sell "easy car card" or "Auto card" to potential car buyers. When buying a car, consumers can enjoy the discount according to the amount of the purchase card (for example, the ceiling is 5000 yuan, can reach 10,000 yuan), the money is equivalent to lock the consumer in advance. Easy Car Network (auto) can also be maintenance, insurance, car washing, beauty and other services after the integration of car finance to this card.

(36 close to see micro-letter ThomasLee126)