Used car industry 300 billion size of the big cake, into a dealer life-saving straw

　Condensed point of view

From the few to the hot, this is the second-hand car industry in the past year the real portrayal of the time, in the face of a large 300 billion-scale cake, all parties have been enough ammunition. In the domestic distributor profits in the constant dilution of the situation, the second-hand car electric dealers became the eyes of many dealers life-saving straw.

The main reason for the difficulty of forming a large-scale second-hand car dealer is the fragmentation of the vehicle source. The domestic second-hand car market is a typical "long tail market", in the traditional trading chain, but there is no one can gather these debris source of the link. The convergence of traffic is precisely the advantage of the Internet.

The electric business platform is divided into North and south in how to help the car dealer to find enough vehicle source. "North faction" to the car easy to shoot, excellent letter shoot as the representative, and 4S shop cooperation, business to Business-to-business, C2B business only accounted for a small part. "South Faction" open new and safe good car is a typical C2B mode.

In addition to trading commissions, there are many new business opportunities in the industrial chain of second-hand cars.

The internet is cuikulaxiu and rapidly reconstructing the rules of the traditional second-hand car industry. In a short span of one year, the second-hand car dealers from the few to the hot.

The most intuitive manifestation is the rapid inflow of capital. Sequoia and June Lian Capital is this round of second-hand car electric business war behind two big pushing hands. In the past year, Sequoia has not only invested in the former China car rental vice President Yiu Jungong founder of the "Big Search Car", also combined Jingwei and Citic Capital to invest in the car is easy to beat; and June-Lian capital was previously associated with DCM, Bertelsmann Asia Investment Fund, Tencent (523.5,-9.00,-1.69%, real-time quotes) Industry-Win Fund is a total of investment in the car easy to shoot the main opponents, the former Easy Car Network (34.54,-1.72,-4.74%) vice president of the Dai Kun.

In addition to capital injection, some of the industry outside the giant is also rapidly infiltrated into the second-hand market, ping ' an good car, China car rental built by the Shenzhou used cars in the past year has embarked on a rapid expansion of the road, and initially completed a nationwide strategic layout.

Of course, it is not just the capital that drives the second-hand car dealers to accelerate into the fast lane, but the "defection" of the Internet is the key throttle.

April 16, the second-hand car dealer website Easy to beat announced that the United Nations within the 10 well-known car dealers group in Beijing set up a "easy to replace the alliance", through the car easy to beat the supply of second-hand cars replacement sales solution can help 4S shop better pull new car sales.

From the whole industry, domestic distributors are generally facing a huge performance pressure, although sales can still barely maintain growth, but the profit is constantly diluted to the car and so on as the representative of the electric business platform provided by the Internet replacement program, has become a lot of dealers in the eyes of the straws.

For now, the main players are already stocked with ammunition and a war is about to be launched.

Tempting cake

Why does the second-hand market suddenly turn into a piece of sweet cakes? First to calculate a simple account, you will understand why.

According to China Automobile Circulation Association Statistics, last year, the country traded 5.2033 million cars, the transaction amount of up to 291.649 billion yuan. In fact, this is only a conservative statistic, because according to the Ministry of Commerce, last year, the number of second-hand car transactions in nearly 8 million vehicles.

Who will not be tempted to face a market of 300 billion size and opportunity? But the bigger temptation is still behind it, because in the next years, the 300 billion-scale market is likely to flip.

2009 is China's car market blowout growth in a year, the year the new car sales 13.6 million vehicles, a surge of 48% year-on-year.

According to industry practice, car owners of the change cycle of 5 years or so, by this projection, 2014 will be the year of the automobile market outbreak of car traffic peak. At present, the general consensus in the industry is that, the most late 2015, the domestic second-hand car market will be more than 10 million annual trading volume.

But there is a huge market, but the whole used car market development has been in the state of small-scale peasant economy. According to industry insiders, the current number of second-hand car dealers in more than 100,000, but most of them can only do 100 units per year, the size of more than 1000 cars a year to achieve more than a few dealers.

The main reason for the difficulty of forming a large-scale second-hand car dealer is the fragmentation of the vehicle source. For second-hand car dealers, the result of the fragmentation of the vehicle's source is that in most cases is to adopt Ding, trading is like luck-what car to receive what car, and in Europe and the United States a highly mature market, used car dealers are set to sell, what cars good selling is to receive what car.

Domestic second-hand market is a typical "long tail market", vehicles are in the hands of each individual owner, together to form a large scale, but in the traditional trading chain, but there is no one can gather these debris source of the link, so as to provide a stable supply of second-hand car manufacturers. Convergence of traffic, which is precisely the advantage of the Internet.

In addition, second-hand car sites have been sought after more realistic reasons. With the introduction of more and more urban restriction policies, the incremental market of new car sales has been artificially suppressed, and replacement sales have become a new engine for the sale of 4S stores in cities. 4S stores want to attract those who have replacement demand, they must find a good outlet for their car. And the increasingly stringent restrictions on the relocation of the policy of the second-hand car to squeeze the distribution channels, so, how to effectively and accurately docking between the supply and demand

Become the most headaches for dealers, and at this time, the emergence of second-hand car sites to solve their immediate problems.

Recount market

In many of the second-hand car dealers, "online auction" is the most popular way to play, cars easy to beat, excellent letter to shoot, open new and recently into the Bureau of Good Safety car is used in this mode.

The so-called "online auction" mode, refers to the site to provide trading platform, car owners will put their own cars online auction, bidders are big and small second-hand car business. Since the site itself is not directly involved in the sale of second-hand cars, so this is a relatively "light assets" play. And the part of the online is mainly responsible for vehicle detection, transaction transfer can not be bypassed links.

The auction model itself is not new. Offline auctions have always been an important way to deal with traditional second-hand cars. Online auctions can be recognized by car dealers, simply because it improves transaction efficiency, and the virtual shelves of the electric business platform provide more second-hand car sources than the number of offline entity auctions. For car owners, because of the introduction of more vehicle business participation, their own car is also easier to sell a good price. It is obvious that this is a winning deal.

Of course, all this can be established on the premise that the electric business platform can help the car dealers find enough cars. Interestingly, the question of how to find Che Yuan is divided between the north and the south.

"North Faction" refers to the car is easy to shoot, excellent letter shoot as the representative of the company. Cai, co-founder of the auto maker, told business value, and from their experience, as second-hand car electric dealers have just started, most end consumers are not familiar with this approach, direct access to C-end consumers in the hands of a higher cost of the source. Based on this judgment, both the car and the Tesco have opted for a compromise-working with 4S stores, so their business is business-to-business and C2B's business is a small part.

The formation of this model behind, in fact, and Beijing's restrictions on the purchase of a great relationship.

After the end of 2010 Beijing Limited purchase, due to market growth market was stuck to death, replacement car to become a new vehicle sales engine, which also means that each 4S store has become a second-hand cars in the flow of important nodes, can gather a certain number of second-hand cars. From the point of view of the 4S store, in order to pull the new car sales, they must for the customer's hand for the second-hand cars to find a way out, and the introduction of the policy of restrictions to the past used car market rules changed overnight.

In the past 4S stores had relatively fixed partner partners, but as supply increased, these partners did not have the strength to eat so many cars, on the other hand, some focus on local second-hand car sales of the company's demand is suppressed. As a result, a large number of second-hand cars suddenly lost their way.

The car easy to beat and excellent photo shoot soon found the opportunity, so quickly into the 4S shop to provide replacement solution, through the cooperation with the 4S shop, two companies also quickly gain a foothold. In the car easy to beat, more than 500 vehicles a day on the line, for most of the past every day can only see one or two car dealers, this is a completely different experience.

However, in contrast, better than the car easy to beat the model more "heavy", it did not put the treasure is on the line, but in Beijing, Shanghai and Guangzhou are equipped with offline trading venues, regularly held offline auction.

Unlike the North, which is headquartered in Shanghai, the new and safe car is a typical C2B model. Although are engaged in to B business, but due to the different starting point, the north and south have formed their own characteristics of the play.

2009, opened a new second-hand car to sell the establishment, from "Help sell" the name can know, it is actually the starting point is to solve the problem of selling people's pain point. In the traditional second-hand car trading chain, the owner has always been at a disadvantage, selling cars are often obstructive, car dealers will always want to find all kinds of reasons to hit the price of the target, so the owner is difficult to get a satisfied with their prices.

So, the new hope is to solve this problem in the way of auction, however, he did not choose the traditional mode of online auction, but the combination of online and offline, on the one hand, through the chain model of the local formation of the comprehensive coverage of Shanghai, on the other hand, the use of the Internet to enable the cooperation of more than 200 second-hand car dealers can participate in real-time auction.

As an up-and-comer of the good car, because the headquarters is located in Shanghai, so opened a new nature has become a good car start stage learning object. However, unlike the new foothold in the Shanghai local market, Ping an good car has completed the first phase of the national layout in the past year, into 12 cities nationwide, and will expand to 26 cities in the year. Although the current trading volume of ping An good car is insignificant, but because of the ping ' an group of gold signs and a huge customer resources for auto insurance, this makes the industry's opponents do not dare to it lightly.

The same to B business, Shenzhou second-hand car is a different player, because the problem of the vehicle that bothers most opponents is not there. In fact, car rental companies into the second-hand market has many natural advantages, the biggest advantage when it can provide a stable, the size of the vehicle source, in addition, car rental companies throughout the country offline network can also help second-hand car business, it is learned that last year, the Chinese second-hand car trading volume has reached 15,000. Of course, the short plate of China's second-hand car is also very obvious, that is the vehicle is relatively single, and the condition will be worse.

In all the Internet companies that penetrate the second-hand car industry, Sequoia's big-money search is one of the most alternative--because it does the to C business. The car is a consignment model, car sellers can decide the price of the vehicle, where the car buyers are no longer car traffickers, but the real end consumers. The current monthly transaction is said to be around 300 units.

Business model Imagination

At present, the commercial model of most second-hand car dealers ' websites is very simple, on the one hand, the seller charged hundreds of yuan for the test fee, on the other hand, after each successful transaction, to the car dealers charge about 3% of the transaction Commission.

However, this is only a starting point, it is obvious that such a simple profit model can not be favored by capital, in fact, in the second-hand car industry chain, there are many new business opportunities.

For example, many people wonder why peace is such a traditional financial giant will enter a second-hand car industry, the answer lies in the use of second-hand cars with the existing business integration potential.

Last year, Ping An has set up a good car and safe house two companies, is still in the preparation of peace medicine health platform. According to Ping An official, these new business is in fact a safe "medical, food, housing, line" four major Internet portal strategy components, Ping An hope that the Internet full penetration of public life services, and then guide it to financial services.

A good car is the "line" part of its strategic portal, Safety good car CTO Chen Shenfeng to "business value" revealed, "we plan this year in addition to O2O landing, more important is to the transaction service itself platform and peace can provide some other financial related services, can be grafted together, in the dealer, loan financing , including C-end customers to buy a new car replacement, these links above, can launch a number of new projects, this is the next time we will launch a number of service projects. "Ping An group has 80 million insurance customers and 20 million of the owner information, which left the outside imagination."

And ping good car has similar planning and car easy to beat, last year, the volume of the car easy to beat has broken 100,000 of the mark, and still maintain a high-speed growth, the car easy to shoot this year's goal is to impact 400,000 vehicles. This volume also gives it the capital to explore new ways of earning money.

For example, consumers want to buy a secure car. For example, can you give me 3 months, 6 months or 1 years. But for today's dealers is difficult to do. Now the dealer scale is only 3, 5 cars, no insurance company is willing to design products for me. But the car is easy to talk about, for example, this year, 20 to 300,000 cars need to be insured, so it is an attractive business for insurance companies. "Car easy to shoot co-founder Cai introduced."

In addition, the second-hand car dealers want to scale, money is also a very important part. But banks don't understand the industry, so it's hard for car dealers to borrow from banks. "Who knows them best?" We have a lot of deals with them every year, and we know very well their ability to pay, their business and their creditworthiness. We also want to join hands with third parties to solve their funding problems. Cai revealed that the car easy to shoot has been with the relevant Third-party financial institutions have reached a cooperative intention, will be launched for second-hand cars insurance, credit and other business, May, the first batch of related products will be launched.

Domestic second-hand market is entering a new stage, rules and play are rapidly changing, the final who will win the unknown, but although the industry's future is full of variables, but we all have a consensus that China's second-hand car will be like the United States market, the annual trading volume reached more than twice times the sales of new cars, And with the constant infiltration of Internet power, this day may not be too far.