Automotive Chain Hunan Testing Water Challenges Car Stores and 4S Stores

According to Hunan Daily reported on February 16th, unified management, unified ordering, unified selling price, unified image, unified service standard, similar to Gome and Suning appliance chain sales, and automobile circulation in a franchised chain way, to carry out business as prescribed by the supermarket. This business model will soon land in Hunan in the first half of this year.

“With low operating costs, high service requirements, and standardized operations, our goal is to integrate the market, give full play to the advantages of scale, sell cars as electric appliances, and let ordinary people enjoy more benefits.” Wang Cunrui, chairman of Changsha Hengxiang Automobile Trading Company, is full of confidence. , Want to be the first person in Hunan automobile chain sales.

The down payment is less than ten thousand yuan

The automobile is synonymous with high-end consumer goods. At present, the cheapest car in the country also needs more than 20,000 yuan, and the mid-range car that meets home is more than 100,000 yuan, plus the high cost of use. The ordinary working-class people are often "looking at cars." ".

Some people pointed out sharply that behind the high car prices, consumers took on the high number of manufacturing and marketing costs passed by car manufacturers, implying that not only manufacturing but also the marketing links raised the price of cars.

How can we reduce costs from marketing?

Wang Cuiru's answer is that chain operations can sell cars like sellers. Wang Cunrui introduced that after many years of market research, with reference to the opinions of Taiwanese experts, Hengxiang Company will start the automobile chain business in March of this year and formally develop chain franchisees in Hunan.

Good financing ability is the prerequisite for Hengxiang Company to carry out automobile chain operations. It is understood that the company is Dongfeng Liuzhou Automobile Hunan franchised dealer, Jiangnan Alto Hunan distributor, operating Dongfeng Ba Long, Dongfeng Chenglong, FAW liberation, China is a drag on Dongfanghong, Jiangnan Alto and other automotive brands. The company has already ranked among Dongfeng Liuzhou “Top Ten Star Enterprises in China” with an annual sales income of over 100 million yuan.

The automotive brand of Hengxiang's chain operation pilot is Jiangnan Alto. Wang Cunrui stated that as the general agent of Jiangnan Alto Hunan, Hengxiang will have greater autonomy in chain operations. "After the trial is successful, we will consider promoting the commercial vehicle sector." Wang Cunru said with excitement. "According to the company's consumer credit policy, a Jiangnan Alto, consumers only need to pay the first payment of less than 10,000 yuan, monthly supply of several hundred Yuan Qian can drive home."

Car marketing model revolution

Selling cars using the "franchised chain network" is currently the world's leading commercial sales model. From the perspective of European and American markets, 3S and 4S stores are shrinking in countries such as the United States and Germany. Even with the birthplace of the four-in-one business model, Europe, the number of 3S and 4S stores is declining year by year. And the scale is getting smaller and smaller.

Wang Cunrui analyzed that building an automobile brand with 4S stores ranges from almost 10 million yuan to as much as tens of millions of yuan, although the functions are complete, but in order to maintain the operation, the high cost has to be passed on to consumers. Costly accessories, high service fees, long waiting times, and inadequate human services are difficult problems that are difficult to solve in 4S stores. As a business operator, recovering costs is a process that is not short, and investment risk in 4S stores is self-evident. If distributors are quick to make profits and reduce service quality, vicious competition can only be sacrificed at the expense of the benefits of consumption.

According to reports, the automobile chain operation is a franchise operation that achieves networked sales through the overall transfer of intellectual property rights. With government support, bank participation, insurance intervention, and vendor cooperation, the participating branches can share 5 types of benefits: First, they can obtain the franchise for the unified distribution of the head office; Second, they can obtain the nation's lowest-priced automobile resources for distribution at the head office. , Enjoy the preferential treatment of agents at the automotive plant level; third, reduce investment risks and ease the pressure of working capital; fourth, the headquarters will provide training services for the franchisees of the franchised stores; and fifth, provide unified management for the franchise stores, CI Design, store decoration, service specification and car purchase procedures.

In other words, through franchise chaining, franchisees carry out their business operations in accordance with "unified management, unified ordering, uniform pricing, unified image, and unified service specification." In this way, the market can be effectively integrated, and scale advantages can be utilized to achieve the sharing of resources such as capital, talent, technology, and information. The integrated supply chain management between the chain headquarters and the chain stores can achieve the best resource allocation, thereby expanding the car sales channels, meeting the market demand, expanding the scale of operations, reducing operating costs, and improving economic efficiency.

Automobile chain operations have had a successful precedent. Guangwu Automobile Trade is a large-scale chain operation enterprise specialized in automobile trade and service earlier in the country. Currently it represents more than 60 Chinese and foreign automobile brands, has 115 chain stores, sells more than 100,000 new cars annually, and has sales of more than 11 billion yuan. The Beijing Yafei Auto Chain Stores, through system innovation, broke through the restrictions of industry, geography, and ownership, and developed more than 300 franchised chain stores in more than 250 cities across the country, creating a sales turnover of 40,000 units a year. 3 billion yuan" miracle.

Wang Cunrui said that for dealers, the biggest benefit of auto chain operations is that franchisees can cut into the auto industry with lower thresholds. He estimates that the current minimum investment for setting up a Jiangnan Alto franchise is between 10 and 150,000 yuan. A complete set of training services for talents, technology, sales, etc. in the chain headquarters not only saves franchisees a large number of operating costs, but also eliminates their management worries.

It is reported that the soon-to-be-launched Jiangnan Alto chain will select major cities in all cities of Hunan Province. According to the population, target customers, and spending power, it will build chain stores in the city's main business circle, and after-sales service will follow the scale of 20:1 in the city's business districts. Establish a special shop with the community business district.

The modern marketing revolution is changing with each passing day. Experts from the Hunan Business School believe that "traditional automotive stores and 4S stores are facing new challenges." Wang Cunrui said, “Choice of automobile chain operations is by no means impulsive. We are looking forward to using an advanced marketing model to revolutionize automotive marketing and bring more benefits and convenience to consumers!”