Jia Xinguang: Automotive E-commerce still needs to solve three major problems
December 09, 2022
On March 28, the “Chexiang Network”, an O2O e-commerce platform that SAIC Motor Co. spent 200 million yuan, was formally launched. Che Xiang Wang stated that it includes Shanghai, Nanjing, Hangzhou, Suzhou, Ningbo, Tianjin, Chengdu and Shenzhen. More than 120 dealers in cities have been piloted. This news triggered concern in all aspects.
Now, the profits from car sales are getting thinner and thinner, and the costly 4S store model has been criticized. The auto marketing mode must be reformed, but it is very difficult to change it because of the influence of the auto manufacturers' inherent thinking. On the other hand, the progress of automotive e-commerce has not been smooth. Last year, the "Double 11" was very lively, and the actual transaction volume was not much. However, the vehicle's sales target for this year was only 10,000.
The most critical issue for automotive e-commerce is to solve the problem of interest adjustment between auto manufacturers and distributors. U.S. General Motors tried an automotive e-commerce business in the 1990s but failed due to boycotts by car dealers. Because the purpose of developing automotive e-commerce is to reduce sales, reduce sales costs, and do not need to open physical stores, the cost of sales can be reduced by 30%. However, each car manufacturer must have hundreds or even thousands of brand stores. Once online sales are achieved, it is tantamount to smashing the jobs of these dealers. This is a crucial issue and it is also a difficult problem to resolve.
Automotive e-commerce belongs to the O2O model and requires close cooperation between online and offline. Many links in the network to purchase a car must also be completed by relying on the line. There are a lot of home stores have achieved online sales, offline store customer service decoration, better online and offline combination. But for the automotive industry itself, the problem is very complicated. If the car manufacturers do e-commerce platform, the dealers may become experience stores and repair shops, and even if the experience stores a region and a brand only need one or two is enough, a large number of Dealers can only do after-sales service.
Followed by who is the e-commerce platform. In addition to car manufacturers, there are a lot of people who want to get involved in car e-commerce. In November last year, it began to launch on the back of a huge automobile electronics store with nearly a thousand 4S stores and nearly 100 auto brand resources owned by the Group.
On the other hand, there are many types of websites that are trying to sell cars online, such as Taobao, Jingdong, and Easy Car. Some people analyze that the advantage of e-commerce websites is that users already have online shopping and payment habits, while vertical media knows more about cars, subdivisions and customers. "Che Xiang Wang" mainly relies on various brands and distributors of SAIC Motor to provide customers with one-stop solutions, but the scope of choice is limited to products produced in Shanghai.
The third is the logistics issue. General merchandise can be delivered to the door by express delivery. However, the cost of transportation of goods for automobiles is very high. Special vehicles are required. One vehicle and one delivery are not possible. Each manufacturer builds its own logistics network, and there will be a problem of return air venting. Good third party logistics to bear.
Although there are still many problems in automotive e-commerce, we still have a sense of urgency. Miao Wei, Minister of the Ministry of Industry and Information Technology once pointed out: "A new round of science and technology and industrial revolution has already occurred before us. If we can seize this opportunity, we can achieve success. If we miss this opportunity, we will be eliminated by the trend of development." A person in the network said: "I think the auto industry is an industry with a relatively high decay index. If the auto industry does not move, people will have to wait to change you."
Shenyang Zhongda Huanxin Refrigeration Technology Co., Ltd.
