Six Trends in Automotive Aftermarket

The development speed of the Internet is much faster than that of traditional industries. As the last industrial gold mine, the penetration of the Internet into the automotive industry can be said to have spared no effort. However, in the past few years, the Internet is only in the field of marketing public relations. In the next few years, it will infiltrate products, sales, after-sales, used cars, and insurance finance. This article will discuss the three directions of the Internet accelerated car repair chain based on the introduction of the six major trends in the automotive aftermarket, hoping to provide references for friends in this field.

There are six trends in China's auto aftermarket:

The first is that the market is showing explosive growth.
The explosive growth of new vehicles in 2009 will fully enter the post-market in the next few years, with strong demand for accessories and services. The 4S system has experienced sluggish growth in the past five years, and it has been unable to meet the annual increase of 20 million. The policy of first-tier cities restricting the purchase limit, such as relocation, has led to the decline of second-hand car prices in Beishangguang and other cities, more new cars in first-tier and second-tier cities, and strong 4S system, while the old models in the three-and-five-line market will continue to increase, and the owners will have low willingness to purchase insurance. Not timely, the maintenance power is weak, and there are many opportunities for innovation in the post-market. In addition, the market share of high-end cars is increasing. Such owners are generous in spending, and business opportunities for specializing in such models are not to be missed. The emergence of a large number of scrapped vehicles led to the early emergence of business opportunities in the parts remanufacturing industry.

Second, car maintenance with networking landing vehicle's electronic systems more complex than repairing important <br> <br>, although it may lead to increased failure rates, but more importantly, help OEMs onboard computer and sensors, Faults can be pre-judged, which greatly reduces the incidence of abnormal faults. Intelligent and personalized maintenance and repair will change the existing 4S service model, but the premise is that manufacturers are willing to take this step. At the same time, as the vehicle is becoming more and more like a computer that can run, which makes its probability of failure increase, intelligent and timely maintenance services become important - the software service requirements and frequency of the car owner's car networking system. , may be higher than the service requirements of the vehicle itself, a large number of complaints may come from this, OEMs need to be prepared for this.

Third, accelerate the penetration of the Internet and mobile Internet market in <br> <br> back over the past 10 years, the market after the workshop biggest change is the addition of more Chinese high-tech diagnostic equipment, such as on-board computer diagnostic equipment, wheel alignment Instrument, dedicated oscilloscope, dedicated meter, exhaust gas detector, etc., 4S system generally has electronic parts catalogs, network maintenance information, intelligent diagnostic systems, some manufacturers already have a remote diagnostic system. With the outbreak of the mobile Internet, car owners have increased their demand for online service consulting, inquiry, and finding the best service providers. This has led many venture capital investors to invest in O2O in the aftermarket. Host plants, automotive portals and vertical websites, and small and medium-sized entrepreneurs are already trying to establish their own O2O websites in an attempt to build B2B2C platforms for parts suppliers, service providers and vehicle owners. Due to the non-standardization of services, such platforms will be limited to regions. In the short term, I am afraid that it is difficult to see a nationwide success paradigm.

Fourth, through the Internet market after the chain will challenge 4S chain system <br> <br> With new car sales slowed, 4S expansion OEMs also encounter a problem, most of the decline in profitability plagued total 4S shop. As the supply of parts is controlled by manufacturers, the profitability of services in 4S stores must target high-end user groups. This part of the users has high brand sensitivity. Although after-sales services may contribute more than 50% of profits, if they do not go to the Internet in the future, 4S After sales basically unable to carry out service brand marketing. On the other hand, most of the national fast repair chains have failed in the past 10 years because I have already analyzed the previous article. However, the Internet can exert its advantage of intensive resources in the areas of customers, service providers, bidding, etc. This makes it possible to solve many problems that plagued the post-market. Since the stock car scale already out of warranty period is larger than that of new cars and vehicles within the warranty period, and the service demand of this part of the vehicle is stronger, once the internet chain service system is successful, it is possible to reverse 5% of 4S stores and get 50% of aftermarket services. The status of profits.

Fifth, the demand for outsourcing commercial and professional team will be more significant <br> <br> past 10 years, taxis, commercial vehicles fleet, official cars and other non-private car service is a monopoly of the fixed service or group When the procurement method is completed, due to the fact that the supply and demand parties are in positions of force, or because the official vehicles are paid by the government or institutions, the profits of this part of the service are extremely high and the public does not know. It is difficult for entrepreneurs to participate in competition. However, with the increasing demands for fairness and transparency of the entire society, professional service agencies will better meet the needs of such professional teams. At the same time, with the expansion of the logistics truck fleet, for example, a logistics fleet of 10,000 trucks was born. With the expansion of shared car and car rental companies, there will be new business opportunities for agencies serving such professional teams.

Sixth, the aftermarket business of parts and components companies shifted from B2B to B2C

In the past 10 years, due to the rapid growth of the new car market, domestic parts and components companies have almost fully provided OEM products for OEMs and traditional B2B component sales models for the aftermarket. Due to the existence of wholesalers, parts manufacturers are The unawareness of the end-user's needs has given opportunities for OEMs to produce "high imitations" parts at small parts factories. For example, on the first day of the transit view, a high-priced spare parts company bought one to take it back to dismantle it, imitate a full range of accessories and accessories, and distribute the goods more quickly than the main engine factory. Which models sell well, such small parts companies will buy cars dismantling and copying. Whether they can buy high-fidelity accessories for a car in the market has become an indicator of whether a car is hot or not.

With the slowdown in the growth of new cars in recent years, the OEMs have been pursuing customer satisfaction and profits in the aftermarket, which means that for OEMs, OEM profits have decreased. For example, OEMs accept more customer claims and thus increase customer satisfaction. For example, OEMs have significantly reduced the purchase price of aftermarket accessories. Some multinational parts companies that are unwilling to be controlled by OEMs have begun to pay attention to B2C and retail terminals. I have introduced this in an earlier article and I will not repeat them here. Well-known parts and components dealers will enter the B2C field of the post-market through new brands, e-commerce, and self-built terminals, which will profoundly change the existing auto aftermarket structure. As more post-market talents join the B2C team of such parts and components companies. The profound impact it will bring will be gradually revealed.

It is on the basis of the aforementioned six major trends in the post-market that the current venture-driven Internet post-market O2O boom has begun to emerge in three platform models. One is the customer diversion platform model, and the other is the service provider platform model. The third is the car networking platform model. Looking at the advantages and disadvantages of these platforms, we must not consider only from the perspective of the business model. We must consider the supporting resources behind these business models.