The general trend of the used car industry

Key word one: transformation

Brokerage to distribution is the general trend

Digital transformation is a must

The transformation of the used car industry actually contains two meanings: the first is the transformation of the business mode, and the second is the digital transformation.

1, brokerage to distribution, the trend is irreversible

Since the beginning of this year, the fluctuations in vehicle prices caused by the price reduction of new cars have soon been transmitted to the used car market, dealers are more cautious about the sale of cars, and the entire used car industry is facing the triple test of demand contraction, supply shock, and weakened expectations.

According to the China Automobile Circulation Association survey data, in recent years, the loss of second-hand car dealers as high as 92%, it can be said that survival and development has been severely challenged.

With the introduction of the New Deal, the second-hand car trading from the brokerage model to the distribution model has been an irreversible trend.

Although the current comprehensive understanding and implementation steps of the New Deal for second-hand cars in various regions are not unified, coupled with the inherent habits of second-hand car practitioners in the way of personal stock trading for many years, they can not adapt to the changes brought by the New Deal in the short term.

However, the industry transformation process in the face of pain is the industry change must deal with the subject. At the same time, the business transformation has also brought unprecedented opportunities in the history of the development of the used car industry, the majority of dealers should learn to follow the trend and take the initiative to change under the guidance of the policy, otherwise they will face the situation of switching industries without transformation and even being eliminated.

2. Digital transformation enables the trading market to enhance its competitiveness

In the second-hand car circulation is also facing the landing of the New Deal, the transformation and upgrading of the key stage, the second-hand car trading market operation service main body is also facing unprecedented challenges and changes.

Different from foreign countries, domestic second-hand car trading, especially independent car dealers, shows the characteristics of cluster development, and more than 1,000 trading markets are an important carrier for tens of thousands of independent car dealers.

Digitalization has become an important tool to promote the transformation of various industries. Under the new situation, how to break the tradition, find the market positioning, seek a new business service model, and use digital and information services to build a new transaction ecology and new pattern is the development path that the second-hand car trading market has been seeking at this stage.

Chen Jian, chairman of the used car market of Jinhua Car City, said at the conference that the future used car market should become the platform center of new retail. The original essence of the trading market is because there is traffic, but after the new customer era has come, the advantage of traffic is no longer obvious, at this stage, from the perspective of investors from the general manager dimension to consider how to create "customer value".

To develop a new retail platform, it is very important to use the offline scene to upgrade the scene, upgrade the new mobile line, new product promotion, and new brand combing based on the scene, so as to establish a real branded trading market in the hearts of consumers.

On the basis of creating a market image upgrade, some new tools should be used, including data systems, which are to be considered, so as to achieve the promotion of offline retail.

How to open a new starting point for the development of the trading market based on the information standardization system is also a topic worth discussing.

When talking about how to continue to promote the digital transformation of the used car trading market based on information, Chai Haifeng, CEO of Xinche Zhilian, pointed out that the used car market in the transformation period should clarify the goal, plan the path, reserve personnel and choose good tools.

The used car market must have a mature operation team, through the SaaS platform to docking third-party testing, docking inventory financing, docking third-party auction business, docking third-party after-sales business, this SaaS platform is the core link, the market operation team through information tools to seize the key link.

In the new situation, the second-hand car market merchants are also stratified, whether it is the market's self-operated model or the joint model with the car dealer, the letter car Zhilian has designed different platforms according to different needs, including the margin model and the commission model. Chai Haifeng said that Xinche Zhaopin's Saas service system has so far been able to meet 95% of the needs of all markets.

For information services, only by using third-party resources for the market, jointly serving car dealers, and jointly serving consumers, can the competitiveness of the market be increased, thus forming a strong pillar of the trading market brand.

Key word two: Export

Used car exports face five challenges

Must have a service thinking and innovative thinking

At present, the export of used cars is in the forefront of the automobile industry, and almost all car dealers of a certain scale are layout export business, and the export business is changing from the blue ocean to the Red Sea.

However, the second-hand car export business is still in the early stage of development, and the internal volume has begun in the case of incomplete services. At the same time, the export business is also more affected by the international situation.

Liao Zhiyong, assistant to the chairman of Guangdong Good Car Holding Co., LTD., said at the used car export sub-forum that the current domestic used car export faces many challenges and problems:

First, there is great pressure from international competition. Like the competition with Japan, South Korea, Europe and the United States, these countries and regions overseas channels and government relations are short term domestic catch up. In addition, European and American countries will create a lot of trade barriers, these domestic dealers need to face.

Second, uncertainties in the international trade environment are on the rise. For example, overseas political factors such as the confrontation between China and the United States and the dispute between Russia and Ukraine will bring difficult to predict and grasp the situation of the overall overseas market.

Third, domestic cars do not have a good international brand and reputation. With the development of Chinese automobiles, this point is gradually improving, but after all, it takes time, channels to choose, brands to improve, which also have a very big impact on automobile exports.

Fourth, the used car export system is not perfect. The mechanisms, processes and systems of relevant state departments also need to be further improved and optimized. In addition, the logistics, finance, testing, maintenance and other systems established by export enterprises, as well as overseas channels and after-sales business, need time and huge investment to build.

Fifth, automotive foreign trade professionals are relatively lacking. Most people who understand foreign trade may not understand automobiles, and many people engaged in the automobile industry are relatively unfamiliar with foreign trade, and overseas resources also need to be connected, which is a challenge.

Although China's used car exports are growing significantly, but mostly in the way of "parallel exports", that is, "new to the second export", the real used car exports have not yet developed.

Parallel export vehicles can be said to be standard goods, mainly depending on the source, price and supporting services, but used cars are one car, one condition and one price, vehicle sources are scattered across the country, collection and maintenance to used car dealers, and the business form is more complex than parallel export vehicles.

In the view of Guo Junrong, assistant general manager of Guangdong Guangwu Superior Car Technology Co., LTD., export business should have service thinking and innovative thinking, not only with simple trade thinking.

Trade thinking itself is not right or wrong, but related to the market and the economic cycle, can grasp the market can survive very well, but if the market is not good, it may be covered.

Export enterprises should shift from trade thinking to service thinking, service efficiency and professionalism are very important, and this aspect can be specialized.

In the future of used car exports, the proportion of used cars with mileage will slowly increase, especially new energy vehicles, which will become the main force of exports in the future, but the premise is to lay out a quality control service system, as well as a supporting service system overseas, only export products are not competitive.

Guo Junrong pointed out that many destination countries for new energy exports do not have planning and standards for new energy vehicles, and the concept of exported products and services is likely to become the standard of this country, if there is an opportunity, we should seize the Chinese car standards, China's charging pile standards, China's technical parameters standards to promote these countries, so that they accept these standards. So Chinese cars can occupy the strategic high ground.

In terms of innovative thinking, the feasibility of combining digitalization, informatization, technological innovation and automobile foreign trade is very high, which is exactly China's advantage project. In addition to third-party cross-border e-commerce platforms and enterprise private cross-border e-commerce platforms, there should be some practical platforms to monitor the target market. A car in the local market, to achieve through intelligent means, rather than through manual realization.

In this way, dealers or traders will have more dominance, instead of passively waiting for customers, by customers to lower prices. Scientific and technological innovation will fully enable automobile foreign trade and promote the high-quality development of automobile foreign trade.

Key words three: traffic conversion

Personal IP and private domain operations are trending

5 billion traffic hit the used car industry

Unconsciously, the used car industry has entered the flow era.

Some people say that the epidemic has led to the emergence of the second-hand car live broadcast business, and some people believe that this is the inevitable development of the traffic era.

In short, if a car dealer only relies on selling cars offline, then he will miss the dividend of traffic.

Whether it is Tangshan Komatsu Automobile, One plus One Automobile or Qinqin famous car, it is to obtain traffic through content and live broadcast and then cash out through traffic. In particular, live drainage is an important way for second-hand car dealers to get customers.

Hou Yaxia, general manager of used cars of United Automobile Group, said at the conference that live drainage is of great help to dealers' ability to obtain customers and online transformation.

In 2019, the group began to lay out the new media track, and at present, the group has about 18 second-hand car accounts, the current monthly lead volume is more than 10,000, and the conversion rate is 1.2%. In June, the one-month lead conversion rate was 7.3%, and the lead accuracy was very high.

For the commercial nature of used car new media, Li Erwei, chairman of Shanxi Carneschi One and One used car, pointed out when talking about how to return to the commercial nature of new media, that people are the carriers of new media realization, and if you want to do a good job in traffic, people are the first step and a very important step.

The second is content. Content as the core of the platform, in essence, is to do content marketing, to do for the purpose of realization of the creation.

Li Erwei frankly said that the creation for the purpose of realization is the truly meaningful content. Each of his videos is to let the audience know what he wants to pass on to the audience, such as how the product, how the service is and what is different from others, what can bring high value products or services to customers.

After obtaining clues, several elements below the line are also indispensable: 1. Abundant vehicle sources; 2. Brand endorsement; 3. Car buying experience; Reasonable price and perfect after-sales.

The last thing is persistence. Li Erwei said that entering the used car industry for more than 20 years, to see many peers in and out, each time the industry changes will see many new faces into the industry, used car people must keep pace with The Times, keep up with the development of The Times, do not be affected by some new factors, to learn to embrace the Internet.

Li Feifei, general manager of Chongqing Qinqin famous car, talked about the transformation of the private domain business trilogy - after the product is recommended out, there are three steps for customers to form purchases: the first is the precipitation of the private domain; The second is the retention of private domain active, and the last is the transformation of private domain.

In the active aspect of private domain traffic, when the customer is introduced from the public domain to the private domain, the car dealer should do some planning regularly, so that the customer can be active and continue to understand the car dealer. Customer questions, event notifications, sales pitches, expert services, etc., are all means of activating private domain users.

In the private domain traffic conversion, only by establishing trust, generating loyalty, spontaneous sharing can produce fission. In Li Feifei's view, all the traffic that can not be realized is garbage flow, and car dealers would rather not. Only by continuously entering brand value for customer groups can we achieve a good transformation, achieve lightweight operation, reduce marketing costs, prevent the loss of old customers, and also be more conducive to brand shaping.

Not only do car manufacturers focus on creating traffic, but the service platform also supports car manufacturers based on their needs and market status. At the current used car conference, Understand car Emperor announced that it has integrated and upgraded the used car business with Tiktok, and in the next year, the two sides will take out 5 billion content to support good content, good car sources, and help high-quality car manufacturers grow.

Zhao Zhifeng, head of the used car business of Understandche Di, said that after the integration of Understandche Di and Tiktok used car users, the number of users reached 147 million, and 88,000 active merchant accounts, encouraging the used car content to return to the transaction itself, so that the business operation is more efficient, the user experience is more perfect, and the industry ecology is healthier.

At present, the used car industry has entered the era of dual operation of content and vehicle source. The integration of Internet platforms represented by Zhuangche Di and Douyin is bringing digital changes to the used car trading and establishing the connection and trust between car dealers and consumers.

In order to enhance user trust, understand car Emperor and Tiktok will also increase the double-end governance around the vehicle source. At present, Knoche Di and Tiktok have established a unified vehicle source management norm, launched a real vehicle source intelligent identification model and blacklist database, and focused on the management of false vehicle sources and accident vehicles. The follow-up will also improve the blacklist mechanism, better protect the interests of users, so that businesses operating in compliance with the law can get more profits.