Three Realities and Five Trends in the Aftermarket

As the rear end of the automobile aftermarket supply chain, it is also the largest customer base. Along with the education of the market, the education of Internet thinking, and the change and upgrading of customer service requirements, the terminal stores are continuously extinguishing the survival of the fittest, continue to grow, and continuously transform and upgrade. More and more intense, more and more demand, more and more choices, and the reason for the choice is more to the upstream supply chain resources who can provide more added value and services.

According to the statistics of the Research Institute of Forward Looking Industries, as of the first half of 2017, the number of motor vehicles in China reached 404 million, an increase of 9.38 million, or 3.18%, from the end of last year.

The scale of China’s auto market is naturally dependent on the scale of the auto market. According to the “Analysis Report on the Automobile Market Aftermarket Forecast and Investment Strategic Planning” released by the Industry Research Institute, the scale of China’s auto aftermarket exceeded 540 billion yuan in 2015. In 2016, it will reach 800 billion yuan. It is expected that by the end of 2017, the scale of China's auto aftermarket will exceed 1 trillion yuan, and the annual growth rate will reach 20%-30%.

The trillion market is starting up. The huge market is attracting more and more enterprises and capital to enter the automotive aftermarket, and well-known foreign companies have also begun to enter the Chinese auto aftermarket. The entire market competition has become increasingly fierce, and the real "strangling" has only just begun.

What's even more embarrassing is not knowing when it started, the post-car market seems to be turning into a pile of platforms. Various Internet practitioners and various investors have swarmed with passion, from O2O, B2B, B2B. To B2B2C, SAAS, PAAS, LAAS... all kinds of numbers and letters with a sense of deep meaning and tallness, they thought they were a veteran, and suddenly there was a feeling of being beaten back to elementary school students.

In the past few years, numerous Internet platforms in the automotive aftermarket, which are known as various one-stop automotive services or full-supply-chain platforms, have been surging up and down. Today, waves of waves have been shot on the beach, leaving only a handful of people left behind, and waves of waves are still advancing. They are both brave and tragic.

According to incomplete statistics this year, more than 30 financing incidents have occurred in China's auto aftermarket in 2017, and the total financing amount has exceeded RMB 5 billion.

Looking at this wave of life and death, watching billions of dollars or even billions of dollars of funds deposited without a trace, it is a bit embarrassing and emotional!

Based on the understanding and pattern of my current half-area brand chain operation service provider and regional transit library accessories distribution center, in the face of a trillion-dollar automotive aftermarket, especially in the chain of the automotive aftermarket supply chain, Supply chain chain companies or e-commerce platforms or regional dealers in parts, it is difficult to live in a unicorn in 35 years or even five to ten years, let alone who can dominate the ups and downs! The truth is that even a single player in the region is not easy, let alone the national market. And personally feel that in a very long period of time, they may each expand or cooperate with each other in their fields of specialization and expertise. The emergence of so-called oligarchs will take some time.

According to the practice and experience of my current half Internet user, a service-oriented automotive aftermarket is not immersed in the market and is not down-to-earth in the offline services. My dream is to look to the sky and imagine the future. It is more like Ye Gonghaolong and idiotic dreams.

So come back to reality and talk about three realities and five trends.

Three realities

Actuality 1: The automotive aftermarket is a service-oriented market. Its ultimate service target is an individual owner. Therefore, the essential core of the automotive aftermarket is the service. Its value is also the service and the ultimate service target. The owner's satisfaction and loyalty are determined by the quality of the service.

Although the owner's needs may be diversified, any part of the owner's own self-purchase or DIY completion will enter various terminal stores to complete, such as 4S shop after-sale, comprehensive repair shop, various types of car wash beauty and fast repair fast chain stores (Including national chain or regional chain), polymerization auto market shop, high-quality specialty shop, street-side couple shop, etc., so the comprehensive cost of service, product quality, technical level, service environment, service attitude, etc., must be decided. The owner's choice of terminal store.

For now, gold owners who are not bad will still maintain and maintain the 4S stores, including insurance, claims, and rescues. Accessories are the cost of accessories. Hours are the cost of working hours. . After more than half of the owners have left the service of the 4S store, they will choose to use the integrated repair shop and various chain stores, as well as polymerization auto market stores or high-quality specialty shops for service, dirty shops, and couples. In addition to other specialty shops with special services and special services, most of the other single stores are still half-lived.

Most car owners choose store services, stores recommend and purchase accessories, most of the profits of the store are built on accessories, wool is on the sheep, usually the last transaction with customers is to avoid working hours, over time, customers are accustomed to Charges for products and services are free, and stores themselves have developed poor charging thinking for customers.

A small number of vehicle owners purchase parts on their own through network electric goods tables, and bring parts to terminal stores other than 4S stores for repairs and maintenance. This is usually a matter that can be done within the scope of quick repairs and quick guarantees. Each terminal shop is reluctant but also very offensive but able to Earn a separate working hour fee and do it. If you have a problem with the vehicle, it is often a question of product or manual service.

However, regardless of the way in which each store survives, whether it is windy or dead, various stores, including after-sales of 4s stores, use simple facts to tell us that after all, technical services need to be completed down the line. It is the current person or the intelligent and robot of the future, and the prescribed actions must be completed online and offline. Therefore, at present, and even for a long time in the future, the terminal stores beside us are still at the end of the automotive aftermarket supply chain. It is also the largest customer base.

Actuality 2: As the rear end of the automotive market, the supply chain is also the largest customer base. Along with the education of the market, the education of Internet thinking, and the change and upgrading of customer service requirements, terminal stores are constantly growing and transforming. Upgrade, more and more fierce competition, more and more demand, more and more choices, and the choice is more about the upstream supply chain resources who can provide more value-added services.
The most immediate manifestation is that if the services of supply chain chains or e-commerce platforms or regional distributors or system software providers and other institutions are insufficient to impress the terminal stores, then this year he will use your products or software or platform. And next year or even tomorrow he may change another, even if it is a chain of institutions can not escape this bad luck, for now, a good terminal store or a maintenance plant with a production value of more than a few million a week may have several chain institutions To talk about cooperation, it is very natural, who can meet the needs of the terminal stores, who will be able to impress him.

In the case of relatively large-scale regular community car wash cosmetology, fast-repair shops, and comprehensive repair factories, for example, whether the current demand for joining a supply chain chain already exceeds the brands and products, and more technology is loaded. Management, talent training, marketing promotion, system management, storefront diversion and other more value-added service requirements, specifically:

Looking at the above needs and issues, the reality is illustrated only by the fact that terminal stores have been educated by wave after wave of peers' education and demand has also been upgraded. If the spirit of serving customers is lacking, and if customers' problems and needs cannot be resolved, Can not improve customer satisfaction and loyalty, but also just to sell products as the core, they are replaced by others is a matter of time.

Reality 3: The auto aftermarket is too big, there are too many products, there are too many projects, there are too many platforms, and there are too many chain organizations. The method of selecting the resource party at the top of the supply chain is to select various agents and operators in the region to complete the region. The expansion of the market and the export of resources to the downstream, due to the fact that there are too few professional senior talents, there are too few institutions that can promote products and market operations, and there is even less that can standardize and standardize the market operations.

Therefore, there are various opportunities for mutual selection and reshuffle between most of the links in the automotive aftermarket supply chain. If the chain is only between supply and demand, the depth, breadth, and density of services are lacking. Without the stability of cooperation, the consequences are also obvious.

Therefore, the colleagues who are on the side of the supply chain after the auto aftermarket are faced with the opportunity to survive in the face of reality and to do their own services to meet the ever-increasing demands of customers or exceed customer expectations Have the opportunity to look up at the stars.

Five trends

Trend 1: The host factory camp is not willing to sell a large number of customers after the sale of auto 4S stores. More automakers and even international brand cars are entering the ranks of China's automobile aftermarket chain.

Including FAW's two-tier service system, SAIC's car enjoyment, BAIC's good self-cultivation, PSA Peugeot Citroen Group's aftermarket chain brand "European Maintenance", etc. are seizing the market, "Fast Repair Quick After-Sale Repair Chain + High Quality Original Quality" The benchmarking kits will make it easier for the scattered private owners to quickly converge and more easily connect insurance, finance and other high-quality resources with large customers and big data types, including the resources of the Internet platform.

Trend 2: The role of the regional agency with Internet thinking and platform awareness and real operational management capabilities and personnel training capabilities is changing, and a large number of organizations that have long been in the industry and have comprehensive service capabilities are being transformed into regional operation services. The distribution center of the business or auto supplies and accessories, or the regional transfer warehouse, can not only help the upstream resources to expand the market but also can undertake the downstream management, service, training, and promotion, and truly assume the chain role of the supply chain. Plants and Internet platforms will be hot.

Although the nationwide auto market oligarch is not easy to appear, the regional hegemony that is based on the provincial capital will gradually show its dew. The competent regional operators will form the N (community store)+1 (comprehensive repair shop) model of the organic combination regional community store and comprehensive maintenance plant resources, organically integrating maintenance, maintenance, insurance, and automotive finance, and collecting To meet the needs of each leader and leader, collect superior resources to obtain better returns on resources, and organize and share talents, share equipment, and share high-quality supply chain resources within the region.

Trend 3: The tools and functions of Internet and system providers have become more apparent. Some online platforms with powerful e-commerce still choose to cooperate with offline high-quality service terminals and regional operating service providers to form a “commodity + service” model. More platform-based Internet platforms and software system providers may integrate remote fault diagnosis functions, search capabilities for various accessories matching conditions based on brands and models, and process and standardization of various construction and installation processes. The display function, namely "model database + fault diagnosis + adaptive search + standard process + system service" multi-functional Internet platform and system platform will also be more offline terminal stores due to meet the store's rigid demand and service demand. Accepted and used, more free platforms will appear, and wool is still in the direction of the pig.
Trend 4: The increasingly sophisticated vehicle networking, the perfection of the vehicle-mounted large screen human-machine dialogue technology and the gradual maturity of regional operation solutions, the integration of big data, supply chain model, membership model, and marketing model for smart cars and The development of smart cars offers the possibility of providing more convenience for owners to provide one-stop car life. With the help of on-board computers and sensors, the main engine plant can remotely determine the faults in advance. In the future, the incidence of abnormal faults will be greatly reduced, so that it will become a trend to adopt maintenance and repair. If the driverless technology is mature, vehicles in the future may be more likely to be remotely predicted. Failure and through driverless technology, go to the repair shop for maintenance and troubleshooting.

Trend 5: Since the talent gap in the terminal stores of the automotive aftermarket is relatively large and the mobility of talents is also very strong, the model of sharing talents in the future will become a hot topic within a period of time, but a virtuous circle of companies will certainly cultivate their own talents. Specialized personnel training for professional auto-cosmetics, vehicle maintenance, automobile maintenance, and service consultants will form a combination of long-term and short-term training through online and offline models to meet the various needs of different stores.

Write here, suddenly thought of a word: Yesterday, to see the mountain is the mountain, see the water is water; today, see the mountain is not a mountain, see water is not water; tomorrow, see the mountains or mountains, see water or water.

I think the trend is both direction and future.

Be able to look down on the starry sky.

Can grasp the trend to see the future.

About the author: Hao Dianying, founder of Northwest Automotive Network, a service agency under the northwest automobile market, the co-founder of Chebaan (Ningxia) Auto Service Co., Ltd., general manager of Beijing Century Kun Culture Communication Co., Ltd., and a second-tier service system of FAW Automotive Ningxia. Service Center and Executive Director of Ningxia Delivery Center of FAW, Ningxia Delivery Center and Deputy General Manager of Ningxia Automobile Service Industry Association.