Sina Auto 2017 (the eighth) Global Automotive Forum held in June 7th - June 8 in Chongqing Panda International Conference Center, the forum to "change innovation and transformation and upgrading" as the theme, the global automotive industry major manufacturers , Policy makers, regulators, representatives of various fields, experts together to discuss the challenges facing the automotive industry, trying to lead the industry from the overall strategy to think about how the new historical conditions to seize the opportunity for industrial development. The following is Desheng Kang Ming Group founder He Bide's speech Record:
Desheng Kang name group founding partner He Bide Desheng Kang Ming Group founder He Bide
Good afternoon, I hope we can understand my German English, very honored to speak, talk about the dealer. Today, the rest of the audience on the venue is running out, maybe we are hungry. I'll tell you about my 15 years of experience working in China. Today we mentioned the technological innovation, the maturity of the market, etc., we are in the market maturity, the more is to see the growth of sales. When it comes to retail, for me we need to consider a lot of other factors before we can think that a market is mature. Long and short-term challenges and opportunities, and so on, these are what we need to consider.
Some of the views may be that several previous speakers have not mentioned, I will emphasize. If from the market point of view, we know that China accounted for 30% of global car production. Not the value chain of people who make money, over the past few years, different brands, different dealers they are very hard to make money, but also faced a lot of difficulties.
In general, in China we have about 30,000 such dealers, but our retail dealers are not yet fully mature. We look at China is probably a lot of vehicles in fact less than 3 years 50% of the dealers less than three years, many dealers are less than 35 years old managers, and they quit many times, so there are very retail big change. Although the sales volume is large, but the degree of specialization also need to further enhance. We also see the stock is also changing, such as Mr. Weng, Dongfeng Renault do are good. Mainly depends on the sale of new cars, because our market is very natural, for example, 50% of the cars are less than three years, you can see the sales of new cars certainly not so much. Even in the next five years, our zero sales growth, it means that the number of Chinese OEMs will be doubled. Even if our sales did not increase, but also a lot of some customers need us to more attention, better service. On the customer loyalty aspects of the topic may not have begun, many consumers they may be a lifetime will buy 1-2 cars, so they are relatively loyalty to the brand is relatively low. The degree of professional understanding, as well as the extent of customer service, which need to grow further. May need to be able to decide in the next two years. For example, the next two years he can come back, you will know what his loyalty situation is like.
At the same time, we are also talking about electric vehicles and automatic driving, as well as the needs of electric power and so on these topics. In the value chain terminal, the dealer's impact on the product is very small, they need to take into account, retailers should continue to take into account the mobility of the entire ecosystem, which is also mentioned. What will happen to consumers in the future, will they buy cars, share cars, ride their cars, what are their needs, how new ones are implemented, where other places on the market, say they do not buy cars, Share a car with everyone, rather than own a car, appeared in other places. If your family wants to travel on weekends, you can share a car, you can also rent a car, there will be such a trend. So different concepts have emerged, if we look to the future, such as the drop of a taxi will give us a lot of changes in the status quo. Eventually we will see some OEM pass rate is low, the dealer has a new service, some OEMs continue to work hard. We can foresee that some OEMs want this service directly to the customer, no longer through the dealer, then the dealer will be in terms of potential innovation, and can not rely on some lease contracts to profit. So the dealer can still play a role in the future, in different ways to serve the consumer. In any case, the dealer's income will change. Compared with Europe and the United States, China's dealers are more independent, especially in the sale of new cars, partly because the size of the market is not the same, now in fact the development of financial, after the market is not an efficient way to be implemented. We think the number of dealers will change. Because the new market participants will come in, it is clear that we see some of the independent after the market will appear. We will see some of the more digital, greater satisfaction with some of the convenience of consumers may be lower than the price of 4S shop 20% -30%, it is clear for the dealer to continue to develop is a threat, so the dealer should To innovate in order to meet the future.
We will see a new business model, we think we should take a positive view of the business model, because the new business model for the dealer the next three to five years is very important, dealers need to retain and attract more customers, Many Chinese brands compared with other brands, China's car sales are very good, this is a very good starting point but the need for horizontal management, to continue to bring consumers a very high quality products and services, and continue to do at this point. The next few years, if the dealer makes short-term problems change, I think the dealer's profits can be guaranteed. You still need to consider some of the challenges in the medium and long term. May be in the short term will face a great challenge, which the dealer should ask themselves, we are not ready to meet the growth of the market, if you lose the post market, then in fact the last no many consumers to buy New car. The customer's life and dealers will play 16,17 times the deal, they will go to the dealer to see where we think dealers want to seize the opportunity to stay in the store to consumers, to provide them with services. Five years later we think that may change little, but 10 years after the change will be very fast, more dealers business model is not spending money to drive, and consumers may spend only one or two hours a day in the consultation. I have developed in China for 15 years now faster than ever before, and our customers can think boldly and embrace innovative ways of developing. In 2025, the electric car may reach 40% or even possible, how to deal with changes in the dealer? All-electric vehicles will also appear, but also means that the requirements for the engine to change. We will see a 20% decline in income, that is, by the impact of all-electric vehicles. How to meet and prepare for such a future? Maybe we will also anticipate China's mega-cities that they have mobile solutions. That is to say we see the market will be diversified, compared to Beijing, Shanghai and four-tier fifth-tier cities are different, the customer's behavior is different, new technology, new mobile solutions need to accelerate to implement, The dealer's face is not the same, of course, large cities and four five-tier cities are not the same, so we consider the regional differences in labor, in some cases we found that we need to deal with different situations, different levels of dealers should Have different strategies. We will see the role of the dealer will change, good news Although the growth of new cars is more mature, we will still see the profits of the next few years, but the entire management should be more professional, to be able to step onto a new step The
We see the new owners of the behavior and concept of particular attention to this point, not just by the dealer to decide a lot of circumstances. In the past there are many growth is brought by the new products, as well as price positioning, as well as the performance of dealers, as well as the expansion of the market, and now dealers are still relatively young, the problem is how to balance the retailer profit growth. Talking about the profit of the network, we will take into account the electric car and other innovations, OEM brand, the dealer will still be the center. From our point of view, the owner's satisfaction is very important, if you lose the consumer you lose everything, you can not create a good mobility of the future. There are some situations that need to be adjusted, because now we see that there is a huge deal of investment for large-scale dealers, they need to recover their large investment, they have a more flexible investment. Dealers need to take into account their prospects for future revenue forecasts. We usually say that we have to focus on short-term, the focus should also focus on providing mobile solutions entities. We see a lot of changes in the used car market, especially after the market model. The consumer community will change, if you have B2B demand, you can provide mobile solutions. In the future, we may be concerned not only private, personal, and some group of procurement, hope that these large customers will use the OEM network.
The front speakers told us a lot of information, online and offline seamless interaction is very important, should be seen as a way to improve consumer satisfaction.
The last point is also very important, the whole relationship as I said a lot of the situation is not directly affected by the dealer, is affected by the OEM, so the two sides should be better cooperation, the dealer should not forget this, China Providing the greatest opportunity to better win the consumer and improve their loyalty. For dealers, although we talked about innovation, embrace the future, online, online can not be ignored, there are some market fundamentals, the volume is very large, the demand is also very large, if you can catch these or profit Can be found. So constantly innovating is able to seize the opportunity, thank you!