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Resolving conflicts at the legislative level On January 26, the CADCC of the Automobile Dealers Chamber of Commerce of the National Federation of Industry and Commerce held a press conference in Beijing to release four work contents such as “China Automobile Dealer's Supplier Satisfaction Survey Report (2014)â€.
According to the satisfaction report, China's passenger car sales increased by 9.9% in 2014, and the market scale was close to 20 million. Domestic automobile consumption continued to grow. However, car dealers have been bleak, and the proportion of dealers who have sustained losses in the past three years is as high as 29%. The upside down of car sales prices has become a common phenomenon in the industry. The contradiction between dealers and auto suppliers has intensified. The retreat of dealers has become more common, and the situation of joint exit with many dealers has increased significantly.
The revision of the "Automobile Sales Management Measures" with more objections has entered a substantive stage. Zhu Kongyuan, secretary-general of the Automobile Industry Association of the National Federation of Industry and Commerce, suggested that during this period, the "China Automobile Distribution Industry Franchise Law" can be formulated with reference to the experience of the United States. From the legislative level to ease the intensification of manufacturers' contradictions.
In addition, the Chamber of Commerce will launch the "White Paper on Automobile Dealers and Suppliers" for the first time in China at the beginning of this year. Before June, the "Blue Book of China's Automobile E-Commerce Development" will be launched, hoping to show the development status and industrial environment of domestic auto e-commerce from many angles. Make development recommendations.
Zhu Kongyuan revealed that this year's two sessions, the Chamber of Commerce will also submit three candidate proposals, namely, "Recommendations on Increasing the Position of the National Committee of the Chinese People's Political Consultative Conference for Automobile Dealers", "Proposals on Formulating the "China Automobile Sales Franchise Law"" and "On Further Strengthening the City" Proposal for comprehensive capacity building for transportation."
Pressure on Inventory and Big Expansion On January 27th, China Automobile Dealers Association, National Passenger Vehicle Market Information Association, Sohu Automotive Division and Xinhuaxin International Information Consulting Co., Ltd. jointly held the “2015 January Automotive Market Seminarâ€. At the meeting, the China Automobile Circulation Association released data showing that in 2014, the second-hand car market accumulated a total of 6.0529 million vehicles, an increase of 16.33% year-on-year; the transaction volume was 367.565 billion yuan, an increase of 26.03%. Zhongjin Automobile Trade Co., Ltd. released a total of 1.423 million imported cars in 2014, a year-on-year increase of 21.6%.
The data shows that the growth rate of imported car supply rebounded sharply in 2014, and the growth rate dropped quarter by quarter. SUV is the absolute dominant model in the imported car market. Its market share has increased from 61.9% in 2013 to 63.3%, and it still maintains a high growth rate. After the year-on-year decline in CAR and MPV in 2013, it also achieved rapid growth in 2014.
However, the uneven production and sales of automobiles and the high level of dealer inventory have also caused large losses. As the overall growth rate of the automobile market slows down, the pressure of the automobile circulation chain is passed on to the dealer level. However, the blind expansion of the vendor channel has led to the widespread presence of new dealers sharing the sales of old dealers, further exacerbating the contradiction between dealers and suppliers.
The results of the survey conducted by the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce for half a year show that most dealers are most dissatisfied with the business policies formulated by car companies, and have the highest satisfaction with brands and products.
In addition, 55% of dealers' new car sales are not profitable, 61% of dealers sell products that are upside down, while 74% of dealers say that car companies have tying slow-moving models, forcing presses, and 57% of distribution. The business said that when the “net point loss†or “profit below averageâ€, the manufacturer still forced the expansion. “There is a dealer’s report that the manufacturer’s temporary notice says that 'a car is coming tomorrow’.†Wang Hao, assistant secretary-general of the National Federation of Industry and Commerce Automobile Dealers Chamber of Commerce, revealed. Dealers pressure inventory, manufacturers expand, so operating, I am afraid to be vigilant in the end "both lose both."
Reasonable reduction of operating costs, establishment of terminal experience stores in addition to resort to legal rulings, how can we effectively resolve vendor conflicts? Some suggestions were also given at the January Automotive Market Symposium. For example, manufacturers can improve their channel strategies. On the one hand, they will reduce non-essential KPI assessment projects for dealers, and increase subsidies for dealers. On the other hand, they should bring information access channels closer to end consumers, thus effectively assisting in the formulation. And optimize market goals.
For example, Infiniti, after Dai Lei became the general manager of China, set up “central inventory†and set up a mode such as D Type mini 4S shop, which reduced the pressure on operators.
For example, Audi, in order to quickly reflect the needs of consumers, set up Audi City in Beijing, only to experience stores, not to sell products, through direct contact with end consumers, and to obtain and meet the market demand for sales aims.
In addition, you can also explore new channel operation modes such as e-commerce cooperation, shorten the value chain, and directly contact the market, so as to avoid setting too high or false high sales targets.