Market downturn Dealer trapped truck 4S shop model renewed controversy


A Southern media reported that “China's sluggish auto sales situation is likely to last for one to two years or more. In the future, about one-third of China’s auto dealerships will face bankruptcy or mergers.” This news has not caused the market Strong attention, but still touched the nerves of many 4S stores, including truck 4S shop. Therefore, it is worth noting that the 4S shop in the market is still worthy of attention.

The topic of whether the construction of truck 4S shop is necessary is discussed early on. However, after the above news came out, the truck 4S shop has a large area and the cost is too expensive.

Become a focus of market focus.

Truck 4S shop again questioned

Similar to passenger cars, commercial vehicle companies are keen to build 4S stores mainly from the perspective of regulating sales and services. However, Luo Lei, deputy secretary general of the China Automobile Dealers Association, believes that "commercial vehicle companies do not necessarily have to build 4S stores."

"Commercial vehicle companies prefer to use off-site display, which will result in relatively less investment." In Luo Lei's view, "Commercial vehicles are production materials and are tools for users to produce and operate. The beauty of showrooms is not significant. It is important." The quality of the products and the prices of the products. The manufacturer's external image requirements for dealers are more formalized. In contrast, it is more important to embody connotations."

Different from normative management and service improvement, as a 4S shop dealer, it is more concerned about whether it can withdraw its own investment on time. As a bystander, the general manager of a 4S shop in Guangzhou, said in an interview with reporters that despite the rapid development of commercial vehicles in recent years, truck sales have also been steadily rising, but a large number of 4S franchise shops can recover costs. There are still great risks.

Chen Yusong, general manager of CCID Consulting's automotive consulting division, also expressed concern about the profitability of commercial vehicle 4S stores: On the one hand, commercial vehicle 4S stores have a huge investment and cost recovery time is long. On the other hand, the traditional sales model of commercial vehicles also contradicts the current 4S store sales model. The original intention of establishing the 4S shop was to hope to obtain more profitable channels. Such profit was not only from sales, but also obtained through the provision of services, spare parts, etc., but due to the characteristics of long-distance transportation of commercial vehicles, the fixed maintenance and service income Become a "mirror".

Ordinary consumers seem to be “far away” from such 4S shops away from truck users. A data shows that 80% of heavy truck users think 4S shop is not important, the key is to see if prices and services can be put in place in time. Of the several truck users that the reporter had contacted, almost no experience of 4S shop maintenance had been done, because in their opinion, “It would be too much trouble to open a few hundred miles to the city to repair a car, certainly more expensive than a roadside repair station. ."

According to statistics, in some mature commercial vehicle markets abroad, 4S stores are at most a symbol of the brand. There is no real car in it. It is just a list. Because the configuration parameters of the truck are very complex and the vehicles with different configurations are more targeted to the industry, the actual vehicle layout is of little significance.

Establish an image and improve service

Although people in the market have repeatedly expressed "questioning" on truck 4S shops, as a company, China National Heavy Duty Truck Deputy General Manager Wang Wenyu has his own reasons. He told reporters: "The establishment of a 4S store is based on the consideration of establishing its own brand image. On the other hand, it is more concerned with providing users with better services and establishing smooth feedback with users."

In the past, truck sales were like a “street stall,” as long as the sale was completed. However, with the increasing demand for after-sales services from customers, this “street”-like sales model cannot begin to meet consumer demand. Some truck drivers not only hope to receive professional and timely maintenance services, but also put forward higher requirements for after-sales service environment and service quality. This accelerated the establishment of the 4S shop to some extent.

At the same time, the reporter learned that some manufacturers also established 4S stores to “be able to establish a more standardized channel management system”. Because the current market competition is fierce, the behavior of non-standard competition often occurs among the same brand distributors, and the establishment of 4S stores can help manufacturers sort out channels.

Truck 4S shop is an inevitable?

From the point of view of the channel marketing model, there are mainly four types of sales models for commercial vehicles: Direct sales - Direct sales models are adopted for major customers. For example, in large customers such as bus companies and large logistics groups, companies may even establish terminals directly. Repair shop; franchising - selecting a group of dealers in a region to authorize the sale of their own products; regional agency - in an area authorized to an exclusive agent; and the use of 4S shop sales model. Some industry insiders believe that the construction of truck 4S shops will inevitably occur after the competition develops to a certain extent.

This may be why there is controversy on the truck 4S shop in the market, but there are still so many manufacturers and distributors to its "pleasant" reason.

It is understood that China National Heavy Duty Truck plans to add 91 4S stores this year, and Shaanxi Auto plans to expand its own 4S stores to about 100 by 2010.

In the face of controversy, Jianghuai Light Card Market Minister Liu Yong told reporters: “We will not force the promotion of 4S stores. In areas where the underdevelopment and light truck ownership are still relatively low, we will not blindly build stores, which will bring to dealers. There is a huge operational burden. We will plan to add 10 4S stores every year if conditions allow."

Voices of all parties

Luo Xiang, Deputy Secretary General of China Automobile Dealers Association:

From its own considerations, the company wants to provide users with better services and a more comfortable environment for buying cars. It is understandable to establish a 4S shop. However, it is not proper from the point of view of overall development. In addition to occupying a large amount of land resources, whether the huge input of dealers can be recovered must be carefully measured.

Commercial vehicle companies can learn from the 4S model and may not necessarily build 4S stores.

Jia Yongfeng, full-time deputy secretary-general of the Chamber of Commerce and Industry of the National Federation of Industry and Commerce:

The construction of a 4S shop for commercial vehicles is a waste. It is only an image project and has little significance. Commercial vehicle companies should pay more attention to research and development of new products and improve product quality. There is no need to break a more complete model and build a new model.

General Manager of Beijing Guanglongji Tang Jisheng:

The 4S store's three-dimensional service sales model allowed us not only to obtain good sales performance during the blowout period of the heavy truck market, but also allowed us to achieve normal profit levels in the downturn of the market.

The JAC Charter:

The marketing and service terminals based on 4S stores are the platform for JAC's marketing products, the carrier for displaying JAC brand image and the extension of JAC's corporate culture, and also the nerve endings of marketing and services that ensure rapid response to market changes.

Did the "winter" of the Chinese auto industry come?

Education Week

The assault chill brought by the slowdown of the world economy seems to be pervasive. Recently, sales have become the largest in the world. Toyota's global sales target for 2008 has been adjusted from the original 9.85 million to 9.5 million, and the sales target for automobiles in 2009 has been lowered from 10.4 million to 9.7 million. Under the gloomy global economic outlook, Toyota is more worried about the demand for cars in the United States, Europe and Japan.

Judging from the overall situation, the external environment of the automotive industry this year is not very good because of the US subprime mortgage crisis and other factors. The credit-rating agency Standard & Poor's even announced that it is downgrading the U.S. auto giants GM, Ford and Chrysler to junk status because they are not optimistic about the future.

The rising cost pressures and the continued sluggishness of the global automotive market have caused auto companies around the world to face unprecedented difficulties.

In order to cope with the rising costs, automotive companies have responded quickly. Toyota had already clarified the price increase plan in the Japanese domestic market this fall. Starting from September 1, the local retail price of the hybrid Prius will increase by 3%, and the price of commercial vehicles will increase by 2%.

The increase in automobile prices will inevitably affect the sales of automobiles. Under the backdrop of the global auto market downturn and poor sales, the price increase behavior of automakers is helpless. In the second quarter of this year, the company’s sales and profits both declined, with sales falling 4.7% year-on-year, operating profits and net profits falling 38.9% and 28.1%, respectively, and the first profit decline in seven years.

In addition, high oil prices have also become a major cause of the automotive market downturn. This year's high oil price was once close to 150 US dollars / barrel, repeated shocks once fell back to 113.68 US dollars / barrel, but some believe that the next two years the oil price is expected to rise to 180 US dollars / barrel. It is still controversial whether or not the fourth oil crisis is currently underway, but energy, resources, such as coal, electricity, oil, steel, rubber, glass, plastics, etc., are competing to increase prices, which is increasingly challenging the world economy and the automotive industry. It is an indisputable fact.

Facing the slump in the traditional automotive market, the “BRIC countries” represented by China, India, Russia, and Brazil have become the magic weapon that Toyota and General Motors, the global auto giants, rely on. The consideration of global strategy by multinational car companies will cause difficulties for the Chinese auto market in the near future.

It is worth noting that although Toyota has increased its price, its price in China has not risen yet, and its target sales in China this year have increased by 200,000. The multinational giants have begun to fight the Chinese auto market and the competition will be even more fierce. Chinese local companies are under greater pressure.

Under "internal and external problems," China's auto market showed a bad trend in July and August. The market share of self-owned brands has been declining for five consecutive months, but due to factors such as the stock market downturn and gasoline price increases, the Chinese auto market has also begun to slow down its growth rate recently. The prospects are very worrying. Can sales exceed 10 million this year? The car is also a big question. Many companies did not complete the set targets in the first half of the year, and commercial vehicle companies implemented National III emissions nationwide. As a result, most of the sales in the second half of the year were released ahead of schedule. Now the market is very deserted.

Concerns about the slowdown in the world economy have also caused Chinese car makers to be deeply worried and the pace of Chinese auto exports will also slow down. If consumer confidence declines, how will excess capacity be released?

Alibaba’s Ma Yun and Huawei’s Ren Zhengfei have made a “winter talk”. In the automotive industry, Li Shufu proposed to display Geely in the “Winter Swimming”. Li Shufu believes that the auto industry and IT industry are different, auto companies can not passively "winter." Geely must use its own strength and courage to carry out the “Winter Swimming” campaign. It should be good at finding great business opportunities in the winter and creating great hopes and great advantages.

Perhaps the "winter" will take a long time to come, but the Chinese local car companies must prepare for the winter well in advance and must withstand the increasingly fierce market competition in the future.

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