China's auto sector boosted by circulation industry
- Source: CE.cn
- [08:58 August 31 2010]
- Comments
The brands with Dongfeng Yueda Kia, Toyota, Chevrolet and Honda as representatives also embark on the rapid expanding while the self-owned brands greatly extend their marketing networks.
The dealership amount of BYD will be over 1000 this year, and other self-owned brands including Changan Automobile Group, Geely and JAC begin to try to set up auto supermarkets in the secondary & tertiary markets.
Automobile circulation channel relies mainly on new car marketing channel
Presently, China's automobile circulation channel can be divided into new car and second-hand car marketing channels, and the former is the main one.
After years of development, China's car marketing channel has formed a certain scale.
In 2009, the single-store annual sales volume of the authorized dealers in narrow sense passenger car brands was an average of 619, among of which Beijing had the highest average sales capacity of single-store, followed by Tianjin and Sichuan.
According to the statistics of China Automobile Dealers Association, there are 37,711 automobile brand sales enterprises in China, including 13,531 primary sales networks of the authorized dealers of narrow sense passenger car manufacturers, most of which distribute in the eastern coastal areas with the characteristic of "crowd in the east and lack in the west" as a whole.
In addition, the result of "2009 dealer satisfaction investigation" conducted by China Automobile Dealers Association together with Sinotrust International Information & Consulting (Beijing) Co., Ltd. shows that the operating statuses of auto dealers are good generally. It also shows that currently about 46.4 percent of 4S shops of passenger car authorization brands are under dealer groups and the remaining 53.6 percent are the mode of independent single-store dealer.
Besides, the mode of 4S shop is not ever the main form of new car marketing channel expanding, there are new development trends.
The improvement in terms of service is paid more attention by each manufacturer, who transfers more unalterable indexes of establishing 4S shop to soft indexes, such as the unity of service standard, concept and process. Seen from the form, primary and secondary networks are derived from 4S shops, or in the form of combining quick repair services and marketing.
China Automobile Dealers Association considered that single dealership and quick repair services that rely on large vehicle-intensive community would develop rapidly.
Meanwhile, with intensifying competition of automobile market, big dealer groups with stronger ability to resist risks are appearing increasingly, for instance, Power Group, Shanghai Yongda, Zhejiang Yuantong and a large number of other automobile dealer groups that start to form scale and become a force which can not be ignored in automobile distribution field.
The survey data from Sinotrust shows that big dealer groups who account for 46 percent of all dealers in China contributed 47 percent of the total sales volume in China.
Compared with new car marketing channels, second-hand car marketing channels have a shorter development time, only about more than 20 years from 1980s to now.
"Used car trading market" is still the main trading place of second-hand car in China, while second-hand car dealer (later evolved to be brokerage firm) is the business entity, and this kind of operating status continues to this day.
