Shulou(Shulou.com)06/03 Report--

Since 2015, the number of civil plus commercial vehicles in China is 160 million, with a compound growth rate of 10%. It is estimated that the number of cars in China will exceed 200 million in 2021. This huge car ownership corresponds to the potentially profitable rear car and auto parts market. There are 350000 auto parts retailers, 23000 4S stores, 450000 independent maintenance enterprises and a large number of roadside shops across the country. According to the average three-year warranty period of the vehicle maintenance system, the number of overinsured vehicles in China in 2015 was about 67 million, accounting for 44 per cent of the total number of cars. Due to the high price of after-sales service and remote geographical location, 4S store is almost unable to retain over-insured customers. In the face of such a huge after-sales market for auto parts, there has been an influx of numerous capital in the past two years, among which traditional manufacturers have transformed into auto parts and electricity companies and want to get a piece of the pie in this huge market.

The participants in the car aftermarket are mainly accessory manufacturers, auto repair shops, and individual car owners. Let's take a look at the pain points for each role in this circle:

Pain points for car owners:

1, 4S store maintenance price is too high, mid-range car maintenance 400-600 yuan once, high-end cars such as Mercedes-Benz BMW maintenance at least more than 1000, just to replace an air-conditioning filter, Mercedes-Benz 4S store price as high as 500 yuan.

2. The price of the roadside auto repair shop is usually half that of the 4S store, but it lacks the credibility of the brand, and individual car owners are often worried about the damage to the car after changing to fake goods outside, so most car owners still have to put up with the high price of the 4S store.

In order to solve these pain points of individual car owners, the birth of the auto parts e-commerce platform model is mainly B2C+O2O, which can better solve the pain points of C-end customers, so that individual car owners can buy brand parts at a lower price, and then just pay working hours to the roadside auto repair shop, but one of the biggest problems of this model is that it squeezes the profits of auto repair shops.

The profit of the auto repair shop mainly comes from the price difference of auto parts, while in the auto repair e-commerce model, car owners can bypass the auto repair shop to buy accessories, and the auto repair e-commerce platform serves as an intermediate credit guarantee. The auto repair shop becomes an online platform and an offline installation point. At present, the profits of physical stores are getting thinner and thinner, which will undoubtedly further squeeze the living space of auto repair shops.

Pain points in auto repair stores:

1, a full range of auto parts, which is required to solve the needs of many types of auto parts, so as to avoid finding multiple suppliers to purchase separately.

2. The logistics speed should be fast. Except for oil, there are few general parts for auto parts. Different models correspond to different accessories. Small auto repair stores usually do not prepare goods for financial reasons. Only when there is demand will they go to the dealer to transfer the goods. In this case, it often needs to be delivered within an hour or even half an hour. This is also one of the important reasons why auto parts cities and dealers can not be replaced so far, because they actually undertake the functions of warehousing and logistics.

3. The accuracy of the matching of accessories and models. Auto parts due to too much SKU, accessories and models are very complex, in the traditional telephone communication mode, it is common to send the wrong goods, this situation will bring direct losses to stores.

4. Fake goods are rampant in the accessories market, and the store owner is unable to detect the authenticity of each accessory. Once buying fake goods brings losses to car owners, it will have a great impact on the reputation of the store.

5, price factor, the main profit of the store comes from the price difference of spare parts, in the case of ensuring the quality, the lower the price of auto parts, the better.

Pain points for auto parts manufacturers:

1. In the current market environment, the profits of accessory manufacturers are very thin and unstable. Generally speaking, the profit margin of OEM is only 10% and 20%. At a cost of 5 yuan, it is often necessary to ship goods for 5.5 yuan.

2. Foreign trade shrank due to the decline in vehicle sales and the appreciation of the RMB. Factory orders are also gradually declining, but ordinary factories are unable to enter the aftermarket directly for three main reasons:

The main results are as follows: (1) there are many after-sales products and miscellaneous products, and the factory does not have the corresponding production and R & D capacity. Once the categories of products produced by the factory increase, its cost will increase rapidly.

(2) do not have their own independent auto parts e-commerce platform brand, and to re-establish an auto parts brand requires a very high upfront investment, which is difficult for factories with low profits.

(3) lack of offline sales channels, unable to pull production and inventory through sales, which turns out to be slow cash flow and lock up the cash flow of the enterprise.

To put it simply, individuals want authentic products at low prices, auto repair stores want profits on accessories, and factories want after-sales channels. To meet all three at the same time, there must be a platform connecting factories at one end and auto repair stores at the other. This auto parts platform not only acts as a porter, simply sends factory products to store customers, but also undertakes the functions of supplier screening, quality inspection, warehousing logistics, after-sales service and so on. And through its independent auto parts brand, to create the credibility of the auto parts platform, this auto parts e-commerce platform business model, we call it F2B.

[business cloud] is a well-known B2B e-commerce system development service provider at home and abroad. no matter it is B2B, B2C or B2B2C mode e-commerce platform, there are successful cases of cooperation with top 500 enterprises. Here is the answer to the difference between B2B e-commerce model and F2B e-commerce model.

B2B Auto parts E-commerce platform Model

The source of auto parts supply chain is mainly dealers, a few are brand manufacturers, reduce the intermediate link of sales, and turn the auto parts supply chain platform itself into a large dealer, bringing real value to stores and car owners.

F2B Auto parts E-commerce platform Model

Skip the whole car factory, brand, and all the dealers, go directly to the real manufacturer behind these brand parts or original factory parts, and let the factory provide back-end "R & D and manufacturing" for auto parts e-commerce merchants. F2B auto parts e-commerce model relies on the strong manufacturing and warehousing capacity of the factory, which can ensure the product quality and timely supply of e-commerce sellers of auto parts.

Now the models on the market are basically B2B auto parts and electricity business websites, and there are almost no real realization of F2B auto parts and electricity business model. Because the premise of the establishment of this model is that there are sufficient upstream manufacturer resources rather than brand or dealer resources. At the same time, F2B auto parts electricity business model requires a certain degree of brand building, product research and development, quality control, not just the light mode of flow. In addition to combining with the Internet, there should be the genes of the real manufacturer.

There are two modes of self-operation and matchmaking of auto parts and electricity companies:

Although the auto parts business matchmaking model is relatively light, the constraint of the platform for upstream manufacturers is too weak, logistics is not timely, and can not provide a good after-sales, so it is difficult for end customers to have a good experience.

For the self-management model of auto parts and power suppliers, although a certain amount of inventory is needed in the early stage and the financial pressure is great, because the products, inventory and logistics can be controlled by themselves, they can provide better services to auto repair stores, so it has higher stickiness for customers. Self-operated auto parts e-commerce system can be divided into centralized procurement brands and self-owned accessories brands. To a certain extent, these companies have practiced the F2B e-commerce model, not only omitting the middle secondary and tertiary dealers, but also skipping first-tier dealers and brands, directly docking the resources of production enterprises, so as to achieve the shortest supply chain. And they all use oil and filters, which are the most frequently used products to enter the market, which can quickly get high-viscosity customers.

The self-management model of power distributors can not only establish downstream sales channels, but also quickly integrate the resources of upstream auto parts plants. Ensure that all products can reach end customers at the lowest cost. The same original factory quality accessories, its store price is only about half of the market, and provides good after-sales service, once the product quality problems, can be directly traced back to the manufacturer, rather than dealers or agents.

Conclusion: any good e-commerce business model must meet the following two points to create real value for users and enable participants to achieve win-win results. If you want to know more about the functions of the system, please apply online and we will arrange a business consultant to demonstrate the system to you as soon as possible.

In the ever-changing era of Internet business, you need a fully digital F2B supply chain platform system.

Apply now, we provide a free system demonstration.

Author: cloud craftsman | Shang Yun (Wechat ID:shushangyun_com)

[business cloud www.shushangyun.com] is committed to providing enterprise-level e-commerce website construction services, long-term for large and medium-sized enterprises to create a digital, commercial, intelligent online mall system solution At the same time, we also provide a series of customized development services, such as B2B e-commerce platform, B2B2C multi-user mall system, B2C e-commerce system, cross-border import e-commerce platform, supply chain management system, new retail e-commerce platform, live e-commerce system and so on.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.