中国二手车产业链全图及分析2019版（全英文版）
2019 Chinese 2nd Hand Automobile Industry-Chain Analysis and Charts (not for the uninitiated )
本文首发自中国二手车自媒体联盟
作者系联盟发起人之一
王萌，二手车小胖
本文以及图片制作特别鸣谢查博士
Special thanks to Chaboshi for pictures and documentation
中国首个二手车知识分享和在线培训平台
伍车学府团队全力支持
文章部分数据特别感谢中国汽车流通协会
未经授权引用使用本文图文，我们将保留法律诉讼权利
本公众号内容已纳入维权保护服务，特别声明
Foreword:
2018 was, strictly speaking, not a good year for the second-hand automotive industry in China. Even though it has maintained a 10% growth in comparison to new car sales, actual transaction numbers fell well below the targeted projection of fifteen million cars to a total of thirteen-million-eight-hundred-twenty-thousand, credited mostly to the immense pressures suffered by the entire Chinese automotive industry.
There is, however, light at the end of the tunnel. According to early 2019 statistics, there is now real hope for the lifting of certain export restrictions as it pertains to 2nd hand automobiles. But at the same time, with the early arrival of CN6, severe competition from the new cars market and reforms in the financial sector, the future is all but assured.
The question remains. It’s been a year since the 2018 Chinese 2nd hand automotive sales analysis, and what has become of the market since then? What has disappeared, and what has changed in the interim?
Is it, in fact, still a free-for-all or have the lines already been clearly drawn, and stalwart bastions emerged from the chaos?
2nd Hand Automobiles Circulation Ratio Chart
Let us start from the C1 perspective of sales personnel, and end at the C2 perspective of prospective clients. The actual market share of C2C is comparatively low, as according to data collected over 2019, and we can safely conclude that such a model is relatively unsuited to real-world application and compatible business ventures. Beepi from US already showed us.
But, when viewed from data collected from other countries, changes in C2C transactions is not an impossibility. In the U.S., 2nd hand automobile transactions and consultations are happening with increasing frequency through platforms such as e-Bay, Carfax and purchases at offline locations. Alas, as Chinese regulations and supervision from appropriate sources are as of this moment still inadequate for the task at hand, a similar success story is still a pipe dream in China.
Starting from C1 sales clients, they have enjoyed considerable ‘breaks’ thanks in part to a rise in changing-purchases rather than accumulative purchases. Most 4S stores can offer very desirable 2nd hand sales scenarios to prospective clients, especially during ‘first-contact’. This is also due to a considerable marketing push from some 2nd hand retailers—though it must be said that whether or not such extended (and expensive) campaign is sustainable in the long run is certainly up for debate.
A number of C1 clients have continued to choose traditional 2nd hand markets and retailers, despite a sustained wooing effort from 4S stores, online retailers, and C2B auction platforms. Of these, mid-to-high class cars stand out from the rest. This is because that when it comes to sales experience and insurance against unforeseen elements, there are certain advantages traditionalists still enjoy.
It does not matter whether the cars come from 4S stores stock or ‘pawn-to-sale’ models as seen on certain online retailers. Most are handled in massive sweeps when their expiration dates are up. Actual by-numbers sales are far less impressive. Most 4S stores trade in the 5% range for 2nd hand automobiles, and even those with excellent BBA ratings count themselves lucky to hit within ballpark range of 15%.
As the 2nd hand market maintains its cross-regional, multi-brand appeal (especially during the information/technology age), it has seen considerable activity in the ways and methods of doing business. At the end of the day, 85% of these transactions still come from traditional middle-men with the experience necessary to handle the task.
As of now, most online retailers specializing in 2nd hand automobiles have remained tethered to their auction platforms, information services, and financial insurance data services. Those who take an active hand in sales have always faced an uphill battle.
There are certain characteristics within the Chinese 2nd hand automotive industry—perhaps undesirable ones—which have made it so. One car per SKU, the lack of enforcement when it comes to maintenance records and the difficulty of making such data public are only a few issues.
At present, an increase in general knowledge and the separation of jobs between industries as it pertains to the Chinese 2nd hand automotive market is inevitable. The market is changing and accumulating. As it pertains to the entire transaction structure, the 12% seen from 4S store brand sales will increase, along with overall transaction amounts in the entire 2nd hand automotive market. Comparatively, market shares will fall. Individual brand transactions and even new show rooms will have more opportunities for change and improvement.
According to current progress and analysis thereof, the Chinese 2nd hand automotive market will see a certain syncing with new car sales amounts when it comes to data (along with, inevitably, a certain amount of interference as well). In total, information, auctions, data, and insurance are prime real estate for online markets, whereas traditional transactions at ground level still happen at 4S stores and 2nd hand retailers.
2nd Hand Automobiles Trading Platform Chart
(The diagram is used only for consultation and analysis purposes. For brevity’s sake only some industries are represented. Some sales data are withheld in accordance with regulations)
C2B analysis:
Clients usually utilize online resources to get to know the 2nd hand market before making a sale. Advertisements are inevitably useful, but first-contact services inside 4S stores have also seen increases. Real world transactions, however, still happen at B2 traditionalist venues, and C2C changes also absorb a certain percentage of the market.
Of these, private, personal auctions categorized as C2B have been gaining in popularity, especially in mid-southern regions of China. The model originates with what was Shanghai Kaixin，now known as KX.cn， and primarily operates in the Shanghai region. Tiantianpai has seen financial backing from BitAuto and Autohome and is developing well. Chezhibao also possesses a certain share of the market in specialized C2B areas.
As C2B matures, 4S stores as shown in B1 have become valid sources for automobiles. Local and cross-country B2 have shown discrepancies in terms of operators. A unified C2B auction platform over different regions becomes possible through advances and upgrades in the areas of inspection, transportation, support, and online payments.
B2B analysis：
Currently there are many B2B operators who deal in the same automotive resources over a number of levels. Most of these operate in the mid-to-high tier of brands and see massive sales thanks to brand and 4S store exchange policies. However, actual personal sales only account for 5%, and more than 80% of B1 2nd hand automobiles are sold en-masse through B2B.
Of these, B1 sold via 4S stores to B2/3 markets are the most stable, and take the lion’s share of the market (as well as growth potential) both domestic and abroad.
Early online retailers such as UXINPai, Cheyipai have the most coverage in this area; Autostreets insists on live photo-shoots in the streets for a better on-site approach；auction platforms such as Lianmengpai satisfy specific business needs by certain retailers, and brand retailers such as Dongfeng-Nissan Yichengpai and NIC Reginal Auction have seen increases in automotive exchanges over the last few years.
At the same time, there has also been an increase in auction platforms from major retailers. Lemon Auction from WINTOP, YTUCar, Yonda are only a few such platforms making the transition from self-service to production-sharing.
At present, the actual number of B2B auctions has not reached what is expected of a matured market share. The advancement of professionalism and knowledge at 4S stores is also necessary. There is also room for more global auction platforms as C2B ventures further into B2B domain, and traditionalists still enjoy certain advantages on a local, city-wide level.
In reality, most B grade sales do not come from application auctions. Mostly, they derive from social medial presence, bidding, negotiations and marketing. If one day WeChat starts collecting a fee, we can see that fee as a genuine realization of service charges for 2nd hand automobile transactions.
B2C Analysis：
There has been an obvious trend in regards to sourcing cars these past few years. The 2nd hand automotive industry is rapidly becoming a buyer’s market. This is due in part to the competition between new and pre-owned vehicles, as well as a significant price cut when it comes to new cars after a certain amount of time has passed.
Ten years ago, he who controlled the source was king; some say that is still true. Cheap, marketable and desirable resources have always been the Holy Grail of the industry. Today, drawing from the same resource pool at relatively similar prices, the client and customer becomes much more important.
Thus, the change in requirements for growth in B2C becomes paramount once increasing investment and model differences are taken into account.
Aside from Wechat and Tik Tok，personal attempts at social media coverage is not ideal, and far more suited to only a few upstarts in the industry.
In this area, B2C information platforms are far more stable in terms of income. These number from confidence platforms such as Che168 and 58 Car who specialize in sourcing vehicles，a combination of Mai.Bitauto.com and Daikuan.com which eventually became Taoche.com，and old guards such as iAutos, HX2Car, 51 Auto.
Information services has transitioned from CPA to CPL in terms of how they collect their fees, but traditional 2nd hand retailers seem unsuited for the CPL method, even as CPA fees have accounted for some of the changes seen in the industry.
Currently, the front runners seem to be Uxin, Guazi and other B2C information networks in the 2nd hand automotive industry, forming a market consisting of online retailers + online retailers.
The B2C system is mostly supported by the Souche.com，Chelaike systems, but under a ‘free’ model, upgrades and support cannot be reliably depended upon.
B2C displays a fee system which relies on the results of the transaction, and such CPS like methods have become the new norm. Most traditionalist 2nd hand retailers today have become accustomed to the one-transaction-one-fee method, which is clear, concise, and ripe for personal adaption. This is why Uxin, Dasouche methods are generally welcomed by traditional 2nd hand retailers.
B2C traditional 2nd hand retailers are generally not good at sifting through online information and making use of CallCenter changes and other internet functions. Likewise, online retailers cannot match traditionalists at ground levels. This will inevitably lead to a coalition of sorts between the two camps, where stores are self-managed, but with professionals handing tasks in their respective areas of expertise.
C2C Analysis:
Going by early C2C Beepi methods, the Chinese 2nd hand automotive industry has diverted widely from its original course.
Haoche 51 has turned into actual retailers towards the end of its run, and yet there has been no noise made on that front for years now. It is unclear whether or not they are still making the transition to the 2nd hand market.
Renrenche began as an online partnership which has since successfully transitioned to showrooms. We can see this as a change in the CPC method, specifically C1-Partner-C2. The Partner, in this case, is an innovative transformation of B, and they have been making steady progress on their showrooms as well.
Guazi has changed rapidly from a sales model to a leasing model and finally to showrooms and services fees. Transactions as a method are headed underground in accordance with C1-GZ-C2. Of those, leasing and showrooms (not to mention registering Many Old Motors Vehicle Broker (Beijing) Co., Ltd. in the 2nd hand market) can make it seem as if they are headed for a B middle-man label.
As of present, all C2C direct sales online retailers are changing. To what, we won’t fully know or understand until the future.
2nd Hand Automobiles Service Platform Chart:
The platform for 2nd hand automobile sales requires large investments, larger capitals and is difficult to operate. As of recent years, the offshoot industries from 2nd hand automotive sales have enjoyed a thriving environment before being pulling into other industries, where a sort of chemical effect has taken place.
Price Consultation Platforms
Che168 has seen considerable value over its cache of real data as it pertains to new automobiles; iAutos uses a blueprint for value retention analysis; CarPrice 58 has gobbled up enough market share to become the go-to avenue of research for mid-to-small sized automobile retailers.
Jingzhengu is supported by COX USA data and has a direct line to major brands; Che300 specializes in details and financial operations (with advantages in both). All said, price consultation technologies operate mainly using financial application and brand inventory consultation, whereas actual fee-based transactions have not been widely adopted.
2nd hand automobile inspection services
Chaboshi’s maintenance and repair record depository has the best coverage country-wide, and Jingzhengu’s price consultation also maintains several ground based inspection offices. Other professional companies have also staked their claim according to specific locations, such as UICar, wzyanche.com, ucarqc.com, yanchebang.com, Jianche 51, Autobole etc.
From a purely practical standpoint, the market is still untapped. But fee-based inspections and insurance policies provide such pressures that country-wide adoption for multi-brands is still a road that needs to be travelled. Inspection does not currently see much actual income, though it has the potential to be a cornerstone of future automotive retailer services.
Actual certificates issued by CADA and associated organizations require the market to further mature and advance. What the industry needs are insurance policies with actual payouts, backed by professional inspection.
Automobile maintenance records
Chaboshi, Chejianding, Qichedangan， Mayinvwang， PaodingCar and their ilk cover most brands and areas, despite a few outliers. Most maintenance records are in the keeping of 4S stores, which are made difficult to consult and made public.
In terms of insurance records, most of the above tend to provide the same data in terms of pricing and otherwise. In depth insurance details is something that is broadly needed, if not demanded, by the mid-high brand market.
In terms of maintenance records, Chaboshi has added inspection and price consultation services in accordance with the needs of the market. Because of this, record analysis has been affected, as well as the service it provides.
Insurance extension services
Vango is one of the pioneers in this area with considerable advantages. Their ground-level insurance extension services have seen rapid advancement over the last years. Chaboshi started up in the same area after acquiring Yianwotai, and their specialty lies in record /price consultations, inspections and insurance as a one-stop shop.
Hua-Ao, Lizhen and other insurance companies have also made some progress towards pushing for change, with special mention going out to CPO ‘s insurance extension services. Some are handled at the firm, and others through cooperative ventures. In the future, sales + insurance will likely become a contentious point in terms of pricing.
2nd hand automobile transportation
Mostly, this area has been unified over the past years. iYunche has an important position in Dasouche’s overall makeup of the industry, and Uxin Nation Wide Sales has been a stalwart ever since the early days of transportation. Late comers such as 91Cheliu, Yunchebang, Changjiu Logisitics and other professional shipping companies have also made great strides. In the future, the export of 2nd hand automobiles from China are likely to promote growth in international transportation companies specializing in the same area.
Domestically, as the country becomes even more connected, transportation of 2nd hand automobiles become inseparable from car sourcing networks. It is not a glamorous job, but it shows reliable growth and stability.
2nd hand automobile financials
In terms of 2nd hand automotive financials, the entire industry has seen some adjustments owing to changes in the financial market. Capital has been utilized very differently, mostly from stock in the 2nd hand market. Local leases from banks and brand stocks have seen declines in terms of their services.
As for leasing and loaning, Ping An Bank has the most coverage when it comes to high brand cars; mlcjr.com possesses clout in certain markets; Uxin Finance is well connected with 2nd hand automotive retailers; and daikuan.com has seen considerable growth and expansion in the area.
Aside from the above, Guazi’s C financials satisfy its own needs as a seller, whereas Cango, reginal banks, Finance SP have different specialties. There is need for such services in the market, but the needs are often different and difficult to categorize. The risks and opportunities, however, are the same.
Specialized sources for 2nd hand automobiles
Bochewang is the poster boy for quiet progress in terms of accident car auctions. Aside from them, old hat LubaoCar from Uxin also puts a good foot forward for accident cars.
En-masse dealer YouCKU has a bright future ahead of it in the market ever since lease/loans, mass stock, environmentalisms, electric cars and priced re-purchases have become viable vehicle sources. If anything, ‘mass-production’ of 2nd hand vehicles has become a possible reality.
2nd hand automobile SAAS system：
One car per SKU and specific customer needs has necessitated new importance being placed on systems capabilities and an upgrade to how specific areas in the industry works.
In this system, souche.com, Niuche have the most coverage, whereas Chelaike specializes in innovation；CarWins has won multiple contracts at the retailer level and eCarAuto which invested by BitAuto operates as a needed part of the whole. Zgcw.cn has seen upgrades to its systems and Zhichejun applies in specialized locations. The newcomer title belongs to shared platform and alliance led SureAuto system, which just appeared this year.
Notable 2nd hand retailers map：
Traditional 2nd hand retailers have seen massive changes over these past years. Owing to their capabilities and managerial prowess, many excellent standouts have distinguished themselves in the industry, and are primed to take their share of the market in the days to come.
As there are far too many to name, I will limit name-dropping to
AKD. For the other fine retailers, I’ve neglected to mention, I offer my sincerest apologies now and promise to make time for each and every one of you in the future.
As an analysis of CPO, the 2nd hand market has combined with its retailers to cover almost all brands available since 2003.
As a widely utilized consultant for 2nd hand salesmanship, I will now briefly list respective impressions from the major brands. Apologies in advance for hurt feelings, but all conclusions have been made fairly without any personal bias.
CPO at BBA levels:
Audi takes the cake after ten years of hard work in the 2nd hand market. Especially of note is their 2nd hand holiday on May 22nd. Many could learn from the examples they’ve set in terms of marketing, sales, and management in the area.
BMW has a great basis to work from, with quick turnarounds in terms of cars and a young staff that accounts for the spirit and eagerness you see in most BMW 4S stores. In some cases, they overshadow local old hand 2nd hand retailers in terms of operation.
Mercedes Benz has made very fast progress in terms of technological application and a whole-based corporate structure. With tech that leads the world, they are speedsters when it comes to exchanges and individual retail, even as far as pushing for pricing equality between new and used vehicles in recent years.
Porsche: Great, long lasting insurance policies, but with the caveat that good cars are hard to come by.
Volvo: mid-range safety cars with great pricing and marketability
Jaguar：Fast transactions and improved services, along with raised values of new cars.
Lexus: Attention to the details and ease of exchange. There is difficulty in individual sale due to reluctance of owners to sale, leading to a competitive 2nd hand market.
Toyota: Stability, great resale values and exchange potentials. Down to earth but sometimes an adherence to details do affect transactions. Some 2nd hand models have pronounced value retention, such as Alphard and Highlander.
Volkswagen：Great basis and multiple models with excellent market penetration. Heavy competition in the 2nd hand market and lack of innovation need to be addressed.
Honda：Limited models and systematic support need to see improvement, especially from individual stores and locations.
Japanese Brands：Local auction sites have seen transaction improvements. There is heavy pressure in the 2nd hand market but also multiple opportunities owing to varied models/makes.
Genaral Motors：Brand has been disassembled into individual parts in terms of marketing and professional services. Under great pressure from lower new-car prices and needs considerable improvement.
Also Beijing-Hyundai Auto, Geely Auto, Great Wall Motor etc. have seen progress in terms of lease/loan, exchanges and retention of values. Overall advancement has been made by brands who regard 2nd hand automotive sales with newfound importance. Yet, improvements should be made in terms of real-world applications, self-sustaining retailers and professional services.
2nd Hand Automobile Top 100 Markets Nation-Wide Chart
Regarding the national 2nd hand automobile market, traditionalists still hold 2/3rds of the territory. But with increasing competition from new sources, such things could change on a whim. New markets appear rapidly, and change is needed to adapt to their needs.
Retail 1.0，Service 2.0，Accumulated 3.0，Experiences 4.0，Data 5.0。。。。。。
It’s a long road, but the only way is forward!
二手车小胖说：
Thanks to all those friends and associates who supported us throughout this endeavor. In 2019 we will face many new challenges. The industry itself rewards honesty, perseverance, and loyalty. No matter it’s size, mutual respect towards each other and the consumer will go a long way—especially in an industry rife with opportunities present to those who are willing to take the extra step.
The customer is not always right. But they are always the most important factor in a deal.
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