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Recently, it was reported that the Ministry of Commerce has solicited opinions from relevant parties in the near future and will revise the current "Implementation Measures for Automobile Brand Sales Management" (hereinafter referred to as the "Measures"), intending to change the current marketing mechanism of automobile brands in China. The new rules will allow dealers to operate more brands.
An informed person involved in the revision of the "Measures" stated to reporters that the relevant state departments have conducted several rounds of discussion around the revision of the "Measures." The revision is mainly aimed at establishing a more equitable market competition environment. The authorized management system that restricts the relationship between distributors and auto manufacturers will not be easily shaken. According to industry insiders, relevant policies have provided a theoretical basis for the auto mall model, and it is expected that similar sellers like “Gome Suning†will appear in the future.
Car supermarket model waiting
"The current automobile brand sales management methods determine the current production and sales mechanism of auto companies, which is also the root cause of the vertical monopoly in the industry." Zhang Zhiyong, an auto industry analyst, said in an interview.
With the continuous implementation of the anti-monopoly in the near future, the “Measures†that have repeatedly proposed revisions have also been restarted. The relevant person familiar with the above amendments to the "Measures" stated that the relevant state departments have conducted several rounds of discussion around the revision of the "Measures." The main purpose of the adjustment is to rebalance the interests of distributors and consumers, and make adjustments to the industry chain based on the current policy orientation. However, the core idea of ​​brand licensing will not change.
The so-called authorized operation means that the auto supplier authorizes the auto dealers to engage in auto sales and service activities according to the auto brand sales method. “Before, the rights of multi-brand sales for distributors have been released, and the amendments to the “Measures†should be implemented at the policy level.†Yan Jinghui, deputy general manager of Beijing Beichen Yayuncun Automotive Trading Market Center, told reporters.
On July 31 this year, the “Announcement on Stopping the Implementation of the Record Filing of Automobile Distributors and Authorized Dealers of Automobile Brands†issued by the State Administration for Industry and Commerce announced that it will stop the implementation of the registration of automobile dealers and authorized dealers of automobile brands and engage in the sale of automobile brands. The business scope of the business license of the automobile dealers (including the general distributors) is uniformly registered as "car sales."
"This means that in the registration process, dealers want to sell a car brand without having to go through the manufacturer's authorization. From the perspective of this policy orientation, the sales model of the auto mall has already possessed a 'theoretical basis' and the automotive industry is expected to emerge in the future. The United States, Suning and other vendors." Zhang Zhiyong think.
According to the reporter's understanding, automobile dealers need to obtain the authorization from the automobile manufacturers before they can register with the industrial and commercial department to obtain business qualifications. In addition, car dealers and brand dealers set up illegal branches that engage in car brand sales activities. They also need authorization from car manufacturers.
Legalization of "spells"
“This change has greatly increased the flexibility of future sales channels.†One car company source told reporters that one of its big benefits is to legalize some of the existing informal secondary distributors.
According to the reporter's knowledge, in addition to some of the dealers' authorized power of attorneys on the current market, some dealers have walked in the "gray zone." They have no written cooperation relationship with the first-tier distributors, nor have they had a fixed operating brand. They are often limited to private cooperation and may be presented in the sales format of "car retail outlets." This is known as the "spellmaker" in the Beijing auto market.
According to Yan Jinghui, such "gray outlets" mostly go through the puerile-broadcast route. Compared to the formal authorized stores, their operating costs are lower. They rely on lower prices, and their investment return rate is relatively higher. It is easy to recruit franchisees. . As these outlets are not included in the formal management system of the OEM, the service level is less than the brand franchise stores.
“However, under the premise of no change in the authorized business system, manufacturers still control the multi-faceted dominance of car sources, channel approvals, and car sales services.†In Yan Jinghui’s view, it may be possible to compare with imported car dealers. Parallel import of the release of access to sources, the next period of time, leaving the domestic brand dealers still have limited use of space.
“Comparatively, multi-brand sales is more operative for the good of large-scale car dealership groups.†A Shanghai high-level car dealership group pointed out to reporters that for distributor groups that have obtained authorization from several car brands , Intensive resources can be used to open new channels in the form of car stores, providing "one-stop" services from pre-sales to after-sales services; or separating pre-sales and post-sales businesses and establishing separate outlets.
Dealers and manufacturers will choose two-way
"In a short period of time, car brand stores will also be the mainstream sales channels, which will be determined by the consumption habits and market demand." An insider of Shanghai Volkswagen believes that there are ten years of "measures" to establish a long-term car in our country. Distribution model, consumers also have a certain dependence on this model.
"As China's auto industry oversupply phenomenon gradually highlights, car sales channels will also enter a period of diversified development." The insiders believe that if a brand model sales have been difficult to maintain the normal operation of a franchise store, then the agent is more profitable The brand, or the development of other lower-cost channel models is also reasonable. As a result, sales formats such as auto malls, 4S stores, and secondary outlets will coexist. In this process, the competition between auto brands will also increase.
For car manufacturers, it means different situations. An independent brand personage who declined to be named told reporters, “We certainly do not want to sell our brand models together with Korean brands. As long as the authorized operating system remains unchanged, the OEM will still have the “rules of the game†in place. s right".
“Compared to independent brands, Shanghai Volkswagen and other joint venture brands belong to a strong brand, and the profitability of distributors is also relatively better. Therefore, under the condition that the dealer’s capital strength is certain, it is unlikely that other brands will take the initiative to act, and some independent brands are more likely to Will become more than a 'selected'; once the strong brand and other weak brands co-store sales, may have an adverse impact on the latter. "A long-term concern in the automotive circulation industry insiders told reporters analysts.
This may also be the real reason why the above-mentioned auto makers are not willing to sell on the same site as Korean brands. On the one hand, driven by the sense of crisis of multi-brand co-sale, weak brand manufacturers can restrict the behavior of distributors through the existing licensing system, and even stop the supply; on the other hand, these brands need to rely on more dealers to sell vehicles. In circumstances where dealer recruitment has become difficult, it may not be wise to force dealers to set up separate showrooms for themselves.
“The future distributors and OEMs will enter a two-way selection phase.†Ye Sheng, Research Director at Ipsos Consulting, believes that in the light of the channel evolution model of developed countries, future diversification of channels will be the general trend. OEMs need to enhance their competitiveness in terms of brands, products, and services, and for dealers, in a more equitable market environment, it is also beneficial to choose a car brand that is more suitable for their own operations.