Will Auto City be replaced by e-commerce?

“Will Auto Parts City be eliminated?” Wang Yiming, former vice chairman of the National Federation of Industry and Commerce and honorary president of the China Automobile Parts & Accessories Industry Federation, raised the issue in an interview with this reporter. Today, the sales volume of auto parts for e-commerce platforms such as Tmall and Jingdong are multiplying, and independent auto-distributor websites have mushroomed. In the face of the invasion of e-commerce, how will the traditional auto parts city develop in the future and whether it will be replaced by e-commerce and become a subject of great concern to the industry.

The traditional business model of Auto Parts City faces challenges

The rise of Auto Parts City in the mid to late 1990s was a product of Chinese characteristics. After more than 20 years of development, Auto Parts City has grown to more than 1,000 homes, becoming the main channel for China's auto parts circulation market and shouldering the heavy responsibility of wholesale sales of Chinese auto parts, automotive supplies and related products throughout the country. However, there are many problems behind the development of Auto Parts City. First, overheated investment, auto parts cities across the country have launched projects, taking Beijing as an example, there are currently more than 20 auto parts market, other regions have also launched the Auto Parts City project. Second, the management is not standardized. The goods in Auto Parts City are mixed and difficult to distinguish between true and false. The price difference between products with the same brand and the same model is very different. Third, Auto Parts City is small, scattered, chaotic, and rough-type operations, with high circulation costs, low service levels, and low efficiency. Fourth, many auto parts cities are linked to real estate development behavior. They seem to be in full swing, but they actually generate a lot of “bubbles”.

Hao Xinsheng, deputy general manager of Shanxi Auto Parts Market, said in an interview with reporters: “With the advent of the automobile era, many auto parts cities are far from meeting the needs of consumers. Therefore, many auto parts cities including us are upgrading and changing. A single business model, adding new service content, adding new business items, and car culture-related content to better serve the community.” Hu Jiacheng, secretary general of Auto Accessories Branch of China Association of Automobile Manufacturers, believes that auto commercial complexes are the future auto parts. City development direction, there are also engaged in auto parts business operators believe that the supermarket chain business model will be the future development direction of auto parts city. “I think although the chain operation mode sounds good, the auto parts cities in China have different characteristics. It is necessary to take into account the different geographical characteristics, consumer demand, and economic development status of each auto parts city. The formula may not be the only development model." Haoxin told reporters.

Su Hui, executive vice chairman of the China Automobile Dealers Association's tangible automotive market branch, also believes that the auto parts market and the supplies market in different cities all have their own characteristics, and they need to explore new business models, but the core is to enhance services. We will upgrade our business philosophy, marketing methods, service network, and personnel training, and gradually integrate socialized supporting services. The Ministry of Commerce made the “Automobile Trade Policy” on December 16, 2005: “The state encourages auto parts circulation to adopt a franchise and chain approach to scale, brand, and network development, and supports auto parts and distribution companies through integration and structural upgrading. We will increase the scale effect and service level.” Therefore, regardless of the business model adopted by Auto Parts City in the future, it must be developed in accordance with its own actual conditions, and it cannot be “clouded”.

Steam distributors explore business models

Experts believe that the current development of auto parts e-commerce is just a matter of time. Now China's auto parts market has problems with information asymmetry. The main manifestation is that buyers cannot find sellers and do not know the specific prices, leading to multiple layers of agents, intermediate links, and prices. Large gaps. The realization of e-commerce has reduced the intermediate links and made the price more transparent, so that buyers and sellers are convenient and affordable.

Wang Yiming stated that although automobile parts and accessories have certain particularities compared to other commodities, the sale of auto parts through the Internet and e-commerce platforms may be a way out for the auto parts industry to seek future development.

If auto parts suppliers can use e-commerce platforms to achieve direct sales, not only can they expand their sales, improve their own strength and popularity, but also help to get rid of auto manufacturers' control, achieve equal status, and improve the current phenomenon of “aftermarket” in the auto market. In order to avoid the "4S shop is too expensive, auto parts city is too fake" problem.

According to a survey, the number of spark plugs, filters, and brakes in the e-commerce transactions of auto parts in the first quarter of last year ranks in the top three. This shows that the current demand for vulnerable and consumable parts in the auto parts e-commerce market is relatively strong. Although e-commerce platforms such as Tmall and Jingdong have developed rapidly in recent years, they have not yet formed a unified and mature model. Due to the special nature of auto parts, e-commerce in the auto parts market is still at an early stage. Explore further.

It takes time before e-commerce leads

Su Hui believes that e-commerce will have a great impact on auto parts sales. With the advent of the information age, people can't rely entirely on past experience to manage and use e-commerce tools to achieve instant contact with the entire country and even abroad. In the future, Auto Parts City will rely on e-commerce as a more modern means to expand the market.

Nevertheless, the development of e-commerce in the auto parts market still faces many problems. Not to mention that the auto parts products are mixed, the market needs to be regulated, but the auto parts products have different specifications, models, and codes. At present, the decision-making right of China's auto parts and equipment is not repaired but the owner, which restricts the development of auto parts e-commerce to some extent. As e-commerce involves the safety and reliability of auto parts, and the integrity of online transactions, there is still a long way to go to do e-commerce in the auto parts distribution market.

Hu Jiacheng believes that there is no difference in the nature of e-commerce or traditional circulation channels, but the platform is different, and e-commerce cannot be demystified. It is difficult for auto parts products to interact with the owners. They can try to use e-commerce to sell, but it is difficult to replace auto parts.

An auto parts city manager said: “E-commerce has to replace Auto Parts City in recent years. It is very difficult because e-commerce has its own bottleneck and auto parts can be realized, but it is difficult to achieve the products that need auto repair. But with the auto parts industry The improvement of the overall quality and the development of science and technology are possible.” Su Hui said that this means of e-commerce will be integrated into the sales of auto parts in about 3 or 5 years, but what kind of level it needs to achieve also requires Look at the future developments.

It can be seen that it will take time for e-commerce to replace the auto parts city. With the real strengthening of self-discipline in China's auto parts market, perfect auto parts or auto parts standards, intensified state informatization, introduction of relevant rules and regulations, improvement of informatization of auto parts enterprises, and improvement of quality of the whole people, the e-commerce of the auto parts distribution market will usher in real Spring.

4x4 Four Wheel Drive Backhoe Loader

Shandong Davoo Machinery Co., Ltd. , https://www.nbsddigger.com