·Automobile hypermarket mode to be out of dealers or multi-brand management

Recently, there are audio reports that the Ministry of Commerce has recently sought the relevant parties to set a point of view, and will amend the current "Car Sales Method Implementation Method" (hereinafter referred to as "Method"), and intend to change the current marketing mechanism of the car brand in China. In the new rules or will be allowed to dealer multi-brand operations.

A person familiar with the revision of the "Methods" indicated to reporters that the relevant departments of the country have started several rounds of discussions around the revision of the "Methods". The first revision is to establish a more just market competition environment, and the authorized operation system that binds the dealers to the car manufacturers will not be easily shaken. Insiders have shown that the relevant guidelines have a theoretical basis for the car hypermarket approach, and it is expected that similar sellers like “Gome Suning” will appear in the future.
The way of selling large cars in the car is “the existing method of selling car brands, which determines the current production mechanism of car companies. This is also the fundamental reason for the appearance of vertical monopoly in the current occupation.” Zhang Zhiyong, a car professional analyst, was interviewed by reporters. When indicated.
Following the recent anti-exclusive continuation, the "method" that has been revised several times before has been restarted again. The relevant informed persons involved in the revision of the "Methods" indicated that the relevant departments of the State have launched several rounds of discussions around the revision of the "Methods". The primary intent of the adjustment is to make a decisive balance between the interests of dealers and consumers, and to make certain adjustments to the industry chain according to the current policy guidance, but the central thinking of brand authorization operations will not change.
The so-called authorized operation refers to the car dealer authorized car dealers to engage in car sales and service activities according to the car brand sales method. “Before, the power of dealers to sell multiple brands has been released, and the revision of the “Methods” should be implemented at the policy level.” Yan Jinghui, deputy general manager of Beijing Beichen Asian Games Village Car Trading Market Center, told reporters.
On July 31 this year, the General Administration of Industry and Commerce issued a notice on the suspension of the operation of the general dealers of car dealers and authorized dealers of car brands. It announced that it would suspend the execution of the general dealers of car and authorized dealers of car brands, and engage in the sale of car brands. The operating license of the car dealer (including the general dealer) is uniformly registered as “sale of cars”.
"This means that in the registration section, dealers have to sell a car brand without the need to license through the manufacturer. From this guideline, the sales method of the car hypermarket has now a 'theoretical basis', and the car segment in the future It is expected that there will be sellers such as Gome and Suning." Zhang Zhiyong thought.
According to the reporter's understanding, the car dealers need to be authorized by the car manufacturer before they can register with the industrial and commercial department to obtain operational qualifications. In addition, the car dealers and brand dealers establish an illegal person branch engaged in the sale of car brands, and also need to obtain the authorization of the car manufacturer.
The legalization of “stitching the seams” “This change greatly increases the flexibility of future sales channels.” A car dealer told reporters that one of the big benefits is to legalize some non-standard secondary dealers that currently exist.
According to the reporter's understanding, among the second-level dealers on the market, in addition to some power of attorneys with the dealers of the brand, some dealers have swam in the “grey zone”. They have no written cooperation with the first-level dealers, and there is no fixed-operating brand. They are usually limited to secret cooperation. They may appear in the “small store” sales format, which is called “stitching” in the Beijing sedan market.
According to Yan Jinghui, most of these “grey outlets” are on the path of small profits and quick sales. Compared with the authorized authorized stores, their operating costs are lower. With lower quotation, the return on investment is relatively higher, and it is easy to attract franchisees. . Because these outlets are not included in the OEM's standard handling system, the service level is in short supply compared to brand franchise stores.
“However, under the premise that the authorized operating standards are not changed, the manufacturer still controls the leading position in many aspects such as vehicle source, route approval and car sales service.” In Yan Jinghui’s view, it may be possible compared to imported car dealers. The release of parallel imports has been sourced, and in the future, the performance space reserved for brand dealers of state-owned enterprises will remain limited.
“In comparison, multi-brand sales are more operative with regard to the advantages of large car dealership groups.” A senior car dealer group in Shanghai pointed out to reporters that for dealer groups that have been authorized by many car brands, It is able to intensify capital and open new ways in the form of car stores, providing "one-stop" service from pre-sales to after-sales; perhaps pre-sales and after-sales business, and establish outlets alone.
Dealers and manufacturers will make two-way selections. “In a short period of time, car brand stores will also be the main stream of sales, which will be determined by spending habits and market demand.” An insider of Shanghai Volkswagen believes that there are ten years of “methods”. "The establishment of China's long-term car dealership, the consumer also has a certain dependence on this approach.
"Following the appearance of oversupply in China's car industry, the appearance of the car will also be diversified." The insiders thought that if the sales of a brand model is difficult to maintain the normal operation of a franchise store, then the other is more profitable. Brands, and perhaps other ways of lower cost, are also reasonable. As a result, sedan hypermarkets, 4S stores, secondary outlets and other sales formats will coexist, in the process, the competition between car brands will also become more and more serious.
Regarding car manufacturers, it means a different situation. A person from the independent brand who did not want to sign said to the reporter, "We must not expect to sell our brand models and Korean brands together. Only the authorized operating standards remain unchanged, the OEM will still have drafting the rules of the game. 'Power'.
“Compared with the self-supporting brand, Shanghai Volkswagen and other joint venture brands are attributed to strong brands, and the profitability of dealers is relatively very good. Therefore, in the case that the dealers’ financial strength is certain, it is unlikely that they will automatically act on other brands. Some self-supporting brands are even more More will become 'selected'; once the strong brand and other weak brands are sold in the store, it may have a suffocating effect on the latter." A long-time concern in the car circulation industry analysts to reporters said.
This may also be the real reason why the above-mentioned independent brand car companies are not willing to sell in the same place as the Korean brand. On the one hand, under the crisis of multi-brand co-sales, weak brand manufacturers can constrain the dealers' actions through the existing authorization system, and even stop the supply; on the other hand, these brands need to rely on more dealers to sell vehicles. In the case that dealer recruitment is now difficult to flash, it may not be wise to force demand dealers to build their own showrooms.
"In the future, dealers and OEMs will enter a two-way selection period." Ye Sheng, director of research at Ipsos Consulting, believes that the diversification of future ways will be the general trend. The requirements of the OEMs increase their own competitive power from brands, commodities and services. As for dealers, in an increasingly fair market environment, it is also conducive to the selection of car brands that are more suitable for their own operations.


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