The drive to raise membership fees on the vertical platform encountered resistance from front-line stores。
In recent days, the chamber of car dealers in the cities of hunan, sichuan, anhui and shenzhen have published reports of significant price increases in various vehicle network platforms during the development of cooperation programmes with car dealers in 2023, significantly increasing the operating costs of dealers。
The chinese association of automotive circulation also called for a moratorium on exchange rates in the light of the widespread difficulties faced by car dealers during the epidemic, the increasing losses and the continued tightening of the financial chain。
Although some reports do not directly identify the three main vehicle network-led platforms, the industry considers “speaks” to be directed at car homes, vehicular exchanges and masters. In response, analysts pointed out that, in the current situation of inadequate downstream consumption, the price increase for the vertical platform was unbearable for car dealers whose profits had fallen, and that the combined resistance of major circulation associations had shown that the contradiction between the distributor and the platform could not be concealed。
Radar finance notes that, as one of its listed companies, it is also the world's largest one-stop platform for car life, and that car houses have in recent years received a steady decline in market value, with occasional leaks of information adding to the uncertainty about the company's development prospects。
Multi-terrestrial automobile association boycott
The recent situation reports issued by various automobile chambers of commerce on large price increases in automobile network-led platforms have generated widespread concern within the community。
According to a redhead document issued by the hunan automobile chamber, the hunan automobile chamber reported to the china automobile circulation association about the 2023 automobile network diversion platform charging car dealers an increase in membership fees。
It was revealed that the chang shado hiroyo honda and the beijing modern automobile dealer reflected that the 2023 cooperation programme offered by the chai emperor was very expensive and that its contract and platform rules contained very unreasonable terms. Other platforms, such as motor homes and vehiculars, also have significant price increases。
According to estimates, the lowest luxury member price for the motor home was $162,000 in 2022, the deluxe version was eliminated in 2023 and the lowest scientific and technological version was $23. 37 million, an increase of approximately 44 per cent, the internet price for board members in 2022 was $178. 0 million and the price for board members in 2023 was $2388 million, an increase of about 39 per cent, and the price for members knowing that the carmaster was $13. 22 million (280 transactions) in 2022, was expected to increase by 93 per cent, if the number of transactions remained unchanged and 35 per cent were returned in 2023。
According to the hunan automotive chamber, a survey of 79 4s stores in nine municipalities, including hunan province, found that, under the arrangements for the collection of motorists and automobile network-led platforms, 2023 of the 79 4s stores would have to pay more than $25 million for membership of the three motor network-led platforms, at an average cost of $300,000 per shop and a maximum of $640,000。
Added to the various promotional activities that accompany manufacturers and platforms throughout the year, there will be a significant increase in the cost of network diversion, placing a heavy burden on a wide range of car dealers。
To this end, the hunan automotive chamber of commerce filed a request to interview the platform of the chinese association for the circulation of automobiles to ask it not to raise prices; and to regulate the development of a platform for the introduction of automobile networks and establish a good market order。
In addition to hunan province, the association for the circulation of cars in shenzhen, sichuan, anhui, chongqing, guangdong, bin, jiangxi and guangxi provinces has issued similar reports indicating that, in the context of the three-year epidemic and the contraction of demand, dealers are under heavy operational pressure, and that the increase in the price of the vehicle network platform has undoubtedly increased the operating costs of the distributors, which the company cannot afford。
At the same time, the report calls upon the member organizations to hold a group for heating, suspend the renewal of the agreement with the automobile network platform, report the situation in writing to the chinese association for car circulation, the national chamber of commerce and industry, as well as to the relevant local regulators, and organize the related negotiating working group later。
On 30 december, the chinese automobile circulation association issued a reply to the report on price increases, in which, in addition to recommending a moratorium on price increases on the three main web-based pilot platforms and difficulties with car dealers, the association will establish a dedicated research working group to consult with the three platforms and the parties concerned and come up with a formula that is acceptable to all。
Data show that in 2022 the automobile market was cold due to uncertainties such as the epidemic and that downstream dealers in the automobile industry faced survival difficulties。
According to a survey conducted by the chinese association for the circulation of motor vehicles, in december 2022 chinese auto dealers'stock warning index stood at 58. 2 per cent, above the death line, combined with loss of personnel and poor operating conditions, causing pressure such as a shortage of liquidity。
In the most recent survey, only 11. 2 per cent of distributors were able to meet the annual sales target, and 39. 8 per cent had a completion rate of less than 80 per cent. Dealers generally have poor profits, with about half of them running losses ranging from hundreds of thousands to tens of millions。
Car-led platform business. Yes
In fact, it is not the first time that there has been a contradiction between distributors and automobile-led platforms。
As early as 2019, there was a 20 per cent increase in the price of members of the automotive house, which was opposed by many dealers and even suspended cooperation with them。
In the first instance, a circular was issued within the centre of the second largest car dealer in the country to stop all new members of the car house, the approval of the advertising programme, the suspension of payments by the contracted, unpaid distributors and the suspension of the contracting process without the signing or completion of the contracting process。
Subsequently, a number of distributors, such as the express group, the large group and the ike group, joined the boycott of the house of automotives, saying that they were suspending their cooperation with the house。
It was also with the involvement of the national chamber of commerce and industry, the auto dealership, that the price hike gradually subsided. In addition to the motor home, the fast-growing master of cars in a short period of time has also made important changes to its sales trail service model and has led to higher membership prices。
At the end of august 2022, knowing that the cps transaction solution had been officially launched by the emperor, from 2023, all distributor member products would be converted from the cpt model to the cps model, that is, from past use-related lead charges to transactional payments by distributors。
Under the cps model, the master of the car would earn commissions from the dealers and distributors' trade orders. One of the leaders of a large distributor in the east china region said that it would be both a good and a bad idea to know how to do cps。
On the one hand, in the past, the mass trails provided by the platform often contained a large amount of “waste data”, and the clues that actually worked and ultimately led to the transaction were only a few, while the cps model meant that the leads provided would be of a higher quality and would mean that dealers would be more efficient in reaching a deal; on the other hand, the challenge of how the new model would ensure the quality of information, how the clues would be defined was key to a deal, and not increasing the cost of dealers。
As can be seen from the above-mentioned report of the hunan automotive chamber of commerce, the membership fees of the new model for the masters of cars have also risen significantly and have triggered a rebound of clients。
On 1 january, according to automotive editor @sun @sun @09, the number of car companies and dealers who had directly chosen to suspend their cooperation at the door was much larger than expected, with cooperation being suspended by biadi, the general public, bmw, cadillac and the new power tesla, most of the car dealers。
The bottom line of “sitting prices” is that automobile distributors need a car website, in addition to promoting it, whose main objective is to find potential customers through feedback from the website to customers on the dealer's line. The distribution of sales trails can be achieved by targeting the user's behavioural trajectory, user retention of images, big data algorithms, etc., in the current campaigns of the major platforms。
But this door seems to be a solid business, and the cracks are already visible. According to a jointly-owned brand-authorized dealer, auto manufacturers are now building their own private traffic and aligning themselves with the new power model of the car. This is in order to escape dependence on the piloting platform, and it is true that the market has run out of money。
Automotive house performance is down
Of the three platforms that were boycotted this time, the automotive house was the only publicly listed company, whose operating data disclosed continued to show that the company's earnings were under pressure。
Skywatch shows that the automobile house was established in 2005 as the country's largest internet platform for cars, which was set up by the chairman of the board of directors and ceo lee。
After li wanted to fade out of the united states new york house in 2013, the house became its largest shareholder in 2015 and formally took over。
On 15 march 2021, the automotive home returned to the hong kong stock market twice at a distribution price of hk$176. 30 per share, up to hk$198. 566 per share by 23 march, at a total market value of close to hk$100 billion。
However, as at 5 january 2023, the company's stock price was hk$67. 45/equity, leaving a total market value of hk$33. 87 billion and evaporating more than hk$60 billion in less than a year。
Behind the shrinking market value, the car house executives experienced frequent changes and a significant decline in performance, and even a round of “organizational restructuring optimization”。
According to incomplete statistics, since 2021, a number of heads of motor homes have left their posts. In january of that year, the chairman of the company, lu min, retired and took over from the department of safety and security; in may, co-president zhang gyeongwoo resigned for personal reasons; in july, the financial director zheng resigned for personal reasons; and in october, the company cto wang xiao and director liu dong resigned for other personal reasons。
On 21 june 2022, the automotive house announced the departure of the co-chairman of the company shaan peak for other personal reasons。
In financial terms, the company's performance is not encouraging. Data on the same flower ifind show that in 2021, the company's annual net revenue was 7,237 million yuan, a decline of 16. 42 per cent over the same period, while the net profit attributable to the parent company was 2,149 million yuan, a decline of 36. 9 per cent over the same period。
In the year 2022, the performance of the automotive house continued its downward trend in revenue and profits in 2021. During the first three quarters of 2022, a profit of $5,048 million was realized, representing a decline of 8. 94 per cent over the same period, and a net profit of $1,226 million from the parent company, a decline of 35. 17 per cent over the same period。
Recently, the car house was also questioned by users about the disclosure of personal information. According to the southern metropolis newspaper, mr. Foshanlin stated that he had received more than a dozen sales calls in the interior for three days, simply because he had provided a telephone number at the app, his registered car home。
Mr. Lin therefore questioned the alleged violation of the national laws and regulations on the protection of personal information by the automotive home app. The newspaper's reporter found that several local 4s sales calls had been received in the event of browsing and that many shopkeepers had indicated that the telephone was provided by the automobile house。
In the case of the car home, the guest service indicated that only a click on the “quote” would send personal information to three to five distributors in the city. However, this does not convince users that there are many complaints about the disclosure of suspected information related to the car home on the black cat complaints officer web。
Radar finances will continue to be followed up on disputes between dealers and car houses, masters of cars and cars。
