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　　 The China Automobile Dealers Association recently released the top 100 list of China's auto dealers in 2015. The data shows that the scale and revenue of dealers are still growing. At the same time, however, the overall growth rate of the top 100 auto dealers continued to slow down, and profitability continued to decline. In response to this situation, some car dealers began to develop in the direction of extended service through innovative models.
Growth slows down earnings
Statistics show that the polarization of domestic auto dealer groups is still intensifying, and the scale and growth rate of large dealer groups have clearly developed. For example, Guanghui Auto, SINOMACH, Zhongsheng Group, Huge Group and Lixingxing Auto are still among the top five domestic auto dealers. Among them, the revenue of Guanghui Auto, which ranked first, increased from 90.5 billion yuan in 2014 to 93.7 billion yuan, close to the 100 billion scale.
The performance of Lixingxing is particularly eye-catching. Its turnover has increased from 39 billion yuan in 2010 to 52.2 billion yuan in 2015. The sales volume has increased from more than 93,000 in 2014 to nearly 120,000 in 2015. . Since the announcement of the top 100 auto dealers in China, Li Xing has been ranked in the top five, which is not easy for a dealer who only runs Mercedes-Benz brands.
At the same time, the overall volume and size of the dealer group, especially the large dealer group, has slowed down. Xiao Zhengsan, secretary-general of China Automobile Dealers Association, said that the number of dealers in the top 100 in 2015 was one less than that in 2014. The slowdown in market growth has begun to affect the growth of the automobile circulation industry giants.
It is worth noting that the overall profitability of domestic auto dealers is also showing a downward trend. As the gross profit of the business fell by 1.66 percentage points, the net profit of the dealers was greatly affected, and the net profit margin fell by 0.3 percentage points. From the perspective of shareholder investment returns, the decline in the return on investment of the dealer group is even more pronounced. After falling by 5 percentage points in 2013-2014, it fell again by 5.4 percentage points in 2015, from 13.1% to 7.7%. .
In 2014 and 2015, there were 84 dealer groups in the top 100 for two consecutive years, but the profitability of these dealers also faced enormous challenges. Despite the reduction in part of the cost through business restructuring and organizational management, gross profit still fell sharply by 25.79%, and overall net profit fell by more than 5 percentage points.
Affected by this, the top 100 dealer groups slowed down the pace of expansion as a whole, the net asset growth rate slowed to 7.47%, and the overall return on investment fell by 1.04 percentage points.
Increased polarization
Analysis of the reasons for the decline in the profitability of auto dealers, some experts said that in addition to the specific reasons for the decline in the growth rate of new car sales and the decline in auto exports, in the context of the current stage of micro-growth in China's auto industry, the current dealers The decline in profitability is a process experienced by industrial development. It is the performance of the contradictions accumulated in various links of the industrial chain to be released at a certain time window, thus rebalancing the interests of the participants in the entire industrial chain.
Under this circumstance, the concentration of the automobile dealership industry has once again intensified. In 2015, the sales volume of the top 100 dealers accounted for 25% of the total sales volume. Under the premise of ensuring the overall revenue growth, the top 100 enterprises accelerated the adjustment of their business structure, and the proportion of the after-market business revenue increased by 3 percentage points. .
It is understood that the operating income of the top 100 enterprises in 2015 was 1,271.4 billion yuan, a year-on-year increase of 3.2%, and the overall growth rate slowed down. In 2015, the sales of the top 100 enterprises were 6.534 million units, an increase of 5% year-on-year. The slowdown, in which 960,000 new cars were sold through used cars, the contribution of used cars to new car sales continued to grow; in 2015, the number of 4S outlets of the top 100 enterprises reached 5,526, an increase of 6.7% year-on-year, and the growth rate of stores remained stable. .
One manifestation of increased industrial concentration is the accelerated pace of mergers and acquisitions in the auto dealer industry. In 2015, in addition to strategic transformation, “M&A and cooperation†once again became the main theme of car dealers. Analysis of the 2015 annual reports of 15 listed dealers reveals that most of the dealerships involve acquisitions, and there are corresponding manifestations in the 2016 plan. The most eye-catching performances are the two listed dealer groups of Guanghui Auto and Baoxin Auto. M&A case.
In addition, Yongda Automobile also has frequent actions in mergers and acquisitions. In April this year, Yongda Automobile announced that it had acquired 18 4S stores in Jiangsu Baozun for 764 million yuan. Since then, Yongda Automobile has announced a series of large-scale asset restructuring news, and will return to the domestic capital market by borrowing “Yangtze New Materialsâ€.
Some auto industry analysts said that in the case of unfavorable market conditions, dealer groups can capture a larger market share through mergers and acquisitions, which means that they will have more voice and more market development opportunities, from production companies and after-sales services. The market gains more benefits, and the trend of mergers and acquisitions will continue in the long run.
Transformation and upgrading to explore development potential
In the face of the decline in market conditions, while mergers and acquisitions, transformation and upgrading has become an effective way for car dealers to get rid of the unfavorable situation. In fact, with the rapid development of new technologies such as the Internet, Internet of Vehicles and Big Data, not only dealers, including OEMs, are faced with re-integration of the industry chain and how to transform their strategies and business models during the micro-growth phase. Effectively improve management and operational efficiency, and achieve medium and long-term profitability.
From the annual report data of the listed automobile dealers in 2015, it can be seen that although the new car sales are still the most important source of revenue for the dealers, with the development and deepening of the relevant business in the aftermarket, the dealers' income structure has also begun to change, new car sales. The proportion of revenue has fallen, and car dealers are shifting from “selling products†to “selling servicesâ€.
It is reported that in the automotive dealer business segment, the automotive after-sales service business achieved relatively rapid growth in 2015. According to statistics, the income contribution of the after-sales service of 15 listed companies averaged 9.75%, an increase of 1.1 percentage points over 2014. After-sales service, auto finance, used cars, "Internet" and other fields have also become the new direction of dealer market service transformation.
Not only is the transformation and upgrading of the profit model, but under the impetus of “Internet +â€, the promotion model of automobile products has also changed a lot. Recently, Tencent Auto released the “Millennium Plan Auto Self Media Solutionâ€, aiming to leverage the platform's aggregation advantages to address user diversification and individualized needs. It mainly uses high-quality content + platform promotion + capital feedback mode, and will be an excellent platform. The benefits benefit every self-media person who produces quality content.
Ge Yan, deputy editor-in-chief of Tencent.com, said that in the ecological chain of automobile brand communication, the ecological closed loop from sales leads to actual orders has been run through products, and will continue to extend to the offline in the future, eventually achieving media communication and clues. Collect, lead conversion, offline trading the entire marketing process.
Experts said that compared with developed countries, the maturity of domestic automobile distribution is still relatively low, and there is still much room for development. As far as the domestic automobile industry chain is concerned, there are still many businesses in the automotive aftermarket that need further development. For example, used cars and auto finance leases have great potential for development. “Integrated service providers†may become the future of automobile dealers. development trend.
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