Crazy "burn money" for traffic rights and more frequent chaos
Used car business: "looks beautiful"?
Zhang Shuo and Liu Yuanyuan
Recently, the third-party consulting company Ai media consulting released the "China's second-hand vehicle e-commerce platform monitoring report in the first half of 2018". According to the report, China's second-hand vehicle market has maintained a high growth rate since 2015, with sales of 1.715 million vehicles in January-February 2017 and 1.824 million vehicles in January-February 2018, an increase of 15.8% over the same period last year. It is expected that the volume of second-hand car transactions will continue to enlarge in 2018.
Meanwhile, Morgan Stanley recently released a report predicting that China's second-hand car market will grow at a compound annual growth rate of 19%, from 12.4 million vehicles in 2017 to 27.6 million vehicles in 2022. There is huge room for future growth.
However, "China Business News" reporter combed found that while the second-hand car market is booming, is in the "tough battle" second-hand car e-commerce platform, and some aspects are just "look beautiful", there are many urgent problems to be solved behind, such as: platform sales and forgery repeatedly prohibited, service fees charged. It is widely criticized, brushes and dismantles for alleged false propaganda. If we can not break through, the second-hand car market in China is far away from the real "spring".
Regarding this, the reporter contacted the relevant person in charge of the second best vehicle, the Renren car, the big search vehicle and so on. At the end of the press release, no response was given to the excellent letter and search vehicle. Renren car responded that second-hand cars are non-standard, and have the "one car condition" attribute, the lack of complete domestic second-hand car condition data and second-hand car detection standards, so the second-hand car condition detection is a pain point in the industry. In the traditional second-hand car trading process, the second-hand car from the seller to the buyer needs to go through many intermediate links, usually 30% - 40% premium. Renren C2C used car trading services, direct links to individual sellers and buyers, charges only 3% - 4% of the service fee. In addition, the behavior of brushing and removing bills belongs to the red line behavior in the internal management norms of Renren vehicle, Renren vehicle has been committed to building a business environment of good faith and sunshine through the standardization and compliance of enterprise operation.
"Burn money" expansion has no strength?
It has been said that "can not hit heavy gold, do not play second-hand car business." According to incomplete statistics, over the past 4 years, the second-hand car business has absorbed nearly 30 billion yuan of financing. But there are some opinions that, limited by the domestic consumers'inadequate understanding of second-hand cars, some irregular operation of second-hand car e-commerce, imperfect customer service system, lower import tariffs and other factors, domestic second-hand car e-commerce compared with foreign second-hand car platforms is still difficult to achieve "really into the hearts of consumers".
Take Youxin used car as an example, in June 2018, Youxin used car landed in Nasdaq, the United States, become China's first used car e-commerce shares. Previous prospectus data released by Youxin showed that in 2017, 2016 Youxin operating losses were 1.823 billion yuan, 1.252 billion yuan, net losses were 2.748 billion yuan, 1.392 billion yuan, the loss is increasing year by year. As a company with stronger financial attributes than used car e-commerce attributes, Youxin is not regarded as a good start by the capital market.
However, in the applause, on August 22, Youxin second-hand car announced the second quarter of 2018 results, which is also the first financial report after the listing of Youxin. The results showed that Youxin's total revenue in the second quarter was 665.7 million yuan, up 79.6 percent from a year earlier; its gross profit was 406.9 million yuan and its gross margin was 61 percent, up slightly from 56 percent in the same period last year; and its net income was 209.7 million yuan, the first profit since Youxin announced its results in 2016. Youxin said that the second quarter profit was due to the derivative liabilities of the fair value of changes in book income of 1.544 billion yuan.
The situation seems optimistic, but some analysts pointed out: "Youxin's second quarter earnings performance is higher than expected, but if the gross margin of transaction earnings, the proportion of assets in shareholders'equity did not rise significantly year-on-year."
Smashing money and changing traffic is regarded as a shortcut for the second-hand car business to attack the market. In the first quarter of 2018, Youxin's advertising investment has expanded to 633 million yuan, accounting for 97.5% of the total revenue in the current quarter, almost approaching the full-year sales in 2016. Previously, Youxin signed Oscar-winning actress Leonardo DiCaprio as a brand spokesman and joined CCTV's top broadcasting partner in the 2018 World Cup. Dai Kun, chairman and CEO of Youxin Group, has said that Youxin's second-hand car advertising investment in 2018 may exceed the original plan of 1 billion yuan, to 1.3 billion yuan.
Notably, since Youxin went public in the U.S., its share price has shrunk sharply, with the IPO offering price of $9 per share, a 28% drop from the previous inquiry range of $10.5 to $12.5. As of September 12th, the company's stock price fell to $5.04 / share. According to Youxin insiders disclosed that after listing, some shareholders once lost confidence, some projects were called off and so on. There was once a rumor that there would be massive layoffs within the company. The reporter called on the project management director of the second best vehicle to verify that the other side had not responded.
In addition to Youxin, the reporter noted that in September 2017, Renren Vehicle received a strategic investment of $200 million from the drip trip, resulting in a strategic cooperation agreement; in November of the same year, Dasong Vehicle received an E-round financing of $335 million from Alibaba. In 2017 alone, companies such as Youxin, Car Treasure, Big Search, Melon Seeds, Used Cars for Everyone raised more than $2 billion.
On September 3, 2018, Dasota announced a new round of financing of $578 million, led by Chunhua Capital and Morning Capital, followed by Alibaba, Haoxiang Capital, Sunshine Insurance and Yixin. The financing is only 9 months away from the last round of Alibaba financing.
According to incomplete statistics, there are 59 second-hand car e-commerce and related platforms in China, and there may be more platforms to share in the future. Vehicle industry senior analyst Wan Chunlei said: "Used car e-commerce platform is flourishing, but in the final analysis its profit model is'earning the difference', the current urgent need to introduce and standardize the industry's internal evaluation and testing standards for used cars, not a platform set of standards, so as to better protect the healthy development of the industry. The exhibition. "
Chaos is frequent and consumers do not pay.
Not long ago, the media combed the domestic courts since 2016 to conclude the second-hand car e-commerce consumer rights cases, found that the highest proportion of the prosecution is "concealing the actual car conditions". Consumers in the second-hand car e-commerce platform to buy home car "name" has become the most worrying problem.
According to the Chengdu Business Daily, in May 2017, Ms. Liu of Chengdu bought a Ford Carnival two-compartment car for 63,000 yuan on a well-known used vehicle platform, and the lift broke down within a week. Liu said that the airbag lights have been on the bright side, and there are jitter problems when the vehicle is running. Inspected by 4S shop, the airbag of the vehicle's deputy driver was missing, and there were signs of welding inside, and had been hit. Later, Ms. Liu found that the car had an insurance indemnity record in November, 2016, when she renewed the vehicle's compulsory traffic insurance, which can be judged as a "converted" accident vehicle.
Ms. Liu called the second-hand vehicle platform and the staff inspected the vehicle, but did not agree with the statement of "accident vehicle". "At the time, they said it could be a circuit, or a vehicle shaking could be an oil problem, just for simple maintenance." Ms. Liu introduced. It was not until journalists contacted the e-commerce platform that the platform obliged regional managers to come forward and admit their faults and compensate.
Recently, reporters randomly interviewed consumers in several 4S stores near Wang Siying Township, Chaoyang District, Beijing, and asked them why they did not choose to buy cars on the second-hand car e-commerce platform. Most of the answers they got were: "I have seen some reports on the second-hand car market that are not standardized, and I am worried about the quality of the second-hand car e-commerce platform." Vehicles. " The flow of money, the overwhelming advertising campaign can not win consumers'confidence, these responses are interesting.
People who have studied the used car market for a long time have concluded that there are several types of problems consumers have encountered when buying cars on the second-hand car e-commerce platform: serious unequal information on vehicles, old models should be sold on the spot for new cars; inconsistent conditions with the actual situation, and cars that claim to have passed hundreds of inspection procedures are actually water-soaked vehicles or accidents. Car; after-sale service can not keep up; the cost of safeguarding rights is high. When used car data is tampered with, it will be more difficult to collect evidence when safeguarding rights.
Taking Zhejiang Province as an example, in 2017, the Zhejiang Provincial Consumer Rights and Interests Protection Committee received 459 complaints about second-hand automobile consumption, an increase of 34.2% over the same period of the year. Among them, 241 complaints of tampering with mileage accounted for 52.5% of the total number of complaints; 108 complaints of quality problems accounted for 23.5% of the total number of complaints. In addition, the sale of accident vehicles, fictitious sources of vehicles to defraud deposits, arbitrary charges, contracts are not standardized and so on are commonly used to deceive consumers.
Hao Qingfeng, director of the Consumer Advisory Department of China Consumer Daily, once said, "The main reason for these fraudulent phenomena is that some used-car e-commerce platforms themselves are not well regulated and honest. For example, some salesmen may charge a rebate and then raise the price during the car inspection period; for example, these e-commerce platforms tend to be fraudulent in order to maximize profits due to high cost and tax factors; in addition, there are some platforms not for profit, but to expand the scale and make use of capital. This market operates to achieve higher valuation. "
In response to the above mentioned problems, Renren said that in order to further eliminate major accidents, bubble cars, burning cars, Renren vehicle platform set up a pre-purchase detection + after-purchase quality assurance of used car trading process. At the same time, Renren Car Platform has set up a 200 million yuan user protection fund and advance compensation mechanism, and has also upgraded the existing after-sales service system, from the service system, service platform, service quality and other aspects of an all-round upgrade. Upgraded channel services, in the industry for the first time to achieve the "nine customer service platform" + 365 days * 24 hours + one-to-one + 24 hours rapid effect of extreme service, ready to respond to user needs.
"The rise of second-hand vehicle e-commerce platform has broken the traditional off-line trading mode of second-hand vehicles. From a positive perspective, it is the only way for the development of the times to transform and promote the progress and development of the automotive industry." Yan Jinghui, an expert consultant to the National Federation of Industry and Commerce Auto Dealers Chamber of Commerce, told the newspaper that there are many problems exposed by the second-hand car e-commerce platform, which are also inherent in the front-line and off-line second-hand car market, including the lack of integrity, information inequality. "Used car e-commerce platform to usher in a real'spring'to win the trust of consumers, to achieve through a variety of efforts. First of all, the second-hand car e-commerce to return to the "integrity" of the fundamental, with advanced means, honest service to win the market. Secondly, relevant government departments should speed up the introduction of relevant industry standards, clarify the responsibilities of regulators, and further improve relevant laws and regulations.
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