Market subsidence 58 used cars in the city to be the Chinese version of Auto Trader?


Market subsidence 58 used cars in the city to be the Chinese version of Auto Trader?

Original title: the market sinks and yell "cabbage prices". 58 used cars in the same city should be Chinese version Auto Trader.

About travel, it seems that there will always be endless stories and scattered smoke.

After the layout of the contract car is basically determined, the second-hand car market, as a rapidly rising trillion-level market, has become a major giant, capital pool.

On September 29, 58 with the new line 58 with the city second-hand car brand advertising, with the "second-hand car on the cabbage price" as the positioning, while promoting the market downturn, mainly for the second-tier, third-tier and fourth-tier cities.

The market is sinking, shouting "cabbage prices," the claim to be the Chinese version of the Auto Trader, relying on 58 Group's powerful platform flow support used car platform, what is the intention?

Some industry insiders pointed out that after experiencing the early rapid development and growth exploration period, the second-hand car e-commerce industry is currently in a stable period on the eve of the outbreak, business model and competition pattern gradually clear. There is also a view that 2018 will be the watershed for the development of second-hand business.

58 the "ambitions" and intentions of second-hand cars in the same city can be seen. In fact, in the interpretation of the 2017 Q2 earnings, 58 Group CEO Yao Jinbo revealed that 58 used cars with the city have been profitable. And after the new online TV commercials (commercial television advertising), 58 Group Vice President Jung also said that the city's second-hand cars will not focus on short-term profits, but more on the future of the industry can stand, "our goal is to become the industry's first place."

Hit second-hand car business

Second hand car business is booming. Elevator rooms, office buildings, bus platforms, print ads, video ads, it seems that every eyeball residence, there are used-car e-commerce figure.

Behind the strong sense of existence is the visible opportunity of the second-hand car business market.

According to the 2008 China Used Vehicle E-commerce Industry Research Report published by Eric Consulting, China's second-hand vehicle trading volume reached 12.41 million in 2017, up 19.3% from 2016. The report also predicts that by 2022, the volume of used cars will be close to 29 million 606 thousand.

Therefore, in the face of questions from Credit Suisse analysts, Yao Jinbo said that China's second-hand car market is undoubtedly a huge market, China has exceeded the sales of new cars in the United States for several consecutive years, we expect China's second-hand car market will also surpass the United States, this will be a huge Internet business. Demand.

Against this background, since 2012, second-hand car dealers have entered the Bureau. In addition to the 58 cities and other large platforms to provide second-hand car services, such as Youxin, melon seeds, Renren cars, search vehicles and other vertical products have sprung up. In the twinkling of an eye, on the battlefield, the number of players has reached dozens.

Competition has reached its climax, and capital has been fighting hard in this booming furnace.

In 2017~2018, it could be called the high light time for second-hand car financing. According to statistics, in 2017, the domestic second-hand car e-commerce sector has disclosed the total amount of financing has exceeded 10 billion yuan, and even in this year, including melon seeds, Youxin, Che Zhibao held a conference on the same day. In 2018, Youxin second-hand car landed on Nasdaq successfully, and became the leader of Chinese second-hand car e-commerce stocks. GuZi, everyone car also repeatedly pass the listing guess. In the financing boom, Ali, Tencent and even the figure of big and small giants occasionally flashed, but also let the second-hand car e-commerce imagination space.

After the savage growth and frequent "money burning", the development of the second-hand car e-commerce market has changed quietly, and the rational wind seems to be blowing slowly.

"In the past few years, the second-hand car business platform is very intense, the overall advertising market is relatively large. But since 2018, market development has gradually stabilized, and we think this is the watershed. The jungle says. It is in this judgment that Jungle believes that in the next two or three years, the used car industry players will become more rational, "so 58 second-hand cars with the city is worth investing in, we want to seize more market share."

In this context, from October this year, 58 second-hand cars in Tongcheng will positioning itself as a "cheap second-hand car platform". "In the next few years, we will continue to advertise used cars independently. We think this is a step to grasp the second-hand car market, and the next year will be a period of rapid growth of used cars." The jungle further pointed out.

The source of vehicles is king.

When the market begins to appeal for rationality, on the one hand pure "burn money" fear of the past, on the other hand, the business model, moat considerations, will become the focus of many players to compete.

As in the competition of second-hand vehicle e-commerce, vehicle source is undoubtedly the most important factor. The industry has been widely quoted as saying that "the source of vehicles is the king" and "get the source of vehicles". At the same time, although the volume of second-hand car trading has been increasing year by year, on the whole, the second-hand car trading market is still in the early stages of development, one of its performance is that the most important vehicle source has become a major problem.

Huachuang Securities pointed out in its research paper that the development of China's second-hand car market lags behind, one reason is that China's overall car ownership is at a low level, inadequate supply; the other reason is that the second-hand car was previously subject to restrictions on relocation and uneven tax policy, the circulation is not smooth.

Thus, the number of vehicles directly determines the significant competitive advantage of the platform. In today's multi-strong used car e-commerce platform, 58 second-hand cars in the same city in terms of vehicle supply performance can be said to be eye-catching.

Fair Price Big Data Center statistics show that in the first quarter of 2018, 36 mainstream e-commerce platforms across the network after the weight of the total number of 4.18 million vehicles. Among them, 58 city used cars far ahead, accounting for 28.33%. According to the latest statistics of the platform in September, the number of used cars in 58 cities has climbed to 48.17%.

In this regard, the jungle will be frank, 58 with the city used cars and Youxin, melon seeds, Renren cars, the biggest advantage is the source of vehicles. 58 Tongcheng is an open platform, with the national car dealers are basically cooperative, their car sources can be published in 58 Tongcheng, such as melon seeds, Renren car and 58 Tongcheng in the car source data also have cooperation and sharing.

Not only is the source of vehicles, back to 58 with the city, 58 with the city's second-hand vehicles in the flow, number of users and other aspects of the point can also be circled.

Yao Jinbo, when interpreting the Q2 earnings report of 58 Group in 2017, pointed out that "after the merger of 58 cities and catching up with the market network, we have been the largest traffic platform in the field of second-hand vehicles in China, but also one of the fastest growing platforms." And when the 58 group released its full-year earnings report for 2017, he reiterated that, in terms of traffic and user volume, 58 second-hand vehicles in the same city have more information and users than all used vehicle platforms. "We are confident that we can do this open platform." He said.

"Used cars cost cabbage."

With the advantages of the moat, such as car sources, users, data, and so on, 58 Tongcheng is now shouting out the slogan "second-hand car is the price of cabbage". The brand advertisement of 58 new lines in Tongcheng is positioned on the platform of "cheap second-hand car". Starting from the basic demand of "cheap and practical" second-hand car sales, the advertisement covers more users with 50,000 yuan as the price anchor point, 30,000 yuan up and down, and strengthens the practical application scenarios such as "walking on behalf, practicing hand, pulling goods" and so on. Households provide life services.

It is noteworthy that, just as the market more through the sinking path, breaking through the already seemingly inflexible pattern of electronics, the 58 second-hand cars with the city will also mainly face the second, third and fourth-line market.

The price of cabbage and the market sink, what is the logic of the differential development of the 58 used cars?

Jungle said, combined with external research data and 58 city data, we found that the mainstream users are concentrated in the second-third and fourth-line cities, and the main demand of the second-third and fourth-line cities is about 50,000 yuan cars, so the price of cars on our platform is better, so attract more vehicles to appear on our platform.

While adhering to the original intention of providing affordable second-hand vehicle platform for consumers, 58 second-hand cars in Tongcheng also said that it will focus on establishing an efficient connection mechanism for consumers and the vast number of car dealers.

It is understood that as the leading used car information platform in China, 58 years in the same city are to provide users with tens of millions of grade vehicle source information, and then to provide the vast number of car dealers from vehicle source, testing, trading, extension to the financial solution.

"We will not intervene in the transaction, will provide consumers with 58 car valuation, 58 testing, 58 extended insurance, 58 financial services and other support, aimed at comprehensively improving the level of used car trading services, promote the two sides to conclude the transaction." The jungle says. It is worth mentioning that 58 tests are not intended to promote financial products, but the endorsement of transaction protection.

The length of the platform should be measured.

Yao Jinbo, or Jungle, has more than once suggested that 58 used cars in Tongcheng should be made Chinese version of Auto Trader. What is the existence of Auto Trader?

According to public information, Auto Trader is a well-known automobile trading platform in the United States. It was founded in 1997 and has become the leading automobile classification market and consumer information platform in the whole Internet world.

The jungle also classifies second-hand car companies into five categories: KBB as the representative of the second-hand car valuation model, CarFax as the representative of the car query database model, Auto Trader as the representative of the information platform model, Manheim as the representative of the auction model and CarMax as the representative of the retail model.

To be a Chinese version of Auto Trader's 58 used cars in the same city, obviously want to become an "open platform," a platform in the platform.

"As an open and neutral platform, we cooperate with other used-car e-commerce platforms, and we also welcome the A, B, C end of the vehicle source in 58 cities used-car platform." The jungle says.

Naturally, it also includes second-hand cars of melon seeds. Melon seed used cars have grown rapidly since November 2015, when they were separated from 58 cities and market networks, with an estimated value of more than $5 billion.

"We don't see the second-hand car business as part of the 58 second-hand car, more financial investment relationships." Yao Jinbo has said that if the melon seeds positioned as C2C second-hand mode, 58 with the city's second-hand car more to B2C mode. He further pointed out that we wanted to serve all the dealers, including offline dealers, 4S stores and small and medium-sized distributors. We wanted to find all the sources of cars in 58 cities, so the positioning of the two companies was not exactly the same.

On this basis, the jungle further shows that 58 with the city's positioning is a life service platform, and Youxin, melon seeds, Renren vehicles and other e-commerce platforms are not directly competitive relationship, 58 with the city's used cars are more to provide classified information services.

For 58 second-hand cars and even 58 cities with the platform model, Jungle believes that there is a natural advantage, "58 cities can develop to today, become ten billion dollars in market value of the company, in fact, to a large extent depends on adherence to the platform, platform model is the most efficient model of society, with natural advantages." Therefore, recruitment, real estate, automotive and other businesses can be coordinated development, advertising input can also produce synergies.

As for 58 second-hand cars in the same city, Jungle believes that in the long run, 58 second-hand cars in the same city do not pay attention to short-term profits, but the long-term landscape should be taken into account.

"We place more emphasis on future competitive advantages and industry influence, though the investment cycle is longer.


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