Automobile 4S stores are facing a "price war" storm, and profit space is compressed, requiring the opening of new revenue channels

2023-07-19

Under the storm of "price war", the life of 4S stores located downstream of the automotive industry chain is not easy. Previously, I could earn a monthly salary of over 10000 yuan, but now I only get an average of 5000 or 6000 yuan per month. "The person in charge of the relevant business of a high-end foreign car company's 4S store in Qingdao sighed to the reporter, and now the store's business is much worse. In the first half of this year, the price war in the automotive industry spread from fuel vehicles to Alternative fuel vehicle. In the second half of the year, this trend seems to have not stopped. The price implosion in the automotive industry has exacerbated the already difficult operation of 4S stores, "an industry insider told reporters. From extensive store expansion in the early stage to losses, shutdowns, and even withdrawals, 4S stores urgently need to explore new development paths. Since the beginning of this year, car companies have been competing for more market share through a "price war" due to a significant reduction in profit margins. Recently, the reporter randomly visited multiple 4S stores in Beijing, Qingdao, Yantai, and other places. The staff of an American car brand 4S store in Fengtai, Beijing, told reporters that at present, there is a discount of several thousand to thirty thousand yuan for fuel vehicles in stores, and the discount lasts until the end of the year, while there is not much discount for Alternative fuel vehicle. Ms. Liu, a salesperson at a new energy vehicle 4S store in Yantai, Shandong, told reporters that due to price reductions by car manufacturers, most models in the 4S store can only follow suit. Some car models have dropped by over 30000 yuan per model, and their profits have also been affected. "" Some brands, especially high-end brands, have had severe price pressure in the first half of the year, and many car models have seen their prices drop significantly, "the business manager of a certain 4S store in Qingdao told reporters. Car manufacturers are constantly lowering new car prices in order to compete for market share, resulting in a significant reduction in dealer profit margins and increasingly difficult operations, "said Jiang Han, a senior researcher at Pangu Think Tank. It is worth noting that a new round of price war with new energy brands as the main protagonist has quietly been brewing. It is understood that multiple brands, including Geely, Tesla, Geely, NIO, and Xiaopeng, have recently directly or indirectly lowered prices for their models. In the context of 'price war', 4S stores should try to seek survival and development models through multi model display sales, diversified market competition, and increased negotiation and negotiation capabilities, "suggested Lu Dingliang, a partner lawyer at Beijing Jingshi Law Firm. Exploring the direction of transformation, a 4S store that once integrated car sales, maintenance, accessories, and information services is gradually declining from its peak of popularity. According to the data, in 2021, there will be more than 1900 Car dealership shut down and withdraw from the network, and this number will increase to 4000 in 2022. According to Bai Wenxi, Chief Economist of IPG China, there are three reasons for the gradual decline of 4S stores: firstly, there has been a change in consumer purchasing methods; Secondly, the service system of 4S stores has not kept up with market changes in a timely manner; Thirdly, the costs of store rent, wages, and other factors have also put some pressure on its operations. Nowadays, many people buy cars by learning about the specific situation of the car online, and the advantages of 4S stores are weakening. "A consumer who selects cars in 4S stores said that some professional knowledge and product performance about cars can be clearly obtained from the internet. In contrast, professional explanations from sales personnel have become less important. At the end of June this year, the previous "4S

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:Securities Daily

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