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Auto parts city, the hero's end?

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After the rise of the auto distributors platform, the voice of the fading auto parts city seems to be louder. We must step on one when we hold one. The old and new forces are always easy to analyze as the opposite.

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It is undeniable that auto parts cities across the country are currently in a trough. Compared with the impact of the e-commerce platform, the auto parts city's merchants are far more anxious about "government demolition, rent and labor costs rising" than it is.

However, the current downturn does not mean that the Auto Parts City is "heroic". As AC Motors columnist Xiao Riming said:

"The products, information, talents, logistics, warehousing and other factors surrounding the auto parts market are basically concentrated in the auto parts city. Each merchant has its own set of supply chain and sales chain, and they have formed a small ecological circle. The auto parts city is a It's not easy to break this ecosystem. "

In this ecosystem, in fact, the story of big fish eating small fish and small fish eating shrimp is staged every day. If someone leaves the field frustrated, fresh blood will flow into it and new creatures will come in from time to time. Change the biological chain combination.

No doubt, the nerves of Auto Parts City have been stinging. The Auto Parts City only wants to be a "landlord", and the auto parts city dealers only want to be at ease as the "tenant". The status quo may not be sustainable. Transformation and transformation are imminent.

01 Is it possible for an opponent to become a brother?

Disputes over auto parts distributors killing auto parts cities have always been the focus. There are many analytical articles about their advantages and disadvantages, and we will not repeat them here. Many people in the industry believe that once the trading volume of auto distribution companies exceeds the auto parts city, it also means that the auto parts city is not far from death.

Here, we might as well focus on China's overall online retail market. According to the Ministry of Commerce, online retail sales in 2018 have exceeded 9 trillion yuan, accounting for 16.5% of total retail sales of consumer goods.

What if we project this number into the very vertical auto parts field? According to Jiang Renhai, CEO of Fast Zhun Service, all auto parts supply chain companies together account for less than 10% of the auto parts market. But he believes that with the rapid integration of the industry, there will be a single company in the market that can reach 10% of the market share.

Therefore, it is too early to argue who will kill who. As for the results, some people in the industry believe that it takes at least 5-10 years to get verified. Based on this, we may first explore the possibility of coexistence and coexistence between auto distributors and auto parts cities.

Take the home appliance industry as an example. In the past, various specialty stores such as mobile phones, computers, and air conditioners were on the street. Later, large electrical shopping malls such as Suning, Gome, and Five Star appeared and were integrated. Today, such as Cat, Jingdong, Pinduoduo, etc. Business is in full swing, and appliance stores such as Suning and Gome have also established e-commerce platforms. Even so, in many cities we still see new appliance shopping malls opening. This shows that the real economy is likely to become e-commerce brothers from competitors.

Sun Junmin, deputy general manager of Xi'an Haina Auto Parts City, said: "After the auto distributors enter the car market, it is nothing more than a catfish effect, forcing Auto Parts City to make changes as soon as possible, allowing auto parts operators to continuously improve their services and improve their management, even from sales to Service. Therefore, there is no proposition that e-commerce replaces the auto parts city, and it is more a coexistence of duties and responsibilities. "

True, the lethality of auto distributors is strong enough, but it is far from reaching the point of killing auto parts cities. Those who can kill Auto Parts City must be themselves. However, the auto parts city advancing with the times will definitely exist in a new form.

02 Finding a new landlord

The transformation of the auto parts city should begin with the concept of "going to the auto parts city". In the future, it may gradually be said that there is no auto parts city. Instead, it will be replaced by a car city or a car industry park.

The format of the Auto Parts City will gradually improve, including new cars, used cars, maintenance, beauty decoration, modification, experience tracks, karts, etc., and even some cross-border formats such as catering, factory discount stores, etc.

"In large cities such as Beijing, Shanghai, Guangzhou and Shenzhen, in the future, there will be a large one-stop industrial park that integrates the entire automotive industry chain, including government functions such as vehicle management stations and inspection lines, forming the core of the automotive service industry. The auto parts business will have The reduction and formation of regional storage centers such as CDC (Central Distribution Center) or RDC (Regional Distribution Center). The industrial park is the center, and the surrounding areas are supplemented by the community population and supplemented by small service parks with automobile services as the format, forming a multi-core multi-core park. The layout of the dot format will be the trend. "

Zhu Zhongsheng, executive deputy general manager of Shanghai Aotu Agency, said that in urban areas and county-level cities of prefecture-level cities, basically a comprehensive automobile service park can be fully covered. The format is mainly the front warehouses of auto parts stores and auto distributors. Cooperate with RDC operations in big cities.

In addition, in recent years, various trading markets and supporting logistics parks in big cities have retreated from the city to the suburbs, as well as the impact of policies such as illegal construction and demolition and environmental protection inspections, which have also found new opportunities for traditional auto parts cities during the transition period. Development opportunities.

For example, the traditional auto parts city is generally located in the urban-rural junction, and has the status of a real estate developer. It can assist the repairing factory to settle through the environmental assessment to enrich the ecological chain.

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Taking Beijing Wufang Tianya Auto Service Park as an example, the overall park is divided into five major service sectors: new car sales / used car (Internet) city exhibition halls, automobile comprehensive services, auto accessories department stores, auto parts, and business office / display. There are also shared maintenance workshops and shared sheet metal spraying centers in the park, and assisted nearly one hundred maintenance companies who entered the park to obtain bronze medals for qualification filing.

With the progress of urbanization, some new automobile commercial complexes have also appeared in some cities. For example, Kunming's auto dealer world new car market was built due to the demolition of the Expo Auto City and Xingyun Tobacco Auto City in the city, with new car sales, motor vehicle registration service stations, used car markets, auto supplies, auto repair, inspection lines, etc. Service Content.

It can be seen that the muted auto parts city has begun to focus on diversified development. The ultimate goal is to build an auto service complex of auto parts city + logistics + e-commerce (industry Internet) + supply chain finance, forming a true closed loop of industrial structure.

03 The "tenant" seeking self-renovation

The auto parts city cannot only be a "landlord", and naturally the dealers in the auto parts city cannot be as "tenants."

With the transformation and upgrading of the auto parts city, the auto parts business in the future will no longer be the whole of the auto parts city, but only a small set of them. Auto parts dealers need to find their own positioning and change their roles in time if they want to establish a long-term foothold.

AC Auto visited Hefei's most famous Sanli Street Auto Parts City. Due to the poor business and the fire in 2018, the auto parts city looked even more depressed. Many merchants expressed concern about the prospect of auto parts.

It is understood that the second phase of the project, separated from the old auto parts city of Sanli Street, is planned to build a large-scale urban complex integrating auto parts market, commercial, residential buildings, and hotel apartments. The project has been stalled for many years due to a break in the investor's funding chain. However, many businesses are still confident in this auto parts complex.

"The second phase is also close to the subway entrance. It has a rich business format and a reasonable plan. It has the endorsement of the old auto parts city. It also has higher requirements for the merchants settled in, and it should not be bad." A boss named Wang told AC Auto.

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As for how to transform, Zhu Zhongsheng shared four suggestions:

1. All-car parts dealers can go to the vehicle model consortium, that is, the all-car parts dealer alliance of each model, and do all the warehouses.

2. All car parts dealers can also develop to special parts, such as brake systems and air-conditioning systems. They can put limited time, energy, financial resources and material resources into limited products and specialize.

3. Auto parts dealers can take advantage of Auto Parts City, and it is also a good choice to cooperate with large dealers or chain platforms to store warehouses. In the model, they become partners, managers, and practitioners of big platforms. For example, cooperate with the whole car parts platform to become its shared warehouse.

4. Be a service provider of parts manufacturers and provide marketing and after-sales services for local maintenance companies, becoming an indispensable part of the manufacturer's ecological chain.

At the same time, he also mentioned that the auto parts alliance that emerged in the auto parts city will be closer and stronger. In the future, the auto parts city merchants may not have their own companies, but instead rely on a certain alliance and serve this alliance.

This alliance will also exist in two forms: one is different regions and customers of the same model, and the other is shared by customers of different models.

Of course, the way of transformation is not limited to this. The self-renovation and exploration of auto parts city merchants is the hope for auto parts city to continue.

While withstanding the high pressure of demolition and rising operating costs, and the severe blow from auto distributors, the auto parts city, which has existed for less than 30 years, has reached the era of reconstruction.

Or dismantle, or move away, or die, or transform, as long as it advances with the times, it must be still there!


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