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The pattern of the automotive industry is undergoing changes, with new energy vehicles gaining momentum, and the development of automation and intelligence is also going hand in hand. Under this background, the field of automobile marketing and circulation is also undergoing a transformation. This is about the automobile dealership that has been brilliant in China's automobile market for more than 20 years, and is also experiencing the impact of the era of automobile revolution. As we all know, 4S stores are one-stop stores that integrate vehicle sales, spare parts, after-sales service, and information feedback to provide consumers with one-stop services. In 1998, Guangzhou Honda pioneered the car dealership model, which received good market feedback and led major car manufacturers to follow suit. Since then, 4S stores of various car brands have been competing to open across the country.

However, with the continuous development of the automotive industry, the continuous increase in car ownership, and the overall rise of the aftermarket, the days of car dealership have become less "glorious" than before. In addition, a wave of COVID-19 epidemic that lasted for a long time had a great impact on the sales of the car market. Although the domestic economy was gradually recovering, the impact of the epidemic impact would take some time to subside. Under fixed expenses such as land rent, water and electricity expenses, and employee compensation, if the business situation deteriorates, dealers will naturally fall into a situation where they cannot make ends meet, and may reach the final step of withdrawing from the network.

Therefore, the fundamental reason for dealers to return to gateway stores is, to put it bluntly, "not making money.". From the perspective of profit and loss, nearly half of the dealers are in a loss state. According to the data, in 2019, 31% of dealers achieved profits, while 27% of dealers broke even, while the loss of dealers reached as high as 42%. The approaching 50% loss indicates how difficult the situation of dealers is. By 2020, the situation had worsened even more. From a statistical perspective, the number of authorized brand distributors nationwide had declined for the first time in 2020. Nearly 4000 stores had withdrawn from the network due to poor management or non OEM reasons throughout the year, and the network size had decreased by 5.8% throughout the year, leaving only 28000. Throughout 2020, approximately 11 4S stores were closed and retired every day.

On the other hand, the future development of automobiles will be purely electric and intelligent. As a pure electric new energy vehicle, the "three electric systems" of battery, motor, and electronic control will replace the existing engine, greatly reducing the subsequent maintenance costs of the vehicle. The most important consumables are only the tires, wipers, and brake pads that you want. The most important thing about a pure electric car is the intelligent vehicle engine system, which can be upgraded through the cloud. Therefore, manufacturers can sell vehicles through the online direct sales model. In the future, vehicles will be more personalized and can be supplied to owners for free customization in terms of body color, interior materials, details, and other aspects. Cars will gradually become light assets from bulk commodities more than a decade ago. With the integration of the upstream and downstream of the industrial chain, the popularization of modular production, and the promotion of the direct sales model, the cost will be greatly reduced, Buying a car may be as convenient as buying a smartphone today.

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What we are seeing now is that, on the one hand, the number of dealers withdrawing from the network is increasing, but on the other hand, the number and layout of new energy vehicle brands in their direct stores are increasing, especially in third and fourth tier cities. According to the data provided, we can see that in 2020, there were 2263 new dealers nationwide, mainly the expansion of new brand entry network and new energy direct stores (Chang'an UNI, Jietu, Jetta, TSLA, Weilai, Xiaopeng, Ideal, etc.).

As traditional automotive brands, Honda and Mercedes are also using Australia as a "test field" and are experimenting with the manufacturer's direct sales model. Starting from July 1 this year, Honda will cancel its existing "4S store" model in Australia, and consumers will book their own vehicles from the official website. Mercedes will also start experimenting with the direct sales model in Australia in January 2022.

Since entering the Chinese market, TSLA has always adhered to the direct sales model, which also affects more and more new forces and traditional car manufacturers. As we mentioned above, more and more automobile manufacturers have started the direct sales model. The benefits of the direct sales model are that the entire consumption process is simple and transparent, with fewer intermediate links, and the operating costs of car companies are relatively low. This can be said to benefit both manufacturers and consumers.

However, after all, the 4S store model has been developed in China for more than 20 years, and it will definitely take a long time to fully implement the 4S store model. It is not difficult technically for the automotive industry to achieve the "new retail revolution". The real difficulty lies in the profit distribution model and service model of automotive enterprises and 4S stores. So for the vast majority of consumers, there is still a long way to go before the era of "no middlemen earning price differentials".

Write at the end:

After 2020, the automotive industry has ushered in a comprehensive transformation moment, from fuel vehicles to electric vehicles, from the sales model of 4S stores to the manufacturer's direct sales model. Behind all these changes is a shift towards the direction of benefiting the market and consumers. As Adam Smith, the father of modern economics, said, "The market is an invisible hand." Normally, the market will maintain its healthy operation through its internal mechanism. The emergence of the automobile direct sales model may play a decisive role in the healthy development of the automobile industry.

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