The entry of a lot of capital makes the automobile retail enterprises have more capital security, and the covetous entry will complicate the pattern of the new automobile retail field, and the market competition will become particularly fierce.
The campus installment business was blocked, and Qudian turned to new automobile retail
As a typical representative of campus installment, Qudian developed rapidly with its predecessor “Quinstallment” to carry out campus loan business in the early days of its establishment. Within three months after the launch of Quinstallment, its transaction amount reached tens of millions of yuan. When campus stages on the market, there is no ants spend bai, nor jingdong ious, “boring stage” with its early farming, the campus market advantage in young growing consumer desire has A large market demand, also received A lot of capital, founded in the year of continuous on A, B, C three rounds of financing, With the support of a large number of capital, Qudian’s cash burning strategy in the early stage has financial guarantee, and its installment business has also been able to develop rapidly.
However, with the continuous development and expansion of “campus loan” business, the market impact brought by the chaos of campus loan is also expanding. These services for college students and low-income people who have just entered the society to provide instalment or loan cash services, in fact, the Internet as a new form of usury. In the first half of 2017, Qudian extended a total of $5.6 billion in credit to 7 million active borrowers, 80 percent of whom were students, data showed.
Due to the social public opinion and criticism triggered by college student loans, after a series of regulatory policies on cash loans were issued at the end of 2017, the cash loan industry began to face a series of problems such as scale damage, bad debts outbreak, company liquidation and so on. Qudian, which relied on cash loans as its main source of revenue, saw its market value continuously decline after its listing. According to qudian’s financial data, in the fourth quarter of 2017, The total profit of Qudian Group was 541 million yuan, about 100 million yuan less than that of the third quarter. Active users fell from 7.5 million in the third quarter to 6.9 million in the fourth. In the regulatory storm, the future of Qudian has also been drawn on a question mark.
And under the market doubts, on January 29, 2018, founder of boring store amith jj announced the launch in boring store listed after “great white car”, by the campus cash loans and credit business transformation car new retail market, by integrating interesting stores previous online user information, online platform and offline auto retail service outlets as a foundation for the market, Realize the integration of online user ecology and offline automobile retail ecology, and build a new retail system of Baymax Automobile.
In the face of the auto e-commerce supported by the giants, “shifting students” fun shop is no small challenge
Qudian is building an ecological system of new auto retail to expand its business scope with the help of new retail outlets, so as to weaken the market impact of its campus loan business crisis. However, for Qudian, P2P enterprises with installment loan and cash loan as their main businesses, if they want to transform into new auto retail, they will have to face the market impact brought by auto e-commerce with online business as the advantage and traditional auto 4S shops with offline service advantages.
First, traditional 4S stores with solid foundation and high offline penetration rate can facilitate the layout of new automobile retail. Traditional automobile retail stores have greater market advantages in automobile products and services, and stores will reach more consumers in the automobile consumer market. High penetration rate enables traditional 4S stores to quickly complete offline layout in the wind of new automobile retail. In February 2018, LEChebang, an e-commerce service platform for 4S stores, announced the acquisition of several online auto platforms, integrating new retail concepts into the field of automobile circulation, and creating a new retail model for 4S stores with new retail and service. Qudian, as a “stopover student” in the automotive field, will have to spend more money and time to set up its own offline stores and attract more market traffic in the new ecosystem.
Second, auto e-commerce companies with mature online business and supported by giants have more advantages in traffic flow and promotion. Automobile e-commerce is the product of Internet + traditional automobile retail, which can be said to be the model after business upgrading in the traditional automobile retail industry. There are second-hand automobile e-commerce represented by Guazi, Renrenche and Youxin, as well as automobile sales and leasing service platforms represented by Dasso, Chejia and Yixin. After years of development and market accumulation, the online promotion business of these auto e-commerce companies has begun to take shape. With the capital and traffic support from Tencent, Baidu and other giants, they will become the competitors of Qudian in the future automobile new retail field.
In addition, the new retail mode of new energy vehicles empowered by technology has become a new force of new retail in optimizing experience. The typical representatives are NiO and Tesla, which make use of new energy and driverless technology to provide automobile consumers with travel experience different from traditional cars. After the new retail model is put forward, the new retail empowered by technology is also widely welcomed by consumers with low cost, high flexibility and novel technical tools to participate in the service experience center. Of course, in addition to providing consumers with different automobile experience, new energy and intelligent automobile enterprises have better technology engines than Qudian in the new retail transaction mode of automobile, providing consumers with intelligent automobile consumption experience.
In the competitive landscape of multi-party automobile retail enterprises, Qudian’s Baymax automobile business is mainly divided into car installment and car rental. After adhering to the self-built offline stores and asset-heavy operation mode, Qudian’s Offline stores of Baymax have expanded rapidly. According to qudian’s financial data, as of March 10, 2018, Baymax Has opened 175 offline self-operated stores across China and delivered more than 4,800 vehicles in total. Qudian has two main advantages for its rapid layout in the new automobile retail competition.
On the one hand, Qudian has its own user flow and user data. Interesting shops in the early stage of the campus in installment and cash loan business, seize the young consumption group consumption demand, expanding the scope of business category, has accumulated 60 million registered users, and interesting shops can be accumulated in early with its users and users, for users of consumer demand, according to the customer’s sensitivity to the car prices different price segment of auto service.
On the other hand, the heavy capital operation mode with financial support. In addition to the problems in the flow market, the development of new automobile retail enterprises also need abundant funds to lay out offline automobile stores and create a new automobile retail ecology. After revitalizing the market data and solving the problem of traffic introduction, Qudian invested 10 billion yuan to establish the asset-heavy self-support mode of self-established offline auto stores, in order to ensure the controllable service standard of its offline stores.
With the help of the new automobile retail into the automobile consumption installment, Qudian also needs to learn from the previous experience
With the user data and traffic accumulated in the early stage of its business and the sufficient financial support after its listing, Qudian’s offline stores of Baymax are also expanding and advancing with great success. However, two well-known financial media, China Capital Watch and Blue Whale Automobile, have recently exposed that Qudian’s auto installment business is a stunt due to high monthly mortgage payment and zero interest rate, which has attracted the attention of various financial media and many consumers. Throughout the whole auto loan field, qudian, which had a great momentum in the early stage, may draw lessons from yixin, which is backed by many Internet giants.
Yi Xin was founded in 2014, car loan service network platform, with cooperation with several financial institutions and its advantages of on the Internet, in the forest of car loan business to establish its own advantage in the market pattern, and gained easy car, jingdong, tencent, baidu, wind and other Internet giants and a number of levels of hundreds of millions of capital financing, Yixin in the auto loan field is more like a duck to water, market layout has also been accelerated. In November 2017, the mature business of YIxin was listed in Hong Kong, with a market value of HK $55.2 billion. However, within less than half a year of listing, its market value has been continuously shrinking, and now its market value is only HK $38.6 billion.
At the same time, even with the support of several giants and capital, YIxin’s auto retail revenue is still at a loss. March 15, yi Xin Group released the 2017 financial report data showed that the company’s unadjusted profit loss in 2017 was 18.337 billion yuan, compared with the loss of 1.404 billion yuan in the previous year, an increase of 1206%. A 12-fold increase in annual losses sent its share price tumbling.
In addition, in terms of business model, the business system of auto loan platform Yixin is not yet perfect, which leads to a decrease in consumers’ car purchasing experience. Compared with traditional automobile retail 4S shops, the transaction chain of P2P auto loan service platforms like Yixin takes a long time, and it takes 40 to 50 days for consumers to obtain the right to use a car from the platform.
Qudian’s business model is similar to yixin’s. With the support of a lot of capital, these P2P car loan service platforms can secure funds in the war of burning money in the early stage. However, the prolonged transaction cycle and the imperfect credit system between consumers and the platform caused by the business model lead to poor user experience. This will lead qudian to spend a lot of money in the early stage of market competition, but fail to cultivate users’ stickiness to the platform, and eventually repeat the mistake of The declining market value of Yixin.
How will Qudian really win the automobile installment battle in the future?
Qudian group made a total profit of 541 million yuan in the fourth quarter of 2017, about 100 million yuan less than the third quarter, according to the company’s financial statement. For fun shop, stage policy regulation, although its business income has decreased, but by installment business market advantage also has become a boring store layout is important in the field of automobile new retail market on the basis of, and under the trend of new automotive retail, how boring store development to gain more market share in the market of the future?
First, optimize user consumption experience and cultivate sticky users. As for Qudian, although it has 60 million registered users, its active users dropped from 7.5 million in the third quarter to 6.9 million in the fourth quarter of 2017. After the launch of baymax’s new retail model, its interest rate, which is close to 30% of the selling price, lowers consumers’ expectations for Baymax’s business. If the development goes on like this, the market users of Baymax will shrink even more. Therefore, in the new automobile retail model in the future, Qudian can provide consumers with a tiered interest rate model based on the credit line of users on the platform, so as to distinguish the interest amount of different consumers and cultivate more high-quality sticky users for the platform.
Second, analyze market demand and improve product cost performance. Baymax’s current market layout is mainly distributed in third-tier and fourth-tier cities, where many advantages, such as low consumption level and large increment of automobile market, have brought great space for Qudian’s new auto retail. However, potential users living in third-tier and fourth-tier cities become more cautious in automobile consumption due to factors such as geographical location and urban consumption level, and attach particular importance to the cost performance of automobile products. Therefore, in the field of new automobile retail in the future, Baybayauto of Qudian still needs to strengthen the quality monitoring of offline automobile resources, and analyze the consumption behavior of third-tier and fourth-tier users according to the existing market user data, so as to provide consumers with cost-effective automobile products.
On the whole, as a new retail field with huge investment in the early stage, but extremely difficult to realize, there will still be a steady stream of players to enter, and after the increasing market volume, the new retail market will usher in a trillion market in the future. If Qudian wants to realize the dream of Baymax’s market value of 100 billion yuan in this trillion market, it still needs to provide consumers with high-quality auto products and services from the perspective of market demand.
Article/Liu Kuang public account, ID: Liukuang110