Research Report on Automobile 4S Stores in China, 2013-2017
With rapid economic development and the improvement of income per capita, automobile consumption in China has boomed in recent years and automobiles quickly become affordable consumer goods for ordinary families. In 2012, the automobile output volume in China was 19.272 million, increasing by 4.6% YOY. The sales volume was 19.306 million, increasing by 4.3% YOY. From 2009 to 2012, the automobile output volume and sales volume in China kept ranking the first in the world. In 2012, the output volume and sales volume of passenger vehicles respectively reached 15.5237 million and 15.4952 million, increasing by 7.2% and 7.1% respectively over 2011.
According to the current situation of automobile 4S stores in China, there are two basic models. One is horizontal development. It is a multi-brand business model that can be easily seen in the same regional market. This phenomenon is mainly caused by the fact that manufacturers seldom authorize the same distributor with more than two sales networks in the same region considering the network security, distributors' strength and the management ability in region markets. The other is vertical development. It is a single-brand business model that can be commonly seen in different region markets. According to the development trend in recent years, automobile sale in China will gradually develop from scattered model to concentrated model.
At present, there are more than 30,000 automobile distributors in China. Automobile 4S store model was introduced in the late 20th century and gradually became prevalent. The investment cost of an ordinary 4S store is about CNY 5 million at least in China. The number of 4S stores exceeded 16,000 in Chinese market by the end of 2012, ranking the first in the world.
Though '4S' is widely considered the most advanced automobile marketing model, not all of automobile types and brands are suitable for it. The number of automobile 4S stores increased rapidly from 2008 to 2010 and the turning point appeared in 2011. The profit of many 4S stores begun declining and even at least 20% of them suffered deficit in 2012. Under such circumstance, the disadvantageous factor — the high cost of 4S stores was further amplified. On one hand, the land costs, operation costs and labor costs all rose sharply. On the other hand, the sales volume of new automobiles kept declining due to the declining growth rate of automobile market and the concentrated sales network. So, standard high-cost 4S stores will face unfavorable situation if keeping the model.
The profit of 4S stores mainly comes from vehicle sales and after-sale services. Under the circumstance that the profit of vehicle sales keeps declining, the profit of after-sale services will naturally become a key business for 4S stores. The profit model of 4S stores also becomes changing. They just depend not only on vehicle sales but also on component sales, automobile decoration, second-hand automobile sales, automobile finance businesses and automobile insurance businesses.
By summarizing and analyzing the profit structures of automobile sales all over the world, it is found that vehicle sales accounts for 10%, after-sales services accounts for 50%, component sales accounts for 10% and second-hand automobile sales accounts for 20%. Vehicle sale occupies more than 50% of the total profit in China. At present, most automobile 4S stores in China only pay attention to promoting automobile sales volume but neglect the management of after-sales services. Consequently, the general performance in improving customers' satisfaction, strengthening after-sales services and technology is poor. The competitions in automobile after-sales service market are mainly the competition between 4S stores and professional maintenance enterprises. Services in 4S stores are rather complete while services in professional maintenance enterprises are more convenient and cheaper.
With the further maturing automobile sales market and narrowing differences of each brands, distributors will mainly get profit from after-sales services. So the important issues that many 4S stores facing are to provide high-quality after-sales services, to improve customers' satisfaction degree and to cultivate customers' loyalty.
In 2012, the GDP per capita in China exceeded USD 5,000. It is predicted that it would maintain the growth rate of over 10% in the coming years. It is predicted that the annual automobile sales volume in China would maintain the growth rate of over 8% from 2013 to 2017. So automobile 4S stores in China still have promising development prospect and they are worth investors' attention.
Through this report, readers can acquire the following information:
According to the current situation of automobile 4S stores in China, there are two basic models. One is horizontal development. It is a multi-brand business model that can be easily seen in the same regional market. This phenomenon is mainly caused by the fact that manufacturers seldom authorize the same distributor with more than two sales networks in the same region considering the network security, distributors' strength and the management ability in region markets. The other is vertical development. It is a single-brand business model that can be commonly seen in different region markets. According to the development trend in recent years, automobile sale in China will gradually develop from scattered model to concentrated model.
At present, there are more than 30,000 automobile distributors in China. Automobile 4S store model was introduced in the late 20th century and gradually became prevalent. The investment cost of an ordinary 4S store is about CNY 5 million at least in China. The number of 4S stores exceeded 16,000 in Chinese market by the end of 2012, ranking the first in the world.
Though '4S' is widely considered the most advanced automobile marketing model, not all of automobile types and brands are suitable for it. The number of automobile 4S stores increased rapidly from 2008 to 2010 and the turning point appeared in 2011. The profit of many 4S stores begun declining and even at least 20% of them suffered deficit in 2012. Under such circumstance, the disadvantageous factor — the high cost of 4S stores was further amplified. On one hand, the land costs, operation costs and labor costs all rose sharply. On the other hand, the sales volume of new automobiles kept declining due to the declining growth rate of automobile market and the concentrated sales network. So, standard high-cost 4S stores will face unfavorable situation if keeping the model.
The profit of 4S stores mainly comes from vehicle sales and after-sale services. Under the circumstance that the profit of vehicle sales keeps declining, the profit of after-sale services will naturally become a key business for 4S stores. The profit model of 4S stores also becomes changing. They just depend not only on vehicle sales but also on component sales, automobile decoration, second-hand automobile sales, automobile finance businesses and automobile insurance businesses.
By summarizing and analyzing the profit structures of automobile sales all over the world, it is found that vehicle sales accounts for 10%, after-sales services accounts for 50%, component sales accounts for 10% and second-hand automobile sales accounts for 20%. Vehicle sale occupies more than 50% of the total profit in China. At present, most automobile 4S stores in China only pay attention to promoting automobile sales volume but neglect the management of after-sales services. Consequently, the general performance in improving customers' satisfaction, strengthening after-sales services and technology is poor. The competitions in automobile after-sales service market are mainly the competition between 4S stores and professional maintenance enterprises. Services in 4S stores are rather complete while services in professional maintenance enterprises are more convenient and cheaper.
With the further maturing automobile sales market and narrowing differences of each brands, distributors will mainly get profit from after-sales services. So the important issues that many 4S stores facing are to provide high-quality after-sales services, to improve customers' satisfaction degree and to cultivate customers' loyalty.
In 2012, the GDP per capita in China exceeded USD 5,000. It is predicted that it would maintain the growth rate of over 10% in the coming years. It is predicted that the annual automobile sales volume in China would maintain the growth rate of over 8% from 2013 to 2017. So automobile 4S stores in China still have promising development prospect and they are worth investors' attention.
Through this report, readers can acquire the following information:
- Development Status of Automobile 4S Stores in China
- Profit Models of Automobile 4S Stores in China
- Competition Status of Automobile 4S Stores in China
- Major Sales Channels of Automobile 4S Stores in China
- Development Trend of Automobile 4S Stores in China
- Problems and Solutions of Automobile 4S Stores in China
- Automobile Manufacturers
- Automobile Trade Enterprises
- Automobile Component Manufacturers
- 4S Store Investors
- Investors and research institutes concerned about automobile 4S store industry in China
CHAPTER ONE BASIC CONCEPT OF AUTOMOBILE 4S STORES
1.1 Definition of 4S
1.1.1 Sale
1.1.2 Spare part
1.1.3 Service
1.1.4 Survey
1.2 Development Progress of Automobile 4S Stores in China
CHAPTER TWO ANALYSIS AND FORECAST ON BUSINESS ENVIRONMENT OF AUTOMOBILE 4S STORES IN CHINA
2.1 China Economy
2.2 Policy Environment
CHAPTER THREE OPERATION STATUS OF AUTOMOBILE 4S STORES IN CHINA, 2011-2013
3.1 Sale Channels of Automobiles in China
3.1.1 Automobile 4S Stores
3.1.2 Automobile Trade Market
3.1.3 Auto Industry Park
3.1.4 Automobile Chain Sale
3.1.5 Electronic Commerce
3.2 Development Features of Automobile 4S Stores in China, 2011-2013
3.2.1 Quantity of China's Automobile 4S Stores Ranks the First Globally
3.2.2 Automobile Sale be the Main Profit of Automobile 4S Stores in China
3.2.3 Regional Distribution of Automobile 4S Stores in China
3.3 Business Models of Automobile 4S Stores in China, 2011-2012
3.3.1 Multi-brand Store
3.3.2 Single Brand Store
3.4 Market Competition Status of Automobile 4S Stores in China, 2011-2013
3.4.1 Competition between 4S Stores and Second-hand Automobile Market
3.4.2 Competition between 4S Stores and other sale channels
3.4.3 Competition in 4S Stores
3.5 After-sales Service Status of 4S Stores in China
3.6 Problems and Solutions of Automobile 4S Stores in China, 2008-2009
3.6.1 Problems
3.6.2 Solutions
CHAPTER FOUR ANALYSES ON KEY BRAND AUTO 4S STORES IN CHINA, 2011-2013
4.1 Shanghai GM
4.2 FAW-Volkswagen
4.3 Shanghai Volkswagen
4.4 Beijing Hyundai
4.5 Dongfeng Nissan
4.6 Changan Ford
4.7 Geely Automobile
4.8 Dongfeng Citroen
4.9 Chery Automobile
4.10 FAW Toyota
CHAPTER FIVE FORECAST ON THE DEVELOPMENT TREND OF AUTOMOBILE 4S STORES IN CHINA, 2013-2017
5.1 Forecast on Scale
5.2 Forecast on Development Trend
5.2.1 Operation Costs of 4S Stores Declining
5.2.2 Integrated Marketing Network Trend
5.2.3 Automobile 4S Stores Involving Sale of Second-hand Automobiles
5.2.4 4S Store Mode No Longer be the Inevitable Choice for Automobile Manufacturers
5.3 Recommendations on the Investment and Development of Automobile 4S Stores in China, 2013-2017
5.3.1 Automobile Accessories
5.3.2 Sale Model Upgrading
5.3.3 Others
1.1 Definition of 4S
1.1.1 Sale
1.1.2 Spare part
1.1.3 Service
1.1.4 Survey
1.2 Development Progress of Automobile 4S Stores in China
CHAPTER TWO ANALYSIS AND FORECAST ON BUSINESS ENVIRONMENT OF AUTOMOBILE 4S STORES IN CHINA
2.1 China Economy
2.2 Policy Environment
CHAPTER THREE OPERATION STATUS OF AUTOMOBILE 4S STORES IN CHINA, 2011-2013
3.1 Sale Channels of Automobiles in China
3.1.1 Automobile 4S Stores
3.1.2 Automobile Trade Market
3.1.3 Auto Industry Park
3.1.4 Automobile Chain Sale
3.1.5 Electronic Commerce
3.2 Development Features of Automobile 4S Stores in China, 2011-2013
3.2.1 Quantity of China's Automobile 4S Stores Ranks the First Globally
3.2.2 Automobile Sale be the Main Profit of Automobile 4S Stores in China
3.2.3 Regional Distribution of Automobile 4S Stores in China
3.3 Business Models of Automobile 4S Stores in China, 2011-2012
3.3.1 Multi-brand Store
3.3.2 Single Brand Store
3.4 Market Competition Status of Automobile 4S Stores in China, 2011-2013
3.4.1 Competition between 4S Stores and Second-hand Automobile Market
3.4.2 Competition between 4S Stores and other sale channels
3.4.3 Competition in 4S Stores
3.5 After-sales Service Status of 4S Stores in China
3.6 Problems and Solutions of Automobile 4S Stores in China, 2008-2009
3.6.1 Problems
3.6.2 Solutions
CHAPTER FOUR ANALYSES ON KEY BRAND AUTO 4S STORES IN CHINA, 2011-2013
4.1 Shanghai GM
4.2 FAW-Volkswagen
4.3 Shanghai Volkswagen
4.4 Beijing Hyundai
4.5 Dongfeng Nissan
4.6 Changan Ford
4.7 Geely Automobile
4.8 Dongfeng Citroen
4.9 Chery Automobile
4.10 FAW Toyota
CHAPTER FIVE FORECAST ON THE DEVELOPMENT TREND OF AUTOMOBILE 4S STORES IN CHINA, 2013-2017
5.1 Forecast on Scale
5.2 Forecast on Development Trend
5.2.1 Operation Costs of 4S Stores Declining
5.2.2 Integrated Marketing Network Trend
5.2.3 Automobile 4S Stores Involving Sale of Second-hand Automobiles
5.2.4 4S Store Mode No Longer be the Inevitable Choice for Automobile Manufacturers
5.3 Recommendations on the Investment and Development of Automobile 4S Stores in China, 2013-2017
5.3.1 Automobile Accessories
5.3.2 Sale Model Upgrading
5.3.3 Others
SELECTED CHARTS
Chart Automobile Sales Volume of 4S Stores in China, 2005-2012
Chart Top 10 Automobile Brands by Sales Volume in China, 2012
Chart Top 10 Passenger Vehicle Brands by Sales Volume in China, 2012
Chart China GDP, 2008-2012
Chart Vehicle Reserve Volume in China, 2008-2012
Chart Disposable Income Per Capita of Urban Residents in China, 2008-2012
Chart GDP Per Capita of China 2005-2012
Chart Quantity of Automobile 4S Stores in China, 2005-2012
Chart Profit Structure of Chinese Auto Distributors
Chart Quantity of Automobile 4S Stores with TOP 10 Automobile Brand by Sales Volume in Developed Areas in China, 2012
Chart Proportion of the Automobile Sales Volume of 4S Stores in Nationwide Automobile Sales Volume in China, 2005-2012
Chart Quantity of Shanghai GM 4S Stores in the Major Regions of China, 2012
Chart Quantity of FAW-Volkswagen 4S Stores in the Major Regions of China, 2012
Chart Quantity of Dongfeng Nissan 4S Stores in the Major Regions of China, 2012
Chart Quantity of Beijing Hyundai 4S Stores in the Major Regions of China, 2012
Chart Quantity of Chery 4S Stores in the Major Regions of China, 2012
Chart Forecast on the Quantity of Automobile 4S Stores in China, 2013-2017
Chart Forecast on Automobile Sales Volume in China, 2013-2017
Chart Forecast on Automobile Sales Volume of 4S Stores in China, 2013-2017
Chart Automobile Sales Volume of 4S Stores in China, 2005-2012
Chart Top 10 Automobile Brands by Sales Volume in China, 2012
Chart Top 10 Passenger Vehicle Brands by Sales Volume in China, 2012
Chart China GDP, 2008-2012
Chart Vehicle Reserve Volume in China, 2008-2012
Chart Disposable Income Per Capita of Urban Residents in China, 2008-2012
Chart GDP Per Capita of China 2005-2012
Chart Quantity of Automobile 4S Stores in China, 2005-2012
Chart Profit Structure of Chinese Auto Distributors
Chart Quantity of Automobile 4S Stores with TOP 10 Automobile Brand by Sales Volume in Developed Areas in China, 2012
Chart Proportion of the Automobile Sales Volume of 4S Stores in Nationwide Automobile Sales Volume in China, 2005-2012
Chart Quantity of Shanghai GM 4S Stores in the Major Regions of China, 2012
Chart Quantity of FAW-Volkswagen 4S Stores in the Major Regions of China, 2012
Chart Quantity of Dongfeng Nissan 4S Stores in the Major Regions of China, 2012
Chart Quantity of Beijing Hyundai 4S Stores in the Major Regions of China, 2012
Chart Quantity of Chery 4S Stores in the Major Regions of China, 2012
Chart Forecast on the Quantity of Automobile 4S Stores in China, 2013-2017
Chart Forecast on Automobile Sales Volume in China, 2013-2017
Chart Forecast on Automobile Sales Volume of 4S Stores in China, 2013-2017
