Car Brand Management Measures or Modifications

Car Brand Management Measures or Modifications The model of car dealers in the future may change. Recently, a spokesman for the Ministry of Commerce revealed that it is working with the relevant departments to revise and improve the "Implementation Measures for Automobile Brand Sales Management" (hereinafter referred to as the "Administrative Measures"). This also means that after eight years of implementation, with the changes in the market environment, the "Administrative Measures" will no longer be suitable for the development of the market after the completion of the mission. Car analysts said that once the "Administrative Measures" are revised, it is necessary to change the current situation in which auto manufacturers and distributors differ from each other. We must allow distributors to have market-dominant rights and have equal rights to dialogues with production companies. And, this will also create a dealer system that coexists in various forms in the existing single dealer situation.

Relevant departments are studying ways to revise

As the high prices of imported cars are suspected of monopoly, the "management approach" has been fouled by the outside world.

Industry analysts pointed out that the reason that the price of imported cars is much higher than foreign sales is partly because taxes are not excessive, but because most of the foreign car companies have been implemented after the implementation of the “Automobile Brand Sales Management Measures” in 2005. A wholly-owned subsidiary was established in China as the general distributor of the brand in China, forming a monopoly on resources and obtaining huge profits.

In response, relevant responsible persons of the Ministry of Commerce disclosed that from the present situation of the auto market, it is necessary to revise and improve the “Administrative Measures” together with the relevant departments, and is actively studying the revision methods, and it is necessary to give top priority to effectively protecting the legitimate rights and interests of consumers. , Refine the relevant provisions to further standardize the business operations.

“It is necessary to impose restrictions on suppliers in terms of collecting construction deposits, tying contracts, etc., promoting the establishment of a stable relationship between suppliers and distributors, guiding the establishment of a conservation-oriented automobile distribution network, and promoting the healthy development of automobile brand sales.” Danyang stated that the internationally approved model for the authorized operation of automobile brands under the "Administrative Measures" not only gives auto suppliers the right to build networks and authorize sales, but also imposes network maintenance, management, and training on them, and is especially responsible for product quality. The purpose of such obligations is to regulate the activities of domestic sales of automobile brands, enhance the awareness of business entities, clarify the responsibilities of all parties, facilitate the tracing of responsibilities, and safeguard the legitimate rights and interests of consumers.

In fact, this is not the first time that the "Administrative Measure" has been reported. In 2008, when the auto market was extremely sluggish, and a large number of dealers faced closure, there were reports that the "Administrative Measures" would be issued with detailed specifications. However, due to certain reasons, in 2008 the "Management Measures" did not finally issue a revised version or related supporting measures.

At the time, Jia Xinguang, an automotive analyst, said in an interview that in the "Administrative Measures" revision, the party represented by dealers, tangible markets and circulation associations was actively promoting. However, it found the resistance of vested interest groups headed by multinational corporations.

Management approach has not adapted to the market

It is understood that the "Administrative Measures" was formally implemented in 2005 and the contents clearly stipulate that automobile suppliers should provide auto brand dealers with authorized auto brand dealers with their own service marks and implement network planning. Automobile suppliers should strengthen the management of brand sales and service networks, standardize sales and after-sales services, and promptly announce to the public their list of authorized and cancelled auto brand sales and service companies. Enterprises that are not authorized to sell automobile brands or do not have operating conditions must not provide automobile resources.

However, the introduction of the "Administrative Measures" could not abandon the prevailing market environment, which was caused by the environment at that time. On the one hand, after the cancellation of unified purchase and sales, the distribution system of the market has changed, and the distribution environment has changed. At the same time, the automotive market lacks experienced practitioners, or the automobile market has no practical experience in sales. In one case, car manufacturers are required to assume a greater responsibility in sales, which is very necessary for dealers. Therefore, it has established such a distribution system that is led by automobile production companies and has authorization as the core.

Shen Danyang, spokesperson of the Ministry of Commerce, said that the "Administrative Measures" issued in 2005 proposed an internationally authorized vehicle brand licensing business model, which not only gave auto suppliers the right to build networks and authorized sales, but also imposed network maintenance and management on them. , Training, especially the responsibility for product quality and other obligations, the purpose is to regulate the domestic activities engaged in car brand sales, enhance the awareness of the main business service, clear the responsibilities of all parties, to facilitate the traceability of responsibility and safeguard the legitimate rights and interests of consumers. Overall, the implementation of this approach has played a positive role in accelerating the construction of automobile brands, improving the level of automobile marketing and services, opening up to the outside world in China's auto distribution field, and expanding automobile consumption.

However, after eight years of development, China's automobile circulation has undergone tremendous changes, car dealerships have greatly increased in strength, and management capabilities are gradually improving. The "Administrative Measures" have been difficult to adapt to the development of the market.

"After the introduction of the "Administrative Measures," it can be said that it has played a very good role in terms of the development of the last eight years. The positive role of promotion is reflected in the first. It helps the automobile industry establish a more effective and standardized distribution. The second is to establish such a top-to-bottom sales system from 4S to 4S, from production companies to distributors to consumers,” said Zhang Zhiyong, an automotive analyst. However, the “Administrative Measures” can no longer be implemented. To adapt to the current market environment, there was a shortage of experienced employees and actual sales experience in the automobile market at that time. Nowadays, the automotive market has undergone great changes. Now the Chinese auto market is generally in a position. Steady increase in state.

"In today's auto market, auto manufacturers need to be safe, energy-efficient and environmentally-friendly in terms of technology. In the automotive sales field, they do a good job in managing after-sales services and the Three Guarantees. The "Administrative Measures" does not bring any good effect to the auto market. Jia Xinguang, a senior automotive analyst, also believes that after years of development in the Chinese market, the environment has undergone great changes, and vehicle brand management practices are not even needed.

The dealer system will change

Since the "Administrative Measure" is no longer adapted to market development to some extent, how should the "Administrative Measures" be revised? What will be the impact on the current distributor model after the revision?

At present, due to the "Administrative Measures" to give auto companies the right to have a strong position. Due to the disparity in the status of the two, the relationship between some auto suppliers and brand distributors is not harmonious, and the contradictions and problems such as mandatory dealer business models, collection of deposit guarantees, and forced inventory and tying are increasingly prominent. And, with the large number of cars entering the home, complaints about automotive products have increased. Even industry insiders revealed that domestic dealers have to pay a certain amount of consulting fees to run a certain brand, which has become a “hidden rule” to some extent.

"If the "Administrative Measure" needs to be amended, in principle, it should change the difference between the original auto manufacturers and distributors, and let distributors have market-dominant rights, so that dealers have ownership and production in the entire distribution business. The right to dialogue on an equal footing of the enterprise is the core of the revision.” Zhang Zhiyong said that the impact on the dealership system will be based on the existing single-form distributors, forming a common coexistence of various forms. Dealer system.

It is reported that in 2008, when the auto market was sluggish and dealers suffered large losses and bankruptcy, the relevant departments of the industry intended to reshape the market status by modifying the "Administrative Measures." Among them, the main goal is to change the “automobile manufacturers can authorize car dealers to formulate and implement a network plan” to “entrust car dealers to formulate and implement a network plan”, thereby changing the relationship between the manufacturers and distributors and changing from subordination to equality.

â– Reporter observes where the traditional 4S model goes

If the "Administrative Measure" undergoes a major revision, what impact will it have on the market? Some analysis pointed out that in the current "Management Measures" with 4S stores as a carrier, if there is a major revision, once the existing dealer system changes, the traditional automobile circulation model 4S management system will gradually intensify in the market competition, channels gradually sink and the center If the cost of urban land is too high, it may accelerate its fission to adapt to market demand.

In 1998, two car companies, Guangzhou Honda and Shanghai GM, took the lead in setting up 4S stores in China and introduced overseas car sales models, including sales of cars, spare parts, service, and information. Feedback, etc. (Survey), its core is to provide customers with life-long service solutions. This is a model that car companies launch in order to meet customers' service needs. For a time, 4S has long occupied the mainstream mode of domestic car sales, which has also become a major mode for car companies to use the "Administrative Measure" game rules to lay out the market.

The analysis pointed out that as a sales model introduced into the market environment at that time, the 4S model and the “Administrative Measures” all had their special pertinence. By authorizing the manufacturers, they provided approved accessories and perfected products for the chaotic state of the domestic market. Services, regulate the entire market.

However, the single mode of automobile circulation in 4S has also been subject to controversy. This is mainly due to the monopoly of car sales, that is, the "Administrative Measures" stipulates the auto distribution rights of car enterprises, and it is difficult for dealers to gain initiative.

At present, with the increasingly fierce market competition, dealers need to obtain a more simple way to obtain investment returns, and some brands are relatively weak and sales are relatively small. Due to high operating costs, many automobile dealers are on the verge of bankruptcy. Under the existing "Administrative Measures", dealers are unable to respond flexibly to the car companies' strong resource allocation. They can only passively rely on car prices.

However, once the "Administrative Measures" are revised to rebalance the relationship between car companies and dealers, the 4S model will also accelerate into the fissile period. It is reported that many dealers hope to have equal dialogue with car companies and can plan their own future development independently. With the market permitting, they will develop more secondary dealerships and increase sales capacity. They should not be overly constrained by the car. Enterprise. Moreover, it can further stimulate the development of the automotive trading market.

In fact, under the background of increasing land costs in central cities and the sinking of channels to three-and-five-wire cities, 4S stores based on huge investment have been difficult to sustain, and many car companies are also giving up the pursuit of 4S stores. .

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