Youxin CEO Dai Hao: Used Car Dealers Should Start with Information and Purchase

The first two years were trial and error and a lot of tuition was paid.
The company has operated for three years now and the first two years are trial and error. Although our general direction is correct, we have tried many models in the first two years, and we have also violated the wishes of dealers to do some implementation. These ideas will lead a company in the ecological chain, from a service role to an oppressive role. You are in an industry. Once you oppress, you will immediately rebound.
So we have problems on the implementation level several times in the development process. Now we are very clear that the big guiding logic is to serve dealers. Problems in these guiding ideologies in the past have caused us to almost die.
Fortunately, we haven't died yet. We really started thinking about doing B2C in early 2014. At that time we had just tried the C2B business and paid a lot of tuition, but it failed. Because the service of C2B is not of much value, in the eyes of consumers, there is no difference between the service provided by you and the cattle.
After we discovered that C2B was not the right thing, I quickly discovered that B2C was a very good thing.
B2C's logic is perfectly valid. In the hands of dealers, dealers need to find consumers. The services we provide now can make this matter more honest and transparent.
At the B2B level, vehicle integrity and transparency have helped dealers earn money. If this transparency and integrity transfer to the consumer-oriented segment, can it help dealers earn more money? Yes. Is it possible to help consumers buy more suitable goods? It should also be possible. So we need to go live B2C business.
At the B2C level, our core strategy is still to help distributors solve problems, not that we become used car dealers. This is a bit like the concept of Taobao, the goal is to help dealers deal, but our platform provides all vehicle inspection and warranty services.
Automotive e-commerce is not an overnight process, especially for used cars. Because the large market environment and consumer environment do not allow consumers to buy cars directly online, including new cars is also difficult to do. Before e-commerce, the first thing that needs to be addressed is information services and helping consumers make the right information decisions.
The second-hand car industry has one important point: the brand of used car dealers does not represent its products. If you need to buy a used car, it may be in the hands of any dealer anywhere, so you need an information platform to tell you where the car is. This is not an electricity supplier, but this is the predecessor of e-commerce. All consumers must have a link in the shopping process, that is, information services, and we must cut in from here.
There are two leapfrogging stages from information platform to e-commerce. The first leap forward stage is to help consumers complete the purchase. The information platform can only provide consumers with choices, but it can't help consumers complete the purchase process. We need to add optional features to help consumers simulate and implement offline actions and transactions.
What is the goal of making purchases? Consumers initially screened 10 favorite products on the information platform, and finally could not continue to narrow this range, locking the car he really wanted.
In order to achieve this goal, we must first provide a very complete and comprehensive photo. In addition, we will simulate the process of communication between consumers and dealers, including vehicle configuration, comparison and price/performance issues, help consumers to make comparisons, and help consumers target. From 10 to 2, eventually from 2 to 1, this is an absolutely a leap.
When consumers lock a car on the platform, it's easy to complete the trade-off. Therefore, this process is gradually progressing, rather than being pushed forward one by one.
In this area of ​​the car, B2C is still very important. The C2C used car supplier is not currently mainstream.
One of the biggest problems with C2C is that the C at both ends have different perceptions of the car. The owner of the car usually thinks his car is great because he is used to it. People who can buy a car do not think so. He smells bad or feels dirty in the car.
In this case, the B-side service is indispensable. For the average consumer, of course, performance is important, but appearance is the most important and intuitive. Dealers must be refurbished and rearranged after they close the car. Everyone wants to buy a car with a beautiful appearance and a clean interior. No one is looking for cheap prices. This is an important value provided by the dealership's B-end in the used car transaction process.
The second point is that the existence of a dealer can greatly shorten the transaction time. In the course of this transaction, the dealer will first pay the owner of the money, and the owner can immediately purchase a new car. The dealership is responsible for the sale of the car. However, in the C2C process, car owners must wait until a buyer has completed a deal before they can buy a car. This process is usually much slower.
At the final price level, the C2C platform saves middle dealerships. In theory, owners can sell better prices and consumers can buy cheaper cars. However, in reality, this is also difficult to achieve, because owners and consumers must always make repeated comparisons during the transaction process.
If the number provided by the platform is small, it is difficult to choose what the user really wants. Therefore, our approach is to solve the quality problem on a large base scale. It is based on hundreds of thousands and one million bases to make information transparent, rather than based on the basic framework of several hundred units or thousands of units.
C2C kills the intermediate links, but ignores the value provided by the intermediate links. We used to think that C2C may be a viable method because the entire used car industry is opaque and untrustworthy, largely due to dealers. But today we don't think so, dealers can be changed.
Of course, transforming dealerships is undoubtedly the hardest part of our job.
In the past, many problems between consumers and distributors were actually due to the low service level of dealers. The frustration of many dealers today is that consumers no longer believe in them. In the past environment, the cost of a dealer's goodness was high. Then he may choose to be evil. However, if you can make money in good faith, no one wants to be a bad person.
Therefore, we must change this mechanism to allow dealers to use higher service levels and more honest ways to earn money and re-establish an honest ecosystem.

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