subject: Research Report On Chinese Auto 4s Shops, 2010-2011 ----aarkstore Enterprise [print this page] Since the 21st century, Chinese auto consumption sees a soaring tendency. Autos enter Chinese ordinary families as consumables. Chinese auto sales volume maintained a high growth rate even in the financial crisis. From Jan. to Nov. of 2009, Chinese auto sales volume reached 12.23 million, rising by 42.4% YOY.
Presently, there are over 30,000 auto distributors in China. Since the establishment of the first 4S shop of Guangqi Honda, there were over 10,000 auto 4S shops in China by the end of 2008. The number of Chinese auto 4S shops ranks the world Top.
With the intensified competition on Chinese auto market, the perfection of the sales and service channels is highly valued by auto enterprises for scale expansion. Though auto 4S shops require a large initial investment, they have become the main sales and service channel for Chinese auto manufacturers dependent on their terminal advantages of specializing in sales and service as well as building brand images. Currently, Chinese auto market gradually enters the mature stage with improving marketing concepts and maturing consumer psychology. After the prosperity for several years, Chinese auto 4S shops enter the adjustment stage with sharp profit decrease and intensified competition. Moreover, auto 4S shops of some brands even face crisis.
It is forecast that the 4S shop mode will still be the mainstream for Chinese auto sales in following years. However, owing to the numerous new cars emerging on the market and the rising expectation value on service qualities of consumers, the inherent disadvantages of auto 4S shops are exposed. According to relevant statistics, among auto 4S shops in Beijing, only 1/3 of them make profits; another 1/3 face loss risks; the rest 1/3 suffer great losses. As markets today are quite fickle, none of the auto marketing patterns trading market, 4S shop, supermarket and auto industrial park can be duplicated completely. Though auto 4S shop is commonly regarded as the most advanced auto marketing pattern, it is not applicable to all auto models and brands.
