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The increasingly serious imbalance of interests has already begun to lead to the emergence of visible issues in the automotive market.
Two years ago, no one would have thought that today's tangible automotive market will face these current problems. Since the second half of last year, due to the overall decline in the automotive industry, auto dealers that use new car sales as their main source of profits have entered a cold winter season, resulting in a serious imbalance of interest between the tangible automotive market where rents are the lifeline and merchants entering the market: Blocked entrances and exits, market security and the occurrence of fights by merchants entering the market, merchants being shut down and power outages, dealers being blocked from the market, and so on, events such as these continue to occur, and the tangible automotive market is beginning to face unprecedented problems.
â– The problem is more sudden
The hot auto market in 2003 and 2004 caused quite a lot of off-site funds to “kiss the eyes†of the auto industry. In fact, the auto industry at that time was already at the peak of development. These investments were full of risks from the very beginning as well as the purchase of high-priced stocks. Nearly ten million yuan are invested by merchants to compete for the right to sell the brand cars, thus building stores to sell cars; real estate investment amounts to several hundred million yuan to establish a "luxury" automotive market. It seems that as soon as it is completed, it can quickly obtain high returns.
At that time, one of the most important factors in the automotive tangible market investment was the relocation of the Asian Games Village Auto Market (ab City). Many investors believed that the Asian city, the most influential market in the country and the highest investment return rate, was undoubtedly the majority of the general public. The off-market funds will enter a good time. At that time, the existing merchants in the Asian city will be diverted, thus contributing to the emergence of a new automobile market.
Some auto professionals say that at the time everyone was arguing about the new car market. How many car markets does Beijing need? Under this background, some new concepts of the future automobile market have begun to take shape. For example, is the introduction of cars into shopping malls and hypermarkets suitable for the auto market? In this context, some unrealistic practices began to emerge: the establishment of a car building, the establishment of a cluster of automotive 4S shops, and the establishment of a car avenue.
“Is the auto market so attractive?†At that time, Su Hui, the general manager of the Asian city, placed himself at the local market and poured a cold water into the investment in the new market. “The scale of investment is so great. Can the rents of merchants entering the market support the entire market? The operation will be the first problem these markets will face.â€
No one thought that this problem would come later.
â– A number of car markets under construction are closing down
According to statistics at the time, there were as many as 22 tangible markets for cars under construction and already built in Beijing. Beijing’s southeast and northwestern and inner and outer cities were all under construction in the automotive market. The number of car markets built exceeded that of the municipal regulatory commission for the automotive market. Planning quantity. Zhang Chao, general manager of China United Automotive Markets, said that if so many automobile markets want to divert a certain number of merchants in the Asian city, what will be the result? Rapidly, some of the tangible automotive markets under construction soon encountered problems: There was a serious shortage of investment, and even some were unable to announce the opening of their lives. For example, the Science and Technology Museum Automobile Market, the Lianri Automobile Boulevard, the MALL Motor City, and the Jingkai Motor Trade City all eventually withdrew.
What all investors investing in cars did not expect was that the overall auto industry in the second half of 2004 had fallen, and new markets that had survived subsequently began to have new problems. First of all, as the growth of new car sales has begun to enter a plateau, the profits of car dealers have fallen as a whole. Some merchants whose sales are sluggish and lack new profit growth points have begun to encounter problems. Of course, they are unable to bear the rent for rent. Because of the large investment and high operating costs, one side of the market is itself unable to solve the current problem of survival. The interests of both sides are seriously out of balance.
Of course, the decrease in market rent caused by the sharp drop in the number of dealers is also a major factor in accelerating the imbalance of interests between the two parties. “When the market is good, everyone has money to make, it seems that there is no problem, and when the market is not good, the emergence of contradictions between the two sides will become inevitable.†Lu Jinhua, president of the Beijing Automobile Market Association, has a deeper understanding of this issue. Understand, "Although the auto market will not exist for a long time, reasonable planning and management are very necessary."
Zhang Chao, General Manager of China United Automotive Market, has calculated an account: In the China United Motor Market, where the scale of investment is relatively small, the cost of selling a car is about 1,000 yuan, and some newly built markets have a car. The cost of sales is as high as 2,000 yuan, so the general decline in sales profits of dealers will inevitably cause difficulties in the operation of the physical market.
â– Harsh incidents
A surnamed Han’s auto salesman was also surprised by the situation this year: In June of this year, a car-buying consumer bought a car in a market patchwork, and the result was that the consumer was selling too much. In many cases, the seam-stitching staff had conflicts with the consumers because they could not make profits after they had gone through various procedures for going out of storage, and they caused consumers to be beaten.
The imbalance of interests quickly evolved into various contradictions between the market and merchants. In early September of this year, a market ran into disputes over warehouse receipts with resident merchants due to security and caused dozens of security in the market and dealers to fight. The store's president, Xue Jingyu, saw this situation, and also came up with security theories. Then the two sides had a dispute. The entire security team once reached dozens of people, and the final scene got out of control and led to physical contact between the two sides. According to Xue Jingyu’s later memories, the security personnel also took out iron rods and other weapons to threaten the sales staff in their store. Xue Jingyu’s valuable wristwatch was smashed on the wrist and caused blood inside the wrist.
This incident is not an isolated incident. On the day before this incident, a car that had not been branded was once intercepted by security when entering the market due to the transfer of vehicles from other stores. As a last resort, many stores in the market once confronted each other collectively and in the market, and jointly blocked the entrance and exit vehicles of the market, which constituted a serious negative impact on the normal operation of the market.
And in another market, the same conflict happened. As the merchant refused to pay “municipal interface feeâ€, the market property organizer blocked the store’s storage vehicles and blocked the store from normal operation. Dealer Beijing told the relevant person of Huachen Automobile Sales Company: “As of December 30, 2004, the market property has been completely normal in the external power grid and the market has been completely normal in other merchants.
Deliberately stop the power supply to the plaintiff. On September 26, 2005, the property owner again deliberately stopped the power supply to the plaintiff. After the plaintiff negotiated, the three defendants resumed power supply to the plaintiff on the afternoon of September 30, 2005. However, just after the National Day holiday, in the afternoon of October 9, 2005, the defendant intentionally stopped supplying power to the plaintiff. â€
On the afternoon of October 20, the property party also ordered its personnel to park one of the large forklifts and vans at the entrance of the plaintiff's 4S store, completely blocking all entrances and exits of the 4S shop of the plaintiff, causing vehicles inside and outside the store to be inaccessible. Can not leave, customers can not enter the store. In the event that the subsequent negotiations took no action and the emotions of both parties intensified, even after the police came to the police, they calmed down. However, on October 21 and October 25, the property side artificially set up roadblocks and closed the road to block the incident again.
So far, the occurrence of similar incidents has not stopped and the conflict between the market and merchants continues...
â– Increased lawsuits between the market and merchants
At present, the contradiction between the two parties has begun to trigger litigation. “A few months ago, due to the conflict between us and the market, the market has already stopped electricity for me. We have started to use power generators to supply power to stores.†Mr. Feng, deputy general manager of Dongfeng Peugeot Stores in a market, said: “At present, This kind of dispute between us and the market has already entered the legal process, and we hope to eventually solve this problem through legal means."
According to the source, the Dongfeng Peugeot Store began to build stores in this market in April 2003. At that time, it paid a deposit of RMB 500,000 for building a store and an area without a store deposit. After the opening in November 2004, the market demanded that The store pays a rent of RMB 1.6 million in the next year. Due to a deposit of RMB 500,000, the Peugeot shop only pays a rent of RMB 1.1 million, and the balance is offset by the deposit. However, the market side deducted 500,000 yuan in deposits for reasons such as unqualified acceptance.
Feng said: "We paid 1.6 million yuan of rent for the annual rent of the land. We built an investment of ten million yuan (including 1.3 million yuan in municipal interface fees) to build the store. The area of ​​our final store is far less than the initial market. The area promised, and then charge for unreasonable fees such as storage fees, parking fees, property fees, and management fees. At the end of the day, our shop needs their acceptance!â€
“At present, some admission stores that cannot afford the expenses have already issued signs for low-cost transfer.†A professional said: “Actually, in terms of sales profit of individual brand models in 2004, the profit of individual brand stores is only enough to pay 8 The monthly rent of such a market in the month is simply unable to bear other unreasonable expenses.†It is precisely this factor that some brand stores that have just been established in the market first encountered operational problems. The conflicts between Xiali Store, Chery Store and Dongfeng Yueda Kia Store are most prominent. At present, some stores have started to jointly sue the market and further legal measures are in progress.
â– The imbalance of interests between the two parties is the main factor
"In fact, these incidents were not accidental." An unnamed store general manager said, "Some automotive stores established since 2003 are mainly due to new car sales, and sales started in the second half of 2004. The decline has caused the profits of these dealers to drop sharply. At the same time, some newly-built automobile markets have invested too much, have higher operating costs themselves, and because they are eager to attract investment at the time of opening, they have to minimize the occupancy rent, so the entire industry The decline of the two parties has begun to intensify this contradiction between the two sides and the occurrence of such incidents has also become inevitable."
"When the market is good, everyone is good. When it's not good, the two sides must exercise restraint," said an interviewee. "Not everyone wants to see this kind of incident, but build a high level of investment in the early days of the market." It does give us a lot of pressure and the market has to live.†Another market general manager said frankly: “Actually, even if the current market is full, I am afraid it will be difficult to support a huge investment market. We can only depend more on the current merchants, live first and wait for the market to improve and the surrounding popularity to increase."
In fact, it is not only these new markets that have encountered problems. The new markets in Asia that began to be established as early as one year ago have not yet been opened for various reasons. Among them, the unfavorable investment is the most important reason. Market participants have repeatedly held markets to attract investment. Yes, but the effect is clearly unsatisfactory. Some dealers in Laos say frankly that they also want to support New Asia. However, due to the current decline in profits from new car sales, they have no energy to open another point of sale, and it is true that the popularity of new markets is indeed inferior to Laoya.
â– There are still foundations for the existence of a tangible automotive market
Some professional analysts believe that before the advent of the Asian Games Village Auto Market, people did not give too much debate on whether the tangible automotive market could become a long-term business. More people think that it is just a stage of business, and in fact, the physical market model of the car There is still a foundation for its existence.
The automotive tangible market is actually a form of aggregation (or space aggregation) of merchants. According to Wang Huiyu, chief consultant of Senpu Consulting, according to the regional economic theory, the regional aggregation of merchants can make the circulation elements gather, the unit cost of the circulation area decreases, and the income rises, forming a scope economy. The regional aggregation of merchants has great appeal to consumers. Consumers can always find products suitable for themselves in this market, thereby expanding the service scope of products and generating “aggregation effects†that improve the overall welfare of the society. . The appearance of the automotive tangible market can not only effectively promote the improvement of the overall welfare of the society, but also greatly facilitates the centralized and standardized supervision of the automobile circulation industry by the government, effectively reducing the government management costs caused by the decentralization of automobile dealers.
In the world's more developed big cities, there are also various forms of regional agglomeration of “automobile avenueâ€, “car square†or “automobile tradeâ€. In recent years, with the continuous emergence of new tangible markets and the changing patterns, the long-term existence of the tangible automotive market has also been confirmed in China. With the number of tangible vehicles in the market ranging from 1 to 2-3, to 7-8, and the growth of the top 10, its proportion in the automotive circulation in Beijing is also growing. Therefore, the management methods and strengths of the tangible automotive market will also shift toward qualitative changes.
â– Who will regulate the physical market?
How to regulate the current appearance of the automotive tangible market? Has become the current government and industry management departments should pay attention to the issue. At present, the registration of the market has planning departments in the industrial and commercial departments and market planning, and the corresponding industry management department is the Beijing Automobile Market Association. Therefore, the basis of the regulation is that these departments must work together to regulate the automobile tangible market in terms of industry access, fee-sharing policies, and merchant management categories, so that the automobile circulation sector will not exhibit “overcompetition†and will not “competition Insufficient competition. At the same time, the norms of various industries in the industry also form the basis for the sound development of the market.
As a matter of urgency, the competent authority must carry out two aspects of regulatory management of the automotive tangible market. The first is to regulate the physical market layout, avoid the imbalance of the development of the tangible market and the disorder of competition, and the second is to regulate the tangible market organization. That is, the number of tangible markets, the tangible market behavior, and the performance of the tangible market will be regulated. Otherwise, the tangible market will be closed down and exited.
For example, a large-scale tangible market is fostered in each of the four directions of the southeast and northwest, and at the same time, it supplements the development of small tangible markets based on the level of demand in each region and the radiation capability of large tangible markets. For access to the tangible market, an expert judging panel can be formed according to the planning principle, consisting of tangible market representatives, industry experts, and government representatives, and assigning the powers and responsibilities respectively for final judgment.
In addition, for the bad operating conditions, there were tangible markets with large investment mistakes or liabilities in the previous period, and the unfair debt transfer under serious liabilities and the tangible market irregularities under the industrial management constraints were further restricted. For example, some automotive tangible markets have even included the business behavior of "merchanting each brand owner's clothing", "each merchant's own rules and regulations", and "all merchants' sales methods, etc." Into the management of the tangible market; Because there are no fees and standards as a basis, some tangible markets are free to establish or apply fees and standards for other industries; in order to quickly get rid of huge debts caused by excessive investment or investment errors, most of the automotive tangible markets also take advantage of the auto market's best-selling opportunities. In the leasing contract, additional fair terms are displayed, and additional infrastructure construction costs are assessed. This will inevitably cause disputes and even violent conflicts between merchants and the tangible market.
â– Establish a physical vehicle exit mechanism
How to strengthen the norms of the entire industry is the current top priority for the development of the automotive tangible market. For the current contract disputes between the market and merchants, if relying on legal means to solve, will be too much time and effort, in the process of conflict between the two sides, often need to find the resident industry and commerce, local government management office, industry association Such solutions, these links will make the problem more quickly and reasonable solution. Therefore, establishing a car market chamber of commerce and achieving an equal dialogue with the tangible market is the basis for resolving the contradictions between the two sides.
In addition, in order to effectively solve the excessive competition caused by excessive entry, the automotive tangible market should regularly report to the competent authorities of the industry operating conditions. For the tangible market for cars that have been losing for 2-3 consecutive years, the competent department of the industry should ask them to withdraw from the transition of the project. There are two main ways: First, through the transfer, the way of turning, it can also be called "soft exit"; second, through bankruptcy, dissolution and direct withdrawal of capital, it can also be called "hard exit." You can also use the method of downgrading to reduce the scale of investment, also known as "allowance."
If the physical tangible market does not exit properly, it will create market chaos. Therefore, the industry authorities should also set up information platforms and transaction channels to help the tangible market of poorly-operated automobiles achieve a smooth exit; for tangible markets that apply for “deregistration,†the government authorities can use the new layout plan and new regional market forecasts. And tangible market operating estimates to give consideration. For a tangible market with a continuously high profit, the government authorities may consider agreeing to add a small-scale tangible vehicle market to its edge radiation zone.
Who is out of balance with interests to regulate the physical market?