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Ali Baba and Guanghui together to create the second-hand car trading platform

  • Author:JAMES
  • Source:"21st Century
  • Release on:2014-08-25
"Ali Baba and Guanghui together to create the second-hand car trading platform

Following and SAIC jointly create "" Internet Car"" after August 19 , Alibaba Group, also
with CGA, jointly held the "" Ali Baba and the CGA Used Car strategic cooperation
conference .""
Cooperation with Guanghui , Alibaba 's purpose is to create second-hand car trading
platform. The two sides agreed to work together to build a used car O2O trading platform
established to cover pre-sale , norms and standards O2O sale of second-hand car trading
platform .

"" Our goal is in five years , so that everyone in the car can be like today Taobao Taobao
to buy clothes , buy a mobile phone , telephone charge cards, simple, efficient and worry
-free ."" Ali Baba marketing division general manager , told reporters knife , but at this
stage just want to build up a platform, and not considered profitable .
Lynx with car manufacturers need to pay an annual fee to shop shop different , CGA auction
of used cars in the used car Alibaba platform , does not need to pay the associated costs.

Guanghui is the largest dealer group , while in the used car business is relatively
mature, that is why Ali phase Guanghui . Taobao Ali ready to implement the used car
auction business , in addition to CGA , but also hope that more businessmen stationed .

"" Escalating market demand, the elimination of used cars down, I think the Chinese used
car market sooner or later with the world ."" Knife think . Ministry of Commerce , "" the
development of guidance ,"" "" on the promotion of car circulation "" five- on anticipation,
in 2015 China used car transaction volume will more than 10 million , is expected to reach
20 million in 2020 .

However, this data is also considered more than a knife . Once the Chinese auto market
matured to the current level of American and European countries , even new cars trading
volume unchanged, maintaining the current 20 million annual sales , used car trade will
reach 80 million . Calculated by a 70,000 yuan , is a 6 trillion market.
Taobao change the used car ""hidden rules"" ?

""Now the possibility of selling new cars online is still relatively low , the opposite of
used cars on the Internet has a clear chance ."" Knife told reporters. The country has 16
provinces court car auction on Taobao . In Zhejiang Province , only the first half of 2014
, the turnover of 1281 , the turnover rate of 93% , turnover amounted to 220 million .


The average premium rate of 40 percent , the highest premium rate 1904% . The car had been
bidding 216 times , more a BMW are 23 million people watching, this is the Internet
auction record. Analysis of the problem of selling a used car online , knife think the
most important factor is to buy a used car online information transparency , consumers buy
fair and equitable, because the courts do not exist and Taobao fraud problem , on the
contrary , buying a used car in the presence of the three lines problem : The information
is not public , the price of opaque , sale insecurity .

Before cooperate with Taobao , also do their own used car Guanghui vertical sites,
Guanghui their annual online sell used cars up to the million. Taobao is an open platform
, as more and more businesses settled , Guanghui in the used car market will be subject to
certain profit margins squeezed.

""This is a big trend , I do not do to others will do ."" Zhou , vice president of CGA
believes educating , CGA collaboration with Ali just one step ahead . While the rest on
its laurels in the short term to maintain a high gross margin , but in the long run , more
transparent information on the Internet era can also bring other benefits traditional
model can never achieve.

Taobao recorded owners have 80 million users , potential owners of not less than 300
million users , this huge consumer groups have not been completely activated on Taobao ,
Taobao consumer they are mainly concentrated in the car market.
Imagine, also a second-hand car dealers online or on vertical platforms, and the scale of
potential users on Taobao platform face is incomparable. ""We have done the statistics , a
used car , working on the next line transactions require 45 days -60 days, while on Taobao
possible 4-5 days to sell out ."" Knife told reporters , which leads directly to is the
dealer to reduce the cost of capital .

Taobao also Guanghui customers loans. Taobao users to buy a used car , according to the
user's Taobao consumer records , to determine the credit line within one minute ,
providing guarantees 0 0 approval, 0 fee , and use Guanghui strong network of support can
achieve 24 hours to mention cars .

Arrow platinum company 's revenue structure compared distributors , U.S. dealers 55%
revenue from new car sales, 25-30% from the second-hand car , the other from the spare
parts and services. In China , new car dealers accounted for 90% of revenue. With more and
more car manufacturers join the ranks of the electricity supplier , in fact , the
traditional dealers pressures are further enhanced, timely adjustment of strategies ,
including second-hand car to car sales services , including restructuring the whole
industry chain is imperative.

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