Excellent second-hand car: Although the track is good, business is difficult to do

With map from Canva

High marketing investment has not been exchanged for high return, excellent service, melon seed car, a used car e-commerce, and collective caught in the predicament.

Before you early, the rumors of people in the large-scale layoffs, bankruptcy, selling, and high-level separation, the people who have been hot in the streets are also gradually hidden. Recently, many media broke the news. Ren people plans to sell its China Hong Kong business main assets to 58 city with a price of HK $ 10,000, but then responded to the same report in the same city.

At the same time, the melon used car debt is entangled, provoke the lawsuit. There is media to explode, and the melon used the melon used car in more than 100 cities in the country, and it has been closed, and it has been closed, and the store is nearly 2/3. Moreover, the melon seed owed by more than 10 million yuan and compensation is strictly elected the mall property holder, and launched a lawsuit in the melon used car.

In addition, the days of “the first share of the second-hand car e-commerce” is not good.

Yuxin’s third financial season earnings report, this quarter (October to December 2020), the total revenue of Yuxin is 322.9 billion yuan, the same period of last year is 466.4 billion yuan; Non-gaap is from continuous business operations After adjustment, the net loss was 162.5 billion yuan, and the last quarter was RMB 178.3 million, and the last year was 576.5 million yuan.

Loss, high debt

As we all know, after the excellent service shot (B2B mode), financial loan, Excellent new car and other business have successively desolate, Excelle will develop focus on the national purchase of the second-hand car, but still failed to alleviate the loss pressure.

According to disclosure data, 2016-2018 three years, the loss of excellent service is 1.39 billion yuan, 2.74 billion yuan, 1.53 billion yuan. After the list of “the first stock of the second-hand car” has not changed the destiny of the loss, the net loss of 1990 million yuan in 2019, 2020, the net loss of 2,6232 billion yuan.

For the investment public, profit is an important indicator to judge a business future development potential. At this point, the customer is clearly not good enough. Not only that, but the cash flow is negative, the debt is high, so that the market value continues to fall. On May 7, 2021, Yuxin market value has fallen nearly 70% compared to the nearly $ 2.8 billion market value at the beginning of the listing.

Financial report data shows that 2016-2019, Excelle management cash flow is -661 billion yuan, -1834 million yuan, -2281 billion yuan, -1.194 million yuan; the total liabilities of Yuxin are 1.986 billion yuan, 506 million yuan, 4.978 billion yuan, 4.918 billion yuan, asset debt ratio of 85.7%, 95.5%, 66.9%, 91.4%.

Today, excellent service is still far from the future. On the one hand, Excellence is in the development of excessive investment in advertising marketing to compete for market share, causing nothing. Financial report shows that 2018 to 2019, Excelle’s sales and marketing costs account for 225.9% and 74.6% of the company’s total income, even if the privileges have “converge” in the past two years, the marketing costs are still high.

On the other hand, the domestic second-hand car market is mixed, and it is still lacking standardized value assessment standards, leading to constant consumer complaints, directly affecting the platform trading rate. On the black cat complaint platform, there are 5,327 complaints about Excellence, and 1926 melon used car complaints, and 1720 people have a car complaint information.

In the case of the second-hand car e-commerce collective landslide, the revenue decline, the profit is life-saving, what should I get to the second-hand car who lost the eucalyptus?

Busing “big store”

Excellence main income from commission revenue (changed to automobile sales revenue after using the new model of self-built stock), that is, the second-hand car platform charges the service fee to the consumer according to the price ratio, so the sales of the second-hand car sales is somewhat. Decided the high low of the revenue.

The biggest factor currently affecting the sales of used cars is the control of the quality of the used car, projection to the used car e-commerce is the management capabilities and control capabilities of the second-hand car supply chain. In this regard, the response measures made by Excelle are self-built inventory, and the second-hand car source, testing, sales are firmly mastered in their own hands, bringing better used car sales services for consumers.

In September 2020, the founder of the Excellence Group, Chairman and CEO Dai Wei announced that Yuxin will adopt a new model of self-built stocks; on April 6, 2021, the first second-hand car supermarket in Excelle will settle in Xi’an. At this point, the Excellent Self-Build Infrastructure Straight Transformation Trends to the Regret.

It is reported that Excellent second-hand car supermarket covers an area of ​​over 24,000 square meters, with 13 warehouses, carrying warehousing, testing, preparation, shelves, store display, etc., and the vehicle source covers more than 40 cities across the country, can meet consumers Each type of car demand.

There is no doubt that deep tillage self-built inventory model is conducive to the management capability of the second-hand car supply chain. In this regard, the founder of Excellence, Chairman and CEO Dai Wei said: “Self-built stock mode allows Youxin to provide better online products and services to the entire second-hand supply chain.”

In addition, the results of the self-mineral transformation of the expertise are also reflected in the financial report. In the third quarter of the 20021 fiscal, 99% of the second-hand trading volume in the reporting period came from its own stock; during the period, the business cost of Yuxin increased by 64.6% year-on-year, mainly due to self-built stock mode The increase in cost, while gross profit is also rotated from -22.4% in the previous quarter to 2.9%, which means that the inventory turnover efficiency of Excellence is significantly improved. It is worth mentioning that the recent Jingdong and Excellence announced a strategic cooperation, and proposes that both parties will launch in-depth cooperation in terms of data, technology, second-hand car testing standards, and supply chain integration.

Nowadays, the employment of the employees in the e-commerce industry is high, the user’s trust is low, and the transaction rate is low. The major second-hand car platforms face funds, and they have fallen into a loss dilemma. For Excellence, Jingdong can provide online traffic support to solve the customer’s proven problem, and it has a very high user reputation in Jingdong in the Internet market. It can be said to be synonymous with quality. Quality rear book.

All in all, from the new model of self-built stocks, with Jingdong reached a strategic cooperation, it can be seen that the excellent service is actively “self-rescued”. However, the service level of the used car, the level of service, the trust of the user, can not be a good, the road to the self-rescue is far away.

Although the track is good, business is difficult

In 2021, under the promotion of a good policy, the second-hand car market remained vigorous development.

Recently, the national department issued the “Notice on Promoting Second-hand Car Trading Registration and Transmission”, which is intended to solve the problem of long and inconvenience, etc. from the system, and further promote the second-hand car trading industry. development of.

Under the policy of policy, the second-hand car market presents forward growth momentum. According to the statistics of the China Auto Flow Association, the national used car transactions reached 39.56 million in the first quarter of 2021, an increase of 97.2% year-on-year, an increase of 21.5% from the same period in 2019.

For a long time, the second-hand car market is facing the lengthy channels of circulation channels, high customer costs, opaque information, non-unity, and lack of after-sales service. The release of “Notice on Promoting Second-hand Trading Registration Inter-provincial Customs Convenience Used Car Differently Transactions” can effectively mitigate problems such as opacity transactions, and also reduce people’s consumption concerns.

It can be expected that in the policy promotion, the second-hand car consumption market will enter the development of expressway, and the excellent service of the industry’s leading will also usher in a new round of development opportunities. However, policy dividends also attract many points, and the competition in the second-hand car will be more intense. The day-eyed professional version shows that there are more than 560,000 business scops in my country, including “used vehicles”, 83% of which are limited liability companies, 15% of relevant companies are individual industrial households.

In terms of exception, even if the second-hand car market is environmentally friendly, there is no good profit model, it is difficult to achieve sustainable development, so profitability is still a major difficult relationship between Excellence. In addition, the founder of Excellence, Chairman and CEO Dai Wei said: “Word of mouth is the core competitiveness in the second-hand car industry, and the most important corporate moat.” Therefore, by improving product quality, service, etc. to establish a good The user reputation is critical.

In summary, the size of the used car market continues to expand, and will lead to the review and supervision of all walks of life. As one of China’s largest second-hand car online trading platform, the road after the second-hand car will be more and more inclined. And whether the success or failure of the new model of self-built stock is to determine the important basis for the comprehensive strength of the excellent service, the impact is far …

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