· Market Outlook: Who can cut the used car cake?

In 2015, although the auto market entered a “new normal”, it did not hinder the “hot” used car market. This year, the traditional used car tangible market alliance with each other, the establishment of a nationwide network of used car bidding platform to counter the momentum of the second-hand car e-commerce auction platform; second-hand car market and then "capital predators", excellent letter and melon seeds used car Over 100 million yuan of mammoth advertisements, launching C2C transactions of used cars in China; traditional car companies intensively in the branded used car business, active innovation model, integrated into mobile networking... and so on, used car cakes are being tangible by car companies, e-commerce and traditions The market is divided, and who will win next year has become the focus of the used car industry.

Equalization of three main opportunities

At present, China's used car market is completely controlled by three main players. The first one is the traditional used car market. In the early stage of the development of used cars, this format took on the responsibility of buying and selling used cars. The market has gradually gathered thousands of used car brokers and brokers to form the used car market today. The second is the multinational brand car companies. Because it grasps the technical standards of the brand models and the original spare parts resources, there are precedents for branded used cars in other markets around the world, which is often regarded as the benchmark for the development of used brands in the future. The third is a used car operating entity based on the interconnected model. This entity takes advantage of the Internet, shortens the value chain of used car transactions, and gradually penetrates the B2B, B2C and C2C businesses of used cars. The main types are used car auction platforms, used car consignment, used car sales companies and individuals. Business model of online used car trading and so on.

It should be said that all three subjects encounter different levels of problems in the moment. Although the second-hand car tangible market integrates the advantages of used car display, auction and transfer, but in the current market environment where the used car is lacking in integrity, its development and expansion space is constantly being squeezed, and some eagerly growing second-hand car entities have begun. Evacuation of the market, trying to find another fertile soil; the second main body of multinational auto companies promoted the brand used car business many years ago, but even today, even the best single car company, the annual sales of its brand used car is still hovering. Within 30,000 vehicles, the sales volume of new cars with millions of vehicles is disproportionate. The second-hand car operating entities developed based on the interconnection model have doubled the transaction volume in recent years, but they are subject to lack of integrity and high expectations of sellers. The transaction rate is still low, and it is difficult to have a substantial advantage compared with the first two entities.

However, the future development of the used car market in China is large enough to accommodate the second-hand car operators that serve the different used car consumers. According to the latest statistics, the number of motor vehicles in China has reached 264 million, of which the number of cars has exceeded 164 million, and nearly 20 million will be added each year. According to the frequency of changing cars in 10 years, the annual trading volume of used cars in China will exceed 16 million, and the transaction volume of 8 million vehicles this year is only half of them. Therefore, at this stage, it can be said that for three subjects with different consumption types, the opportunities are equal.

Used cars have their particularity

When talking about the used car market in China, we can't blindly apply the foreign development model. Whether it is from management or development, the Chinese used car market has its own particularity. In the early stage of the development of the used car market in China, the main function of the market is to handle the transfer of used car transactions. The market does not directly intervene in the transaction. After the buyers and sellers negotiate the price, they go to the market to transfer the transfer, thus completing the transfer of the entire used car transaction. . Later, around this market function, the tangible market of used cars integrating the display and transaction of used cars was gradually formed and developed. For some time, in order to invigorate the used car market, the relevant authorities intend to grant operating licenses to used car entities, including car companies, but because of the existence with the tangible market

The problem of unequal taxes and fees, so far, most of these operating entities still carry out used car business in accordance with the market transaction transfer method. Therefore, the Chinese used car market is actually an market that is not fully marketized. The low-priced acquisition of high-priced sales is still its leading business.

Not only that, so far, China's used cars still have no commodity attributes, so entities have no intention of upgrading value-added services. In Beijing, for example, due to license restrictions, various entities must have a certain number of “public licenses” (violation) when acquiring used cars. Only in this way can the car owners be able to apply for new licenses in time, and “public” The number of licenses is also doomed to the size of the second-hand car business, which restricts the development of used car operating entities to a certain extent. At present, the brokerage companies in the used car market are still dominated by second-hand car dealers. This model is destined to be difficult for the brokerage company to break away from the market and form a large-scale transaction. The brand is even more difficult to talk about. Even the branded car business of the brand car enterprise, in the actual operation, is mainly based on the used car brokerage business, and needs to lease the license to operate the used car. The cost per car is only increased by nearly 2000-5000 yuan (including Two transfers), the pricing of the brand used cars out of the market, forming a price high.

The above is only the impact on the traditional used car entity, and in the Internet today, some emerging e-commerce companies also encounter the problem of cumbersome procedures for the transfer of used cars in China. The Beijing Youth Daily reporter has followed the C2C business of e-commerce. Due to the cumbersome vehicle procedures, every time the e-commerce “car broker” makes a car transaction, it takes at least three times to meet the buyer and seller. The first time is the car inspection upload. The second time is to take the car to see the car, the third time is to transfer the house, if this period can not be a one-time transaction, you need to pay attention to the car several times, which not only wastes the time of both buyers and sellers, but also increases the transaction cost, let the value The short-chain Internet advantage is difficult to play.

Trading is different from foreign countries

Experience in the used car market in developed countries shows that a car has three times the profit of a new car during its life cycle, but it is not the case with Chinese used cars, and it is unlikely to appear in the short term. The reason seems to be very simple. So far, the B2B, B2C and C2C models of used car trading in China are almost entirely a broker-based model. The added value of used cars is very low, and the operating entities generally sell at low prices. The business model is dominant. This model makes the development of used car business difficult to sustain and must make major changes in the short term.

In recent years, in the context of "Internet +", the used car industry has also been added. According to incomplete statistics, the current financing of the used car industry has exceeded 7 billion US dollars. These capitals firstly seized the market trend of the new and old car replacement market in the first-tier cities, and used the auction of used cars to bid for the second-hand car market. The B-end merchant chain together promoted the rapid circulation of used cars nationwide. However, with the expansion of the restricted range of used cars in different places across the country, the large-scale used car auction market has encountered rare difficulties in recent years. For the auctioneer, how to get rid of the restricted cage is the most realistic problem this year. The only way is to start from the bottom B, shorten the used car transaction value chain, let the consumer C end participate, and help the B-side merchants to solve the sales. The problem, so the second-hand car B2B auction circulation can rejuvenate again. Therefore, in 2015, the used car B2C business became a new investment hotspot. This business model is to use the Internet to simplify the transaction process and allow more direct buyers of used cars to participate.

However, it seems to be counterproductive. There are still many shortcomings in the used car market in China, which makes this new business development not very smooth. First, due to the lack of good faith, the B2C business carried out by e-commerce is not as simple as that of foreign countries. In order to expand the transaction volume, the B2C platform that provides services often needs to invest huge manpower and material resources, even at the expense of subsidies, and currently only charges 3% commission ( Including the transfer fee), this business is difficult to sustain; second, the market maturity is not enough, the car owner's expectations for the car price is too high, resulting in a decline in the transaction rate, coupled with local restrictions on the policy, the B2C transaction chain is actually not smooth. In turn, the sluggish demand for C-end used cars has made the auction of used cars on a large scale stretched, and the used car market experienced a temporary decline in 2015.

The cake is much bigger

Despite this, the lucrative use of used car transactions in the future has been recognized in the industry. It is generally believed that the future profit of used cars is not the difference speculation in the sale of used cars today, but in the various aspects of the transaction, by increasing the added value, the premium of used car brands is obtained. These include service-based insurance, financial loan service profits, and vehicle maintenance and repair, and later maintenance and maintenance profits. According to estimates, in the next three years, the number of used car transactions in China will reach 16 million. According to this calculation, the used car market may become a trillion-dollar market in the next 1-2 years. This is the current type of capital is optimistic about the used car industry. s reason.

But at the same time, we should also see that there are still many obstacles to the development of the used car market. The biggest obstacle is the current national restrictions. To break free from this, China’s second-hand car policy needs to be adjusted to allow locals to benefit from used cars so that used cars can be circulated nationwide; Secondly, the spare parts market has not been fully liberalized. The vehicle maintenance and repair of the branded vehicles around the used cars is still subject to the brand car enterprises, which restricts the profitability of the used car operating entities. Moreover, the new car financial penetration rate is low, resulting in the actual use of used cars. The turnover rate is not high, and the profitability of used cars is limited. If we can achieve breakthroughs in the above three aspects, China's second-hand car cakes can be bigger, the used car market on the used car value chain, brand car companies and second-hand car business entities based on the interconnection model can all go up, make used cars market.

In China, the word "second-hand" of used cars is not a good "thing". Therefore, the development of China's used car market has a long way to go, and it will not mature overnight. Only one path of brand and tree integrity can be achieved. Only by breaking through the obstacles and making big cakes can we finally cut the cake.

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