After-sales car market at crossroads
A greater number of Chinese vehicle users may switch from 4S (sales, sparepart, service, survey) shops to independent service providers for aftersales services as the industry is becoming more customeroriented, according to the latest research by marketing consultancy Accenture.
The research, which polled 1,800 cars owners from firstand second-tier cities in China, found that 71 percent of these car owners still currently rely on 4S shops. However, 80 percent of them are considering switching to non-4S alternatives for their after-sales maintenance and repair as there is a lack of 4S service locations. They also cite that the costs at 4S shops are too high.
“It is time for 4S stores to adjust and diversify their terminal service standards, have smaller-scaled shops in a larger range of places and develop more daily maintenance services such as spray painting,” said Shen Jun, Accenture Strategy managing director, Greater China.
According to the research findings, 90 percent of the current repair and maintenance market in China is made up of 440,000 independent service providers offering different qualities of services.
“The after-sales market is not evenly shared with highand low-quality service providers, which should be regulated to form a well-organized and reasonable-price-tagged market sooner or later,” said Huang Luchuan, director of Accenture Strategy, Greater China. Online-to-Offline (O2O) methods. Furthermore, more than 50 percent of consumers have tried buying car parts online and are interested in continuing to do so.
“The rising interests from Chinese consumers to shop online for car parts symbolizes the turning point of aftersales services and how product offerings need to become more digitized now. This will in turn provide more opportunities for suppliers,” said Huang.
The research also showed that local consumers will gradually shift from traditional O2O maintenance to a virtual service chain that offers all types of services, such as doorto-door transport and online car park bookings.
Huang said that such an online transportation platform will be launched in China by 2020 and it will be able to help facilitate car-sharing among users and provide rental cars that come with intelligent parking and modern vehicle systems.
In addition, the platform will be backed by a huge database with updated statistics of car users’ changing preferences on products and services, as well as predictions of market trends.
“After-sales car service providers need to always be upto-date and able to map out a comprehensive service plan to surround consumers with high-end quality products and services,” said Huang.
“The contents and services for car owners will soon be available in more diversified online sources, which will become increasingly more developed to help solve traveling problems.”