Post-market status quo-large market, poor profitability

As we all know, the scale of the automotive aftermarket is huge. I don't deny this, but because we do consulting research, I generally don't like to use the word "big" to describe the automotive aftermarket. In my opinion, the current situation of China's automobile aftermarket is "small but not refined". Small means that there are many repair shops in the automobile aftermarket, but the scale is very small. "Not refined" means that the reason why so many repair shops will exist is that the entry threshold is too low. You can repair it, and I can repair it, but there is no special specialized place, quantity without quality has become the biggest obstacle to the transformation of the growth mode of the automotive aftermarket.

Let's look at the auto insurance market again. The scale of the auto insurance market is also very large, surpassing the 600 billion market size and ranking second only to the United States in the world. But this market is very special, and its concentration is particularly high. If the market share of the top three insurance companies is added up, it may exceed 70%, which is unique in the world. Although the market scale is very large, more than 80% of the companies in this industry are in a state of loss. Therefore, I think that the current situation of the auto insurance market is "big but not strong". The scale without benefit has become the biggest shortcoming for auto insurance companies to change their growth mode.

The wind appears-car insurance reform and post-market transformation and upgrading.

In general, these two industries have developed rapidly in the past few years, but the problem is that they are not living particularly well in their respective industries. Therefore, in this case, the two may change from the primary The shallow-level cooperation between policy distribution and accident car repair has changed into a deep-level industrial integration, and the "outlet" opportunity for the integration of auto insurance and the aftermarket industry is likely to appear!

1, car insurance rate reform at the right time.

In the past two years, the policies of many industries have changed. In terms of auto insurance, its reform is not the first time. The first round of auto insurance rate reform was in 2002, and the second round of auto insurance reform was in 2009. In 2015, the third round of auto insurance reform was carried out. The first and second auto insurance rate reforms took a very short time, and the pilot cities were also very small, only in Guangzhou, Shenzhen, and Beijing. The third round of car insurance rate reform, which began in 2015, will be promoted nationwide in July this year, from the earliest six cities to 12 cities.

This rate reform will establish a commercial auto insurance rate formation mechanism based on the pure risk premium of the commercial auto insurance industry, and the insurance company independently determines the additional fee rate and part of the rate adjustment coefficient. Compared with before, insurance companies have relatively more active pricing power.

2. Policy changes in the automotive aftermarket

The integration of industries usually does not only look at individual changes, but also depends on what changes have taken place in the post-market area. In the field of automobile aftermarket, policies such as "zero integration ratio", "guidance on promoting the transformation and upgrading of automobile maintenance industry and improving service quality", "administrative measures for the implementation of automobile maintenance technical information disclosure", "anti monopoly guide of automobile industry" and "measures for the management of motor vehicle maintenance" have been issued frequently, which have played a guiding role in the industry. Behind these policies, the insurance industry will also have a very big impact.

Auto insurance reform and the formation of a two-way interactive impact on the post-market

1, the impact of car insurance rate reform on the automotive aftermarket.

According to data from China Insurance Information Technology Management Co., Ltd., in the nearly one-year pilot of auto insurance rate reform, 70% of the car owners' premiums in the pilot cities have dropped from before, and they have enjoyed policy dividends; on the other hand, the pilot cities The risk rate dropped from 40% to about 27%.

The impact of the reform on the risk rate and premium is bound to force the vehicle factory to produce good cars with low after-sales maintenance cost and high collision safety performance; for 4S stores, the sheet metal spray business will be greatly impacted, and the small sheet metal spray business below 1000 yuan will decline; for maintenance plants, the decline in the risk rate will lead to a decline in the business volume of accident vehicles.

2. The impact of policy changes in the automotive aftermarket on auto insurance companies

Homospecificity accessories: provide uniform quality accessories for insurance companies, and provide an important basis for the standardization of accident vehicle maintenance quality;

Information disclosure: the improvement of the maintenance technical ability of the social maintenance plant provides a guarantee for the insurance company to improve the maintenance quality of the accident vehicle;

Zero to whole ratio: reduce the price of after-sales accessories of vehicle manufacturers, reduce the cost of insurance company accident car claims;

Transformation and upgrading: strengthen the construction of the integrity system of the maintenance plant, and help insurance companies to select high-quality maintenance cooperation resources.

To sum up, from the perspective of growth, the domestic auto insurance and auto aftermarket are developing rapidly, but from the stage, the two industries are not so mature. The two are mainly in the primary policy distribution and accident car repair. The shallow level of cooperation, each grows on its own development path. Therefore, from the perspective of a third-party research company, we believe that these two industries definitely need to be integrated, but by no means "simple group, but close collaboration!

(Note: This article is from a Chinese auto dealer (Autodealer) and is based on the sharing of Mr. Shao Dongliang, a partner of Jiazidao Auto, at the salon "How to Bypass the Pit of Post-market Entrepreneurship".)