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Business Situation of 4S Auto Shop in China

Nov 29, 2018

In china, there are thousands and hundreds 4S auto shops, but most of them don’t have much power in control. The situation as below:


1, the car 4S shop is completely a vassal of the car manufacturers, basically no right to speak

The 4S shop of the automobile is only the leader of the factory. All the business activities are for the manufacturers. In order to quickly and effectively transport the cars and supporting goods from the manufacturers to the consumers, the company is hard working to maintain the reputation of the manufacturers and expand the sales scale and jobs. In the current market form, car dealers do not have the same strength as the electrical distributors to talk to the manufacturers on an equal footing, in an absolutely weak position.


2, no own brand image

As a manufacturer's 4S shop, its architectural form and all CI images inside and outside the store are strictly in accordance with the manufacturer.


The requirements for decoration and layout, the dealer's own brand image is nowhere to be reflected, manufacturers are not allowed to reflect. At present, the Guangzhou auto market, only group-type auto dealers such as AEC, Guangwu Auto Trade, Nanling, etc. have a certain brand image.


3, completely rely on car brands to eat

The operating status of a 4S shop in a car is 90% dependent on the brand it operates. If the brand is good, it will make money. If the brand is not good, it will not make money. At the same time, the dealers of different 4S stores of the same brand have to rely on the relationship between the store operators and the manufacturers. The relationship between the manufacturers and the manufacturers is more, and the profit margin is also larger.


4, operating costs are too high, low profits

Calculated in a standard 4S shop with an area of 2,000 square meters:

The construction cost of the store (steel frame structure floor glass) is about 3 million yuan (generally depreciated according to 15 years); the cost of purchasing related equipment and materials of the manufacturer is about 2 million (the equipment is depreciated for 10 years); the monthly working capital is about 2 million; Plus employee wages (according to 70 people), 26,000 USD per month, land rent (based on 60 yuan per square meter), 17,000USD, advertising costs, and hidden public relations costs, etc., monthly for each car 4S shop The operating expenses are about 73,500USD;


5, the quality of the professional talent team is not high, the team is unstable.


6, the store's operating re-sales, after the sale and beauty installation.


Edited by GL paint booths more infos at gzguangli.com

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