Let a person be surprised, this line falls into “close tide”, a year 4000 close, practitioner loses 10 million
Wen: Liu Tiandu said that the current business is not doing well, but there are still many people who have the idea of starting a business. For those who want to start a business, choice is more important than hard work.For those sunset industries, it is not recommended to choose, because the opportunity to make money is too few, the risk is also very large.In recent years, China’s market has changed a lot. While residents’ consumption habits have been changing, all walks of life have also been affected.Some once hot industries, now become cold, many practitioners quit at a loss, do you feel?Today we are going to talk about this industry is so, it is the automobile 4S shop, in recent years this line also fell into the “bankruptcy tide”, a number of stores across the country have been closed.Many people are curious about the car 4S shop business should be very good ah, after all, China’s annual car increment is very high.Data show that by the end of December 2021, China’s motor vehicle population has reached 393 million (more than 300 million cars), and more than 30 million new motor vehicles are registered every year, and more than 20 million new drivers license holders, so it can be said that the market demand is strong.However, the market demand is still strong, 4S shop sales did not increase, but as mentioned above, ushered in the “tide of store closure”.In the previous market, 4S shops were the main way for consumers to buy cars. Ordinary consumers must go to 4S shops to buy cars. In the case of monopolized market consumption, 4S shops did very well in business.However, nowadays, the market consumption channels have increased, direct stores, online and other ways to buy cars have appeared, the competitive pressure of 4S stores has doubled, and the market cake has also been “carved up”.The “wave of failures” across the industry is not a hole in the wave, it is supported by data.In the first half of 2019, more than 3,600 auto 4S stores in the Chinese market closed down, and the situation continued for some time after that.In 2020, there are nearly 4,000 4S stores closed, by the end of 2020, the number of 4S stores nationwide reduced to about 28,000, a lot less than before.In order to win the distribution right, many investors are willing to pay any price. Investment of millions or tens of millions is normal. Unfortunately, heavy investment does not get higher returns, and many investors choose to quit.The first is that the industry is too competitive pressure, according to the China Association of Automobile Manufacturers in 2020, the cumulative sales of 25.311 million units.However, with nearly 40 percent of auto dealers still in the red in the first half of 2020, insiders say the era of “lying on profit” is over.When this business made money, a lot of merchants rushed into it, and the market demand was so much more people to share it, with predictable results.Moreover, with the increasing number of car purchase channels, 4S shops are no longer the only choice.Those who have done 4S shops know that the cost of this industry is very high. The construction cost at the beginning and the operation cost in the future make many 4S shops go beyond their means.And the most important point is that now consumers do not trust 4S shops. In the eyes of many people, 4S shops are not only expensive, but also exist the situation of “cheating”. Can you not go to 4S shops?This article is originally produced by Jufu Finance. Please do not reprint it without permission.