Car Retailing - China - February 2016

OVERVIEW
What you need to know
Covered in this report
Excluded
EXECUTIVE SUMMARY
The market
Figure 1: China total volume new passenger car sales forecast, 2016-20
Figure 2: China total volume used car sales forecast, 2016-20
Companies and brands
Figure 3: New passenger cars market share, by country, 2014-15
The consumer
Budget cars most welcomed, while trading up is a trend
Figure 4: Car price, November 2015
Dominant position of the 4S store
Figure 5: Purchase channel, November 2015
The reason to choose 4S stores
Figure 6: Reasons for choosing 4S store, November 2015
4S stores may still be the major choice, but not the only choice
Figure 7: Future purchase channel, November 2015
Start online and finish in-store
Figure 8: Top 5 important information channels, by preliminary information collection stage, November 2015
Figure 9: Top 5 important information channel, by final decision making stage, November 2015
Test drives attract consumers to 4S stores
Low satisfaction towards service quality
What we think
ISSUES AND INSIGHTS
Online retailers starting to make waves
The facts
The implications
The coming spring for dealers
The facts
The implications
Winning strategy for 4S stores
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
A new phase of slow growth in car retailing
The rise of SUV and tax cut policy are the main drivers
New energy cars could be the next driving force after SUVs
MARKET SIZE AND FORECAST
Introduction
Figure 10: Car volume sales, by new passenger car, by month, 2015
Figure 11: Car volume sales, by used car, 2011-15
Forecast
Figure 12: China total volume new passenger car sales forecast, 2016-20
Figure 13: China total volume used car sales forecast, 2016-20
MARKET DRIVERS
White-hot SUVs
Tax cut boost
Figure 14: Best sellers for 2015, by engine size, January 2016
Explosive growth of new energy cars
Figure 15: Leading domestic manufactures’ annual sales targets in 2020
MARKET SEGMENTATION – BY VEHICLE TYPE
Boom of SUV
Figure 16: Market share by different body type, 2014-15
Figure 17: Market share of SUV among passenger cars
MARKET SEGMENTATION – BY COUNTRY
Figure 18: New passenger car’ market share, by country, 2014-15
Figure 19: Change in domestic brands’ market share from 2011-15
KEY PLAYERS – WHAT YOU NEED TO KNOW
Headaches for traditional dealers
Online retail still at an early stage
RETAIL CHANNELS
Income decrease is common among traditional dealers
Luxury brand retailers are sizzling, but warning signals are flaring up
Figure 20: Operating income of leading china auto dealers, 2014-15
The rise of the online retailing
COMPETITIVE STRATEGIES
Consolidation is spreading among traditional car dealerships
Figure 21: Store numbers of leading dealers, 2014-15
Car supermarkets taking off
WHO’S INNOVATING?
The emergence of the car supermarket
Idea of Genius
THE CONSUMER – WHAT YOU NEED TO KNOW
The premium car market has a great potential while low price cars are still mainstream
4S stores still dominate the retail channel but change could be on its way
Establishing a reputation of good service is critical for premium car selling
Diversified information channels fit for the needs of proactive information collection
CAR PRICE
Budget cars are the main stream
Figure 22: Car price, November 2015
Figure 23: Car price, November 2015
PURCHASE CHANNEL
Dominant position of 4S stores
Figure 24: Purchase channel, November 2015
Figure 25: Purchase channels by demographic, November 2015
Figure 26: Purchase channel, by comparison, 2013-15
REASONS FOR CHOOSING 4S STORES
Stock and service ranked highly
Figure 27: Reason for choosing 4S store, November 2015
Figure 28: Reason for choosing 4S store, by car price,
FUTURE PURCHASE CHANNEL
Fierce competition ahead for 4S stores
Figure 29: Future purchase channel, November 2015
Future online car shoppers
Figure 30: Future purchase channel, by demographic, November 2015
IMPORTANT INFORMATION CHANNELS
Start online while finish in store
Figure 31: Top 5 important information channel, by preliminary information collection stage, November 2015
Figure 32: Top 5 important information channel, by final decision making stage, November 2015
ATTITUDES TOWARDS CAR RETAILING
Attitude towards purchasing
Figure 33: Attitude towards car retailing, purchasing process related, November 2015
Figure 34: Attitude towards car retailing, purchasing process related, November 2015
Figure 35: Attitude towards car retailing, purchasing process related, November 2015
Figure 36: Attitude towards car retailing, 4S store related, November 2015
MEET THE MINTROPOLITANS
Figure 37: Attitude towards car retailing, by consumer classification, November 2015
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Fan chart forecast
Mintropolitans
Why Mintropolitans?
Who are they?
Figure 38: Demographic profile of Mintropolitans vs Non-Mintropolitans, by gender, age and personal income
Figure 39: Demographic profile of Mintropolitans vs Non-Mintropolitans, by marital status, city tier and education level
Abbreviations