Long-term stealth threshold for auto long-term rental industry to promote the industry to accelerate reshuffle

Under the tide of the mobile Internet, the concept of "shared travel" has been unmatched. Once the bicycle industry in Nishiyama was resurrected miraculously. Another important tool in the field of travel, the car, is naturally a battleground. In particular, with the emergence of various constantly improving service projects and products, the people of the country have truly felt the convenience and benefits brought by car rental.

At present, although the individual short-term rental business has become the focus of development for major car rental companies, the status of car rental businesses that occupy up to 50% of the market share remains unshakable. Today, with the increasing popularity of car rental concepts, more domestic companies have begun to change their concept of car use and repurchase it as rent, which has accelerated the development of the car rental market. However, unlike bicycle rentals, the threshold for long-term car rentals is much higher.

Diversified car demand promotes long-term rental market development

The medium and long-term lease application scenarios in the Chinese car rental market are mainly based on corporate vehicles. With the popularization of refined enterprise operation and management concepts, many enterprises have reduced the holding costs and maintenance costs of vehicles by optimizing asset allocation, and have turned to long-term leases to release a large number of car rental needs. However, due to the difference in business models, various companies have great differences in the specific needs of commercial vehicles. According to an executive in charge of a Fortune 500 company, the car used by the group is characterized by a wide range of vehicles and a wide range of models. It mainly includes corporate daily-use vehicles, executive vehicles, etc., for example, corporate employees connecting buses. , Business trips to MPVs and limousines, etc.; In addition, China's bus reform continues to deepen, a large number of less government vehicle procurement, and encourage the use of car rental as one of the main ways to meet the daily needs of cars, and promote long-term market development.

It is reported that since the development of the Chinese car rental industry, the long-term leasing market has been based mainly on serving corporate customers, especially with the shift in mobile Internet technology and the concept of VW consumption, the market size of the car rental industry has continued to increase. According to Roland Berger's "2016 China Car and Car Rental Market Analysis Report," data shows that the main purpose of China's car rental business in the next five years is still business travel. By 2020, the proportion of business car rental travel will remain stable at nearly half the market share. .

In another piece of data compiled by Zhiyan Data Center, the long-term rental market far exceeds 50% of the total share. They believe that in terms of revenue, long-term rental market revenue in 2015 reached 35.5 billion yuan, while at the same time, China's short-term self-driving car rental market revenue is only 9.9 billion yuan. This trend has brought a golden period of development for car companies that have laid out a long-term car rental business in depth.

Although the cake is delicious, it is not edible

Although there is a market, due to the lack of a mature business model and a standardized market competition environment, the entire car rental industry is still in a chaotic period, and the market structure presents a situation where a few leaders are leading and all parties are engaged in a melee.

It is understood that the largest scale of domestic long-term rental market, the best reputation of the company devaluation of the state-owned enterprises, "the old" Shouqi car rental, and other mostly local SMEs, limited influence. Why do you face the car rental market with unlimited potential, many companies can only live in one place, can not enjoy the market development of the dividend? According to industry sources, as early as the early 21st century, there are many domestic car rental companies established, but so far, the country There are only a few car rental companies. As a capital-intensive industry, car leasing has become the biggest “stumbling block”, leaving many small companies and start-ups to collapse.

Judging from the mature business conditions in foreign countries, the characteristics of the car rental industry are capital-intensive (heavy assets), low profit margins, and high requirements for chain management capabilities. The domestic car rental industry is in the initial stage of market competition, and the rapid expansion of the size of the company's businesses is often the most important way to capture the leading position of the industry, and most of the ways to seize the market are relying on capital to expand. However, for the car rental industry, this is a heavy asset industry. If it does not solve the problem of expansion under the heavy asset model, development will be limited.

The development history of the largest long-term rental car company in China, which may be used as a proof of heavy asset development model.

As a veteran car rental company in China, Shouqi Car Rental was established in 1992, relying on the advantages of Shouqi Group and itself, in recent years has signed strategic cooperation agreements with several major commercial banks. With strong capital support, SIA Car Rental has accelerated the integration of online resources and the layout of new energy vehicles, and has joined forces with traditional manufacturers to further reduce costs and strengthen cooperation with the financial sector. It includes a series of cooperation and reform measures such as the expansion of fleet size, technology research and development, and market development, strengthening the existing business advantages, accelerating the industrial layout, and boosting the upgrading of enterprises. At the same time, it has exerted rich experience in serving party and government agencies for many years and actively explored the enterprise car market.

At present, SAIC Car Rental has grown to become China's largest enterprise car service provider, providing one-stop car service for enterprises. Including long-term corporate leases, bus reforms, financial leasing, special car services, time-sharing leases, and corporate car management platforms. At present, the fleet has a scale of more than 50,000 vehicles, and it has opened 73 domestic service cities, 900 stores and outlets, and covers more than 150 countries and 3,700 sites overseas. In terms of international car rental, it has strategically cooperated with European car rental giant Europcar and has already deployed more than 3,000 outlets in more than 70 countries around the world. With its huge advantage in car rental outlets and scale, SIA Car Rental has quickly achieved first-line status in the industry, achieving the first domestic long-term rental business and the first three short-term leases.

Service is the core competitiveness of car rental companies

For consumers, on the basis of a certain understanding of car rental, car rental users are most concerned about the details of the service, such as the use of the vehicle, product selection, booking (return) the efficiency of returning the car even for each visual identity Whether unified or not, these tests are all about the company's overall strength and service awareness.

"Services are not an overnight event," especially for long-term rental businesses, which require the company's long-term historical accumulation. Taking the case of SIA Car Rental as one of the leading companies in the industry, SAIC Car Rental has a 25-year history of development, relying on its advantages in resources, can provide customers with the most abundant vehicle models, and has a powerful technology platform and reservation system as “car rental zero wait”. "The efficient services provided sufficient guarantees. The "scale and integration" scaled layout went deep into every core city. All the stores were all directly managed to ensure "standardized service." In Shouqi Car Rental, all the directional purchase vehicles are new ones bought directly from the factory and undergo regular “medical examinations” to receive professional maintenance. Before the lease, all vehicle performance must pass safety inspection, carry out thorough cleaning, and ensure that the fuel tank is full, at the delivery Before the inspection with the customer.

Apart from these hardware guarantees, what is more crucial is the company's business philosophy and the soft power built on it. As the relevant person in charge of SAIC Car Rental said, “detailed service is not something to say but to do.” With a sincere heart and true service, we can achieve customer satisfaction.” With this as a benchmark, Shouqi Car Rental constantly refreshes industry standards with a sense of advanced service, faces each rental car user with positive service, and practice with persevering beliefs. With the service concept of SIA Car Rental, we have taken practical actions to fulfill the mission of the benchmarking company in the car rental industry. It has won a wide reputation among high-end business markets, especially among numerous corporate customers. “We chose Shouqi Car Rental to not have to worry about the management issues of vehicles and drivers, but instead put human and material resources into more important business segments,” said the person in charge of a large private enterprise in Beijing.

In the Internet age, although the asset-light model has been promoted to the sky, the heavy asset model deserves awe. In the era when companies are doing subtraction, SAIC Car Rental is doing its part and continues to do heavy truck travel assets, improve service quality, and emulate the heavy asset model. In the future, such large-scale national enterprises as SIA Car Rental will have obvious advantages in terms of vehicle resources, service quality, and management experience, and will become the final winners in market development and competition.