In the middle of the night on October 11th, the melon seeds used a small area of ​​their new car business in a group of individual media groups to carry out the warm-up propaganda of the group title. “It seems that the new business is called Maodou.” A keen media person took the lead. The group name inferred the exact name of the new car business for used cars.

Within a few days, Beijing's streets and lanes were filled with advertisements for new soybeans. This new product, endorsed by Angelababy, was quickly known to the general public.

Internet cars are industries born with golden keys. Whether it is the primary market or the secondary market, financing is always smooth and unimpeded. They inherited the pride of the auto industry. Each first-rate platform will be equipped with a front-line celebrity endorsement, financing, burning money, burning money and financing. The unique scenery of this industry, of course, there are inseparable friendships between the friends.

Internet car chaos

Some people have rivers and lakes. In the Internet car industry, there are fights where there are cars.

Maoming City is located on the coast of the South China Sea, calm and beautiful, but it has unexpectedly become a local battlefield of Internet cars.

On November 24th, Dazai CEO Yao Junhong printed a photo of “Notice” with the official seal of “Maoming City Used Automobile Circulation Association” in the circle of friends. Why does the used car market prohibit "guishu.com" from entering the used car market for photography and experience (camp) activities? Say good "no middleman makes a difference"?

The photographs of the “Notice” forwarded by Yao Junhong circle of friends are: It is strictly prohibited to hurt the development of the automotive industry network platform and dishonest auto finance (such as melon subnet, gift letter, look car network, Che Shengrong, Murray) financial Baofeng into Second-hand car trading market shooting and related business activities (except vehicle management business). ”

Zhu Tao, a staff member of the “Notice” referring to the platform, expressed to Yema Finance that “this situation is not directly related to service and experience. It is a malicious competition and market monopolistic behavior. However, according to the understanding of the business side, car dealers do not care too much. The focus of the market's requirements depends on who can provide fast and convenient services."

Whether the facts are as true as Zhu Tao said, “it is a malicious competition” and it is difficult to verify. However, in addition to the small-scale localized battle in Maoming, the Internet auto market has seen a lot of litigation in the “court”.

In April 2016, Youshun used a car to target the 58th city in its website to counterfeit the "Youxin used car", held a press conference, and said that the incident seriously damaged the commercial reputation of Youxin used car, has constituted a de facto Unfair competition has brought a lawsuit claim to the court of 30 million yuan.

In November 2017, the public’s “Beijing Haidian Court” released another news: Dissatisfaction with the Guazuzi used car direct sale network (hereinafter referred to as “guy sub-network”) advertised in the official website, WeChat, mobile phone APP and major online platforms advertising "far ahead "," "National leader" and other propaganda terms, all vehicles to the unjust competition for the seeds to the court to court, claims 100 million yuan.

Subsequently, the People's Court of Haidian District, Beijing has issued a temporary injunction before the appeal, ruling that the used cars of Guazi will cease to use adverbs such as “Leading ahead” and “Leading the country”.

An employee of the used car of melon seeds said: We started using this slogan last year, and we have not heard of any impact on the industry. At this time, we prosecuted. It is difficult to understand what the purpose is.

Whether it is the church or the arena there will be fighting, and the cause of the fight is nothing more than benefits.

Unlike BAT, which has a distinct pattern, there are no real industry monopolies at the moment. The industries under these four wheels have become very lively! However, is the Internet car outside of the bustling city really prosperous?

Industry bottlenecks: Relying on finance to make money is highly dependent on offline

On November 16th, the Yixin Group went public in Hong Kong. This news made the internet auto industry invigorated. Although the business models of the platforms are different, the core interests are generally the same: trading and finance. If Yixin Group can successfully land the capital market with the first shares of auto finance, it means that other companies can also go through this path.

The Yixin Group prospectus shows that in 2016, Yixin Group’s revenue was approximately RMB 1.488 billion, (adjusted) net profit was approximately RMB 100 million, and revenue of RMB 1.551 billion was realized in the first half of 2017, and RMB 260 million (adjusted ) Net profit. In the revenue of the Yixin Group in the first half of 2017, the company dominated the financing lease business, contributed approximately RMB 1.23 billion, and contributed approximately RMB 321 million in transaction platform business.

Why Yixin Group relies so heavily on financial business?

The Murray Financial Research Center told Unicorn that 60% of the profits in the automotive industry come from the service sector, and the profits of the auto market far exceed the auto market. The main role of the Internet car platform at this stage is the "flow entrance". With relatively thin profits, even for some used car trading platforms, simply diverting is not a business that makes money or even loses money; therefore, everyone turns to financial services and seeks Enterprises have higher profit development space.

Because the auto market is large enough and there are enough users, the Internet auto platform has huge financial imagination, but the ceiling is also very obvious.

According to the Freud Sally report, the total number of China's auto retail transactions in 2016 was 31.6 million, with a total amount of 3.8 trillion yuan, of which the total amount of internet cars was about 1 million (3.16% of the total), and transactions The amount is about 107.0 billion yuan (about 2.65% of the total) and is expected to reach 568.1 billion yuan by 2021.

Among them, if the calculation of Yixin’s market share of 18.7% according to the number of transactions, Yixin’s market share of 18.4% will be approximately 18.529 billion yuan.

What is the concept of the turnover of 18.529 billion yuan? The annual turnover of a single platform on the first-line platform in the online loan industry is comparable. In 2016, Yixing Lending promoted a total of 20.287 billion yuan in borrowings and 1.1116 billion yuan in net profit, which represented an increase of 305% over the full year of 2015. The net profit of Yixin Group in 2016 was about 100 million yuan.

Although the industries of online loans and internet vehicles are different, the main source of profit is finance. Why is the net profit margin so great?

One of the reasons is that the cost of labor is so high that too many models of the industry chain lead to too heavy a pattern. The Murray Financial Research Center stated that auto trading itself is extremely dependent on offline business. In order to transform the Internet auto platform, it will inevitably consider increasing investment in offline costs, including channel expansion, personnel deployment, and dealer-side penetration. The Internet platform under the "heavy model" will inevitably bring about an increase in the cost of labor, but if people can be effectively reused, it will improve the operational efficiency of the entire enterprise.

At present, Yixin Group has 3,300 people under the wireline team, in addition to 370 sales teams. The number of employees of other Internet car platforms is also quite large. The used cars of the seeds have declared that there are over 10,000 employees, and the relatively pleasant loan is only about 500 employees.

Zhu Tao believes that some Internet auto platforms need to open up the upstream and downstream industries, lay out the entire industry, and have relatively rich business. This will help in terms of valuation, but the model is too heavy.

Love analysis once judged that Yixin's development model was based on the existing heavy self-financing business. The ceiling was about US$10 billion or so, and the IPO closed at RMB 42.5 billion on the first day, which was overdrawn in the next 1-2 years.

Financing Charms: How many more people voted?

Because of the "heavy," the development of the Internet car platform is doomed to be driven by capital. The general rule is that the amount is increasing and the frequency is getting higher and higher.

Yixin Group just obtained 4 billion yuan in financing on May 11, and submitted an IPO application on October 29, with a financing interval of less than 5 months. The used car of melon seeds received a round of over 400 million U.S. dollars financing on June 15th. On October 31, it was also awarded a B+ round of over 180 million U.S. dollars in financing. The two financing intervals were also less than 5 months; Dazai completed $180 million in D rounds and 3.35 on April 6 and November 1, 2017. Billion-dollar E round of financing, it is worth mentioning that Dazai announced a US$100 million C round of financing on November 15, 2016, which means that one year's time the search vehicle completed three rounds of financing. In addition, companies such as Chechet, Renren, Youxin also announced financing news in 2017.

As mentioned above, Internet car is an imaginative industry. With such a fierce financing frenzy, how many people voted?

Morota, investment manager of Sentiment Ventures, said: The automotive industry is a trillion market, and it can produce 100 billion-class listed companies. However, with the increase of industry concentration, the possibility of tens of billions of valuations failing to melt, and the possibility of being acquired is even greater, but the valuation of acquired companies will certainly shrink. Although there will not be such a situation in the short term, there will definitely be knockouts at the end or undervalued mergers and acquisitions, and capital can only be accepted.

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