Index > Authors> NewsTurbo> 4S stores transform businesses to address O2O bottlenecks

4S stores transform businesses to address O2O bottlenecks

Source: National Business Daily | Date: Dec. 10

  • Automakers and dealers are preparing for the upcoming "double-12" online shopping festival. Although the local luxury car market has showed signs of recovery in Oct., the prospects remain bleak. Since it is unprofitable to sell new cars, local auto dealers have shifted their focus to the aftersales sector, with the new car sales-focused business model being reshaped.

  • Auto dealers not only want to ride on a wave of e-commerce's popularity, but are also eager to gain an advantageous position in the aftersales sector. They will offer hefty discounts for the "double-12" festival. The China-built BMW 320Li Luxury, for example, will be available with a discount of RMB 70,000.

  • Amid an industry-wide slowdown, auto dealers are seeking new growth engines. They are shedding their dependence on new-car sales by expanding presence into O2O, financing services and used-car sales. However, O2O has its limitations such as a lack of customer loyalty. According to this article, traditional auto dealers are set to transform their businesses whether or not the Internet will become a new profit engine for them.