The Mercedes-Benz City Exhibition Hall on Jianguo Road is affixed with the words “Wangpu Transferâ€; the Lexus City Hall in the Huanglong Business Circle, the Lexus logo has been removed; the BMW MINI City Hall at the Nanshan Road intersection of West Lake Avenue has not seen the sale. The traces of the car... In the automobile city exhibition hall that started from the last decade, it will become the first “dead†form of the automobile industry after the Hangzhou limit.
3 months limit, 3 city showrooms closed Monday, heavy rain.
Tianmushan Road, a row of business rooms at the intersection of the teachers and workers, the original location of the Lexus city exhibition hall in Guangtong, the glass door is closed, and the inside is empty. It was even more bleak in the heavy rain.
The Lexus logo above the main entrance has been removed, leaving only a vague mark. The light yellow vertical strips above the business houses are left with the style of the global decoration of the Lexus store. The posters on the glass cabinet door that have not been torn off and the words “hybrid zone†tell the story of the excitement here.
"It was closed early, and it has been no one for almost a month." The security guard of the building next door told reporters. Previously, Lexus shop customers parked the car downstairs, and now there is less vehicle access management, and the two guards on duty seem a bit lonely.
In addition to quietly closing the store in May, there are two other car city showrooms in the city center. One is the Mercedes-Benz store at Jiefang Road, Jianguo Road, and the other is the BMW MINI store at the intersection of Nanshan Road and West Lake Avenue. The other car city exhibition halls interviewed by the reporter, although maintaining business, most of the business is cold. “Losing money to earn and drink†has become a common feature.
In the past ten years, the city exhibition halls that have been flourishing in the past have encountered embarrassment in Hangzhou after the limited edition.
The high cost and the contrast of several monthly sales are located in the Mercedes-Benz exhibition hall on Jianguo Road. The “Wangpu rental†characters on the glass window have been posted for one month. Once lively and bustling, more than 10 staff in suits and suits, attentive service, exquisite meals, especially a gorgeous Mercedes-Benz... The sense of dignity created in the previous 10 years is gone in today's empty house. Save.
“Our lease expires in May, and the cost of input in the city showroom is too great. The increase of the ceiling card has a great impact on the collection. In order to control the cost, the rent is decided.†An employee of the Mercedes-Benz who asked not to be named revealed that the original Considering that a new Mercedes-Benz store in the same group will open in the second half of the year, in the vicinity of Qianjiang Yiqiao, the location is relatively remote. It is planned that the new store will continue to rent this city showroom to absorb the consumers in the city center, but after passing through the landlord. The round of negotiations finally gave up, "the rent has risen too far, and it can't be eaten."
A person in charge of a luxury car dealer gave the reporter an account: the area of ​​about 700 square meters, the rent for one year is 3 million yuan, the monthly utility fee is 50,000 yuan, and the personnel are 100,000 yuan per person. Only 4 staff members are arranged. The operating cost of the city exhibition hall is as high as 4 million yuan. City exhibition halls such as Mercedes-Benz brands must be equipped with more than 10 salesmen according to the scale of the exhibition hall, and the operating cost is even higher. What is the actual income and expenditure situation for the year? “The debt is 4 million yuan.†The person in charge replied unequivocally. “There are only 3 to 4 new cars sold through the city exhibition hall every month after the limit. Now there is no profit at all in selling cars. Many cars are still selling at a loss. ."
The three city exhibition halls that have recently closed are not struggling for several months in the predicament of selling a few cars a month. There are also individual city exhibition halls, and some insiders have revealed: "From the opening to the present, it has been losing money."
Even in the city halls that are still operating normally, almost all of them suffer the same embarrassing situation. The reporter learned from another Mercedes-Benz city exhibition hall in Hangzhou that the sales volume after the limit is reduced by about 30%, and the monthly sales volume of the city exhibition hall is difficult to break through single digits. The reason why it is still insisting is because the location of the 4S shop is too far away, and it is not familiar to Hangzhou consumers. It needs more than half of the customers in the city showroom in the downtown area. A Cadillac dealer also said that after the restriction, the city exhibition hall in Jiefang Road did not sell much in one month. Fortunately, the large expenses such as rent in the city exhibition hall were borne by the manufacturers, and the dealer pressure was alleviated. There is no real help for sales, more is just a role in the promotion of brand image." An industry source said.
The luxury sales of luxury cars have ended. On the one hand, sales have been expanded, and on the other hand, the brand image has been displayed. In the past 10 years, the city exhibition hall has been accompanied by the continuous expansion of 4S stores.
“Most 4S stores are built in the suburbs. As the competition between brands becomes more and more fierce, 4S shops need to extend their tentacles to all corners. Many city exhibition halls have appeared in the golden position of the city.†Industry insiders said that For a period of time, the city exhibition hall played a very important role for car dealers to occupy the market.
“MINI and Mercedes-Benz city exhibition halls were all opened before the 4S store, which made a great contribution to the initial gathering customers.†Insiders pointed out that the Mercedes-Benz 4S shop is near the city around the city, and it was very remote 9 years ago. In the suburbs, many people can't find a link. If it is not the city exhibition hall of Jianguo Road to retain customers, and continue to guide customers to 4S stores in the next 9 years, it is difficult for the dealers to successfully achieve the status of Hangzhou Benz.
After several years of insistence, MINI's city exhibition hall finally made this niche brand profitable and became the national sales leader, which established a great confidence for the car dealers to build 4S stores.
The Lexus in the east of the city built a city exhibition hall on Tianmushan Road, which not only won more consumers for itself, but also cleverly restricted the competitors of Chengxi.
It is worth noting that Mercedes-Benz, BMW, Land Rover, Lexus, Cadillac... In recent years, more than 10 city exhibition halls built in Hangzhou, without exception, are luxury car brands.
“The business model of the city exhibition hall is relatively simple, only sales, not after-sales. Most of the site selection is in the center of the city, and the flow of people is large. Although the initial investment in the city exhibition hall is small, but the rent is high, the car dealer must offset the cost through sales. Profit.†A dealer told reporters that a few years ago, the sales profit of the family car brand was very meager, unable to support the expenses of the city exhibition hall; and the luxury car brand profit is still considerable, “three or four years ago, an imported car There are still more than 100,000 yuan in gross profit. If you sell more than 2 million cars, the gross profit is even more than 200,000 yuan. At the best time, the city showroom can sell 115 cars a month."
In the past two years, with the construction of urban transportation, the newly built 4S stores in the suburbs have been recognized by more and more customers. The sales volume contributed by the city exhibition hall has gradually dropped to 15-20 vehicles per month, and the limit policy has been fatal. One hit - after the limit, it is only down to 3 to 4 vehicles per month. Sales have fallen sharply, and even worse, selling cars is becoming less profitable and even losing money.
"In the past two years, the market has been in a bad market. The price war has hit everyone badly. Even after the year-end rebate, the total profit margin of a car is only 6~8 points, but many cars are put on the market at 20%. At multiple points, the loss of each car is beyond imagination. For example, the BMW X5, which had to increase the price by 20,000 in the past few years, has to wait in line. Now the new X5 has just come out and the discount is as high as 10 points or more."
The dealer pointed out that when the profit of 4S stores relies entirely on after-sales, sales do not make money or even big losses, only the city exhibition halls that sell without after-sales will inevitably encounter a survival crisis. As the financial deficit becomes more and more serious, if there is no additional support from the manufacturers, few car dealers can maintain this huge expenditure for a long time just to promote the brand image.
“The decline of the city exhibition hall actually reflects the fact that the good days of the luxury car dealers have passed, and the luxury car sales of the luxury cars have completely ended. At present, the sales can still make money, and only the few of them are on the Nanshan Road. The super luxury car brand." The industry is so frank.
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