·Shenzhou UCAR plans to increase 10 billion power car e-commerce platform

Recently, the release of the “New Deal of the Internet” in various places has stirred up a thousand waves in the industry. Due to the strict restrictions on the model, age and driver's household registration in many cities, the Shenzhou special car, which is represented by the B2C model of the network car market, is generally considered to be the beneficiary of the New Deal. On October 17, Shenzhou UCAR’s 10 billion yuan announcement was once again making China a focus of market attention.
On October 17, 2016, Shenzhou UCAR announced that it plans to issue 196 million shares at a price of 50-51 yuan/share. It is estimated that the raised funds will not exceed 10 billion yuan. All plans are for the e-commerce platform of UCAR. ——The development of Shenzhou trading car business, including store construction, marketing, employee recruitment and vehicle procurement.
On October 18th, Lu Zhengyao, chairman and CEO of UCAR, told the media that the car war is over and that car e-commerce is a bigger business than a car.
End of the car war
Building a car ecosystem
In the eyes of Lu Zhengyao, the UCAR is not a pure Internet car rental platform, and it is a completely different route from other car platforms.
"We are still very different from the industry peers. They go more horizontally and do so-called traffic portals. Their business layout is more from taxis to special cars, express trains to carpools and buses, and driving. Wait, make a pure Internet online travel entrance." Lu Zhengyao said.
The UCAR is a company that develops along the vertical field in the industry chain. The whole business of Shenzhou UCAR is more or all around the customer. There are no cars, no cars, local cars, cars in different places, drivers without drivers, cars, cars or cars. Do the vertical experience of the business.
Therefore, the entire sector of Shenzhou UCAR will involve car insurance in the future, from car sharing to car e-commerce to auto finance. It may be done by yourself or by cooperation. It also includes repair, maintenance, and trading related to the automotive industry chain, so as to build an ecological chain centered on automobile consumption.
According to Lu Zhengyao, from the first half of the year, the UCAR has already started to do e-commerce business, and has opened 120 stores in 120 cities in half a year. "In the first half of this year, it was basically looking for a store, building a store, training a store manager, including myself and becoming a store manager."
Why Lu Zhengyao can be laid out in advance, in addition to the extension of the ecological strategy, more due to its pre-judgment on the current competition in the special car market. Before and after the Spring Festival, an internal executive meeting of Shenzhou UCAR had been pre-judgment. “The gap between the average cost of the special car and the single-average income has narrowed, and the profit model has been very clear. As for the opponents, we felt that the merger of certain online cars was inevitable. After the merger, the subsidies were reduced and the consumer prices rose. The decline in driver income has only a positive impact on us. The car war has ended." Lu Zhengyao told the author.
Facts have proved that Lu Zhengyao’s remarks that the "special car war has ended" are by no means self-speaking. The semi-annual report of Shenzhou UCAR shows that its losses continue to narrow and its profitability can be expected. At the same time, some of the nets have been merged, the prices have risen, and the crazy subsidies are no longer. In October, the rules for the regulation of the vehicles around the network have been introduced, and the private cars have been strictly restricted. According to industry insiders, the Shenzhou special car has become the winner of this special car century war.
Car e-commerce
Bigger business than a car
In Lu Zhengyao's view, car e-commerce is a bigger business than professional business, which is to launch the China car trading business, why should we make such a large increase plan.
It is reported that currently China's excellent car has opened 120 stores in 120 prefecture-level cities across the country, all stores are standard 4S stores, plans to open at least 500 stores in the next two years or so, covering all prefecture-level cities across the country.
In the sales model, there are two types of underwriting and consignment. Underwriting includes new cars, quasi-new cars (pre-owned cars with better quality), as well as imported cars, custom cars, and tail trucks. The agency sales are more complementary to the sales channels of small and medium-sized brands.
Lu Zhengyao gave the author an account, and now each store should have a sales volume of more than 200 units a year. According to the sales scale of each store, it plans to sell 100,000 units per month for two years or so, and the annual sales volume is 1 million units. From the opening to the present, there have been more than 100,000 sales without any publicity. It is estimated that Shenzhou buying and selling cars will reach a million units per year after two years. In this sense, car e-commerce is indeed a bigger business than professional business.
However, the introduction of such a large plate of the Shenzhou trading car business, the investment is also huge, for the industry to question the high investment of China's excellent car, heavy asset model, will bring no small risk. Lu Zhengyao thinks that you can't just do this business with light mode or heavy mode as the starting point, or you can't do light or heavy business, you can lightly try to be light, and the weight is still heavy.
"Because the whole car travels this format, we feel that the offline store is indispensable because the car is a big consumer. If it is only online, the traffic will definitely not play; if it is only the 4S shop system will definitely have an impact on them, it must be To build your own base, the only way to put the business into my closed loop is to complete this closed loop," Lu Zhengyao said.
What China's excellent cars do is not a simple online car e-commerce, more of a combination of online and offline, complementary resources complement each other. From the source of the vehicle to the supply chain, stores, to the consumer experience and the entire automotive after-sales service to form a complete set of trading platforms.

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