Li Jia, chairman and President of best quality aut

Li Jia, chairman and President of premium Automotive Services (Shanghai) Co., Ltd.: innovation and reform of circulation ecology in China's automotive industry

at this forum, Li Jia, chairman and President of premium Automotive Services (Shanghai) Co., Ltd., brought the keynote speech "innovation and reform of circulation ecology in China's automotive industry". Li Jia believes that China's auto industry is facing great development opportunities, but each 4S store is operated by a single brand, and the whole auto industry chain has not been opened up. The reform of China's auto industry must rely on auto finance, including auto loans, auto insurance, auto extended warranty and other financial products, on the one hand, and on auto after-sales, including the repair, maintenance, even installation, modification, used cars, etc. At the same time, build consumption scenarios and connectors, which can constitute the completed automotive industry ecosystem

Li Jia also believes that new energy vehicles and county-level markets are good breakthroughs for the reform and innovation of the automotive industry. In addition, fintech and big data will also become the key factors of circulation ecological innovation in the automotive industry

the following content has been refined by pintu Business Review:

good afternoon, everyone. I'm Li Jia from Youpin. If there are two kinds of entrepreneurs, one is grass-roots entrepreneurship, and the other is senior entrepreneurship, I may belong to the latter, because I have worked in the automotive industry for more than 20 years, and I used to be the vice president of the listed group. The reason why I choose to start a business is that I found that China, the world's largest automotive industry, is actually facing a great opportunity. This is also what I want to share with you today, the innovation and transformation of the circulation ecology of China's automotive industry

after decades of development of China's automobile industry, China has become the world's largest market in terms of production and sales for nine consecutive years. Last year, China's output of passenger cars alone has exceeded 29million units. If we add commercial vehicles, used cars, finance and insurance and other related industries, it has exceeded 10trillion. This is a huge market and we are proud of it, but such a large market, In fact, our automobile circulation is still a planned economy. This is what I want to share with you. Why did I come out to start a business? Because we have been to many developed car markets, the 4S store in the United States has never been as large as that in China. It is usually a small bungalow, with all kinds of new cars on the left and all kinds of used cars on the right. It may also be called Buick 4S store, but it also sells Toyota, Nissan, Ford, etc. At present, China's automobile circulation system is still based on 4S stores or 4S store groups. Each store is a single brand, and the whole industrial chain has not been broken through

based on the deep-seated reform of the entire current automobile industry, including the reform of the outer edge, cars, especially new energy vehicles, are a bit like mobile household appliances. We can see that the system of China's automobile circulation industry has linked cars, people and life through the Internet system. Cars are no longer a tool for action, but may become an entertainment tool and an electronic product in the future. We should see that automobile products have great market opportunities

I took an airplane here to show you. This is a jet airplane that can help the bio based and biodegradable plastic industry develop healthily in Jilin. This airplane is composed of two engines and one fuselage. The engine on the left is called auto finance, which includes auto loans, auto insurance, auto extended insurance and other financial products. The engine on the right is called auto aftermarket, which includes the repair, maintenance, even installation, modification, used car and so on. In the middle is the car trading scene, which we call the fuselage. In fact, the aircraft has two engines that really generate power. The fuselage does not generate power. The fuselage is just a scene, just a connector. Therefore, to form the take-off of this aircraft, we must connect the three elements to form the whole Chinese automobile ecosystem. Premium car is the first and the largest platform in China that completely integrates these three major businesses, and we are more focused on a strategic industry in the future, that is, new energy vehicles

the automobile industry is very long. It may range from upstream parts to used car replacement, to the whole maintenance and repair, etc. the integration is actually very difficult, that is, it forms a barrier in our industry. Through a team of professionals, we have successfully built a system of the full value chain of products in the industry, which has brought a new experience to channel merchants and consumers

after talking about the product, talk about the customer experience. For example, the research development in Europe is that three generations of grandparents will buy cars in the same 4S store, because the 4S store is multi brand, which is the concept of auto supermarket. This is the closed-loop diagram we drew above, from buying a car, buying a car, finance, insurance, repair, maintenance, after-sales, used cars, replacement of the whole closed-loop. According to the developed automobile market, we need to change a car in an average of 4.3 years. At present, the number in China is still 7 years, and the number will be shorter and shorter, but it will rise spirally. In this life cycle, our customer experience will reach the extreme. Premium car is also building a full-service cloud platform, which is an interconnected concept and forms a large ecosystem. Therefore, premium car has also made a closed-loop ecosystem in this industry, which must be the main development trend of the industry in the future

how do we do it? I also want to share a little with you. First of all, the main channel of our first-line, second-line and third-line markets to prefecture level cities is still 4S stores. If we directly hedge with this system now, ants will shake elephants. Therefore, we should choose a blank market. At present, the vast majority of new buyers are at the county and township levels, so we choose to open new energy vehicle stores at the county and township levels. In fact, this store is very small, mainly in a street in the county, that is, fourorfive square meters. Maybe there are only two cars in the store. You will see a large TV screen. There are dozens of car sources pushed directly from Lujiazui headquarters. Customers can buy cars as normal as supermarkets. If they choose a car, they can basically pick it up in the store in a week. Why can county and township level consumers wait for a week? Because what he wants is cheap, so we are pressing the price of the car to the lowest, creating the concept of outlets in China's auto industry. But at the same time, we have a very important profit point from its finance and after-sales. We have attached charging piles developed by our premium cars in each store, so this is a closed loop, and it is also the thoroughness of new auto retail, new finance and new energy Is there any misoperation of the closed loop in the experimental process

at present, we have two brands, one is watermelon new energy, which focuses on new energy, and the other is car Youjia, which focuses on gasoline vehicles. This is also a very important retail innovation. We pioneered a model called "1+n", a county, a prefecture level city to complete the coverage of the whole county and township market, which has also been highly recognized and praised in the industry. By the end of this year, we have opened more than 1000 Direct stores this year, covering 500 county-level markets in the country. Next year, we plan to cover 1500 county-level markets in the country, and the number of head offices will exceed 5000

we say that financial technology is actually very important. Our group has also invested a lot of money and a lot of assets to develop a lot of financial technology, such as the chip that our app can directly pass through, to detect the chip in our second-generation certificate, read out your information on the technology platform of group Jianguo, and then verify that this is me. This is what our bank has been unable to do at present, how to do a good job of the face-to-face supervision system. This is a very important barrier and innovation in our finance, thus achieving the sinking of consumer finance. We also have some data-driven, because the data of the whole new energy vehicle operation can directly cause the difference of our whole big data environment, which is also the very different direction of new energy vehicles in the future

premium cars also adhere to the national strategy. One is to help the poor and go to the countryside by automobile. We also continue to promote the poverty alleviation and go to the countryside by automobile. Adhering to the national strategy "the Belt and Road", we vigorously develop overseas strategies, and have successfully achieved time-sharing leasing in Guam. In addition, premium cars cooperate with many national strategic partners, such as national power and new energy vehicle enterprises. We have also carried out multi-dimensional cooperation with Haier Group. First, poverty alleviation to the countryside, mainly with ririshun. There is also our overseas "the Belt and Road" war, which shows the feasibility of using nanotechnology to purify automobile exhaust, and developing together with Haier's overseas business agencies

time is limited. It's my pleasure to share with you the current situation and future of China's automobile circulation industry, as well as the possibility of our innovation. In short, China's new energy vehicles have given our national automotive industry an opportunity to overtake at a curve. With the support and leadership of haichuanghui and Haier's relevant platforms, premium vehicles will surely forge ahead in the industry and break through more innovation limits. Thank you