The domestic car market has entered a negative growth cycle since 2018, has not yet come out of the freezing point, and once again encountered the heavy hammer of the epidemic. Even used cars, the warm current of the cold car market, have to face extreme stress tests.

According to the statistics of the China Automobile Association, in the first quarter of this year, the cumulative transaction volume and transaction volume of used cars across the country fell by 38.40% respectively compared with the same period last year. 41.22%. Among them, the overall trading volume of used cars in February fell 91.19% from a year earlier, almost at a standstill.

In the United States, where the epidemic is more widespread, the used car market is also struggling. After the Virginia government issued a home order, J.D. Power data showed that only 19000 used cars were sold in the wholesale market in the week ended April 12, down 83% from the average of the week before the outbreak.

When it comes to the domestic second-hand car market, we will first think of Youxin, Guazi and other e-commerce platforms. Recently, Youxin disclosed its quarterly results for March 2020, and the report card under the window of the epidemic is actually expected to be treated. Among them, the biggest bright spot lies in definancialization and overall business upgrading. According to Youxin Quarterly report, Youxin has completely completed the de-financialization work through a series of agreements with Golden Pacer and other management, and will no longer assume any guarantee responsibility for the historical loan business.

First, travel light.

1. The ability to resist risks will be improved by removing the financial hidden dangers.

Although second-hand car financial business can help second-hand car dealers to move the scale of second-hand car business and quickly increase revenue and profits to a certain extent, it has always been regarded by the industry as "fat meat". The rapid expansion of Youxin's financial business scale in recent years has also verified the tuyere effect of the second-hand car financial market, but due to the remarkable characteristics such as long trading chain and non-standard products. It leads to the difficulty of risk control and the high cost of post-loan management, and then faces the dilemma of increasing cash flow pressure, coupled with stricter supervision, rising compliance costs and increased operating pressure.

Therefore, for Youxin, the complete divestiture of the financial business, although reflected in the contraction of the business scale in the short term, can remove the corresponding financial hidden dangers, at the same time, the cash flow will be improved, and the ability to resist risks will be greatly enhanced. Especially in such a situation as the beginning of this year, the value of such a choice is particularly prominent because of the sudden change in the business environment and the extreme test of cash flow.

two。 Market confidence may return, and valuation is expected to be reshaped.

From the perspective of capital markets, another significance of Youxin's definancialization may lie in the return of market confidence and the reshaping of valuation.

On the one hand, it is precisely because of the many hidden dangers in the financial business, such as a "sword of Damocles" hanging from the top, that investors have to worry about the risks that may be exposed at any time, which is reflected in the suppression of valuations.

On the other hand, for a long time, Youxin accounts for a relatively high contribution to financial business, so the market regards it more as an auto financing company, which limits the valuation imagination of its e-commerce platform. Therefore, the complete divestiture is expected to promote the return of confidence in the capital market, and directly lead to the optimization of the business structure, and is expected to promote the market to re-judge its value model.

Second, fully return to the trading business

From a business point of view, completely getting rid of the "financial burden" marks the full return of Youxin from financial business to trading business, which is mainly because strategy and resources are more focused on e-commerce business.

1. Focus on the online mall of second-hand cars, highlight the transaction value

Dai Kun, head of Youxin Group, once admitted to the outside world that although the financial business is good, it will involve a lot of energy, because of the different mode of operation, the business and financial business often split Dai Kun's personality. The most conservative thing in the trading business is probably the most radical in the financial business, because the business model is completely different.

Industry insiders believe that for Youxin, the divestiture of the financial guarantee responsibility means that you can free up your hands to drive the used car online mall business.

In the face of the special situation under the epidemic, "online car purchase" is becoming the first choice for more and more consumers. As the pioneer of domestic online car purchase, the superiority of Youxin business model is further highlighted. At the same time, since the beginning of this year, Youxin is also carrying out a comprehensive layout upgrade around the "online car purchase experience".

two。 Upgrade the overall layout and improve the car purchase experience of online shopping malls

According to Youxin, at the beginning of this year, Youxin comprehensively upgraded its products and services. In terms of selection, the Youxin development and optimization team selects the best quality and cost-effective cars from garages across the country, and puts them on the platform after testing, and replaces the offline sales team with an online consulting team. provide more timely vehicle consulting services and optimize self-help purchasing experience.

It is understood that half a year later, Youxin's upgrading strategy at the product and service level has shown initial results. Customers' concerns about buying used cars online have gradually alleviated, and consumers' trust in Youxin service has been established, the customer experience has been improved, and the net recommended value (NPS) of customers has also increased.

"National purchase" is the focus of Youxin's business, which determines its future growth. Since it was first launched in 2017, it has made great progress, and the intelligent logistics system, which supports its rapid expansion, has also been upgraded this year.

A few days ago, Youxin Group announced the full launch of the "Pengfei 3.0 +" system, in order to build a scattered car transportation wisdom logistics network connecting the whole country, activate China's scattered car transportation logistics, and make family cars as simple as sending "big delivery".

Cross-regional transportation has always been one of the main problems in the automobile circulation market. Since 2012, Youxin has built an intelligent logistics network connecting buyers and car dealers across the country through technical means to solve the problem of scattered second-hand cars' trans-regional transportation.

It is understood that up to now, Youxin Wisdom Logistics has set up 12 self-logistics trunk lines, 22 transit warehouses and 12 distribution points in China, with a total mileage of more than 26000 kilometers. The new system transport lines will cover 365cities, providing more convenient "door-to-door" services for scattered car transportation. In addition to providing delivery services for Youxin nationwide, Youxin Wisdom Logistics also fully opens car transport services to the industry and individuals.

Youxin Wisdom Logistics is the basic support of Youxin's "national purchase" business, which determines the user experience of distribution. At the same time, Uxin Ltd. online Mall can provide basic data for intelligent logistics. "Pengfei 3.0 +" system can present freight rate, limitation and other information to customers in "seconds". Dai Kun, founder and CEO of Youxin Group, said: "Youxin Wisdom Logistics is one of the insurmountable moats for competitors."

Conclusion

At present, Youxin has announced the completion of de-financialization, light travel at the same time, return to the transaction itself, strategy and resources will also be more focused. In addition, the epidemic accelerated the trend of industry clearance and online penetration, and Youxin took advantage of the online product, service and logistics system to carry out comprehensive optimization and upgrading. The recovery of the car city in the future will benefit from the bilateral flexibility brought about by the acceleration of concentration and online infiltration.

Although under the influence of the epidemic, the car market has been significantly affected, Youxin can not stay out of it. But for the head platform, the return to normal development after the epidemic, the greater the impact means the greater the elasticity.