Auto direct sales more effective than Advertising Feather Flag

Analysis of Tesla Direct Sales

Tesla direct sales model of the main operating procedures: model to understand, intention to buy → store experience, booking test drive → official website booking, payment deposit → factory orders, custom production → payment of the end of the payment, vehicle delivery. Tesla direct sales model and the domestic automobile OEMs commonly used dealers 4S shop sales model is very different, we from the consumer, Tesla company and other dimensions for the Tesla direct sales model of the advantages and disadvantages of the analysis. This saved huge traditional marketing expenses, without even the need to setup Cheap Advertising Feather Flags at the POP.

For consumers, Tesla’s choice of direct sales model compared with the traditional 4S agent distribution model, because the abolition of the dealer, reducing the intermediate links, simplifying the purchase process, have the opportunity to reduce the user’s purchase costs. Self-operated offline experience shop can provide standardized, specialized and not for the purpose of direct transactions for the purpose of experience. Online purchase price tag, you can make consumers fair and transparent consumption. Because the vehicle uses customized production, to provide consumers with the choice of diversity, highlighting the differentiation of consumption.

However, there are advantages and disadvantages, Tesla’s direct sales model for consumers, there are many problems. Because of the use of self-line experience shop, from the store site, interior decoration, consumer experience design to the store staff recruitment training and other aspects of Tesla company solely responsible for the serious impact on the expansion of the store.

For Tesla company, the use of direct sales model, orders for production, can effectively reduce the product inventory and capital occupation, the deposit can be received and production organizations. Through the direct sales stores, you can reduce the gap between consumers and get the most direct and effective feedback to improve product adaptability and rapid response capacity, thereby enhancing the market competitiveness of products. In addition, Tesla provides online financial services to consumers, including car loans and financial leasing programs, which may be the future of Tesla’s outstanding profit contribution.

Ali Automobile Division in the test water car electricity business has quietly shifted its focus to auto finance after a year, the Internet finance faster, more convenient, lower cost, is the development trend of auto finance. But Tesla’s direct sales model, the need to build self-experience shop, because the experience shop on-line display, experience and collectively, the location is usually selected in the city center or crowded, purchase or rental costs are high, plus tall On the decoration, need to spend high cost of building and operating maintenance costs. Tesla on the offline experience shop location is very cautious, the construction standards are very harsh, many need to Tesla United States headquarters to confirm, coupled with the complexity of building shop approval process, resulting in experience shop construction speed Very slow. There is no line under the rapid expansion of channels and effective support for Tesla’s sales have a serious impact. In 2014, Tesla Customs imports of 4800, in fact, the amount of cards is only 2499, 2015 Tesla sales in China is only 4,000, although the sales by the charging facilities are not perfect, not government subsidies, marketing methods of soil and water Dissatisfaction and other aspects of the impact, but the channel is clearly one of the important constraints.

Because Tesla direct sales model, consumers do not need to buy cars through the 4S shop, this model threatens the interests of traditional car dealer system, the traditional dealer alliance against the United States has issued a number of relevant laws, Pull the product directly to the consumer, but must pass the state of the store dealer system. The US local government hindrance, the Tesla direct sales model is also a major test.

Why choose direct sales model

Tesla General Counsel Todd Mullen explained to the US Federal Trade Commission why Tesla company to use direct sales model, given seven reasons:
1. Near the consumer.
2. Factory zero inventory.
3. electric car as a new thing, need to have a process of training consumers.
4. Dealers have different sources of profits.
5. Dealers rely on car prices to provide advertising funds for the economy Feather Flags.
6. Dealers can not make a premium to make money.
7. Conflicts of interest with traditional dealers circulating with distributors.

Although Marlene gives a lot of reasons why Tesla must choose a direct sales model, there are many reasons why Tesla has previously presupposed the use of direct sales as a prerequisite for derivation, not the key and core reason for the choice of sales model. For example, Tesla’s stores are generally built in crowded areas closer to customers, using 4S mode can also be through the store support and acceptance criteria defined by the choice of dealer store location. For example, Marlene said that the vast majority of cars sold by dealers were fuel-driven and would not follow the Tesla’s expectations to promote electric cars, but businessmen were profitable and that money was the top priority not because Tesla is a new thing and refused.

In the final analysis, Tesla is due to short-term cannot provide dealers with the desired profit model, and was forced to choose direct sales model. Tesla’s products are pure electric vehicles, the market is in the incubation period, most consumers still have security concerns, mileage anxiety, car habits and other issues, sales are limited. Tesla to shape the brand image, enhance brand value, the existing products take the high-end line, the higher the price, the market capacity is smaller. Traditional car dealers are not only profitable when selling new cars, but also through the provision of services, sales of spare parts and ancillary equipment to obtain huge profits, but Tesla as the property of the electric car in the maintenance service profit less, only through the sale of new cars Profit, profit source reduction. Tesla’s high decoration and crowded area of the store to determine the decision to build a one-time investment, the daily operating costs high. Big investment, low profit, short-term return difference and the market there is a big uncertainty factors Tesla even if the choice of 4S agent model is also very difficult to recruit dealers, had no choice but to choose their own direct sales model.

Future trends

Tesla has been the industry known as the “car industry Apple”, in addition to subversive vision, the ultimate product, paranoid leaders and other similarities, Tesla also from Apple to dig a large number of executives responsible for marketing. Tesla implementation of the experience of marketing, hunger marketing and word of mouth marketing and other POP marketing tools like Feather Flags and Advertising Banners and Apple is exactly the same, in the channel to follow Apple’s offline experience store mode. But careful analysis, Apple and Tesla’s sales model is very different. After years of development, Apple in the country only 36 self-built Apple Store retail stores, Apple’s main sales more rely on distributors, major customer distributors and joined dealers to complete. Apple’s practical experience also indirectly proved that if you want a substantial jump in sales, the number of channels is the fundamental guarantee, just rely on self-built line experience shop is not enough, direct marketing and franchise combination is the best Tesla future select.

Feather Flags are also widely used in voting centers.

But Tesla will start the dealer agent model is also a few prerequisites: First, the market is further mature, consumers to further improve the acceptance of electric vehicles, and even electric vehicles can enter the homes of ordinary people. Second, Tesla low-end products such as Model 3 (entry-level electric car), Model Y (based on Model 3 platform to build a CUV or SUV) or Model C (positioning for small city electric car) products listed The Third, Tesla to establish a good dealer profit model, a clear source of profit and bike dealers profit point, do a good job of investment rate of return of the time.

The Enlightenment to Newly Developed New Energy Automobile Enterprises

In order to reduce the demand for petrochemical energy, to control environmental pollution, to adjust the economic structure, to shorten the gap between Europe and the United States and Japan depot technology to electric vehicles as the representative of energy-saving and new energy automotive industry, become the national “second Five-Year” period focused on the development of the seven strategic One of the emerging industries, the state introduced a series of support policies to support the development of new energy vehicles. Is regarded as the era of the outlet, a large number of innovators into the field of new energy vehicles, such as music, Wei to cars, cars and homes, harmonious Fu Teng, future cars, smart cars excellent … … they are more or less along Tesla had traveled the route. Hope that they establish sales model, the combination of market development, changes in consumption patterns, their own stages of development and product positioning to a reasonable choice

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