Gasgoo.com (Shanghai August 19) - Automakers in China initiates e-commerce project with a large sum of start fund considering it the mega trend in the future. SAC has made a bold try via establishing the “Car Share” website with 200 million CNY. GAC currently raises the record to seven times of the original sum, investing 1.4 billion to its first e-commerce project.
Though the “Car Share” has made a good start, it sold only 1,800 units vehicles in its first half year since establishment, triggering pervaded doubts about the sales and business model of the e-commerce. Having learned lessons from “Car Share” failure, GAC has determined to launch its Internet ecosystem e-commerce project, a trans vehicles business including all the related business sectors about vehicles, like after-sales services.
To be fully prepared, GAC first build a special managing team collected from its subsidiaries, who have accumulated much experience in vehicles sales and marketing and enough knowledge in after-sales business chain, as well as Internet.
Unlike other goods, vehicles cannot close the deal at one time as the necessary after-sales services will last for a long period. Thus the online business has to be consolidated with offline services.
As is known to all that e-commerce consumes a large sum money in the beginning or it could hardly take off. Two hundred million, equivalent to the assessment value of a small Internet company, seemed hardly enough to expand the business. GAC generously throw 1.4 billion CNY into the business, laying a solid foundation in effective cash flow.
E-commerce is mainly depend on widespread market focus which is attracted by a large range of products. Thus, vehicle e-commerce can invite other brands to place their vehicles in the website so as to attract more focus from the market.
The currently popular e-commerce platforms and Internet focus on high order frequency business like everyday express food, while vehicle business of low order frequency hasn’t catch much attention.
GAC plans to offer “one-stop” vehicle purchase and maintenance service, also covering the vehicle Internet and financial investment related to vehicles.
