Shanghai Volkswagen Trial E-business, Cooperation Cross-industries Promotes Marketing Reformation

Tiger Ruan From Gasgoo.com

With time enters year 2014 and the background that automobile industry growth slowing down, automobile brands do not limit within product itself, but also concerns with channel, brand and service etc.

Recently, Shanghai Volkswagen has made agreement with Suning that the company joins Suning E-business platform. As a seller joined Suning, both company cooperation have covered areas online and offline. In the coming future, products will integrates to assembling, after sales service and accessories.

With automobile E-business development, Tmall.com, Yiche.com and Autohome.com.cn have stepped into the area. It has its peak during "dual-eleven". However, all the above three e-business platform provide making order online service only. With automobile manufacturers look for further cooperation with e-business platform, traditional sales model has changed.

"The cooperation between the two companies will benefit brand reputation building for both sides. Besides, potential customers of Suning and automobile manufacture is able to transform. " insider of Suning tells media about the cooperation that several hot sales cars of Shanghai Volkswagen will move into Suning.com, and its flagship e-business shop will open in March officially.

Automobile channel of Suning.com has initialed since last Nov. It covers about 10 brands such as Toyota Camry, Volvo, Rexton and Brabus etc. The first day since it launching suning.com, it sells 14 cars. During 4 days of "dual-eleven", it sells 130 cars.

As reporter known that flagship shop in Tmall.com costs 700 thousand CNY per year, boutique costs 300 thousand CNY, and exclusive shop cost 60 thousand CNY. The mode also is adopted by some vertical automobile websites.

Insider of Suning.com tells reporter that "we have a company account for each company moved in. The deposit capital shall have more interest than banks offering. For million capital account, its benefit is considerable."

At present, O2O, which means integrates offline business with internet, model is neck-bottle for automobile companies. Suning choose to cooperate with dealer group. They set city experience store together. And customer can send order online, which normal is cheaper than offline. After sales service still need to go to traditional 4S shop.

About the customer viscosity, both sides want to move it industry above to slove the problem. Cooperation between Shanghai Volkswagen and Suning.com at first phrase will only about car sales. But with the cooperation going further, it will include original, after sales service, accessories and insurance finance etc. "if we are able to move offline industry chain to online, customer viscosity shall increase." the insider says.

According to investigation provided by , the majority customers are willing to purcashe at one stop with stable quality premise.

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