How to survive in the face of "shuffle" car dealers?

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After the tough "Black May" that hit the Chinese auto market, many dealers found themselves emotionally and financially drained. Recently, the automotive industry has once again formed a "price alliance," signaling that a major transformation in the distribution channel is underway. With this shift, how can dealers not only survive but also thrive in the coming challenges? The author believes that the real issue for dealers isn’t just about competing—it’s about doing so in a healthy and sustainable way. However, many dealers are currently unprepared for such competition. For years, they have been overly reliant on manufacturers and the market, much like zoo animals who are well-fed and protected but lack the skills to survive in the wild. The core problem lies in their lack of strength and self-reliance. They’ve become passive players, following manufacturer directives without developing their own strategies or market insights. In fact, dealers often don’t even take the initiative to understand their local markets, consumers, or competitors. Meanwhile, manufacturers invest heavily in research and strategy, while dealers remain reactive rather than proactive. This dynamic places dealers in a subordinate position. They rely on manufacturers to plan, position, and implement market strategies, which means they rarely contribute meaningful input. A good dealer should be deeply familiar with the local environment and able to offer valuable insights. But instead, they wait for instructions, acting more like "sitting merchants" than active distributors. To truly succeed, dealers must focus on four key areas: sales force, product knowledge, market understanding, and service quality. First, a strong sales team is essential. Salespeople need to be skilled at engaging customers, building interest, and driving purchases. Unfortunately, many dealers lack trained staff and effective management systems, leading to poor performance. Second, product power refers to the ability of sales teams to understand both their products and the competition. Without this, they cannot effectively persuade customers. Many dealers still lack this crucial knowledge. Third, market power involves a deep understanding of local consumers, business environments, and media. Yet, most dealers rely on intuition rather than data-driven strategies, making it hard to build a solid reputation. Finally, serviceability is becoming increasingly important as customer retention becomes a key metric. Dealers must create real value through maintenance and after-sales services, ensuring customers return for repairs and support. In today's competitive landscape, dealers need to evolve from passive participants to active, strategic players. Only by strengthening these four pillars can they gain a real edge, build long-term trust, and secure their future in the evolving automotive market. The upcoming "shuffle" will test them, but those who embrace change and develop their capabilities will emerge stronger.

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