HONG KONG, July 7 /PRNewswire-Asia/ -- Since its introduction into the Chinese market in the late 20th century, 4S Model has become the mainstream of automobile marketing. However, it is now confronted with new problems after nearly a decade’s development.
4S stores have perfectly integrated four functions into one, namely, brand publicity, auto sales, maintenance and caring, hence assisting auto makers in their efforts to build their brands and maintain good reputations. In addition, the franchised model of 4S stores has enabled automakers to expand their marketing channels to the largest possible areas with limited funds and time.
However, a 4S store costs a lot, usually in tens of millions or even more than 100 million(RMB). Meanwhile, its sales network is rather chaotic in distribution, and the lifetimes of auto brands are unstable. Also, the profit-making models are primitive and simple, making it slow to plough capital back. All these illnesses have pushed 4S stores into stagnation in China. Fierce competition in the market has forced many 4S stores to use the kickbacks they gained from manufactures to bolster their cars, selling them at a price that is lower than average, as a result, pushing the whole auto market into the mire of price war. Some poorly operated 4S stores sank into the plight of insolvency, faced with shortages of funds.
According to statistics, by the first half of 2008, a total of 7644 4S stores have been set up in China, with capital of up to 230 billion Yuan in hold. It is No. 1 in the world in quantity, and is expanding at an annual rate of 1.5%. Currently, except for a handful of well-selling brands such as BMW, Audi and Honda, 4S stores in China are generally eking out their lives. In 2007, only 1308 4S stores in the country generated profit, among a total number of 2900, and 487 were forced out of the auto market.
In response to the shortcomings of traditional 4S stores such as the primitive and single marketing model, Fairtheworld.com has offered a well-targeted solution. "Fair N Fair", the Next Generation 3D e-commerce platform developed by Fairtheworld, with its All-3D virtual reality environment, has incorporated traditional e-commerce functions such as 2D display, inquiry, and invitation to tenders. Add to that, it has included a business IM that can help maintain customer relations - the Big Boss Talk, which enables real time interaction between high-end enterprises, purchasers and consumers across the world.
Fairtheworld.com is helping auto dealers build their 3D Virtual 4S stores on the web, where vivid 3D product show, image and text-based product information, and instant on-line customer service are all available. The unique advantages of virtual 4S stores will bring in potential customers for auto dealers in geometrical progressions, extending their sales and services with no constraints in time and space.
A real-world 4S store costs as much as 400 times that of a virtual one. But its is not only cost and function that allow virtual 3D 4S stores to gain the competitive edge - in the "Fair N Fair" 3D Virtual Expo platform, these stores will be presented along with other enterprises on the entire auto industrial chain, therefore they can enjoy the economy of size.
For more information, please contact:
Dodona Song
Cell: +86-159-1626-1151
Email: news@fairtheworld.com
