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Have you ever bought Swiss rolls, potato bread, lime juice, durian mille cake from Costco and Sam's when you go shopping Do these products taste good? The price doesn't seem expensive either. These are their exclusive products, and consumers may not be able to find them anywhere else. The "quality price ratio" is very high. When it comes to product profits, Costco also explicitly states that the gross profit margin of products cannot exceed 14%.
"Both need and need". When you are still roast about the difficulty of current consumers, some enterprises have turned "impossible" into "possible" by virtue of mature business models. Like Costco and Sam's, on the one hand, they directly source goods from manufacturers to shorten the process, without "middlemen making a profit"; On the other hand, holding a large number of members creates economies of scale, giving manufacturers greater bargaining power and lowering purchase prices through bulk ordering. And this business model has also been replicated in other industries, such as the automotive aftermarket industry. As the leader in automotive aftermarket IAM, how does Tuhu Auto Care achieve genuine and high-quality products at a beautiful price?
According to third-party estimates, in 2023, TuHu Auto will sell around 15 million replacement tires annually, with an average monthly sales of over 1.2 million! Over the years, TuHu Auto has become a top tier tire dealer globally. Like Costco and Sam's, 'high sales' are the foundation exclusively for big brand chains.
Yang Mingjiu, Executive Deputy Secretary General of the Automobile Maintenance Parts Working Committee of the China Automobile Maintenance Industry Association, said: "Like Tuhoo, it can completely connect with the entire supply chain enterprises. It fully demonstrates its need to shorten the middle link through the use of Internet technology, including detection, verification, coding, traceability, and group brand building. The other is its integration effect, which is to integrate all the parts to be exported for procurement, which can reduce procurement costs. This is its advantage."
We cooperate directly with all brands through official channels, with direct supply from factories, greatly shortening the supply chain of goods, reducing additional transaction costs, and eliminating intermediaries to profit from price differences. On the other hand, in recent years, Tuhu Auto's partners have either been international big brands or domestic high-quality large enterprises, such as "dual money and dual star old state-owned enterprises", which have carried out the "big brand chain exclusive supply model" to the end. Moreover, the quality management improvement linkage project between Tuhu Car Care and German horse brand has enabled the quality management team of the horse brand's Hefei factory to win the Continental Horse Tire Global Quality Management Award, and has also made great efforts in "strict quality control". 'Big brand endorsement+strict quality control', two pronged approach.
However, if you observe carefully, you will find that during the cooperation process, international big brands not only provide genuine products to Tuhu Car Care, but also "good goods" because of the "high sales volume", and big brands are willing to supply good goods to Tuhu for sale. For example, in August of this year, when the German brand XC7 tire, known as the "Cullinan" of the tire industry, made its global debut, Tiggo was the exclusive release channel. Why did German brand tires launch cutting-edge technology exclusively on the Tiggo channel?
Tang Mingyou, General Manager of the China region of German brand tires, previously stated in an interview, "Chinese consumers' demand for transparency in price, product quality, and service in the automotive aftermarket is actually becoming stronger. Some mid to high end consumers are pursuing higher product quality. When Tiggo conveyed consumer demands to us, we felt both excited and nervous. The consumer demands conveyed by Tiggo are highly consistent with what we observed
When the market returns to the era of rational consumption, enterprises are facing a major challenge in the new retail era. Directly cooperating with the brand and having independent and strict quality control standards, Tuhu Yongche, as a leading domestic auto repair chain brand, not only meets the needs of consumers who pursue "quality price ratio", but also makes "big brand endorsement+strict quality control" an advantage. It can be said that the exclusive supply of big brand chains is considered synonymous with high-quality goods and beautiful prices. In terms of product supply mode, Tuhu Auto Care is more like the "Costco of China's auto parts industry". As the automotive industry transitions from the incremental era to the stock era, there will also be more room for imagination in the automotive aftermarket.
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