“Last year we were an inquiry system, and I hope to become a trading platform this year.”
For a long time, the auto parts supply chain has many levels of circulation, many types of SKUs and non-standard, and complex consumer service models, which has led to supply The chain reaction speed is slow, the capital turnover is slow, and the collection of information data is difficult, which ultimately causes pain points such as low efficiency and high cost. In response to these problems, some companies have begun to build auto supply chain platforms to match the upstream and downstream needs of the market.
Benben Auto Parts, which was recently contacted, is one of the high-end auto parts trading platforms. The company was founded in November 2017 and has been officially operational since mid-2018. Zhao Junming, CEO of Benben Auto Parts, told us that the reason for the high-end auto parts transaction is that the high-end auto parts data is more standardized than the low-end and mid-end cars. At present, Benben’s auto parts platform business has covered 14 high-end car brands such as Mercedes-Benz, BMW, Audi, Land Rover, Jaguar, Porsche, and Volvo, mainly in the European series. In 2020, they plan to cover more Japanese and American mid- to high-end brands.
Zhao Junming said that now more than 95% of the parts in the repair shop are still receiving goods from traditional parts suppliers, and the rest are purchased from Internet e-commerce channels such as Baturu, Kangzhong, and Three-Six-Arms because of offline supply Businesses often have longer-term and stable cooperative relationships, and they have spot inventory. In many cases, they can better meet the needs of repair shops than online e-commerce.
Benben Auto Parts hopes to build an efficient information platform and alliance with auto business districts to provide these traditional suppliers occupying the existing market with a trading platform, new retail auto parts management ERP system, and low-cost finance. Services, and so on, to improve the efficiency of suppliers, help them optimize their inventory structure, increase the turnover rate of funds, and provide a complete online after-sale guarantee system for repair shops trading on the platform.
Zhao Junming mentioned that among the high-end car brands, Benbao Ao has the most parts dealers, with a total of about 8,000 to 10,000. In addition to other brands, the entire European car parts dealers have a scale of 20,000- 30000. And Benben Auto Parts now serves 5,000 of them (located in the first, second and third tier cities), covering more than half of Mercedes-Benz and BMW and other mid-to-high-end brand parts suppliers on the market.
Under such a business model, Benben Auto’s main sources of revenue include platform membership fees, commissions for collecting services, financial service fees for supply chains, and advertising fees. Zhao Junming said that there were about 5,000 registered members on the platform last year, and the membership fee income has exceeded 2 million. This year, the membership is expected to reach 10,000 to 15,000, plus this year’s centralized mining and financial services revenue. The overall income scale is expected to reach 10 million, and the flow can reach 200 million to 500 million.
“Last year we were an inquiry system, and I hope to become a trading platform this year.” Zhao Junming said. They plan to continue improving online transactions this year