Guazi slashes jobs, second-hand car e-commerce meets cold snap

“We used to have more than 200 sales people, and now we have more than 50 people after the layoffs. “Guazi second-hand car Shanghai YanXuan store, a sales staff confirmed to the “IT Times” reporter, Guazi second-hand car layoffs do exist. Guazi CEO Yang Haozhong responded to the layoff news that the optimization of personnel is a  cost-effective behavior under the  background  cold  winter, “enterprises’s ultimate goal is to be profitable, as a leading enterprise, we need to reserve more grain in the winter.”

In addition to the YanXuan shops, guazi second-hand car is pushing  the new  national purchase business, in the two “heavy” industry under the simultaneous promotion of the situation, layoffs to reduce costs, may become the helpless choice of melons.

Guazi slashes jobs, second-hand car e-commerce meets cold snap

Layoffs do exist.

In Shanghai, Guazi second-hand car’s  only Yanxuan shop, recently carried out a relocation, from Jiading District Boyuan Road to more than 20 kilometers away from the Qingpu District Jiasong Road.

Recently, “IT Times” reporter came to guazi second-hand car Shanghai YanXuan shop new site, where the office building facade of the electronic screen broadcast propaganda message, which has a poster to celebrate the arrival of guazi. Downstairs security guard and a delivery man told reporters that guazi moved here for a month.

Guazi second-hand car is located in the second floor of the Panda Luxury Hui Gexi office building, reporters arrived at the scene, there are several people looking at the car.

A sales staff said that guazi in the second and B1 floors are parked vehicles, “the second floor is mainly selling Audi, Mercedes-Benz and other high-end models, B1 is a more price-friendly model.”

Regarding the layoffs, the salesperson said that there are indeed a lot of people laid off, “more than 200 sales now down to  only more than 50.” The sales person introduced that his salary is composed of base salary and commission, the base salary is 2800 yuan, the amount of the increase is determined by the car condition, model and other factors. Take a 2013 Chevrolet Cruze with a price tag of 396,000 yuan and a displacement of 1.6L, for example, if the buyer pays in full, he can get a 500 yuan commission;

Hard-to-do used-car business

In 2019, major policy changes in the domestic second-hand car industry, the abolition of the second-hand car restriction policy, stimulate the second-hand car market activity, especially the purchase of second-hand cars.

In the policy of favorable stimulus, in March 2019, guazi officially launched a national purchase business, to achieve the second-hand car off-site circulation. “Where the price is low, help you buy where.” “Recently, guazi second-hand car national purchase of advertising attendance rate is very high, not only in the hit drama “yuqingnian” film head implant, but also in the popular variety “tucao conference” in the fourth season of the show. All of these signs are that Guazi is stepping up its national buying business, sending a signal to the outside world that all in the country is buying.

But the national purchase business is a “heavy” asset model, will bring greater capital pressure to enterprises, guazi need to invest heavily in the search for vehicle sources, vehicle maintenance, cross-regional transport and other links. At the same time, the pressure of capital advances is also very large, in the second-hand car shanghai, a sales person said that if the car buyers through the country to buy a car, to pay a 10% deposit, and melon to the seller’s account. In other words, melons have to pay the remaining 90% of the car.

Yanxuan shop model is not “light”, yanxuan store needs to pay store rent, staff wages, utilities, property fees, etc. , but also need to advance a large amount of money, such as in the car collection stage, guazi need to advance up to 70% of the transaction price to the seller.

In addition, in order to obtain traffic, competition for users, used car platform advertising expenditure is also very alarming. Data show that the marketing costs of melon seeds were 1.377 billion in 2016 and 2.803 billion in 2017. And before Yang Hao-chung revealed that in 2019 the amount of ads launched by melons is still more than 2 billion yuan.

Today, the head pattern of domestic second-hand car e-commerce is basically stable, but the survival pressure has not been reduced.

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