Car Brokers Will Become the Leading Role of Distribution

In the past 2022, China's auto industry experienced a very extraordinary year. New energy vehicle brands, in China, in the world, is on the rise, but there are several brands in China completely bankrupt, including luxury brands.

The international situation is undergoing drastic changes. The global political and economic landscape is dizzying. We are at the tail end of a 500-year cycle of great navigation, and the new and  old regulations are in a fierce confrontation. Major power games, geopolitical conflicts, COVID-19 and energy crisis are gripping the world.

The automobile industry is the lifeblood of the industrial economy. It is the dream of the Chinese automobile industry to realize the curve overtaking. Unlike for many years, in the core technologies such as fuel vehicle chassis, engine and transmission "three big parts" exist. In terms of three electric core technologies in new energy vehicles, intelligent network in the near future and automatic driving, our country has experienced rapid development in the recent 10 years, and has ranked in the front ranks in the world. However, in fact, the profitability of those companies that suddenly gain considerable sales and market share is not optimistic. Among the mainstream brands, except Tesla and BYD, the others are basically in the stage of seizing the market at a loss of money. Most auto companies are facing a fork in the road, whether to continue to invest inward, or choose to change the business model, or choose to go abroad, which is an important issue they are studying.

New technologies and new products will bring about changes in circulation patterns.

China's traditional automobile circulation to 4S shops as the main body. This is a business form from Europe, with "four in one" as the core, including  Sales , Spare parts, Service,  Survey. It has established a franchise relationship with various manufacturers, with beautiful shopping environment, strong brand awareness and other advantages. This way is very suitable for the sale of traditional brand fuel vehicles, suitable for the older generation of car buyers.

However, the product features and value proposition of new energy vehicles have changed, and the consumption habits of customer groups are also different from the past, so the 4S system is facing challenges (In fact, Mercedes-Benz, BMW, Honda and other car companies have tried to ban 4S stores in Europe and Australia).

At the same time, car marketers need to rely on this asset-heavy business to carry out business, and are bound by the rules of the game set by capital, whose value and contribution do not bring proportional returns. They want freer ways of working, fairer rules of the game, and higher incomes.

Project summary

We believe that in the face of great changes, the business form of the organization will change at any time to meet the needs of The Times. However, people will always be the main body to promote business civilization and carry forward innovation, and the wisdom of people will become the core of creating value.

In this case, Chengdu Automobile Trade and Distribution Chamber of Commerce (hereinafter referred to as Chengdu Automobile Chamber of Commerce), carried out a bold commercial experiment: to promote independent brokers to become the leading role of car distribution.

Due to the individual person is weak, individual success cannot be separated from a set of system support, so our most important work is to establish this system which support brokers . In line with the principles of fairness, independence and distribution according to contribution, we will adopt the form of DAO (distributed autonomous organization) to establish the Car Broker DAO. Members, driven by shared values and goals, participate in the car sales process under fairer rules and are ultimately distributed according to their contribution rather than their capital input.

Promoted by Chengdu Automobile Chamber of Commerce, Car Broker DAO embodies the consensus of a group of forward-looking automobile practitioners (including auto manufacturers' executives, traditional dealer owners and professional managers, etc.). It is not ethereal, but based on decades of industry experience and thinking.

Car Broker DAO will empower each car broker to become the protagonist of the auto distribution, instead of being subordinate to capital or stores. They will receive skill upgrading, professional certification and business collaboration in the Car Broker DAO community and share the dividends of new energy vehicle circulation according to their own contributions. Human capital and intelligence will replace capital as the most important factor of production.

Car Broker DAO does not have a top-down hierarchy, but sets rules of the game through open and transparent voting, according to which there is large-scale collaboration and autonomy, equality and voluntarianism, and freedom of entry and exit.

This is a destructive experiment in punk spirit, and we hope that more intelligent people in and out of the industry will pay attention to it, because it is about whether we define the rules ourselves and drive the universe, or whether we are forced to suffer the painful slaughter of stocks within the existing commercial framework!

Everything is easier said than done. "Fortunately, this commercial experiment is not just a pie in the sky. The small team that started the project is basically set up, physical stores are already working according to our rules, and we even have a foothold in Southeast Asia. More importantly, we have refined a set of 4A system in practice can completely replace the 4S system. That is:

Advice: Based on the needs of consumers, use their own professional knowledge and information to provide adequate and objective advice.

Agency：Under the premise of obtaining relevant authorization, Agencies can represent several brands of automobiles.

Assist：To Assist consumers with ordering, car delivery, mortgage, insurance and property transfer.

After service： All services after delivery, including maintenance, rescue, used cars, clubs, etc. The idea of lifelong service.

Every car broker, it's a 4A unit. 4A mode is a new mode that consumes less resources and is more efficient than the traditional 4S mode. Not just a new business model, but a new set of values. To maximize the incentive of individual innovation ability and subjective initiative. This is not only a call, but also a set of practical measures to form visible and trustworthy, like the law, a system of strict procedural guarantee, and written into the blockchain, so that every participant can see that they have achieved a certain step, the organization must fulfill the corresponding commitments stipulated in the regulations.

The project initiator of Car Broker DAO aims to constantly cultivate and organize more excellent auto brokers, fully empower them in methods, credit enhancement and supply chain, and evolve and grow the Car Broker DAO organization.