Nearly 70% of the dealers are satisfied with their operation status in 2009
BEIJING, December 4, 2009 --- Sinotrust released the results of the 2009 Chinese Auto Dealer Satisfaction Survey at the annual meeting of the China Automobile Dealers Association (CADA). This is the second time for CADA and Sinotrust to jointly conduct the dealer satisfaction survey. Starting from August 2009, the 4-month survey gathers the opinions of the auto dealers of various brands across the country, measures dealer satisfaction in all aspects including “authorization contract”, “service” and “support”, and truly reflects the current status of the Chinese auto dealers as well as the problems and demands they have in their operations. The survey report elaborates on the following aspects:
The overall satisfaction has increased and the section of “daily account settlement” scores highest
The survey is designed to measure dealer satisfaction in 17 sections including “showroom construction management”, “stock management”, “price management” and “authorization contract”. The average satisfaction score for this year is 8.00 points, up 1.46 points over 2008. Of the sections, “daily account settlement” scores highest, while “rating criteria” scores lowest (only 6.53 points).
In this survey, the section of “showroom construction management” declines most sharply, dropping to No. 14 from No. 8 in 2008. In terms of attributes, “showroom construction criteria” and “showroom construction cost sharing” score relatively low.
Analysis of the current status of auto dealers
According to the survey, nearly 70% of the dealers are satisfied with their operation status of 2009 and the result is better than in 2008. In the first three quarters of 2009, most auto dealers (69.4%) made profits, and only 11.4% ran in deficit. The money-losing dealers are mainly in Eastern China and Southern China, which are the regions suffering heavily from the global financial crisis.
Dealers call for the strengthening of regional management and price regulation
In this survey, “regional management” and “price management” score 7.76 points and 7.95 points respectively, both below the average. Lax regulation is the reason behind. Therefore, most auto dealers call for the strengthening of regional management and price regulation.
The satisfaction with “authorization contract” remains low
Of the attributes of “authorization contract”, “withdraw mechanism” scores lowest, only 5.98 points. Dealers of imported brands award 8 points on this attribute, while dealers of domestic brands only award 5.82 points.
Dealers are least satisfied with the “rating criteria” set by automakers
Of the attributes of “rating criteria”, “respect for dealers’ opinions” scores lowest, indicating a poor communication between automakers and dealers. As for “the influence of automaker’s evaluation on contract renewal”, most dealers think automakers’ evaluations have some influence on contract renewal, but not big. Some dealers think automakers’ evaluations are only for show, not really helpful.
Dealers value “automaker support” most
75.3% of the dealers think “automaker support” is the most important factor for them, followed by their own “operational capability” and the “market climate”. As for “automaker support”, 80.9% of the dealers desire automakers’ support in “advertising and promotion activities”, and many also need automakers’ support in “business policies” and “used vehicle trade”.
Sinotrust is the commissioner of the CADA Expert Committee. On December 27, 2008, CADA and Sinotrust, together with some regional auto dealer associations, co-organized the “Chinese Auto Distribution Sector Grand Celebration for 30 Years of Reform and Opening up”, at which they released the first Chinese Auto Dealer Satisfaction Survey Report.
For more details in the Auto Dealer Satisfaction Survey Report, please contact:
Ms. Meng Ran
Sinotrust-Automotive Industry Research
Tel: 8610 5926 7793
About Sinotrust Automotive Marketing Solutions
Sinotrust is a leading supplier of marketing solutions to the Chinese automotive market. With offices in Beijing, Shanghai and Guangzhou, we have a team of over 200 skilled professionals devoted to our automotive marketing solutions. Our Automotive Marketing Solutions integrate information, services and technology to provide marketing research services, marketing consulting & business strategy services and database marketing services, helping automotive companies position their products correctly, identify target markets accurately and conduct effective marketing so as to develop a sustainable and profitable customer relationship.
About Sinotrust
Sinotrust is a leading supplier of marketing solutions and credit solutions in China. We collect, analyze and manage information about markets, consumers and businesses to provide marketing research, business information, consulting and database marketing services through integration of information, services and technology. Our products and services help you make better marketing and credit decisions and develop profitable customer relationships.
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At the beginning of 2007, Experian, the global leader in providing information, analytical and marketing services, made a strategic investment in Sinotrust with both capital and know-how. The investment will greatly improve our service capabilities.
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