Bain, an international well-known consulting company, published a report in May 16th that China has redefined the concept of travel with a new mode of travel, such as sharing a single car and a network of cars, and becoming the largest travel market in the world, under the double stimulus of the rapid popularization of digital technology and a positive attempt by consumers to try new ways of travel. Traditional car companies need to change their current business models so as to seize new market opportunities.
According to reports, Bain’s recent survey of nearly 2000 consumers in China’s one or two and three line cities showed that shared bicycles were the most popular new mode of travel, and 73% of the respondents said they had used shared bicycles and second, 62% of the visitors said they had used a network of vehicles to replace the vehicles. Travel. More importantly, considering the new way of travel, serious traffic congestion and the financial cost of car maintenance, more Chinese consumers refuse to buy cars.
“These new modes of travel have been popular among Chinese consumers in the market, and they are rapidly becoming popular and fast becoming the mainstream mode of travel.” Bain global partners, report co author Ceng Weimin said.
He believes that as technology continues to integrate, government policy support, as well as more such as B2C sharing cars, such as new mode of travel, the Chinese travel market will be expected to continue to maintain a rapid growth trend.
According to Bain estimates, in the past three years, the market share of domestic shared bicycles and net related cars increased by five times and four times respectively. The total transaction volume of China’s net car market reached about US $23 billion in 2016, which surpassed the total amount of other countries in the world.
Reported that behind this explosive growth, the popularity of mobile payment is one of the main reasons. The congestion of roads and expressways in China’s first and second tier cities is another major reason why consumers turn to new ways of travel.
“More Chinese consumers may choose to give up their cars after taking into account the choices of travel mode, serious traffic congestion and the financial cost of raising cars.” Cai Qing, a global partner at Bain, pointed out.
The report points out that the new travel trend will lead the vehicle factory to rethink its profit pattern, and must cooperate with other service providers and other participants in the value chain.
For example, by working with technology companies, the OEMs can acquire large amounts of consumer data. Through more detailed consumer portraits, car manufacturers can have a better understanding of consumers’ travel scenarios and behaviors. In view of this, they need to build alliances to provide precise marketing based on consumer geography, and other innovative services or products, to expand their role in the travel ecosystem, and to eventually raise income and profit.
The report also says that in the process of growing and shaping trips, there is no doubt that in order to surpass competitors, it is necessary to establish mutually beneficial alliances, enhance the necessary corporate capabilities and prudently manage the risks inherent in the emerging industries. After all, no one in China, the world’s largest travel market, can win alone.