Since 2000, China's automobile market has experienced a round of explosive growth, with an annual high growth rate of about 20% in the production and sales of automobiles. Correspondingly, the rapid increase in China's car ownership is reflected in authoritative statistical data showing that by the end of 2004, the number of privately-owned cars nationwide had reached over 13 million. According to predictions by Boston Consulting Group (BCG), China’s civilian car ownership will approach 40 million by 2007. A vice minister of China's Ministry of Communications once predicted that China’s civilian car ownership would reach 140 million by 2020.
Experts believe that based on the ratio of around 1:1.5 for the global market share between vehicle manufacturing and after-sales services, the current Chinese after-sales market is far from matching the development of the whole vehicle market, indicating significant room for growth. The after-sales service market will become the second major profit point in the downstream value chain of China's automobile manufacturing industry.
★ Huge Industry Potential. The automobile service industry is just beginning to take off and is expected to maintain a period of adjustment and growth for at least 15 years. Therefore, projects in the automobile service industry have long-term upward trends and good growth potential.
★ Stable Growth in Market Demand. According to relevant statistics, as high as 100% of body paint experiences minor damage! This represents a very large market without off-seasons or risks.
★ High Profit Margins. In the automotive repair aftermarket, auto bodywork and spray painting represent the highest profit margin segment. Operators mainly provide technical and service value to car owners, featuring low investment and high returns.
★ Easy Customer Retention. For urban car owners and car enthusiasts, "minor injuries" to the car's exterior are considered "small issues that cannot be easily resolved." Therefore, we position our market towards mid-to-high-end car owners. As long as we can provide quality and good service, our customers will return frequently.
★ Brand Domain Blank Spot. "Car Knights" will enter the market with professional, efficient, environmentally friendly, and customer-centric operating principles, gaining strong competitive advantages and enduring industry development capabilities, filling the gap for professional brands in China’s fast-repair automotive paint sector.
★ Great Potential for Business Expansion. When the "Car Knights" franchise network is established and the outlets already possess a certain number of customer resources, more high-tech projects can gradually be added to expand the scope of business.