The number of automobiles owned in our country has increased by 6 times over the past decade. This year, automobile ownership will reach over 30 million vehicles. Currently, for every thousand people in our country, there are approximately 24 cars. However, this is far below the global average of 120 cars per thousand people, which clearly shows the enormous market potential.
Currently speaking, private cars in China are still close to being a luxury item. When people own their beloved car, they undoubtedly take great care of it. As a durable product, when sales become relatively saturated, later maintenance becomes long-term and important. On the other hand, although many large and medium-sized cities in our country have developed rapidly, related facilities cannot keep up, with a lack of parking spaces forcing many cars to stay outside exposed to wind, rain, and sun, accelerating the aging of cars. This provides conditions for the existence and development of the "post-automobile" market's car beauty industry.
According to market research: currently, more than 60% of owners of private high-end cars have the habit of external car beauty maintenance; more than 30% of owners of private low-end cars are also beginning to form the concept of car beauty maintenance; more than 30% of public high-end cars also undergo regular external beauty maintenance. From this, we can see that the prospects for the car beauty and decoration industry are exceptionally broad.
According to expert estimates, a car worth around 100,000 yuan generally lasts for about 10 years. Calculating based on an annual mileage of 20,000 to 30,000 kilometers, the annual maintenance cost is over 4,000 yuan, with higher costs for high-end cars. Based on our country's automobile ownership of 30 million, the "money prospect" for the development of the car beauty industry is quite astonishing.
Currently, the domestic automobile maintenance industry is divided into three major categories. The first category includes the familiar roadside car washing "militia", car repair shops that also offer car washing and waxing services, as well as professional car wash factories. The second category includes "superstores" that have appeared in some central cities like Beijing, Shanghai, and Guangzhou. The third category is car beauty shops.
The main characteristic of the first category is affordability, but these often involve "hanging sheep heads and selling dog meat," with operations not being standardized, making it difficult to ensure maintenance quality. In "superstores," a large amount of high-end and quality car beauty products are provided, but the stores only provide goods without dedicated personnel offering services, and the prices are also relatively expensive. Car beauty shops combine the features of the first two, providing a one-stop service from basic car washing, sealing glaze to car beauty decoration.
The car beauty industry depends on the development of the automobile industry and belongs to an edge industry. Our country's automobile industry is developing vigorously, with a large amount of market demand ensuring the sustainability of car beauty development. On the other hand, the car beauty industry has always been in continuous development, with new products and new service items constantly emerging. The updating of service products provides technical support for the sustainable development of the industry.
The biggest feature of car beauty shops is car beauty decoration. This service project is currently fresh in the market, with low risk and a large profit margin. It is understood that apart from some electronic items such as sound systems, anti-theft central control, and reverse radar, the profit margin for other projects in car beauty decoration is over 50%. Many projects even reach 200% to 300%. Car beauty decoration still belongs to a new industry and is currently very popular in the market. It mainly relies on manual technology to gain profits, with relatively less investment in equipment and products. Its capital investment mainly involves rent and personnel wages. Moreover, for investors who are not very familiar with the car maintenance industry, the technology of car beauty decoration is easier to learn and grasp quickly, naturally reducing various operational risks.
Industry insiders refer to the entire operational model of car beauty as McDonald's and KFC in the car maintenance industry because the core content of car beauty shops is service. Car beauty shops pay special attention to image and are more standardized in terms of service. They focus on every detail of service, such as how many movements are needed when wiping a car, how many wipes, and the required force, all of which are strictly regulated. This ensures the overall service quality and makes consumers feel more assured.
Currently, the car beauty market in our country is not yet standardized. Many car beauty shops have transformed from previous car repair or car washing factories, operating under the guise of car beauty while providing simple and primitive services. More standardized car beauty shops mainly operate through franchise chains, relying on brands and quality for survival.