Guazi responded that there were indeed personnel adjustments starting in September of this year, but within a reasonable range, and some employees were optimized because of poor performance, and the proportion of layoffs was not true. In addition, there are indeed store adjustments, reasons for lease expiry, and vacancy reasons.
Recently, interface news reporters learned exclusively from people close to Guazi Second-hand Cars (hereinafter referred to as “Guazi”) that, since September, Guazi has started a layoff mode, and Guazi’s carefully selected shops have become the hardest hit area for the layoffs.
Not only that, but many carefully selected stores in Shanghai, Shenyang, Nanjing, Wuhan, and other second-hand car cities have recently moved to a tighter location. A person familiar with the matter said that there were as many as 12 cities involved, and most of them were the key cities in which Guazi was previously deployed.
Among them, the strictly selected store located in Tongxing Pioneer Park, Yinfu Street, Nanjing, was detained by the property for nearly 100 vehicles because the lease had not yet been relocated. Yanxuan Store, located at Gaoche Subway Station, Wuhu Street, Huangpi District, Wuhan, negotiated with the property to re-sign the contract, withdrawing half of the area and reducing the remaining area by half.
According to people familiar with the situation, in Shenyang, one-third of the people at Guazi Strictly Selected Stores have been asked to leave or change jobs, and the first to be laid off were personnel from functional departments. In addition, people familiar with the matter said that Guazi used vehicles were in arrears in headhunting fees, extending its payment cycle.
Interface News verified the above information from Guazi Second-hand Cars, and its response stated that there were indeed personnel adjustments starting in September this year, but within a reasonable range, and some employees were optimized because of poor performance, and the proportion of layoffs was not real.
In addition, Gua Zi admitted that there were indeed store adjustments, reasons for lease expiry, and vacancy reasons. The company previously predicted that the second-hand car industry will grow rapidly this year, but due to the poor economic situation, the overall decline in second-hand car transactions is also a normal business adjustment.
Regarding the issue of headhunting fees, Gua Zi said that it is because the payment needs a cycle to the end of the year, and some employees need 6 months to turn to normal before they can pay.
All of the above may indicate that funds have been tightened for the simultaneous launch of Yanxuan Store and the purchase of two types of money-burning businesses across the country, and they have to be more “fine-tuned” in the business of Yanxuan Store.
In an internal email released by Yang Haoyong, the founder of Che Hao Duo Group (the parent company of Guazi Used Cars) in September this year, he said at the time that Che Hao Duo Group will continue to increase advertising and harvest markets. National investment in open platforms. Not only that, but he also said that starting in September, many cars will gradually become bloated, bureaucratic, and complicated, improve the effectiveness of the organization, and optimize the existing storage system.
The first round of optimization was also carried out simultaneously with this letter.
An interface journalist contacted an employee who was optimized for the first round at the end of August this year. According to him, the reasons given by HR to several employees laid off at the same time were “internal adjustments.” Previously, this employee was mainly responsible for the loan business, and his performance was ranked first in the region.
Guazi’s external image has always been rich in funds. In February of this year, Guazi Second-hand Car also announced that it had received a $ 1.5 billion investment from the SoftBank Vision Fund. As of now, its parent company, Che Haoduo Group, has received a total of US $ 3.8 billion in financing and a valuation of more than US $ 9 billion. However, according to the media’s “random book” report, Gua Zi’s Series D financing, of which 900 million US dollars were transferred to the old stocks, 58 the city retired 710 million US dollars, and other old shareholders withdrew nearly 200 million US dollars. The remaining 600 million US dollars is Softbank’s first payment of 300 million US dollars, and 6 months later, 300 million US dollars are reinvested according to specific conditions.
This means that Sun Zhengyi’s investment actually didn’t make much of Guazi’s account, but the carefully selected stores that began to be laid out in September last year required a lot of cash flow support for Guazi.
In the second half of last year, a number of second-hand car companies, including Guazi, entered new retail and set up offline stores.
The reason is also very simple. In the past few years, second-hand car e-commerce has verified that C2C is an inefficient model. Bilateral transactions indicate a strong uncertainty for both parties. In order to improve transaction efficiency, we can only solve the problem at one end first, that is, first fix the supply chain-open an offline store. On the one hand, the seller collects the car from the seller, and on the other hand, it provides the buyer with a centralized offline view. Car selection places to increase conversion rates.
The second-hand car is a non-standard product. Since advance payment is required, Gua Zi must calculate the price of the car that is most likely to be sold in 14 days through an algorithm, and then pay 70% of this price to the seller in advance, and then after 14 or 45 days Pay the balance to the seller.
The biggest problem with this model is the extremely high cost of advances. A carefully selected shop with 500 parking spaces is calculated at an average transaction price of 100,000. Gua Zi needs to advance a fund of 100,000 * 70% * 500, which is 35 million yuan, not to mention the rental cost and labor cost of the store.
According to people in the industry, Guazi used to be big and luxurious in its strict selection of stores. It is understood that the annual rent of Nanjing Tongxingyuan store is as high as 10 million yuan, while the smaller Guangzhou store also costs 5 million yuan a year. Each store with 100-200 business staff will be a huge expense every month.
It is worth noting that, according to the interface news contact melon seeds related people believe that the current seeds are “All in” another product to buy nationwide, this is also a melon seed as another transformation after carefully selected stores.
This year, Yang Haoyong publicly stated that the revenue of Guaranty Elections increased by 207% year-on-year. Sunflower also said that the main business in November had been profitable, and the above adjustments were only to weather the cold winter.
However, according to the interface news reporter, so far, there have been more than 80 carefully selected sunflower seeds stores nationwide, and the number of stores is nearly 8 times the end of last year, but the revenue has only increased by 2 times year-on-year. This may mean that the Yanxuan store that burned money did not develop as Yang Haoyong expected, and the tightening of the Yanxuan store could also make room for another shifting business nationwide.
Beginning in September this year, Guazi used car vigorously developed an open platform for the purchase of the country, and also found Lei Jiayin as the spokesperson. It is reported that the round of advertising that began in October focused on promoting national purchases.
The national purchase model was first proposed by Youxin. Since the divestiture of financial services this year, Youxin has shifted all of its business focus to national purchase. From the financial report, the data also performed well. In Q3 quarter, Youxin’s revenue from Chengdu was contributed by the national purchase. The revenue from a single business increased by 247% year-on-year compared with the same period last year. The number of mobile transaction vehicles nationwide reached 23,566. This is actually in compliance with the national policy on restricting migration.
A person close to Guazi told Interface News that now, in order to promote the national purchase, Guazi ’s internal attitude has never allowed middlemen to make a difference to embrace car dealers because the national purchase business requires a large number of cars from car dealers to be sold to Nationwide. The advantage of this model is to break the regional barriers of second-hand cars, allow second-hand cars across the country to realize remote circulation and avoid the problem of car sources flowing from big cities to low-tier cities and being charged by car dealers.
However, the promotion of national purchasing requires investment in the construction of warehouse logistics, which is undoubtedly a huge investment. With the simultaneous development of carefully selected insurance stores and national purchases, layoffs and moving stores to reduce rental costs may have become a helpless choice for Guazi.