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Car rental Giants looking to expand the market

China's car rental market, how to? Prospects? Many in the industry there.

  recently, many rumors of an extra message: there is a car rental network is being rolled out first-tier cities, networks of people who?

 --flying car rental companies (hereinafter referred to as Avis). October 17, Chang Ning Road, Shanghai, when industry journalists communicate with, Nigel white seems to have seen fruitful victory conditions, he proudly said: "in 2010, Avis will establish 70 car rental outlets in China.

  Bai Naijie said, "the next company built car rental outlets and franchises will be 50%. "This means that Avis will be run independently by the enterprises turn parallel on two legs--built on the road network and franchising a two-pronged approach.

  at present, Avis only has 10 outlets in China, with Shanghai 6, Beijing, Suzhou, Guangzhou, Shenzhen, the one. Avis China has 2000 rental cars. In terms of average 200 outlets in cars, 30 built network will add 6,000 cars. This is not a small investment.

  expansion March

  fly 4% per cent market share of China's car rental market, the market shares in Avis performance thus far in the world. In Europe, Avis occupy a market share of more than 20%. Avis global operating 3,750 branches Avis and Budget brands. 2004 Avis gained 11. The sales revenue of 400 million euros, of which France 20%, Spain 17%, Germany, 15% Italy, 15% United Kingdom 14%. China and other Asian countries and other countries belonging to the rest of the 19%.

  in recent years, under the influence of the main consumption areas to the recession and increased competition, although Avis Europe has taken various way to control costs, increase revenue, and its profit fell slightly. The first half of 2005, Avis Europe gross margin up to 44%, but the net profit margin of only 0. 41%. In China, controlling risk, car rental industry can achieve the net profit margin of 5%-10%. Strong contrasting forces Avis China must seize this cake.

  achieve the 2010 set up 70 outlets in 26 Chinese cities became Avis China a top priority. How to 4 major cities as the Center, to 26 cities, have become the core.

  franchise is basically familiar with China's water market accelerated expansion of Avis preferred. In accordance with market practice, franchising can charge a minimum fixed franchise fee, according to the percentage of the sales revenue to join charge (less than 10%), or combining the two forms. As regards the specific costs, depends on the specifics of partners may be, such as scale and market potential.

  pay the joining fee, franchise in addition to share Avis brands, enterprises can also enjoy Avis promotions such as Avis's own network-sharing part of the leasing contract: Avis after signing the agreement with big customers, such as 200 car rental agreement may be in different cities to use the 200 vehicles. Avis will be one of the dozens of car rental business to franchise partners.

  It is understood that Avis networks is in talks with franchise partners. If nothing else, in 2006, the franchise is likely to have in Guangdong Province and Jiangsu Province, especially Jiangsu, Wuxi, Nanjing and Hangzhou. At Avis, Wuxi and other Yangtze River Delta areas is the most important car rental market.

  at present, Avis has submitted to the Beijing authorities about the franchising business applications.

  flying tactics

 2002 in January, Avis and Shanghai Automotive Industry Sales Corporation (hereinafter "SAIC sold") signed a joint venture agreement. In September 2002, was ordered from Avis in the European business in China to Shanghai's Bai Naijie "swimming", although the time is not long, stand by knowing.

 2002 on December 28, a total investment of $ 66 million, registered capital of 22 million dollars of the Anji car rental company. Avis and Shanghai Automotive Industry Sales Corporation-funded 50%.

 2003 on December 18, along with China's traditional lion dance performances, Anji opened Guangzhou Branch. Since then, the Avis slowly began to expand China's territory: in January 2004, Suzhou branch was established in December 2004, Angie Beijing Branch was established in September 2005, Shenzhen branch Anji was put into operation.

 3 year, Avis headed by Beijing Jing-Jin-Tang area, Shanghai and Suzhou in the Yangtze River Delta area, centering on Guangzhou and Shenzhen in the Pearl River Delta region in the collection bag.

  over 60,000 rental cars, 60% 70% to focus on the 4 largest cities--Beijing, Shanghai, Guangzhou and Shenzhen. 4 large cities became a battleground of foreign car rental giant. Avis is one of the first and then go.  


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