Study Of Channel Conflicts In Automobile E-Commerce Based On Channel Power Theory

Automobile e-commerce has been evolving very fast during recent years in China. Although automobile e-commerce started relatively late in our country, it has great potential to develop in the future. The entrance of new channel members and the appearance of new business models imply changes and revolution. The application of e-commerce provides another marketing channel for automobile business, meanwhile, the participation of new channel members changes the power allocation in the channel, thus affecting channel members’ interests and leading to conflicts. This paper focuses on conflicts in the automobile e-business channel under different business models. The study of this paper develops the application of the channel power theory in new channel models and new channel relations, which has important practical significance in improving the healthy development of automobile e-commerce, promoting the revolution of automobile marketing channel and improving channel efficiency.This paper begins with the presentation of the development and current models of automobile e-commerce. Nowadays, automobile e-commerce in China has entered a stage where various business models coexist together. The channel conflicts in different model are in fact reflection of different kinds of interests conflicts. This article develops analysis based on the case study of the e-commerce platform Bitauto (Yiche). Observation method, interview method, document analysis method and Delphi method are involved. Huimaiche, Yichehui and parallel import segment of Yiche Mall represents three mainstream business model of automobile e-commerce; channel power distribution, types and resources of channel power conflicts in these models are analyzed and explained in this paper.The study finds that in both traditional offline channel and e-channel, the power to control information, the power to control products and the power to control price are always quite important origins of channel power. The change of channel power allocation due to the intervention of e-commerce is the deeper source of the channel conflicts. According to different business model, channel conflicts appear between different entities and the conflicts come from different major sources. Generally, channel conflicts exist among all parties in the automobile e-commerce channel, which are OEM, offline dealers and e-business platform. The corporation between certain channel members or the business of a channel member can damage the power of other parties, which is considered as the main origin of channel conflicts.Through the study of this article, it is found that the nature of channel conflicts is not negative. In fact, channel conflict is an unavoidable step during the channel revolution. Appropriate treatment to conflicts could lead to positive results such as better corporations among channel members and improved channel efficiency. Inappropriate attitudes towards conflicts may deteriorate the situation and may have destructive effects on the channel. There are three major aspects of channel conflicts:different goal, different understanding of the fact, and overlap in field. Therefore, the mechanism to solve channel conflicts could be explored from these three aspects.Finally, the paper tries to put forward solutions to eliminate or relieve channel conflicts. Two main kinds of strategies could be helpful:channel segmentation and channel integration. Channel segmentation includes product distinction and geographic distinction. The essence of segmentation strategies is to offer channel members some exclusiveness in order to reduce overlap of market field and bring down channel members’feeling of dissatisfaction. Channel integration should be the future trend of automobile e-commerce. Methods provided are application of same pricing through online and offline channel, wider corporation in automotive aftermarket, building up of information sharing mechanism. These could improve communication and corporation among channel members, thus relieving conflicts and improving channel efficiency.