Guangzhou Huasheng Enterprise Management Service Co., Ltd.: Transparent services for reshaping the automobile service market

Company profile
 
 Established in 1998, Guangzhou Huasheng Enterprise Management Service Co., Ltd. (hereinafter referred to as “Huasheng”), is the founder and leader of luxury car repair. Over the past 20 years, the company has been focusing on the field of automobile maintenance service, adhering to the mode of personal car maintenance, and adopting quality accessories from the same factory, and providing high-quality, transparent, fast and affordable innovative maintenance services for luxury car owners. After 20 years of development, Huasheng has become a leading brand in the field of China’s luxury car maintenance, with more than 197 stores in over 127 cities across the country and more than 6000 employees. In virtue of its high-quality and reliable service, the company has won the trust and praise of over 600,000 luxury car customers in China and become the automobile maintenance transformation and upgrading case No. 1 of the National Ministry of Transportation, one of China’s top 100 chain brands and a respectable landmark group enterprise of China’s automobile post-market.
 
Challenges
 
Automobile after-sales service has always been a major area of complaints in the automobile industry. In the analysis on the automobile product complaints conducted by the National Consumer Association of China, after-sales service complaints account for 21.27% of all the complaints in the automobile industry. Among them, non-disclosure of fees, unauthorized replacement of parts, non-disclosure of fault causes and arbitrary charges are the regular guests on the after-sales service complaint list, and the root of these problems lies in the non-transparent information and monopoly of maintenance. With the vigorous development of diversified automobile maintenance market and the continuous intensification of industry competition, it has become an urgent problem for automobile after-sales service enterprises to break monopoly and reshape industry commercial civilization.
 
Solutions
 
The automobile post-market used to be an insignificant industry, with fewer people paying attention to it. With the increasing of China’s imported cars, the industry finally embraces its dawn. However, the huge automobile maintenance industry has always been dominated by 4S stores. The situation began to change after Huasheng was founded in 1998.
 
Huasheng is committed to remodeling the new commercial civilization of the post-market. From the very beginning of its establishment, it has been adhering to the strategy of being customer-oriented, implementing honest management and providing high-quality service consistently. In 2004, the automobile maintenance industry in China encountered a chronic disease, that is, the bad reputation of comprehensive repair factories in the society, and the hidden rules of minor problem overhaul and shoddy service made car owners do not want to and dare not to choose. As a result, many car owners only choose 4S stores with professional technology for maintenance and repair. Due to the severe monopoly of 4S stores and the inefficiency of service, car owners have to wait for a long time and pay high fees for repairing their cars. Huasheng held that the monopoly model represented by 4S stores infringes on consumers’ right of choice. It decisively turns to personal luxury car repair and takes the lead in proposing the enterprise mission of “breaking the monopoly of 4S stores, setting up the industrial benchmark, and making efforts for the standard and efficient development of China’s auto repair industry”. Since then, Huasheng has been committed to improving its maintenance technology and service continuously, and kept improving customer experience through measures like treating customers honestly, focusing on specialized repair, implementing chain operation and brand operation and integrating resources. To dispel consumers’ concerns, Huasheng takes the lead in carrying out all-around comprehensive and transparent maintenance from repairing, accessories, warranty and price, which has won the wide recognition and favorable comments of consumers.
 
Maintenance transparency. Huasheng guarantees the quality of maintenance with the craftsman spirit of concentration, professionalism and excellence. It builds a transparent workshop and transparent storage and conducts live broadcasting on the whole process of maintenance, so that customers can know the status of automobile maintenance whenever and wherever possible. Meanwhile, the company carries out “scenic spot tour” activity in all the chain stores and invites car owners to visit all aspects of maintenance services, so that car owners can witness the quality service of Huasheng and dispel their concerns. Huasheng promises not to use fake parts or conduct excessive repair, and takes the initiative to propose four major commitments in the industry, including “false a compensate ten, a 500-yuan compensation for overtime rework, quality warranty and expensive claim a compensate three” and displays them in the reception hall to accept customer supervision.
 
Accessory transparency. To guarantee the quality of the parts and solve the problem of non-transparency of part price, Huasheng carries out the large-scale unified procurement of parts by the headquarters, and has established direct cooperation relationship with more than 50 global top brandy part and oil product suppliers such as Bosch, Mahle, Shell, Mobil, Castrol, PPG, Michelin, Pirelli and Continental.
 
In September 2014, Huasheng acquired Shanghai Longfeng Auto Parts Co., Ltd. independently and established Shanghai G-part, which improved the auto part supply chain of Huasheng, thus realizing the direct procurement of parts from international first-line brand factories, and ensuring the quality and optimal price of parts from the source.
 
Huasheng publicly promises to use genuine parts only and to carry out centralized and unified procurement of parts for its chain stores to ensure the quality of parts. All the branches of the chain are equipped with a full set of advanced diagnostic and detection equipment from the original factory, which upgrades simultaneously with the 4S store. Each liter of oil and each part can be traced back to the source to ensure maintenance quality and service quality. In January 2018, Huasheng released its new slogan “using no fake parts” and “selling no fake parts” to highlight its commitment to genuine accessories.
 
Price transparency. With the help of mobile Internet technology, Huasheng launched Huasheng WeChat service account and WeChat small program to put the prices of various services on the Internet, so that car owners can clearly know the prices of various services before maintenance. At the same time, the company establishes a price comparison system based on 4S stores and displays it in all the stores, which is convenient for car owners to compare prices online and offline without overpaying.
 
Warranty transparency. Through platforms such as Huasheng WeChat service account and WeChat small program, car owners can inquire the previous maintenance records online at any time. In addition, the company is developing an APP named “Xiaoniao” and plans to build it into an automobile steward of car owners. It has the function of replacement remind of consumable parts like brake pad, filter and engine oil and query of current service to help car owners know the content of automobile warranty service and avoid the risk of part replacement without authorization.
 
Achievement
 
Social benefit
 
The company builds a new trend for the industry and removes car owners the worry of maintenance. It experiences the development from a comprehensive repair factory 20 years ago to the establishment of special luxury car repair, from auto repair to auto parts, from single shop to national maintenance chain, and from breaking the monopoly of 4S stores to shaping the new commercial civilization of auto post-market. As a leading brand of China’s automobile post-market and the automobile maintenance transformation and upgrading case No. 1 of the National Ministry of Transportation, Huasheng has been focusing on the automobile post-market for 20 years and kept being customer-oriented. Through continuously improving customer service content, optimizing service quality, actively exploring service innovation, it provides car owners with more choices and better service experience, leading the new direction of industry development and having become a respected landmark group enterprise of post-market.
 
Economic benefit
 
High-quality service wins customer satisfaction. Huasheng service has won the trust of over 600,000 luxury car owners across the country, and helped it build cooperation relationship with over 400 large well-known enterprises in China, including Sinopec, China Southern Airlines, Huawei, China Construction Bank, Langsha, Liby, Saite, Far East and Yurun. In the 2016-2017 customer satisfaction survey conducted by Huasheng, the average score of overall satisfaction was 4.21 (out of 5). In the survey of the automobile service index led by the China Chain Association, the preferred index, the word of mouth index and the loyalty index of Huasheng are all higher than the industry average. The net revenue of Huasheng’s chain maintenance increased by 23.40% in 2017.
 
Prospect
 
In the new era, Huasheng，with the goal of “building a respected national chain brand”, will fully apply new technologies to improve and innovate in services, and make automotive repair more transparent, more assured and more convenient. By 2020, it will become a well-respected benchmark group of automotive service markets with a production value of over 10 billion yuan.