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Fangzhou Failure

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2010—2011学年第一学期
研究生课程期末论文

论文题目: Beijing Largest Bicycle Rental Company Went Bankrupt

学 号: w201051003, w201051005

姓 名: 周丽亚, 李炅真_______

专业年级: 商务沟通 研一

课程名称: 营销学原理

任课教师: 江春

完成日期: 2011年1月3日

《营销学原理》课程研究生期末论文评阅表

考核形式:论文

选题要求:(请任课教师说明学生应围绕哪些领域、方面写作)

字数要求:_________字 满分分数:_________分

论文提交截止日期:_______________

评分要求:(请任课教师说明从哪些方面评定分数,下列指标项仅供参考,任课教师可根据课程论文要求对指标项进行调整。)
|指标项* |

研究生部培养办制表
Original case:

北京最大自行车租赁公司倒闭 http://www.sina.com.cn 2010年11月08日18:02 法制晚报

方舟自行车服务(北京)有限公司(以下简称“方舟”或“方舟公司”)倒闭了!近日,该公司进入退还会员押金、清理办公室的“善后”阶段。

白底橙边的自行车,曾布满京城的大街小巷。如今,它们被铁链捆住“躺”在路边,以20元到50元的价格被廉价处理。

又一个“让北京市民回归自行车”的梦碎了。下一个会是谁?是租赁点缩水至20余个的贝科蓝图,还是靠免费吸客的上海永久?

在北京市倡导2012年租赁自行车2万辆、2015年5万辆的背景下,这个即将集体死亡的行业正期待救世主。

现状

地下办公室 仅有两人“善后”

近日,方舟员工老魏在老婆的催促下,来到海淀万寿寺汇景阁公寓一间没有招牌的地下室。

当他再次推开办公室门时,领导不再像过去一样斜着眼瞧他,而是笑呵呵地说:“来领工资的吧,今天可以结清。”在讨薪近两个月后,老魏“幸运”地领到7、8两个月共计3600元的工资。

屋内左侧是半间办公室,摆着两张办公桌,右侧是半间仓库,堆着电脑、饮水机、打印机等办公用品,还有两个盛满文件夹的“方舟”车篓。

这里,只有主管经营的王经理和办公室主任合德贵。

出了办公室门,老魏不再去城铁望京西站外看守那仅剩的100辆破车——城铁望京西站外的方舟自行车租赁点关张了。

至此,方舟公司在全市的200余个站点全部停止运行,一个亏本运营了2年零3个月的企业,彻底进入“善后”的状态。

曾经布满京城的1万多辆方舟自行车,目前仅剩两三千辆,散落在公交站或报亭附近的租赁点。

能骑的按50元一辆成批地卖,不能骑的按20元一辆卖给收废品的,换成现金来偿还顾客的押金。

“每个来退押金的,都说我们的车方便又好骑。今年3月,北京市还提出2012年形成约500个租赁点,2万辆以上的租赁规模。多好的事业呀,说没就没了!”合主任感叹。

历程

两年亏损1000万 宣布倒闭

2008年8月,方舟正式挂牌成立。它的前身,是创立于2007年5月的甲乙木租车公司。

接手甲乙木后,方舟在全北京铺开200多个网点,1万多辆自行车实现异地租还,一度成为京城规模最大的租车公司。

合主任清晰地记得,当时,地铁4、5、10号线的50个站外均有网点,在和平里的办公室里,后勤行政人员多达80余人……“所有的方舟人都觉得机会来了”。

但从运转开始后,况就没有想象得那么乐观。

“每月得发工资30多万,占地费10辆车每月300元;两辆金杯车负责调度车辆,如果有人从中关村骑到颐和园交费2元,调回来一辆得花1.5元……”合主任掰着指头算各种支出,结果发现10个指头数不过来。

2009年冬,京城连遇大雪,对方舟公司的打击几乎是毁灭性的——车都停在路边,埋在雪里,要么压坏,要么冻坏上锈,化开根本没法骑。

开春后,方舟大多数租赁点面临瘫痪,顾客投诉、要求退还押金数量直线上升,会计核算公司净亏1000多万。方舟终于抵不住亏本的压力,宣布破产,并进入退押金的“善后”阶段。

探因

奥运前大力推广 租车被寄予希望

早在2007年8月,正值北京推行“绿色奥运”,市环保局和市公安局治理自行车被盗问题专项行动办公室,就联合推出公共单车推广活动。

活动宗旨是奥运会前,在本市建立230个自行车租赁点,遍布地铁口、商业区、交通枢纽、宾馆写字楼及社区,推动自行车全城联网、异地存取的租赁业务。

彼时,此项目的执行机构是北京贝科蓝图自行车租赁有限责任公司。

该公司负责人王勇曾表示,制约自行车租赁市场发展的主要原因是租赁点不够密集。

但在2008年奥运会,贝科蓝图的网点已经铺开至100余个,王勇所说的网点不够密集的情况已得到解决。

然而,直至2010年,贝科蓝图也没有实现盈利。

商家希望 通过车身卖广告

“租车是不可能挣回钱的,而且我们名字里也没‘租车’二字。”王经理和合主任点破迷津,老板看中的市场不是租车,是自行车出租可作为媒体,“说白了,是想通过租车卖广告”。

记者核对企业名称发现,甲乙木全名叫“甲乙木信息科技公司”,方舟全名叫“方舟自行车服务(北京)有限公司”,公司名都无“租车”二字。

在方舟公司看来,车棚、车身都可以做广告,车前篓、车架都可以换成跟公交车上一样的广告,看成流动的“城市媒体”。

“公司愿意这么低价位把车租出去,就是为了让大伙儿都养成骑方舟车的习惯。方舟有名,来骑的人多了,车身广告才更值钱。”合主任说。

方舟死了,但贝科蓝图和永久却还活着,只是,他们过得并不好。

在贝科蓝图北海公园北门租车点,经理白秀英指着公交站的广告牌说:“这里北边是后海,南边是北海公园,游客多,就那么一块,一年就能挣200万。”

分布在东城、朝阳的上海永久租车公司只有10个租赁点。

该公司在北京的负责人说,之所以免费,是为提高市民对骑车出行的认可,他们一直盼望政府允许其通过广告等方式盈利。

困境1

车身贴广告属违法

在京顺路大山子路口东的公交车站,积着白灰的10余辆方舟自行车侧躺在站台旁。车篓上印着“让经典引领未来”的红塔山广告词。

这些贴上去的广告尚未来得及露脸,它们的载体就已经“歇业”。但如果它们被骑上了大街,可能将以“非法广告”的名义遭到城管等部门的查处。

直至濒临倒闭,方舟租车公司申请广告一事,也没有得到相关部门的批准,只因没有相关法律法规允许在自行车身、车棚做广告。

困境2 非机动车用地没人批

“不仅广告招商得不到批复,就连租车停放的场地至今也没有任何部门审批过。”王经理苦笑着说,市容市政委称不负责非机动车的用地管理。

方舟与地铁公司谈判,希望将租赁点设在地铁站外的自行车存放点,或者,跟邮政报刊亭或小卖部协商“挂靠”,结果车都被城管拖走了。

一段时间内,王经理只能带着公司的经营许可证,到海淀、朝阳、宣武的各个城管队解释,软磨硬泡“捞车”。

他们从各区县的交通委运输局、工商局、发改委得到的统一答复都是“这事不归我们管”。

方舟的前世今生

2007年5月

甲乙木公司成立,设150个网点

2008年1月

甲乙木投入200万,三个月后亏空

2008月4月底

一名私人老板收购甲乙木,同年8月,方舟公司挂牌成立,在全市设立200多个网点

2010年春节后

方舟公司多个网点瘫痪,公司宣布停止运行

走访

北京自行车

租赁公司现状

方舟:倒闭

贝科蓝图:20余个租赁点,主要分布在西城。因一直亏损,该公司正召回租车卡,准备用免费租车的方式自救

上海永久:10个运营点,分布在东城和朝阳。免费,但仅限辖区的本市户口居民

■他山之石

杭州

广告养活单车租赁

杭州是国内自行车租赁运作相对成熟的城市,约有网点2000个,目前日租车量超过25万人次。

据了解,杭州自行车租赁系统的运营费用,主要来自于服务亭、车棚及车身广告收入,服务亭的商业收入,及日常自行车出租费。

算账

收入

每天租车约30辆(以年卡及月卡居多),可获租金50元-60元

全月:可收入约1800元

支出

员工工资:1800元

场地费:30元/辆×600辆=18000元

调度车成本:45元

车辆维修费:200元

总计:20045元

亏损:18245元(以望京西站网点为例)

记者 许云峰

Source: 新郎新闻http://news.sina.com.cn/c/2010-11-08/180221435407.shtml
Publication time: 2010年11月08日18:02
Originally published by: 法制晚报 http://www.fawan.com.cn/html/2010-11/08/content_272775.htm

Translated Case:

Beijing Largest Bicycle Rental Company Went Bankrupt

Fangzhou Bicycle Services (Beijing) Co., Ltd. (hereinafter referred to as "Fangzhou" or the "Fangzhou Company") went out of business. Recently, the company is returning deposits to its members, cleans up the office of the "aftermath" stage.

Beijing’s streets have been covered with white-orange colored bicycles. Today, they are tied with chains lying on the roadside, priced from 20 yuan to 50 yuan.

Another dream "Beijing residents return to cycling" died. Who is next? Is it shrunk to 20 rental points Beko Blueprint, or attractive Shanghai Forever Free?

It is proposed that by the year 2012 Beijing Bicycle Rental would be increased up to 20 thousand bikes and 50 thousand bikes by the year 2015, this dying industry is looking forward to the savior.

Current situation
Only two people in the underground office prepare for "aftermath"

Recently, the Fangzhou employee old Wei under his wife's urging went to one no sign basement at Wanshou Grand View Court Apartments in the Haidian district.

When he opened the office door again, the boss was no longer looking at him as he was in the past, but smiled and said: "Come and take your salary, today it can be settled." After nearly two months in the pay talks, the old Wei was "lucky" to receive a total of RMB 3,600 of his July and August wages.

Left half of the room is an office with two desks, the right half is a warehouse, where computers, water dispensers, printers and other office supplies were piled, also there were two cart baskets full of the folders of "Fangzhou" bikes.

Here are only left the general manager Wang and the office director He Degui.

As soon as old Wei went out from the office, he knew that will never come again to the Wangjing Weast subway station to look after hundred stupid bikes.

So far, the Fangzhou company stopped all its more than 200 city rental points, this business was bringing losses for 2 years and 3 month, finally it completely entered into the "rehabilitation" stage.

The capital once was covered with more than 10,000 Fangzhou bikes, but now there are only remaining two or three thousand, scattered near a bus station or near a newspaper kiosk rental points.

Those bikes which are still running are sold at RMB 50; those which are already broken and not able to ride sold at RMB 20 to the recyclers, this money are used to return the customer's deposit.

"Everyone who comes to take back their deposit, they say that our bicycles are very covenient and easy to ride. This year in March, it was also proposed the formation of about 500 rental points, more than 20,000 bikes rental scale in Beijing by the year 2012. Such a good business, but it is gone!” sighs director He.

Course
Declared bankruptcy after two years of 10 million loss

In August 2008, the Fangzhou company was formally established. Its predecessor Jiayimu rental company was founded in May 2007.

After Jiayimu, Fangzhou rolled out more than 200 outlets, more than 10,000 bicycles in the whole Beijing to achieve remote rental, and became the capital largest bicycle rental company.

Director He clearly remembers, at that time there were bike rental points nearby 50 subway stations of the lines 4, 5and 10; in Hepingli office we had more than 80 people administrative staff ... ... "All of the people in Fangzhou felt that it is a good chance. "

However, after the start, the situation was not as optimistic.

"Monthly wages were more than 30 million, land rental fee was RMB 300 per month for 10 vehicles; two Jinbei cars were responsible for managing bikes, if someone from Zhongguancun will ride to the Summer Palace he will pay RMB 2, but to transfer the bike back would cost RMB 1.5 ... ... " director He was trying to calculate the expenditures and found that 10 fingers are not enough to count.

During the winter of the year 2009 the capital was suffering from big snowfalls, and it was almost a devastating blow to the Fangzhou company - the bikes were parked on the roadside, buried in the snow, or crushed, or frozen with the rust, or simply could not be ride.

In spring, the majority of Fangzhou bike rental points were paralyzed, customers complained, the number of deposit returners was raising, has brought to the company more than 1000 million net losses. Finally Fangzhou under a loss pressure, declared bankruptcy, and entered the deposit return "aftermath" stage.

Reason
Before the Olympics bicycle rental promotion placed hope

Back in August 2007, a time when Beijing launched the "Green Olympics", Municipal Environmental Protection Bureau and the Municipal Public Security Bureau made special mobile office to manage all the problems related to stolen bikes, thus helped public bicycle promotion.

Before the Olympic Games such activity aim was to establish 230 bike rental points spread all over the city, near the subway, business districts, transportation hubs, hotels, office buildings and communities, to promote the city bicycle network, and to make it accessible to remote places.

That time, the executing agency for this project was a Beko Blueprint Beijing Bicycle Rental LTD.

Wang Yong, head of the company has said that bicycle rental market development constrains are mainly due to a lack of concentration of rental points.

During 2008 Olympic Games, Beko Blueprint has rolled out a network of more than 100 rental points, and lack of rental network points problem has been resolved, said Wang Yong.

However, until 2010, Beko Blueprint doesn’t make profit.

Merchants hoped to sell advertising through the bicycles

"Renting bicycles is impossible to earn money, and in our name lack of two simple words 'bicycle rental'." Manager Wang and director He pointed out the maze, boss was looking at the bicycle rental market as it can be used as advertising media, "Frankly speaking, he wanted to make money on bicycle advertisements."

Through the careful study reporters have found that the two company names Jiayimu "Jiayimu Information Technology Company" and Fangzhou with the whole name called "Fangzhou Bicycle Service (Beijing) Co., Ltd.", both are lack of two simple words 'bicycle rental'.

If to look at Fangzhou, the bicycle side, and the whole bike body can be used for advertisement, the front of the basket, the frame everything can be covered with the same advertisement as on the buses, and become the flow of "urban media."

"So the company was willing to rent out low-cost car is to develop everyone's habit to ride Fangzhou's bikes. Fangzhou was famous, a lot of people rented our bikes, advertising on bicycles was more valuable", director He said.

Fangzhou died, but the Beko Blueprint and Yongjiu are still alive, but their business is not good.

At the north gate of Beihai Park Beko Blueprint bike rental point, manager Bai Xiuying is pointing to the advertisement on the bus station, said: "To the north is Houhai, to the south is Beihai park, here are a lot of tourists, so we are able to earn 200 million per year."

Located in Dongcheng, rising Shanghai Yongjiu Bicycle Rental Company in Shanghai has only 10 rental points.

The company's official in Beijing said, the reason why it is free riding is to enhance public recognition, we were wondering to get the permission from the government to put advertisement on our bikes, and thus to make profits.

Dilemma 1
Illegal advertisement

On the Jingshun Street Dashanzi eastern bus station, more than 10 dirty bicycles are laying down on the street. There are "Let the classic lead to the future" words printed on the bike's basket.

These posted ads appear, their carrier was already "out of business." But if they are riding the streets, will be "illegal advertisement" in the name of urban management and other departments have been investigated.

Before the bankruptcy, the Fangzhou bicycle rental company applied for advertisements, yet it wasn't approved by the relevant authorities, because the only reason that there are no relevant laws and regulations to allow the bicycle frame and side advertisements.

Dilemma 2. No one allows the territory for the non-motorized vehicles

"Advertising investment is not only unapproved, but also the parking lots for the rental bicycles have not been approved by any department." Mr. Wang said with a bitter smile, political commissar of the city, said they are not responsible for non-motorized land management.

After the negotiation between Fangzhou and subway company, they hoped that bicycle storage points can be located at the outside of subway station, or postal kiosks or 'anchored' to kiosks, as the result bikes have been chased away by city inspectors.

In such a period of time, Mr. Wang only could bring the company's operating license to the Haidian, Chaoyang, Xuanwu and explained to various city inspectors about fishing cars.
The State Transportation Committee Transport Bureau, Trade and Industry Bureau, NDRC the answer from all these departments was "We are not responsible for this."

Fangzhou's the Past and Present:

May 2007 - Jiayimu company established, located 150 outlets

January 2008 - Jiayimu invested 200 million, three months after the deficit

The end of May, April 2008 - Jiayimu acquired by private owner , the same year in August, the Fangzhou company was set up, set up more than 200 outlets in the city

After the Spring Festival 2010 - Fangzhou company multiple outlets paralysis, the company announced bankruptcy.

Visit
Beijing Bicycle
Current situation of leasing companies
Fangzhou: bankruptcy
Beko Blueprint: more than 20 rental points, mainly in the West. Because of losses the company is recalling bike cards.
Shanghai Forever: 10 operating outlets located in Dongcheng and Chaoyang. For free, but only for the area residents.

Hangzhou
Bicycle rental ad feed
Hangzhou is the one of city which has been mature demand of bicycle rental operation, there are about 2,000 outlets, currently at least more than 25 million bikes are hired.

According to the research, Hangzhou bicycle rental profits are mainly coming from service kiosks, advertisements on the bicycle side, the bicycle frame, and daily bike rental fee.

Afterwards
Income
About 30 rental cars per day (annual card and monthly card), rental fee 50 - 60 RMB
Monthly income: about 1,800 RMB

Expenditures
Staff salaries: RMB 1800
Site fee: 30 RMB / vehicle × 600 = 18,000 RMB
Bike dispatching cost: 45 RMB
Maintenance of vehicles: 200 RMB
Total: 20045 RMB
Loss: 18,245 RMB (in Wangjing West rental point as an example)

Reporter Xu Yunfeng

Questions to ponder:
1. What were the main reasons which lead Fangzhou to fail in the market?
2. What market should Fangzhou target?
3. What advertising media recommendations would you make for Fangzhou?
4. What recommendations could you give to Fangzhou according to the Western bicycle rental experience?
5. What suggestions and improvement recommendations can you give to Fangzhou to bring their business back on track?

Analysis:
1. Fangzhou was the most famous ad biggest rental bicycle company in Beijing, however, it failed to survive in the market. "The company experienced a loss of over 10 million yuan in two years". There are huge markets for the bicycle rental in Beijing, since many Chinese people ride bikes. Fangzhou was established in August 2008, Fangzhou was the largest bike rental service in Beijing. A total of 1,000 bikes could be borrowed and returned at more than 200 lending outlets across the Chinese capital. We believe that Beijing's overall facilities for renting and riding bikes is far from mature. Currently, many bike lanes along the main roads are overcrowded with automobiles, which have affected cyclists. Safety on China's crowded roads is becoming an increasing concern for cyclists, who are staying off the roads in record numbers. According to a survey published by the Beijing Transportation Research Center, many cyclists are quitting their two-wheel machines because cars are illegally using bicycle lanes to beat traffic jams. Apart from safety concerns, some people believe that cars are more suitable for their social status and riding old bikes is seen as cheap and less prestigious. But new cycling trends are also emerging thanks to more recreational riding. Biking is now enjoying a change of face and new designs. Following the emergence of new bicycle types such as mountain bikes and racing bikes, bicycles are gradually transforming from a transportation tool to an eco-friendly way of exercise and entertainment.
We think one of the reasons for Fangzhou to fail in the market is a wrong market. Mostly everybody in China has a bicycle, so it would be strange for people to rent a bicycle if they have their own. As soon as Fangzhou originally was established to target those tourists who will come to the Olympic Games, Fangzhou was quite successful at that time. But when the tourists were gone, bicycles still need somebody to rent them. Thus, Fangzhou changed their target to those people who commute by subway and by bus, by placing the renting kiosks near the subway and bus stations. To our mind the number of rental points was too small, so it was too hard to find another point at your destination to return the bike; this was causing a lot of troubles. Probably this was one of the reasons to make people give up the idea of the bike rental. The company lost about 20-million yuan also because of a lack of customers. Other bike rental companies have also faced similar problems. Some city residents say they don't want to take the trouble to rent bikes from these outlets. Some customers say: "It's not convenient at all. After you use it, you have to come to the same outlet to return it." "You've got to provide a 180-yuan cash deposit first, and there aren't enough places for you to return the bikes."
For the products and services, which need to be sold to customers, it is very important that how to promote products, such as distribution and advertisement. Here, as we see, the main reason was that they couldn’t advertise their products well because of the government. The only way to make money for Fangzhou was putting advertisements on the bikes, but they couldn't get the permission from the government. Thus they failed to the market because they were lack of policy support from the government.

2. Fangzhou rental company already has sold nearly 7,000 of its bicycles to local residents at low prices ranging from 20 yuan to 50 yuan, and it shows that the company was targeting low-income family who has no afford to buy a car. However, they should approach to those whom would not rent a bicycle as a target too. Not only low-income family but also high-income family also can be their target. And those whom owned cars also can be their target. As soon as driving a car already became a very big problem for every Beijinger, renting a bicycle can solve the problem of commuting. Usually the car owners do not have a bicycle, because they don't need it, but they can rent it occasionally, to go around the neighborhood or just having a nice bicycle weekend with his or her family. To make them as a target, they need to go through different distribution methods. High-income family would enjoy their cultural life. Thus, the company can make a corporation with parks or amusement parks which they might visit with their family. Inside the park or inside the amusement park, they would enjoy riding a bicycle. Also the company could make bicycles for the couples. Normally couples want to do something romantic like in a movie. Fangzhou could put more rental points around very crowded and tourists places such as Hou Hai, TianAnMen square, Qian Men and also near Hutongs, where people, mainly tourists can rent a bicycle for couple of hours or days. So they can extend their customer target range.

3. Fangzhou believed that they would have been succeeding in the market if they can obtain the authority for the advertisement by government. Fangzhou wanted to post their advertisement on the bike frame, in parking shed, and other related places, the company received no authorization to allow advertising. In this case, they should have changed their way to promote their products. TV or radio can be charged high cost. Thus our recommendations are whisper marketing, T-shirt advertisement and newspapers. First, company needed to make a promotion for the customers such as coupon and give them the best service which will make them to feel satisfy. Then customer will directly introduce Fangzhou to their friends. Second is a T-shirt advertisement. They put their advertisement on the T-shirts which we wear every day. If they give it to the customers, it will become advertisement when they wear them. Third, people used to read a newspapers. Fangzhou could put their advertisements with a full of promotion events, it will become another advertisement method.

4. In 2007, the local government in Paris launched a system named "Velib" that had about 1,500 rental and drop-off sites spaced 200 meters apart in the city center. Velib public bike system was started by one of the world's leading advertising agencies, JCDecaux. This was a bid by the city administration to improve the transportation system for Parisians. As part of the deal, JCDecaux provided 20,600 bicycles and also maintained the Velib system consisting of bicycles, bike stations, and terminals. In return, JCDecaux got access to the 1,628 billboards in Paris for outdoor advertising. Gong Tian, a 23-year-old PhD student in Paris, said the system is more convenient than ones in Beijing. "You just swipe your bank card to pay the deposit and you can take the bike away," said Gong. "It is free for the first 30 minutes." According to experts, the Velib system was a huge success with over 50 million trips being reported since its launch and August 2009. Some experts commended JCDecaux for developing a system that helped reduce environmental impact while improving the mobility of Parisians.
From the above brief introduction to a Paris bike rental system Velib we can see that it doesn't have the problems that Fangzhou had. Rental points are spaced 200 meters from each other, so it is very convenient to take-return bike when it is necessary; and the paying system is also very well organized, you just need to swipe your bank card and that's it. Another point is a very well organized advertising. As soon as the Velib company was established by an advertising company, they immediately got the permission to put their adds on the bikes and also they got an access to more than a thousand of advertisement billboards around the city where they can put not only the ads of other companies, but also they can promote their Velib system through these billboards. This is what Fangzhou can learn from Velib.

5. At first, Fangzhou needs to get the support from the government, reorganize the whole team and establish a new company which will have the key words "bicycle rental" (租车) in its company name. They need to set up about several hundred outlets that can provide bike rental and return services along subway lines in Beijing. Also, they need to use a computerized management system to provide more convenient services. So that the customers just need to press their public transportation IC cards against the screen of the booth to get a bike. That can be even more convenient than swiping the bank card. Also it would be better if the newly established company will adopt something from Velib, for example not to charge money for the bike within the first hour of use. They need to get the permission for the advertisements on the bikes and paint the bikes and booths with colorful logos, so that they can be seen from far away.
Finally, if the government wants to promote green transportation it should never be a business, it should be a public welfare initiative that should be completely free and led by the government.

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