With the slowdown of the national economy and the trend of policy purchases, China's auto market has entered a stage of micro-growth. Major car companies can feel the chill of “winterâ€. However, "winter" is not terrible. It is frightening to be frightened by the winter or to resist waiting for the winter to leave. Each company's way of resisting the winter has its own strengths. China FAW chose to stick to its established strategy, respond flexibly to changes in the market, or bring some inspiration to the entire industry.
Winter is not scary
Undoubtedly, China's own brand cars are currently in an unprecedented "winter". According to the data from the China Automotive Industry Association, the market share of self-owned branded passenger cars has been declining for eight months, from 43.34% in February 2012 to 36.43% in August, and nearly 7% of the market share has failed. In the face of the Chinese auto market, which still has no recovery timetable, the industry is filled with pessimism. Enron's "winter" has become the top priority for its own brand.
As China's oldest auto company, China FAW has experienced China's auto industry from scratch, experienced the market reforms brought about by economic system reform, and experienced changes in the market structure after joining the WTO. For winter, China FAW may have Its unique place.
Under pressure
There are many ways to withstand the cold, you can add fuel and clothing, you can eat full weight gain, China FAW choose is "to keep fit." Faced with the severe market environment and operational pressure, China FAW is dedicated to enhancing its soft and hard power. It is not only the immediate existence but also the win-win situation in the future. Therefore, it is its perseverance and perseverance to adhere to its own brand of patience with great patience and share difficulties with its dealer partners.
After nearly 60 years of development, now China FAW has become a state-owned large-scale automobile production enterprise with 120,000 employees and production enterprises and research institutes, 17 cities distributed in 13 provinces, municipalities and autonomous regions. As the "born eldest son of the automotive industry in the Republic", it is China FAW's unshirkable responsibility to do its own business. The market needs to be autonomous, and the market is not good. At the Beijing Auto Show in April this year, Xu Xiangping, general manager of China FAW, reiterated to the outside world that “by 2015, China FAW’s total sales volume will reach 5 million, including over 2 million self-owned brandsâ€. The self-determined cause ate a sure-footed pill. On the previous day, Chairman Xu Jianyi decrypted at the Hongqi branding conference: “The (red flag) project team has reached 1600 people. Since the project was launched, in addition to basic R&D and experimental verification, it has invested a special R&D cost of RMB 2.2 billion.†China FAW has spared no effort to do research and development signals.
Complementing the “autonomous route†is the “brand strategy†that was proposed in 2010 and has been abundant since then. This brand structure is displayed in the form of a brand house: the unified brand VI and the brand core value of “quality and technological innovationâ€. In the commanding position, just as on the roof, the next is the "house beam" composed of corporate social responsibility. The three umbrella brands of Hongqi, China FAW Passenger Vehicle and China FAW Commercial Vehicle are firmly supported by an umbrella handle from the entire "brand house". The core technology brands represented by the “Blue Horizon Strategy†and the service brands of the terminal are divided into two wings. With the role of brand elements, they provide more powerful support for the product umbrella brand. The five systems of R&D, product, manufacturing, marketing, and management, as well as the history and corporate culture of China FAW for more than 50 years, have created the cornerstone of the “brand house†and ensured the solid development of China FAW brand architecture. In particular, the release of the Hongqi brand and service brand this year further improved the brand house structure and once again promoted the development of this China FAW Group Strategy.
However, dullwood is not a forest. Re-strength, in the face of the market is only a drop in the ocean, must accumulate the power of society in order to make their voice in the market. For China FAW, the majority of dealers are their indispensable partners. In this winter day, manufacturers must pack with the dealers to warm up. So we see that China FAW's marketing conference for investors' unions has been the theme of "cohesion" and "peer" for two consecutive years. In 2012, with particular emphasis on the survival status of distributors, China FAW Group's energy was added to the network planning of its own brand companies, and through the development of flexible business policies to reduce the pressure on dealers, through the accompanying coaching to quickly enhance the ability of dealers. The dealers are the most sensitive antenna in the market, and they also know the consumers most. China FAW took an open attitude and learned market information from distributor partners to guide product development and planning, and won recognition from the market. The attitude and measures of mutual advancement and retreat have enhanced the confidence of distributors, increased the chances for the two sides to survive in the “winter†and laid the foundation for further cooperation in the future.
Change in dilemma
On the other hand, the market is realistic. In the long-term, it is imperative to survive in the present. Breakthroughs in dilemmas must break the rules and seize opportunities to change.
As Guangzhou joins the purchase restriction team, the possibility of first-tier and second-tier cities following the restriction purchase will be greatly enhanced. The restriction of purchase directly leads to the upgrading of consumption, which is particularly unfavorable for independent brands that are still in the development stage. The pressure for survival of independent brands in first-tier cities has increased, and they must sink to the second, third, and even fourth-tier cities. In addition, the upgrading of consumption has brought about an increase in the market share above the mid-to-high level, and the opportunities have also flashed. Facing the changes in the market, China FAW made timely adjustments to its product line by adopting high-end models such as the Hongqi and B90 to seize high- and mid- and higher-level market shares; through the launch of the new Weizhi V5, FAW Oulang and other A-class models, and the original Some Xenia, Xiali, Pentium and other products quickly formed a product portfolio and seized the market structure of the A-class vehicle. On the other hand, a variety of shop-building models have been introduced. Smaller stores, mini stores, 2S stores, and other models have been added outside the standard 4S store model to sink channels into third and fourth-tier cities.
Apart from policy reasons, the rapid development of China's auto market in recent years has also brought about increasingly mature and rational automobile consumption. Consumer demand has also increased the demand for services beyond the product level. To capture this change in demand, China FAW began to devote its efforts to the aftermarket, represented by the after-sales service and derivative business, and launched the “TQC Full Quality Caring†service brand at the Beijing Auto Show in April this year, and promoted it in an orderly manner. Implementation of service commitments. According to reports, China FAW has established 11 business groups according to business types, forming a strong promotion system for the functional departments and subsidiaries. Up to now, as an important support for the service brand, 176 seats in the first phase of the unified call center platform have been completed, and the design of the customer database architecture, CRM system architecture and business process design have also been completed. The Changchun Training Base, which is planned to be established in order to create a high-quality service team, has been officially put into use on September 1.
In the four seasons, winter is often sad because of its cold. But from another perspective, if spring is the season for all things, then winter is the season for recovery! The winter of the auto market is now washing the entire industry. After shuffling, it will surely usher in the long-term healthy development of the Chinese auto market. We believe that as long as we firmly believe that "winter must pass," we will study markets and companies with a positive attitude, and respond to consumers' needs with sincerity and sincerity, we will surely usher in the next peak of development.
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