Chery seeks more breakthroughs in the micro-vehicle and commercial vehicle markets
In September, Meng Tao, director of the Chery Beijing Office on the second floor of Block B of the Marriott International Apartment in the East Third Ring Road, began to be busy. He will soon welcome new colleagues here, and the Beijing Office will also become Chery Jing Mengda. The throat of the district.
Less than a year after canceling the regional system, Chery re-adjusted its marketing. At the beginning of September, the newly appointed General Manager of Chery Sales Corporation, Ma Dejun, held the first distributor meeting in Wuhu, announcing the resumption of the management of the regional system: splitting Chery's original 11 sales regions, the original Southeast University. The area was withdrawn, the original Tianjin area in the Beijing-Tianjin area was assigned to the North China area, and the Beijing area and Inner Mongolia area were merged into the Beijing-Mongolia area. Chery's original 11 sales areas have been reduced to 10 by now.
Compared with the past, the responsibilities are more clear. Chery's vice presidents and total helper grades of Chery sales companies are in charge of each division, and require each vice president to increase the time spent in large areas and substantively seize regional sales.
Jin Yibo, assistant to Chery Automobile's general manager, explained that this is one of Chery’s strategic transformations facing this year’s and predictable future severe sales situation. “The purpose is to intensify efforts to develop franchise stores at the forefront of sales channels and further expand sales in second- and third-tier cities. This is the focus of our market potential.â€
In fact, this is only the tip of the iceberg for Chery to face the severe challenges of the market and implement strategic transformation of the company. After entering the first camp of its own brand and completing its first venture, as early as the beginning of this year, Chery’s train of thought had undergone a 180-degree turn. The strategy has changed from the “quick and good†to the “second stage†of the past. And soon "change. At the same time, it is boasting about the sea, and it is necessary to establish its own international brand name.
Therefore, even if the market is not optimistic this year, Chery’s “price killers†that have swept the domestic low-end car market and the intensified listing of new vehicles have not been used again, and they have retired their high profile image. Go to the fast, low-key layout stage.
Compared with the high-sounding vocabulary of "good and fast" strategic transformation, Jin Yibo disclosed more details of Chery's actual operations this year during his exclusive interview with the newspaper, including its expanded product line layout, overseas export strategy and brand promotion. And so on, finding the independent brand “Blue Ocean†has become the main line.
There are many products and problems such as duplicates, which have been evidence of Chery's “multi-children gang fightâ€. Chery is now working hard to expand the product line, and will extend its reach into the mini-vehicle and commercial vehicle segment. Jin Yibo introduced that in terms of passenger cars, Chery will use the advantages of the platform to continuously change the styling and other aspects of the existing six platforms, and at the same time ensure the common use of chassis and other spare parts and reduce costs.
In April this year, Chery Microcars was quietly established without publicity. According to Chery's idea, one of the main forces for the automobile's entry into the family's future will be consumers in the second, third, and even third and fourth-tier markets, including a large proportion of rural users. The micro-vehicle market has broad prospects. At present, the company has entered the normal operation phase and has established a network of more than 140 sales service providers nationwide. The new product Q21 will be available at the end of the year.
In August, Chery Commercial Vehicle Co., Ltd. was formally established. The planned products include a 9-seater model and a 22-seater model, and Yang Bo, who has experienced sales in commercial vehicles, has taken over as the person in charge. Yang Bo was the general manager of Brilliance Automotive Sales Co., Ltd. and has extensive experience in selling commercial vehicles such as Gold Cup.
"For passenger vehicles, mini-vehicles and commercial vehicles, Chery will expand its product line to each market segment and gradually form a group development," said Jin Yibo.
In its overseas strategy, Chery has gained experience from 2004 and has undergone a major transformation after 2008. In 2004, the Chinese automobile market also suffered a sharp decline. At that time, Chery’s Chery in the domestic market also ushered in the first low growth. “In 2004, we sold only 8,000 overseas vehicles. We carefully reflect on it. If we have overseas strategic support, we will not be so passive,†said Jin Yibo.
Since then, Chery has begun to attach importance to exports, and its sales volume has gradually doubled, reaching 119,800 units in 2007, accounting for 53.6% of China's total auto exports. This also accelerated the conversion of Chery’s export strategy. According to Chery's plan, in 2008, Chery still focused on the domestic market, hoping that overseas sales would account for 40% of the total, and set a new overseas target. By 2010, overseas sales accounted for about half of Chery's total sales.
Not long ago, Chery’s factory in Malaysia was formally established. This is Chery's eighth overseas factory. It is reported that Chery will be divided and deployed in the global automotive market and use the planned production base to radiate to surrounding countries. At present, several overseas projects are being planned simultaneously.
The low brand image is no longer a problem for Chery’s own-brand automobile company. Almost all independent brands have such problems. In order to grab a place to survive first, Chery used a new car offensive, and a large number of new cars stimulated sales growth, but it also brought Chery into the quagmire of the brand. In order to improve product quality and change the bad image of Chery in the public's mind, the most important point is to raise the threshold for new car listing.
The prudence in the launch of new cars has become one of Chery's biggest changes this year. Chery A3, which has been continuously exposed by the media, has repeatedly postponed the pace of listing. Until now, Yin Tongyao, the general manager of Chery, still hopes to follow the example of Toyota, conduct continuous testing, guarantee quality, and then go public, opening up a new brand image for Chery. According to Jin Yibo, in the future Chery launches every model like the A3.
However, the other important move of Chery's transformation, listing, still faces the test. In early July of this year, Chery has restructured its name to a joint-stock company to prepare for listing. However, the sluggish stock market made it daunting and fell to the 2000 Shanghai Index, which made Yin Tongyao's 4,000-point bottom line cool.
Of course, the dream of Chery's joint venture with a foreign automobile company to achieve international strategic assistance is not very smooth. Under the insistence of Chery’s strong momentum, Chrysler and Fiat’s joint venture projects still lacked substantive progress. "The transition will take a step by step and the market situation will be severe. We must be more cautious," said Jin Yibo.
“Whether in the expansion of product lines or in brand building and overseas business expansion, Chery's strategic transformation approach is a microcosm of the overall transformation of independent brands, avoiding the highly competitive domestic market, walking on two legs, and creating an international brand-name company. Become a breakthrough point for independent brands in the current situation.†Insiders believe that “of course, this will also be a long and difficult transition process for independent brands.â€
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