Independent brand, where is the road?

After years of enjoying the market's harvest, independent brand cars began to taste the bitterness of the market this year.

According to the automobile production and sales data released by the China Association of Automobile Manufacturers, the market share of self-owned brand passenger cars in the first half of the year dropped from 47.35% last year to the current 44.35%, and sales of own-brand vehicles also fell by 0.82% year-on-year. This data was generated in the first half of the year, with the total sales of passenger vehicles in the country exceeding 6.7 million units, up 48% year-on-year.

Independent brand price advantage no longer buy a car to buy a joint venture or domestic goods? This is a problem. For consumers, domestic self-owned brand prices are relatively low, cost-effective, "support domestic goods" complex, is the main reason for consumers to buy their own brands, and this is also the main reason for own brands to occupy the low-end market. In the joint venture brand to explore prices, big brothers into the low-end market at the same time, the independent brand began to plan a positive counterattack.

Compared with joint-venture brands that have “downwardly” approaching low-priced models, independent brands that had started with low-priced cars have started to rush into the mid-to-high-end car market. In May of this year, Great Wall's new boutique car dazzling cross won a round of applause in the Ao class car market with “high quality and low price”.

According to statistics from the China Automobile Association, in terms of production and sales, the self-owned brands' SUVs showed a year-on-year growth of 27.29% and 29.58%, respectively, making them the fastest growing models. For a long time, domestic cars have shown themselves at the low end, breaking the low-end image that has long been in the public's mind and becoming a realistic choice for many current independent brands.

Self-owned brands like children to eat less tonic and more exercise Although the automobile industry is greatly affected by the policy, but at the time of the financial crisis in 2008, the government’s 4 trillion “tonics” came too fast, like young people in their teens taking centuries The old ginseng, oversupply, coupled with a series of incentives in the automobile industry policy, has led to the explosive growth of the automotive industry, especially to the independent brand car companies tasted the "sweetness." However, once the policy is reduced or withdrawn, the difficulties for independent brands are even greater.

If children’s resistance is poor, they are prone to fall when they encounter difficulties. How much resistance do adults need to stand up from the hardship caused by the earthquake and tsunami, such as force majeure?

Previously, due to the negative impact of the earthquake in Japan, some Japanese joint ventures have experienced severe underemployment. In May, Japanese car maker Toyota and Honda’s sales of joint ventures in China fell significantly, and the Japanese market share continued to decline. I thought that the trauma of the Japanese car would take a long time to smooth out. I did not think that sales of the Japanese car began to recover in June, and further recovered in July. The market share surpassed the self-owned brand and returned to the first position.

The outstanding performance of Japanese cars reflects its strong market competitiveness. Although children’s resistance cannot be compared with that of adults, the process of growth requires constant self-exercise to enhance their resistance and cannot rely on “tonics” to sustain them.

Although the current self-owned brands have encountered some difficulties, major auto companies have not encountered major funding problems. In comparison, some SMEs, parts companies and distributors have greater funding problems. Although self-owned brands need some policy support for production and consumption, they should not rely on “drugs” for self-owned branded car companies. They should also seize the opportunity of structural adjustment of the current automobile industry, improve their internal skills, and strengthen management. Constantly improve brand competitiveness, change from quantity growth to quality growth, and enter the international market.

After seeing the rainbow after the storm, I believe that the self-owned brand “children” can thrive after their own resistance has increased.

If the independent brands have to work hard to obtain internal strength, if they can't obtain breakthroughs in core competitiveness such as technology and brands, the so-called “training internal strength” is only a matter of practice.

In the past two years, relying on the rapid growth of the Chinese private car market and related preferential policies, the self-owned brand cars have been very comfortable. However, the withdrawal of policies such as purchase tax incentives for small-displacement vehicles at the beginning of the year and the automobile purchase restriction policies implemented in some cities have directly led to the decline in the sales volume of self-owned brands and the market share of the entire self-owned brands.

Looking at the longer-term development prospects, as the product lines of joint venture brands have moved downward from the original first-tier cities to second-tier and third-tier cities, the second and third-tier markets that originally owned the main growth space of independent brands are being rapidly eroded. Its future market growth is also being questioned.

In response to questions raised about the development of self-owned brands, Dong Yang, executive vice president of the China Association of Automobile Manufacturers, had to answer patiently again. This is the third consecutive month. The independent brand has become the focus of media attention at the Association's press conference. The answers given by Dong Yang still have only the simplest words: practicing internal strength.

In fact, for the internal strength, domestic independent brands have been shouting for many years. But what is internal strength? How can we practice internal strength? I am afraid that there are not many CEOs who have actually studied. Just relying on the breakthrough in production and sales volume and the rankings does not mean that there is internal strength; blindly consolidating several companies into one group and simply seeking large scale, it is not internal strength; and changing the person in charge to change the supporting manufacturers is even more important. There is no way to do it. If we do not get breakthroughs in core competitiveness such as technology and brands, the so-called "training internal strength" is nothing more than a knack exercise.

Internal strength is easy to say. It cannot be replaced by a few words. After years of shouting “Lian Gong”, what we have seen is still a joint venture brand that focuses on the Chinese market. The main force of exports is still low-tech products. If there is any sign of trouble, the independent brands will become powerless and have a hard time.

In order to establish a foothold in the market for a long time, independent brand cars must work hard to cultivate core technologies and brands. The government authorities must also change their thinking, change the current policy guidelines for “fire fighting in the market,” and formulate policies for the development of independent brands that are more scientific and more conducive to promoting core competitiveness.

This is the hope of independent brands.

Industry analysis:

Reasons: Joint ventures and new independent brands have not performed well in the last two months. The industry generally believes that joint venture brands and more new self-owned brands have emerged, dividing up the original brand market. Wu Xiongkun, Dongfeng’s marketing manager of Zhongshan Sanlian 4S Store, stated that the self-owned brands had certain advantages two years ago because of their low prices and support from various preferential policies of the country. Today, with the price depression of joint-venture brands and the autonomy of joint-venture brands, the price advantage of self-owned brands has disappeared. The self-owned brands currently face many bottlenecks and look forward to breakthroughs.

At the Dongfeng Fengshen Dongxing franchise store opened, the reporter saw in the store, its brand's sales shop models, the engine on the Dongfeng Peugeot logo is particularly eye-catching, the store's general manager Han Fei said that is to let customers come to the store See Dongfeng Fengshen and Dongfeng Peugeot's engine is exactly the same, to understand the quality of Dongfeng Fengshen, and the price of Dongfeng Fengshen is much more affordable than Dongfeng Peugeot, with a difference of about 30,000 yuan.

Nowadays, with the introduction of various financial policies for joint venture brands, the joint venture brand's mortgage method has accelerated the separation of independent brands' markets, while the independent brand's financial policies do not have a unified plan. According to Yang Zhangmao, sales supervisor of the hippocampus sales department, Haima Motors has always been committed to making breakthroughs in financial policy and has launched auto finance. Finally, there is no coordination between the risks and profits that manufacturers and distributors have to balance. The financial policies that led to the hippocampus have not been well promoted.

Countermeasures: Reliance on new vehicles to increase sales When price advantage is no longer, independent brands begin to make efforts in new vehicles. On August 1, the first batch of BYD's first SUV model S6 officially landed on BYD Zhongshan dealership; on August 9th, SAIC-GM-Wuling’s first passenger car “Baojun 630” ended its first national listing conference in Chengdu. The reporter According to the Baojun Auto Dealer, which is the only authorized sales in Zhongshan, the Baojun 630 will be listed on Zhongshan; as Roewe's first SUV model Rongwei W5, it has already reached Zhongshan Fumao 4S store and will be listed in Zhongshan next week. activity.

In addition to the July Chery E5 and Dongfeng Fengshen CORS in the Zhongshan area, and the new cars BYD S6 and Roewe W5 that have already arrived at the store for listing, there are also many new cars planned for launch in August, Dongfeng Yulon SUV and Great Wall. Haval H6 and other models will be listed in August.

Ma Yunlong told reporters that the price advantage of self-owned brands is no longer obvious. In the face of the still sluggish August, it is difficult for distributors to make a difference in the price discount rate. Japan’s production capacity after the earthquake resumed after the earthquake. The price promotion policy issued in July grabbed more customers of its own brands, making it more difficult for the independent brands to resist the Japanese offensive in terms of price promotion, and the new car became a self-owned brand. The only bright spot in the market.

Trends: Improving Service into Competitive Objectives When the tangible things such as the price and quality of a product do not dominate, the intangible intrinsic value of service can only be increased. The problem is that joint-venture brands and imported brands are playing service cards, and how independent brand services can compete, and the reputation of service brands cannot be established in a short time. There is still a long way to go from service quality to market sales. Way to go, how to choose their own brands? Wu Xiongkun told reporters, "A new car is, after all, just a way to attract customers. How to better seize customers and improve the quality of service is the constant aim of occupying the market."

Li Weihang, marketing manager of Zhongshan Jinling Automobile Group, believes that self-owned brands are increasingly aware of the declining market share and gradually realize that there is still a certain gap between product quality and after-sales and joint-venture brands. When the price advantage is no longer there, independent brands will start. The launch of high-end brands, production of high-end models, and even the construction of new channels to sub-net sales, and strive to increase the value of the brand. However, from the perspective of market performance, consumers do not agree that many high-end models are merely imitated in appearance, and cottages are synonymous with them. In terms of quality, the independent brands did not establish a good reputation in product work and after-sales maintenance.