The new creation of SEAT sales model

It is understood that at the beginning of November 2012, Guanghui Automotive started selling the SEAT models at a JAC 4S shop in Beijing. This seemingly weird combination stems from the new creation of the SEAT sales model. In a strategic cooperation agreement between SEAT and Guanghui, it stipulates that Guanghui can sell SEAT Leon through its other brand dealers. Models are zoned for independent sales.

This new model, which differs from brand agents and authorized distributors, has enabled the sales of Leon’s Leon’s sales site to at least double in the short-term and achieve its first entry into northern markets such as Beijing, Xinjiang, Gansu, Inner Mongolia and Hebei. Under the background of a comprehensive "receiving of rights" by the public in China, the "exclusive right" of the West Yard to dealers is particularly interesting.

First, Seat denied that “underwriting” was “Guanghui underwriting, 70% off sale”. Guanghui’s Anhui import Volkswagen 4S shop had played such a promotional slogan for Leon at the auto show. Since the agreement between Xi Yate and Guanghui, the import mass store has been allowed to sell Leon models. The “underwriting” argument also appeared in a number of earlier sales promotion papers of the Guanghui 4S store that cooperated with Leon.

The reporter consulted with the person in charge of the Public Relations Department of SEAT about the “underwriting”. He stated that “underwriting” is a misinterpretation of Guanghui, and there is no “underwriting” or “underwriting” between SEAT and Guanghui. Just as a major customer and Seat in-depth cooperation, Seat Chartered Guanghui uses its dealer network to sell Leon models.

The person in charge of the public relations department also told reporters that they had already communicated with Guanghui and they were not allowed to use "underwriting" again. The reporter logged in to the Guanghui official website and found that Guanghui’s current official statement on this cooperation is “the total strategic cooperation between Guanghui Automobile Group and German Volkswagen Group”.

It is reported that Seat's current cooperation with Guanghui is only for a Leon model, and has agreed on the cooperation period. Then the new generation of Ibiza that will enter China will only be sold through authorized dealer channels.

Second, the use of Guanghui to open the door of the northern market reporters log in the official website of SEAT, found that its existing authorized dealers only 12 countries, the vast majority can be classified as southern cities, such as Guangzhou, Shenzhen, Suzhou, Nanjing, Changsha, Xiamen, Chengdu and so on. This deep cooperation with Guanghui not only increased Leon’s sales point by at least 12 but also successfully opened the door to the northern market for SEAT.

A licensed authorized dealer in Guangzhou told reporters that there is no concern that the strong participation of Guanghui will affect it. “Guanghui did not open any sales outlets in Guangzhou, and our Leon discount can reach 60,000 yuan.” From a national point of view, Guanghui and its authorized dealers are only in Shenzhen, Chengdu, Zhengzhou, and Chongqing. There is overlap.

The reporter called the authorized distributor of Shenzhen Seat to learn that for the 70% discount of Guanghui, Shenzhen authorized dealers have also pulled down the price to the same level. “We have an advantage in terms of after-sales service. Our group has four import public stores and one SEAT 4S shop in Shenzhen, which can provide Leon with after-sales services.”

In addition to relying on its import of Volkswagen 4S stores, Guanghui Sales Leon also sells its products through outlets such as Buick and JAC. Customers who purchase Leon in these channels can only choose to import other popular stores in the same city for maintenance.

Third, pay attention to expand the advantages of large customers Guanghui China has always attached great importance to channel rights, this time to Guanghui's bold "decentralization" is quite unexpected.

Last year, all Volkswagen Group brands only suffered losses from SEAT. They wanted to use the Chinese market to rejuvenate the public of SEAT. The first model, Leon, suffered a cold in the Chinese market, and many SEAT dealers sold only about tens of twenty vehicles a month. In order to achieve the sales target of 5,000 vehicles originally planned this year, the possibility of relying on only 12 authorized dealers is almost zero.

In order to achieve large-scale distribution and sales promotion in the country in the short term, Xiya had to temporarily release “channel rights” and seek a strong partner. Guanghui, and only for Leon proposed a new model of this strategic cooperation sales, apparently the public is also "crossing the river by feeling the stones."

Guanghui topped the list of top 100 dealers in 2011 with revenue of over RMB 64 billion. It has a network of 400 dealers across the country and spreads over 15 provinces and municipalities. “The promotion through Guanghui’s network can help Leon. Rapidly popularized in the Chinese market,” admits the SEAT manufacturer.

According to a person familiar with the matter, in addition to looking at the network of China Guanghui, Seat is also very optimistic about the advantages of Guanghui’s car rental business in the development of major customers. It is reported that CGA has launched a car leasing business since last year for large customers of the official business car market. Sales volume of the business segment exceeded 10,000 units in that year, and sales exceeded 3,000 units in January. In addition, Guanghui also relied on its Guanghui second-hand car brand to launch the replacement of the original used car repurchase program for Leon.