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Cai Yong of Changan Auchan Automobile: Matthew effect is a good opportunity for independent brands to seize resources.
2020 Chengdu Auto Show High-end Interview On July 24th, the 23rd Chengdu International Auto Show opened.

In the high-end interview room opened by Easy Car, Auto Sankei.com exclusively interviewed Cai Yong, general manager of Changan Auchan Automobile.

In the first half of this year, the market was depressed due to the epidemic, and the passenger car market in China dropped by as much as 22.4%. Among them, due to the downward pressure of joint venture brands and the serious impact on consumers' income in the low-end market, the purchase demand has declined, and the independent brands that were originally deeply involved in the second-and third-tier markets seem to face greater pressure.

But in the face of this external environment, Cai Yong believes that this is a favorable development opportunity for a strong independent brand.

According to Cai Yong, under the Matthew effect of the automobile market, there are many joint venture brands that have been eliminated by the market. In fact, in the first half of the year, many weak joint venture brand dealers closed down and suppliers lost money, which enabled Changan Auchan Automobile to seize the opportunity and gain more market resources originally belonging to joint venture brands.

However, at the moment when many joint venture brands rely on price wars to maintain their market share, their profits are difficult to be guaranteed and they cannot provide financial support for long-term development, which has laid a hidden danger for their future development. In the long run, the competition in the automobile market will be the same as that in the previous mobile phone market. Knowing more about China consumers' own brands will surely win the final victory in the share competition.

As for the future development of Changan Auchan Automobile, Cai Yong is also full of confidence. In his view, relying on Changan Automobile and uniformly adopting Changan's management structure, manufacturing platform, R&D system and quality standards are the confidence of Changan Auchan brand to continue to develop in the fierce market.

2065438+0165438 At the end of 2009 10, Changan Auchan X7 was officially listed, and its monthly sales exceeded 10,000 in a short time, which became a big explosion of Changan Auchan Automobile. After the popularity of Changan Auchan X7, continuing to create explosions has become a major development direction of Changan Auchan Automobile.

During this year's Chengdu Auto Show, Changan Auchan Automobile brought its own brand new strategic model Changan Auchan X5. According to Cai Yong, compared with Changan Auchan X7, the target consumers of this model are younger, mainly the post-90s generation aged 25-30. Based on the huge market segment of this model and the successful experience of Changan Auchan X7, Cai Yong said that the market performance of this model in the future "should not be worse than Changan Auchan X7", or it will become the next explosion of Changan Auchan Automobile.

The following is an interview record:

Automobile production and marketing. Com: At this year's Chengdu Auto Show, Changan Auchan Automobile's booth should focus on Changan Auchan X5. Please tell us about this car.

Cai Yong: Changan Auchan X5 is another brand-new strategic product of Changan Auchan Automobile. Its target consumers are relatively young, mainly the post-90s generation aged 25-30.

During the design and development of Changan Auchan X5, we also grasped several points:

First of all, the brand is younger. Changan Auchan itself is a young brand, and 20 18 has just been established.

Second, in terms of products, interior and exterior design is also to meet the ultimate needs of young people, the so-called "back wave".

The third point is that the young team actively participates in the whole model project. The whole development team of Changan Auchan X5 is very young, and there is a project spirit inside Changan. Members of these projects have invested tens of thousands, hundreds of thousands and hundreds of thousands of capital in this project, so the whole project team is very energetic and passionate. Changan Auchan brand has been established for nearly three years, and the work intensity is actually relatively high, but all our employees are constantly climbing for their dreams.

Automobile production and marketing. Com: Changan Auchan X7 launched by Changan Auchan Automobile last year has been selling well since its listing. Do you expect Changan Auchan X7 to surpass Changan Auchan X7 after its listing in June this year?

Cai Yong: I think it should not be worse than Changan Auchan X7.

First of all, because from its market segment, Changan Auchan X5 is a standard compact SUV, with a length of 4490mm, a width of 1860mm, a height of 1580mm and a wheelbase of 27 10 mm ... However, its internal space, including the legs, head and luggage in the back row, is relatively large. You can grab the market of compact SUVs and play the market of small SUVs. These two markets are huge, and together they will have a capacity of nearly four or five million.

In addition, Changan Auchan X5 has a brand-new upgrade compared with Changan Auchan X7 in modeling field, interior decoration and appearance design, and we are more experienced than Changan Auchan X7 in marketing promotion and planning, and we will do better.

Automobile production and marketing. Com: What are the ways to rejuvenate Changan Auchan X5 in the second half of the year?

Cai Yong: First of all, there will be a very obvious change in brand promotion. In addition, in terms of channels, we have also carried out extensive expansion. One is that our own products need strong channel carrying capacity; On the other hand, there are a lot of social resources now, because the Matthew effect was accelerated by the epidemic in the first half of the year, and a large number of independent brands and even joint venture brands are withdrawing from this market, leaving a lot of social resources. We will take this opportunity to continue to expand channels in the third and fourth quarters in combination with our own needs.

Automobile production and marketing. Com: So the epidemic aggravates Matthew effect, which is actually an opportunity to strengthen independent brands?

Cai Yong: Yes, there are many resources, including distributors and suppliers, because some joint venture brands are also falling, and the resources they saved before will be occupied by well-developed independent brands.

Automobile production and marketing. Com: In the first half of the year, the price reduction of many joint venture brands was particularly serious, and some models dropped by as much as 50,000 to 60,000 yuan.

Cai Yong: I am very opposed to price reduction, because the demand of consumers is escalating, and the expectations of consumer-defined products are also escalating. If there is not enough capital to build finished products, it will certainly not meet the needs of consumers. For example, since Changan Auchan X7 went public last year, our prices have been stable so far. Of course, it is not excluded to send some gift packages, which is an aspect of improving the customer experience. But in terms of commodity prices, we will not drop a penny, because only in this way can we have the ability and resources to continuously create better products for consumers.

Automobile production and marketing. Com: In recent years, there has also been a drama of independent counterattack in the home appliance and mobile phone industries. Some people believe that this situation will definitely reappear in the automobile industry in the future. What do you think of this statement? If you want to compare yourself with mobile phone brands, which one do you think Changan Auchan will be more like?

Cai Yong: I think Changan Auchan will be like Xiaomi at first. Because Xiaomi's brand is customer-centric and will give customers a value-added experience. It's not that things are cheap, but that they will bring customers more value than they expected. Xiaomi is more like Changan Auchan.

Regarding the future development trend, I think the automobile industry will be similar to the mobile phone market. Now many joint venture brands are gradually withdrawing from the market, and there will not be too many joint venture brands that can stay in the China market in the future. I think it would be great to have four or five or five or six. Of course, independent brands are also facing the same problem, and there may be five or six.

The current automobile enterprises will accelerate the elimination through this epidemic. But I believe Changan Auchan will not be eliminated. Some people say that Changan Auchan is a commercial vehicle reconstruction, but it is actually a misunderstanding. Because we are passenger cars, there is no problem of transformation, because the management structure adopted by our company now is a shared platform, and our manufacturing, quality control, procurement and technology research and development are all a set of systems, all belonging to Changan Automobile.

As Changan Auchan Automobile, we only do four things. The first is the customer's accurate insight and product definition. Second, on the company's big R&D platform, we conduct research and development according to the needs of customer groups. The third is brand promotion; The fourth is marketing services. As the general manager of Changan Auchan Automobile, I am a passenger car, regardless of manufacturing, quality and procurement, so there is no business transfer.

Automobile production and marketing. Com: What do you think is the advantage of Changan Auchan in the dispute of independent and joint venture shares?

Cai Yong: From the appearance, the competition between independent products and joint venture products mainly depends on two magic weapons. One is the sensory experience of interior and exterior decoration, including configuration; The second magic weapon is intelligent network. These two aspects are far beyond the joint venture brand in the same price products, which is a symbol. But the deep-seated reason behind this appearance is that the decision-making efficiency of China's independent brands is very high, and the degree of insight into the local market is also very high.

For example, Chairman Zhu Huarong of Changan Automobile can communicate with consumers in China at any time in his circle of friends. Which multinational company leader can do it? Therefore, the customer efficiency of independent brands and the degree of meeting customer needs must be the highest.

Although independent brands have been in a downward trend recently, I will definitely judge that independent brands will eventually surpass joint venture brands in the future.

Automobile production and marketing. Com: Since April, the whole automobile market has started to pick up. How do you expect the market to develop in the second half of the year?

Cai Yong: I think there are opportunities and challenges. The challenge may be the impact of the international situation on foreign trade and foreign markets. There are opportunities. At present, automobile consumption is still just needed. Even if foreign trade decreases, China's economy will certainly develop. The performance in the first half of the year proves this point. The whole world is in sharp decline, but the situation in China is very good. China is also preparing to introduce various policies to promote market development, so I expect the second half of the year will be much better than the first half.

From the perspective of Changan Auchan Automobile, we feel that the market environment in the second half of the year, coupled with the launch of our new products, the sales volume of Changan Auchan Automobile in the second half of the year can reach about twice that of the first half. We have several products launched in the second half of the year, so our increment will be even greater. Moreover, there will be a big marketing campaign in the second half of the year, which I expect will cause some shock in the industry, which will have a greater impact than the rocket launch and listing in the Great Hall of the People last year.