Fang Zhiyong: BMW's pricing is very logical and more transparent

On May 25th, 2004, Mr. Franz Jung, Senior Vice President of BMW Brilliance Automotive Co., Ltd. announced in Guangzhou that the BMW 520i had a sale price of 578,000 and the BMW 525i sold 628,000, and it began to sell nationwide on May 29. . The following is an actual record of Zhi Yong’s interview with the media ahead of the listing ceremony. Moderator: First of all welcome everyone to interview today, today we are interviewed by Mr. Fang Zhiyong, senior vice president of BMW Brilliance Automotive Co., Ltd., he is mainly responsible for BMW Brilliance marketing, after-sales service, dealer network development. Mr. Fang Zhiyong has been doing marketing for more than 20 years, and has experienced various markets in all continents. Today I am very glad to be able to invite Mr. Fang Zhiyong to meet with you. What problems do you have can be raised despite this. Reporter: What is the sales situation of domestic BMW? We do not have a specific figure, but we can feel that domestic BMW sales are very good. Is Mr. Fang Zhiyong satisfied? If you think that you do not feel that you have achieved your goal, what are the specific reasons? Fang Zhiyong: First of all, let me personally represent you, BMW Brilliance Ltd., to welcome the media to attend our press conference to conduct this interview. I am very glad to have the opportunity to come to Guangzhou to talk to my friends. This is the first time. I hope to meet all of you and answer all your questions. Fang Zhiyong: It is not true that sales are not good. From the beginning of the year to the present, sales of the 325, 530 BMW Brilliance models have exceeded 5,000 vehicles. We are very satisfied with this sales performance. With the listing of 520, 525, we believe that sales performance will continue to increase as the product line becomes more and more abundant and can satisfy the needs of more customers. In the next few months, we believe that sales will continue to increase. Reporter: However, according to the data I got, domestic BMW sales were more than 3,000 vehicles from January to April, but BMW’s total sales, including BMW’s sales, were more than 8,000, which means that imported BMW sold better than domestic BMW. This is not good for any domestic car. Fang Zhiyong: You know that five days ago, the BMW Brilliance plant was officially started in Shenyang. Despite this, our factory is still in the initial stage of construction, and its production is subject to certain restrictions. This is why the market demand for many vehicles, although large, cannot meet the market. The reason for the demand. 3184 was listed on the 18th, and we are now introducing 520, 525. We hope to meet the needs of more and more customers through the expansion of models. Imported cars sell better than domestic ones. Thank God they should sell them well, because their foundation is also very good. The seven series have so far sold very well, because BMW has six series also entered the Chinese market, but the domestic cars Sales volume will increase over time, as well as the increase in production volume, sales will go up. So far the sales of domestic cars have met our requirements, and many aspects exceed our expectations. For the BMW brand, it is currently one of the most successful brands. We will do our best to protect the momentum of this development. Reporter: How much is BMW expected to sell? Fang Zhiyong: Regarding sales figures, we can tell you that by the end of May, BMW Brilliance has sold more than 5,000 vehicles. This is the case of the third and fifth series. There are also thousands of imported cars sold. Up to now, the sales of the five series and three series have completely exceeded the number we expected. The forecasted number depends on the development of the market and depends on the degree of acceptance of the third and fifth series by customers. This is why we have to introduce more. The model meets more customer needs and it helps the car sales. All this is determined by the market, not by us. So I can only tell you the actual sales figures. Reporter: BMW Brilliance sales are very good, but the relatively good sales of domestic BMW, from another point of view that imports will not be affected by BMW? Fang Zhiyong: This question is particularly good, but the answer is negative. The sales volume of imported BMW has not been affected by the localization of the three series and the five series. On the contrary, BMW has benefited from this, because BMW’s strategy is the product. Localized production is no longer imported, that is, the three series and five series are no longer imported. But high-end like 330 or 545, because the domestic demand is very small, so it needs to be remedied by imports. Imported BMW cars, etc. are now sold very well, and have greater development potential, to meet the needs of more customers. Reporter: From May 11, domestic BMW canceled more than 5,000 yuan in transportation costs. Why is that? One of the reasons why the five series and other products are listed in advance is the market output, but is it related to the localization of Cadillac and Mercedes-Benz? Fang Zhiyong: In all the world markets of BMW Group products, transaction fees are paid by customers themselves. After coming to China, we are still learning. We have not finished this learning process yet. We soon discovered that customers have different perspectives. For the greatest benefit to our customers, we canceled the transportation costs. It can be said that so far no one of our competitors has done so. We have cancelled and made it transparent so that customers can understand that we are doing so to benefit our customers. This is the most fundamental reason why we make this matter transparent. . 520,525 so quickly listed, with Cadillac and other products have nothing to do, first of all Cadillac is not our competitors, our two products listed on the market quickly scheduled a plan, which is set according to market demand, because the market The demand for the five series is particularly large, but because this series is too simple, we hope to introduce 520, 525 and other products as soon as possible to meet customers' different needs such as products such as engines. This has nothing to do with other manufacturers. It is entirely based on BMW's strategy. Reporter: I would like to ask how much is the price of these two cars? Fang Zhiyong: BMW Brilliance did a lot of market research when the two cars were priced, and the price was very competitive and very tempting. According to the current situation, the price of 520 is 578,000 yuan, and the price of 525 is 62.8 million yuan. The equipment of these vehicles is quite complete. In this price, it is very competitive. After the introduction of this car, the five-family home is even more abundant. From top to bottom, more and more demands of our customers will be satisfied here. Not long ago, BMW Brilliance made customers more profitable and cancelled transportation fees. Since then, all domestic BMW products have been shipped at a price that does not include shipping fees. We adjusted our own price strategy in order to benefit more customers and make BMW's prices more transparent. Reporter: How much is localization of 520, 525 now? I know that the price of your opponent's A4 in Europe is basically the same as that of BMW. However, in the Chinese market, the BMW III series is obviously more expensive than the A4. How do you think about pricing? Fang Zhiyong: With regard to the localization rate of 520, 525, it has just been introduced to the market. Now it is hoped that there will soon be a localization rate, and the time is still a bit early. However, we are still working hard and have the confidence to gradually increase the localization rate, but at the same time we must ensure the highest quality. We believe that he is an outstanding company and competes with another brand. We also respect them, but their development in China and our brand are in the market positioning and market image. There can be a big difference. In terms of price, Dr. Punk had said that this statement was inaccurate five days ago, because all BMW products in Europe and America must be more expensive than the models you just mentioned. Reporter: Does it mean that this brand is more valuable, so selling expensive? Fang Zhiyong: For the BMW brand in China, the representative is the highest quality, has its own technology and connotation, and Chinese consumers have the greatest appeal in their minds. Many market researches in recent years have shown that the BMW brand's position in China is different from other brands. However, this does not mean that we do not respect other competitors. We think he is still a manufacturer of outstanding cars. However, our market space is not the same. They also take a development path that is very different from ours. We also have our own unique development. route. Reporter: I would like to ask what is the current localization rate of BMW-made domestic cars? How does BMW look at the localization rate? Does BMW have a goal to increase the localization rate of BMW? Fang Zhiyong: In fact, regarding the early listing models, we are applying to the relevant government departments for localization approval and certification. This is based on our own definition and understanding of the localization rate. With regard to the problem of gradually increasing localization, on the one hand, we are confident that we will gradually increase the localization rate. Now that we actually have very strong and very good local suppliers, companies like Bosch and Neill have already invested in China and supply the same quality of zero. part. I would like to point out that BMW has experience in different markets in international factories. BMW is not only produced in the United States. We also produce three series like South Africa and also in Russia. These are also the pursuit of BMW's highest quality, BMW is BMW. Reporter: BMW's expansion of the distribution network so far is not particularly fast, resulting in the maintenance of some customers who are not very convenient for car owners or owners who have already bought a car. I would like to ask about how BMW considers expanding its distribution network. Fang Zhiyong: The first thing we need to talk about is that each agent's application will require a very clear and rigorous review process. It will go through about five approval processes. Our main goal is to find the most powerful agents in the country that can provide the best solutions in every major city in the country, because our demands for quality and long-term vision are not pure. The pursuit of development speed is to demand that agents in this city are the best and can provide the best services, sales, consulting, etc. So this process takes time. In the future, we will follow this thinking. The number of agents will increase substantially by the end of this year. Now we are actually in the process of rapid development, until we think that customers in every city can enjoy convenience. Fast service. Paying attention to the image and quality of service is a task and a goal of BMW. Reporter: There are two agents of BMW Brilliance in Shenzhen, and several agents are agents of BMW. Are you doing your own sales network or integrating the sales network of imported BMW cars? Fang Zhiyong: From our point of view, our goal is very clear. We want Zheng He to have a sales and service network. Why is this? Because the BMW brand that all our customers around the world know is a whole understanding, from the flagship seven series to three series. BMW is BMW is very clear, our goal is to integrate the network, but it is clear that there are policy issues. Before the new automobile industry industry policy is introduced, we still do not know what we will do in the future, but we have to reiterate It is no doubt that BMW operates in every market in every country in the world and will comply with laws and regulations and act according to local legal requirements. Reporter: If the auto industry's new policy is adopted, if allowed, will the vast majority of domestic BMW dealers be selected among the imported BMW dealers? Fang Zhiyong: We and our partners in the past were very successful. Now our willingness and past partners and future new partners continue to develop good relations of cooperation and develop a common success. However, what we want to reiterate is that we will comply with legal requirements. Before the new policy is introduced, this is only our intention. We are hoping to strengthen the marketing and service network of imported BMW cars in the past. On the other hand, we will actively develop new partners and establish new networks because we must expand our development after all. Reporter: At present, the prices of domestic premium cars have already experienced significant price cuts in some models, and the main players in competition are also rapidly increasing. Do you think that the prices of domestic high-end cars will not change much in the entire market in the second half of this year, and will prices continue to decline? BMW will not avoid the 300,000 to 400,000 competition zone and introduce more high-end models to localization. After all, the competition in this zone is fierce and the sales situation is not particularly good. Compared to the three series to the five series, which One more sales? Fang Zhiyong: Thank you for asking such a question. First of all, we appreciate all the companies that compete with us in the market, but we do not have any fear because we have the strongest brand in China and the best quality of products. We do not think that there will be a price war in the high-end car sector in the second half of this year. This will not happen in BMW in particular. There may be price competition between certain brands and products in the segment, but from the entire premium luxury car. In terms of scope, we believe that there is still much room for development and there is still great potential. In the second question, will we avoid competition in the 300,000-400,000 range. I think this is a little wrong, because we have 318I still in this range, we will compete in each range, in each range We are the most successful and best brand because we have excellent products. Moderator: The reporter answered questions here. Thank you all.