Wang Xia: Self-owned brands should stick to existing positions

On August 30, 2008, the 5th China Automotive Marketing Summit Storm Xining Summit was held in Xining City, Qinghai Province. The following is the executive vice president and secretary general Mr. Wang Xia of the China Council for the Promotion of International Trade Automobile Industry.

Moderator: Secretary-General Wang, as an expert in our industry, I invite him to speak at a later stage, which is to let him both comment and make generalizations and conclusions.

Wang Xia: One is about the brand name of self-owned brands. I think when we opened two meetings two years ago, I suggested that the industry is usually called a national brand. I think this is a bad name and there are too many feelings. Color. Now everyone is popularly called the independent brand. I think that there is still a common understanding among all the independent brands. However, with the victory of our Olympic Games, in fact China has already reached the world stage with the image of a big country. Therefore, the name of self-owned brands, such as Europe, the United States, and Japan, seldom say that this is my own brand. This is more or less offensive, because self-autonomy has the meaning of being the master, so we call it a Chinese brand.
Second, there are two forms of business sitting on the stage. One is a passenger car and the other is a commercial vehicle. Actually, our commercial vehicle brands are doing very well. Our Chinese market is an independent brand leading the market. , but with absolute competitiveness. So, at this point, when we talk about the crisis and when we measure the automotive industry, we must say whether we are talking about passenger cars or commercial vehicles. Therefore, commercial vehicles are based on our earlier foundation, and that is, in the 1950s, we had FAW's development over the years, but in China we have comparative advantages, labor costs, construction costs, electricity costs, etc., then China's commercial vehicles are labor-intensive. So, for example, coaches that go to Mercedes-Benz in Germany by bus are people welding by hand. But in Europe and the United States, their labor costs are very expensive, so they have no advantage in price, so when they come to China, he will There is a lot of water and soil not satisfied. At this point, I think China has done a very good job in the commercial vehicle sector.

Because our own brand of passenger car was before 94, the state was limited. At that time, under the planned economy, it was the big car who did it and the car did it. Resources were allocated by the government rather than the market. Therefore, our true brand of personal passenger vehicles started from 1998. One is Chery, the other is Geely and Brilliance, so we have just started selling cars since 2001. In fact, our car is just a primary school graduate. We must neither be complacent nor intimidated by difficulties. Having encountered some problems, I think it is normal and mistakes are normal. I think this also illustrates a problem.

Another, when it comes to the development of passenger cars, we should say that we have benefited from the high-speed development of the market since the year 2001, because the rapid development has allowed our own brands to have room for survival. We must first survive to develop, but we must not be complacent because we have achieved success. Because when the passenger car is actually a large-scale family that has just entered the Chinese market on the 01 side, for the vast majority of consumers, he is buying the first car, and we have discussed these several times. Brands, and the sale of cars is entirely a brand that plays a key role.

How is the brand set up? In the United States, when we were young, we used the concept of branding from our parents. Our consumers did not know the brand. Therefore, there are hypermarkets, other countries do not, we buy cars in the supermarkets to pick a pick, better than one. Therefore, our first benefit was that our consumers didn’t have a brand concept when they bought the first car, so he just bought it at a reasonable price. However, with the acceleration of China’s automobileization process and the increase in the efforts of multinational companies in the delivery of Chinese brands, the problem that everyone will face in the future is that many of our consumers are buying a second car, and I’m buying first There are some problems with the vehicles. Whether it is good or bad, some word of mouth is circulating. Therefore, what we have grown up to today is spread. The car you just created cannot be a 100-year guarantee system. We have just started to make cars. We are not so strict in terms of quality, etc. There are some problems that may affect everyone's views on our brand.

However, I have also been very happy to see that over the years, the speed of our own brand progress is very fast, he is one year for marketing, branding, crisis management and so on. So, for self-owned brands, I am the same as everyone else. I don't share the same opinion with Prof. Xue. I am absolutely confident about my own brand. We negotiated at the time of the WTO. At that time, we said that FAW, Second Automobile, and SAIC were big companies. Everyone would discuss and do it. Everyone said that this is a crisis, but as long as you just let go of us, we definitely cannot live without it. The minimum tariff cannot be lower than 65%, but there is actually a lot of dissatisfaction. After the past few years, everyone saw that companies like BYD F3 had been put into operation since 2005 and sold 50,000 units a year, creating a miracle for our own brands.

Our own brands, as well as large groups such as FAW, SAIC, Dongfeng, GAC, etc., have invested a lot of money to make their own brands. Therefore, I believe that China has our comparative advantage. Over the years of reform and opening up, we have accumulated a lot of talent. We have a lot of talent reserves, and so many companies now have confidence. In addition, regarding the selection of products, in fact, in the low-end areas, I believe that multinational companies will not enter this field in the short term, and he enters this field because his entire process has led to cost control in the near future and it will be difficult for us. Independent brand competition. Therefore, I still suggest that our own brands should not expand at this time, and concentrate on the occupation that we have advantages. Ma Rudi (transliteration) in India, like this car, accounts for 65% of the market in India, so India is a big developing country, so we say that with the future of automobiles, our cars are going to the second and third-tier markets. It is very good to develop these markets for rural and county-level cities. Therefore, I also suggest that everyone also seriously study this market and do not blindly.

You see today's Japan and South Korea are taking this road. He starts with the low-end car. When you have accumulated experience, brand, people, and money, you can do Lexus and do these high-end cars. Therefore, I talk about these only for everyone to discuss, I hope our own brand of colleagues can work together, at least we do three points of the world, thank you!

Moderator: Thanks to two reviewers, the last part of our forum is interactive. The two media invited questions from the guests on stage.


View related topics: independent brands, where to go?

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