Rebirth 99 to become a car giant
Chapter 582: The rise of the high-end boutique industry with hugely profitable optional packages
Suddenly, sports cars seem to have entered China's consumer car purchasing choices.
Many companies that originally did not attach much importance to this market segment have begun to rethink their product layout.
Zeng Tingting will naturally report to Cao Yang in a timely manner regarding the movements of various car companies in the market.
She was a little unsure whether the current situation was good or bad for Nanshan Group.
"Mr. Cao, judging from the current situation, the starting price of the BYD S8 is 199,900 yuan, the Geely Beauty Leopard is 149,900 yuan, and Zotye has made rumors that it will produce a sports car worth 99,900 yuan."
"Normally speaking, their brand power cannot be compared with Jaguar."
"But since they are all using the powertrain of Nanshan engine and Nanshan transmission, I am worried that it will have a certain impact on the sales of Jaguar F-TYPE."
Growth in many businesses is a double-edged sword.
Selling engine products to various independent brands will naturally contribute to the development and growth of Nanshan Engine.
But if you sell the engine everywhere, when others use it to produce low-end cars, it may have an impact on your high-end cars.
After all, consumers are not stupid. With the same powertrain, but the brand is different, the price is quite different.
Of course, these things are not absolute.
Just like the Toyota brand and Lexus, the Volkswagen brand and Audi, and even the Volkswagen brand and Porsche, they all use a common powertrain.
But there is still a significant difference in the final selling price.
"It doesn't matter. Jaguar's domestic brand power is not comparable to that of Geely and BYD, let alone Zotye."
"The price of 399,900 is already very advantageous compared to sports cars from other luxury brands."
"Next step, we can even make a 1.5T version of the entry-level model. We just need to increase the power to make this engine slightly different from others."
"Then we can carry out some simplified configurations, leave some space for high-quality sales in 4S stores, directly reduce the market guide price to 299,900 yuan, and completely build F-TYPE into a hot model."
Although price cuts may affect Jaguar's brand power, today is different from the past.
Nanshan Group now owns the high-end brand Xingchen Motors, so it is not very worried about the reduction of Jaguar brand's brand power.
At worst, Jaguar will become a luxury car of the same level as Audi, and then Xingchen Motors will be built as a luxury car of the same level as Porsche.
Appropriately forming some differences in positioning is not a bad thing.
Of course, it would be better if the brand price could always be maintained relatively high and everyone would be high-end.
After all, if Jaguar's brand is high-end and the model prices are very competitive, the sales volume is definitely worth looking forward to.
At the worst possible time, we will build another million-dollar Jaguar sports car to differentiate our product capabilities and meet the needs of different consumers.
"This idea is okay."
"I think as long as the price of the entry-level version is raised to 299,900, I don't think anyone will buy BYD's S8."
"Even Geely's Beauty Leopard is no longer popular. As for Zotye, we are not competitors on the same channel at all, so we don't even need to watch it."
Although Zotye's sales performance in the past two years has been pretty good, Zeng Tingting definitely doesn't like it.
It has been relying on the road of copycats and has no intention of developing its own technology. It is impossible for this kind of enterprise to attract Zeng Tingting's attention and respect.
Of course, people don’t need your respect either.
As long as the car sells well and makes money, that's enough.
"Actually, I think people are buying the sports cars of all car companies, which is not a bad thing for us."
"As a relatively special market segment, sports cars actually still have room to grow bigger and stronger."
"As the sales volume of sports cars on the market increases and the products are enriched, it will be easier to cultivate a sports car culture."
"Ultimately, it will also be beneficial to the sales of our high-end sports cars."
With the development and growth of Nanshan Group, Cao Yang's perspective on problems has naturally become increasingly different.
Sometimes, he no longer sticks to the success or failure of one city or one pool.
However, Cao Yang can be so generous, but other car companies may not be able to do so.
People who drive Mercedes-Benz cars feel depressed when they see BYD's S8 becoming more and more popular.
"Yang Ming, why do you Chinese companies like plagiarism so much?"
"BYD's S8 model looks exactly the same as our SLK. Isn't this too much?"
August stared at Yang Ming with an ugly expression.
Although he knew that this matter had nothing to do with Yang Ming, when he looked at the photos of the S8 model posted on BYD's official Weibo, blood rushed to his head.
"August, it's difficult to prevent others from copying the appearance of a car model."
"Although the shape of the S8 is indeed very similar to that of the SLK, they will make some detailed adjustments to some extent."
"Even if we take the other party to court, it will be difficult to win the case in the end."
"The wisest thing to do is to ignore this situation and pretend it doesn't happen."
Yang Ming touched his nose and explained awkwardly.
He naturally saw the news on BYD's official Weibo.
He is also very clear about the development path of independent brands in recent years.
In fact, it is not only the S8 model that has problems, but many other models currently being sold by independent brands also have similar situations.
In fact, Yang Ming actually wanted to criticize August, saying that Germany actually relied on a similar method to start its business.
Before the 20th century, most German industrial products were crudely made, copied and low-end products.
At that time, the British people evaluated German products as "shameless" and garbage products.
Not to mention plagiarizing the appearance, many German companies have done this, such as directly counterfeiting trademarks.
In 1887, England, as a world power, passed a bill stipulating that all goods imported from Germany must be marked "Made in Germany".
This is used to differentiate products from the two countries.
This approach was considered an insulting term by the Germans, so after that, they worked hard and started independent research and development.
Years later, it became clear that Made in Germany is synonymous with high quality.
Of course, this information flashed through Yang Ming's mind, but he had no way to say it out.
Who told him to work for German Mercedes-Benz now?
If he really says it out loud, then he may not be able to hold his position as sales director.
"Of course I understand what you're saying, but I can't help this anger!"
August was like a furious lion, clenching his fist and waving his right hand.
It's not his first day in China, so he naturally knows what the actual situation is.
It's just that in the past, he watched models from Honda, Toyota, BMW, Audi and other car companies being copied. Now when it was his turn, his mood was different.
It's strange that he was in a good mood after eating melon and eating it on his own head.
"Everyone has high expectations for the Chinese automobile market this year, and our new factory is also under construction."
"When more models are put into the market, there is a high probability that the sales target of 100,000 vehicles will be exceeded this year."
"Among these sales, it is estimated that SLK accounts for less than 1%. We do not need to put too much energy on SLK."
"It's better to think about how the E-class can sell more, and how the S-class can enter more wealthy families."
"At the same time, we will further accelerate the localization of SUV models and ask the headquarters for more SUV models. In this way, sales of 200,000, 300,000, or even more are possible in the future."
Yang Ming didn't want to continue discussing BYD S8 with August, which would affect everyone's mood.
Unless you directly ask a lawyer to sue the other party, this process is bound to become more emotionally affecting.
So the best way is to completely pretend it doesn't happen.
After listening to Yang Ming's persuasion, August slowly calmed down and stopped thinking about the BYD S8.
…
"Mr. Cao, sports cars are very popular these days. Can we at Nanshan Hongqi also consider developing a sports car worth more than 100,000 yuan?"
Zhu Zhengfeng is not a person who can endure loneliness.
Nanshan Hongqi has a very high status in his heart. Whatever type of car is popular in the market, he hopes that Nanshan Hongqi will also have such models.
So seeing BYD, Geely and Zotye all releasing information about their sports cars, he finally couldn't help but make a call to Cao Yang.
Nanshan Hongqi will have a medium-to-large 7-seat SUV on the market this year. At that time, the three main models will work together to hit the target of 200,000 units.
But Zhu Zhengfeng felt it was not enough.
"The sports car market is relatively hot at this time, but in the end it will definitely remain relatively niche."
"If Nanshan Hongqi wants to produce a sports car, it must have a price as high as that of BYD and Geely to be competitive."
"But then, the profit margin may not be very high."
Cao Yang is not opposed to investing in more new models in Nanshan Hongqi.
After all, this is also my layout for mid- to low-end models.
The entire powertrain is provided by Nanshan Group, and the main components are also provided by Nanshan Group.
Although only 40% of the shares in Nanshan Hongqi belong to Nanshan Group, most of the profits were taken away by Nanshan Group.
It can be said that Spring City Automobile mainly wants to gain the name, and Nanshan Group mainly wants to gain profits. This cooperation is about getting what each needs.
"Other independent brands can keep their prices down, and I believe Nanshan Hongqi can do the same."
"As long as the price of a sports car is low enough and there is no problem with its quality, it can definitely become a scooter for young people."
"When the monthly sales exceed 10,000, it is actually not impossible."
"At that time, Mazda, Nissan, Chevrolet and other car companies all had sports cars of similar quality. I think Nanshan Hongqi can do the same."
When Zhu Zhengfeng said this, Cao Yang stopped insisting.
If you want to do it, do it.
At that time, it will form a high-low combination with Jaguar F-TYPE to accumulate more potential users for the Starry Sky Sports Car.
People who like to play sports cars will most likely want to buy a better sports car when they have money.
These people are all potential users of the Star Sports Car.
Just like why some OEMs sell entry-level models even if they don't make money, the main purpose is to cultivate customers so that customers can continue to consider themselves when changing cars.
For example, car owners who buy a Toyota Yaris are likely to buy a Toyota Camry or Highlander when they change their car.
Among mainstream automobile giants, the proportion of consumers who trade in this kind of car can account for more than 20%.
This is definitely a force that cannot be ignored.
"Mr. Zhu, what you said makes sense. Let the management team of Nanshan Hongqi come up with a specific plan as soon as possible, and then arrange for R\u0026D personnel to start development."
This communication between Cao Yang and Zhu Zhengfeng opened a chapter in the development of Nanshan Hongqi sports cars.
Of course, Nanshan Hongqi did not release relevant information in a hurry like BYD and Geely this time.
There is nothing now, and it won’t get much traffic once it is released, so it’s better to just wait.
…
"Brother, the sales of premium products at Jaguar 4S stores have soared by several thousand percent year-on-year in the past week, almost all contributed by F-TYPE consumers."
"When there were no sports cars before, consumers of other car models were not very interested in buying optional kits, but consumers who buy sports cars generally buy optional kits."
"Although the price we bought these kits from Nanshan Auto Parts is not low, it is nothing compared to the selling price."
"In the future, our various 4S stores can sell various high-quality products."
Guo Shufu returned to Huaqiang Group today to report to Guo Shuyin on the 4S store operations in the past month. The first thing he talked about was the sales of boutiques that had changed the most.
All along, no matter which 4S store it is, it has been doing some high-quality business.
Various parts such as films, carpets, parking sensors, driving recorders, navigation, front grilles, and rims can all be purchased or replaced in the store.
The profit margin of these parts is generally twice as high as that of ordinary after-sales parts.
And the various aerodynamic kits used on sports cars are even more exaggerated.
It is absolutely normal for a kit bought for tens of thousands of yuan to be sold for tens of thousands of yuan.
After all, carbon fiber parts sound very different in style.
People who can afford sports cars are often very interested in these personalized things.
"No matter how exaggerated the growth rate of boutique business is, the turnover will still be very limited, right?"
"Why do you look so concerned?"
Guo Shuyin is mainly responsible for the auto parts business. Although the business is developing rapidly, the profit margin is generally only a dozen points.
Occasionally, if you encounter a project that can achieve 20 or 30 points, it will be a huge profit.
But this profit margin is obviously not enough when it comes to high-quality products.
Without 100% profit, I would be embarrassed to say that what I sell is high-quality products.
For example, it is normal for some things to sell for ten times the cost price.
It is not necessary for every car owner to buy it. As long as one of several car owners buys some, it will be a very considerable income.
Even when the competition in the car market is fierce, this part of the income may be higher than the income from selling the car itself.
"Brother, you don't understand this."
"For general economic cars, consumers may not buy any special products, and the profits are very limited."
"But for luxury cars, many purchases are not too bad."
"As for consumers of sports cars, they are even more pursuing novelty."
"For example, the mid-to-high-end F-TYPE actually has a spoiler, but some consumers feel that this spoiler is not distinctive enough, so they bought one in the store."
"There are also seat skins. Some people want our special perforated leather skins, which cost tens of thousands."
“Even our calipers, some people asked to replace them with different colors.”
"The prices of these things are not cheap. If you replace a few more kits, you might be able to buy a mini car."
Guo Shufu was very happy to help his elder brother become literate.
Although they are still in the automotive industry, the parts business and the dealer business of 4S stores are quite different.
"According to your statement, luxury brand 4S stores are suitable for vigorously developing boutique businesses, but ordinary brands may not be that significant?"
"This statement is not wrong, but I think the boutique industry will slowly rise in the future, and even ordinary brands can do a good job."
Guo Shufu obviously intends to delve deeply into the car dealer business and do a good job in all aspects.
"Then you have to communicate with Nanshan Auto Parts and ask them to cooperate in developing more optional high-quality parts."
Naturally, Guo Shuyin had no reason to object to the business that his younger brother was optimistic about.
Anyway, this is something that does not require much investment. Even if it is not done well, there will not be much loss.
If it is done well, according to Guo Shufu, it is estimated that he can make a lot of money.
Especially after this method makes the 4S store's income more diversified, its ability to resist risks has improved a lot.
After all, the automobile market cannot be so prosperous every year, there will always be ups and downs.
When the industry is at a low point, diversified income sources can significantly reduce the operating pressure of 4S stores.
Otherwise, a bunch of 4S stores may close down one day.
"I have made an appointment with their President Dai to have a detailed communication tomorrow. There will also be some special actions within Nanshan Auto Parts."
"When the time comes, we will work together to build a boutique business."
Guo Shufu didn't think about eating alone.
The production cost of some Nanshan auto parts is not particularly high, but if you look outside, you may not be able to find qualified suppliers.
Even if you find it, the cost may be quite different.
Of course, this mainly refers to high-end products. Nanshan Auto Parts does not make low-end products either.
For example, for various carbon fiber kits, no one in the world, let alone China, can find a more competitive supplier than Nanshan Auto Parts.
From raw materials to production equipment, to molds and processing, everything is handled within the group.
Such advantages cannot be cracked by other manufacturers.
And just after Guo Shufu finished communicating with Dai Hanbiao, Dai Hanbiao quickly came up with a plan to report to Cao Yang.
After all, if you want to make some adjustments to the organizational structure of Nanshan Auto Parts, you still need Cao Yang's approval.
"Establish a dedicated boutique business department to connect with various 4S stores and dealer groups?"
Cao Yang quickly read what Dai Hanbiao had prepared and began to think about the feasibility of this plan.
He also knows that high-quality products make money.
But whether it is worth doing it specifically needs to be considered.
Judging from Dai Hanbiao’s proposal, it is worth pursuing now.
"Yes, you can not only connect with 4S stores and dealer groups, but also with the after-sales service departments of various OEMs."
"Previously, our sales mainly dealt with the procurement of OEMs, and we supplied mass-produced parts and corresponding after-sales parts."
"But now these high-quality businesses are generally not the responsibility of the purchasing department, but are handled by the after-sales service department."
“The flexibility in this area is much higher than that of mass-produced parts, and the profit margin is also much larger.”
"And we can give full play to some of our advantages and make it a new growth point."
Dai Hanbiao naturally made some preparations before reporting to Cao Yang.
Otherwise, if the proposal presented by then has a lot of problems, he will be disgraced.
"The water in this industry is pretty deep, right?"
"Many sales leaders of OEMs have their own related manufacturers. Many high-quality products will be produced by these related manufacturers, right?"
"After all, compared with mass-produced parts, the technical requirements of these parts are much lower, and they do not require a particularly large number of various tests."
Cao Yang is naturally not a newbie who doesn't understand anything.
He has also heard many insider stories about the automobile industry.
For example, for high-quality parts, the final payment is made by the purchasing department, and the related designated processes are nominally completed by the purchasing department.
However, the actual supplier selection and related business promotion are all done by people from the sales department.
In this business, the purchasing department plays the role of a rubber clay.
In fact, the purchasing departments of most OEMs do not have a very high status within the company.
This is quite different from the understanding of many laypeople.
On the contrary, the sales department and production management department have a relatively high status within the company, and even the technical department and various workshops have a higher status than the purchasing department.
Needless to say, departments such as the Finance Department and Human Resources Department are departments that no one dares to bully in the company.
Even when you are in a meeting, if someone wants to criticize you, you will try to use gentle words to do so.
“If the threshold for such a part is low, then the water must be very deep.”
"After all, in this case, there will be more related households."
"But what we mainly do is some relatively high-end businesses. There are not so many competitors, or even no competitors."
"In this case, as long as you have a good relationship with the other party, things can be done."
As the general manager of Nanshan Auto Parts, Dai Hanbiao naturally deals with OEMs frequently.
He is also very experienced in how to build relationships.
Therefore, Cao Yang was relatively reassured about Dai Hanbiao.
The boutique industry has a future, so go for it!
I haven’t asked for a monthly ticket for a long time. On the first day of the last month of 2023, I would like to give you some encouragement~
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