reborn industrial empire
Chapter 339 Do not participate in the low-end price war
Before he knew it, the time had come to the end of June. During this period, Jin Xiaoqiang had been spending time in the laboratory, working with Liu Xiaoliang on the two newly designed turbochargers.
This experiment was conducted in the main laboratory building where Jin Xiaoqiang was located. These two superchargers have now been classified as core secrets in the factory.
All experimenters involved in the development of these two artifacts have signed confidentiality contracts.
Because the emergence of the monster Huayang Power has completely disrupted the structure of the Chinese automobile market, all major well-known automobile manufacturers are also improving the technological content of their models.
At this time, the turbocharger, such a powerful tool, would become popular in the Chinese automobile market a few years earlier than in its original history.
Volkswagen, Toyota, Honda, General Motors, Ford and other well-known large automobile manufacturers have installed turbochargers in their latest models.
Domestic joint venture brands are okay, but the days of independent brands are a bit difficult under such fierce technical challenges.
Originally, if these wealthy foreign car companies did not improve their technical content, they could still have a certain degree of survival by engaging in price wars with these foreign car companies. But now, as these big brands have lowered their prices,
And while improving their technical content, their life sandwiched between the monster Huayang Power and these foreign-funded car companies seems to be particularly difficult.
While they have no choice but to suffer setbacks in the market, they can only choose to cooperate more deeply with Huayang Dynamics. After all, compared with those foreign-funded companies that eat people without spitting out their bones, Huayang Dynamics, who was born and raised here, still has a very friendly attitude towards them.
of.
Moreover, Huayang Dynamics is also very generous in terms of technical support and technology transfer. It is not like those black-hearted foreign devils, and does not discuss mainstream technology. It is only willing to sell you technology that has been outdated for two or three generations, and
The price is very unreasonable.
Now, in order to compete for a living space in the market, car companies like Li Ji and Ricky can only spend a lot of money to compete with these foreign car companies on price.
The price range of their models is often astonishing. Almost all of Ricky's entire line of products have dropped below 100,000 yuan, and their Ricky QQ has even dropped to the point where it starts at 30,000 yuan.
.
Liji has always been friendly to the people in terms of price, and now it is even more ruthless and strangled with major car manufacturers. Currently, they have launched several models, such as King Kong, Vision, Liberty Ship and other small models. Basically, they are priced at
The level of 50,000 to 60,000 yuan.
Huayang Power did not participate much in this price war, because the technical content of their models is originally higher than that of these independent car companies and foreign car companies.
Secondly, their original pricing for their models is not expensive, and the starting price is also very affordable.
In this way, the price is far away from other domestic independent brands, and compared with foreign cars with the same technical content, the price is cheaper. In this way, the price of its own mid-range brand has been established.
This is what Jin Xiaoqiang thought at the beginning. Chinese people are not as united as Koreans and Japanese to support their own products.
Then your price cannot be set too high, except of course for high-end products. But your price cannot be set too low either. If the price is set too low, it will easily affect the image of your brand and make people feel
You are just a manufacturer who buys cheap goods.
Once such an image is established in the minds of consumers, it will be difficult for you to withdraw from mid- to high-end products in the future.
Just think of Ricky. The quality of their later Rilin g series products is really good to be honest, but why no consumers are willing to buy it? It’s because their highly successful Ricky QQ has lowered their brand image.
.
When people mention Ricky, the first thing they think of is Ricky QQ, and then the image of cheap goods. So no matter what high-end brand you are launching, no one is willing to pay for your product, even if your product is really cost-effective.
high.
Moreover, Huayang Dynamics has not participated in the current price war. Some leaders of the company once thought that since others are cutting prices, our products should also be reduced in price. However, this proposal was not supported by the company's senior leaders.
At the meeting, Jin Xiaoqiang rejected it without negotiation.
He has his own reasons for doing this, because in his opinion, Huayang Power's products should not be reduced in price before launching new models.
Because once the price of your current product is reduced, it will affect the price of second-hand goods of your product circulating in the market, and it will also make your consumers feel that if they buy Huayang Dynamics' products, the devaluation is really depreciating.
If it is too powerful, it will also affect the loyalty of your existing and potential consumers to your products.
Knowing the price of a second-hand car and the degree of its value retention are also what many consumers will refer to when buying a car, especially those who are single car buyers.
It can be said that Volkswagen’s products are being crushed by Huayang Power and Japanese companies in China, but why are there still so many loyal consumers?
It's because Volkswagen refuses to lower prices. Even if it wants to lower prices, it does so quietly step by step. As a result, the prices of their products in the second-hand car market are also very high, thus retaining many consumers.
After all, not all consumers are the kind of people who buy a car and plan to drive it for a lifetime. After all, many people consider changing cars in the future, so the car's value retention rate is also something they consider.
And now Huayang Power can be said to be the only automobile company nationwide that is very popular and sells well in Europe and the United States.
Their products are popular in Europe and the United States, and they don't have to worry about selling them.
If they adjust prices casually in China, it will inevitably affect the sales price of their products abroad, which is very bad.
And to be honest, domestic consumers currently have a strong attachment to foreigners. As long as a good thing is recognized by foreigners, they will accept it. There are not a few people who have this mentality.
Nowadays, Huayang Power's products are selling well abroad and their reputation has been established. Therefore, even if compared with the prices of new cars from foreign brands and joint venture brands, Huayang Power's models already seem to be expensive.
It's so cheap, but precisely because Huayang Power's products have been so successful abroad, it has stimulated the consumption appetite of domestic consumers.
Huayang Power's cars are outstanding and the quality is very good. Haven't you seen foreigners buying them like crazy? So when we buy a car, the first thing we consider is Huayang Power's products.
There are many consumers with such a consumer mentality, which has also resulted in Huayang Dynamics' dominance in China's automobile market at the beginning of this year.
Although the price does not have as many advantages as the Japanese, German, and American models that have been greatly reduced in price, they can still become the first choice among Chinese consumers.
And Jin Xiaoqiang has no intention of participating in the competition of low-end models. Among the models priced under 100,000 yuan, Huayang Dynamics has relatively few models.
At present, Jin Xiaoqiang does not plan to participate because other domestic independent brands also need survival space.
Even if this segment sells millions of vehicles every year, the profits earned by this segment are not as high as those earned by selling hundreds of thousands of mid-range models.
The money earned is purely hard-earned money, so currently the big foreign manufacturers look down on this area, and Huayang Dynamics does not intend to participate. After all, independent brands such as Liji and Ricky also need this living space.
Before their internal skills have been fully developed, if they participate now, a behemoth like Huayang Dynamics will easily squeeze these big brothers to death, so Jin Xiaoqiang does not plan to participate now.
And now independent brands like Liji and Rich are working like crazy to improve the technical content of their models. Originally, they could only produce manual models. The transmission of automatic models has always been favored by Mitsubishi or
It's hard to trust a company like this.
Now that they are better, with Huayang Seiko, they can breathe a sigh of relief.
Starting in May, as the competition in the domestic automobile market began to enter a fierce stage, Huayang Precision received a large number of orders for automatic transmission components, basically all of which came from these domestic independent brands.
Now Great Wall, Li Ji, and Rich, the big brothers among these three independent brands, have directly approached Zhu Junxi and started negotiating with him for the supply of turbochargers.
Before the emergence of Huayang Power, turbochargers could only appear in purely imported foreign high-end cars in the Chinese market.
But things are different now. Many joint venture brands have also installed turbochargers on their models, and domestic independent brands have also joined the fray, all planning to use this gadget to improve their technological content.
At present, the only company in China that can provide this kind of turbocharger without any additional conditions is Huayang Seiko, and their products are of good quality and low price. Compared with Mitsubishi's crappy stuff, the quality is guaranteed.
Compared with Garrett and others, the price is cheaper. If they don't look for a company like this, their minds will definitely be squeezed out.
Therefore, in the recent period, Huayang Precision's orders have been like rain, one after another. Wang Jiao and Zhu Junxi originally expected that Huayang Precision's annual profit could exceed 1.5 billion in a few years, which would be good, but now it has just passed half of it.
, their order profits have exceeded 1.5 billion.
Such a situation was not only unexpected for them, but even Jin Xiaoqiang felt that the domestic car companies were really coming on fiercely now!!
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