In the Chinese market, where the new car effect has failed, why can Geely still produce a blockbus

The more difficult the market, the more important it is to highlight the importance of corporate strategy, and to determine the future with strategy. At the moment of the switch between China V and China VI, China's auto market is still moving forward in twists and turns. According to the latest data released by the Passenger Association, in May this year, the comprehensive sales of narrow passenger cars were 10,000 units, a year-on-year decline, and at the same time, wholesale sales of 10,000 units fell year-on-year.

We have analyzed why the market has fallen into decline again and again, and we have analyzed it many times before. To put it more broadly, it is the economic factors of the general environment, such as a series of events such as the downturn in the investment environment, prices, and international frictions, which have led to insufficient food in consumers' pockets, and automobile consumption has been forced to be postponed or suspended as non-rigid consumption.

To put it mildly, China's first- and second-tier city auto market is close to saturation, but the third, fourth and fifth-tier city auto market has not been fully opened, coupled with the second-hand car market is still not standardized, can not benignly promote upgrading, and this year's national five and six switching timing is too hasty, most consumers choose to wait and see, resulting in increased pressure on dealer inventory.

In this market context, the decision-making of enterprises is particularly crucial. In early June, An Conghui, president of Geely Holding Group and president and CEO of Geely Automobile Group, circulated a speech within Geely Automobile. There is a very important sentence in it, "Strategic focus and quality precipitation are far more important than sales."

The little lotus shows its sharp corners".

Three consecutive years of leapfrog growth have made Geely Automobile prosperous, but every step of the way is like walking on thin ice. Therefore, since the last time node last year, Geely Automobile chose to take the initiative to brake, Geely Automobile began to cultivate "concentration" and launched a new strategic plan from "high-speed development to high-quality development". At the beginning of June, Geely Automobile, as usual, generously released its sales data for May:

The total sales volume of 10,000 units decreased year-on-year, and the cumulative sales volume from January to May was 10,000 units, a year-on-year decline.

Looking at the surface data alone, it can indeed be considered that "Geely stalled", but this is only the appearance. Because in contrast to sales, Geely Automobile's market share in the narrow passenger car market has reached a historical peak of 7%, which is one percentage point higher than the sales record in 2018. As mentioned above, Geely Automobile's current goal is to shift to high-quality development.

Therefore, during the adjustment of China's auto market, Geely Automobile adjusted its inventory structure, optimized its product structure, and began to establish a brand with technology, shifting from the simple cost performance in the past to the development path of high quality, high value and high technology.

So, if you go back and look at the data for May, there's no shortage of excitement. For example, the Lynk & Co 03, which hit the sports A-class sedan market, sold steadily at 3,000. The first MPV model, Jiaji, gained a foothold in the market, selling 4,164 units this month.

The Geometry A grew steadily month-on-month, with sales of 1,375 units this month.

To put it mildly, the automobile market in China's first- and second-tier cities is close to saturation, but the automobile market in third, fourth and fifth-tier cities has not been fully opened, and the second-hand car market is still not standardized, which cannot promote the upgrading of the benign version.

If you want to sell your products well, the most effective way is to do a good job of your products. The development of independent brands depends on word of mouth. The gold and silver cups are not as good as the people's reputation, consumers are the smartest, and they are the most knowledgeable about cars.

Because Geely is very powerful, and knows how to innovate or something.

Because innovation with talent is really powerful.

Geely Automobile's explosive camp includes both SUVs and sedans with a slightly sluggish market, showing a balanced development trend.

That's where the designers come in.

Maybe it's the designer's idea, okay.

There is no complicated and cumbersome design in the interior part, and the floating central control screen is flattened with straight lines.

Appearance: soft and dynamic, beautiful and beautiful.

Geely Automobile can be said to be a dark horse of domestic car companies, in just a few years, from a little-known private car company, to today's leading domestic car brand, what is the reason why Geely products will be so good?

Many netizens will say that Geely will market, and indeed Geely will do marketing, and at the beginning it adopted the strategy of Tianji horse racing, and used the best things to create a low-cost Emgrand. Emgrand was developed in strict accordance with Western standards from the beginning, and won the four-star (Western standard) for safety and collision avoidance, which was a very good result for domestic cars at that time. Compared with the joint venture car, it is not only low, rich in configuration, but also large enough space and atmospheric appearance.

Ordinary people can buy a family car that looks very high-grade at a much lower than the joint venture car, why not? Although there are still shortcomings in some aspects, how many people will emphasize how good the performance of a family car is? So Geely succeeded.

Emgrand's success has given Geely unprecedented inspiration and taken Geely's research into the market to a new level. According to the feedback from the market, they adjusted the shortcomings of Emgrand in a timely manner, and adopted the method of jogging in small steps to continuously improve product performance, so that Emgrand became more and more mature and competitive.

While developing Emgrand, Geely is also constantly accumulating technology and improving technology. They continue to expand new products according to market changes, enrich product lines, and meet the diversified choices of consumers.

Friends who follow Geely will find that Geely rarely uses performance as a selling point of its products. In terms of product performance, there is still a gap between domestic cars and joint venture products, so Geely always uses mature technology and excellent design to produce products with stable quality. So that ordinary people can buy a car with a beautiful appearance, exquisite interior, rich configuration and stable quality with the least amount of money, how can the sales be bad.

It is precisely because Geely keeps up with the market, listens to the opinions of consumers, and carefully maintains the product line. Good at positioning, constantly adjust product ideas according to market changes. Down-to-earth and enterprising in exchange for today's good results.

Geely Automobile mainly benefits from a brand that does well, the price is relatively close to the people, and there are more people who buy a car with a good appearance and a suitable one.

First, because of the brand, the competitiveness of domestic brands has slowly gone up, and Geely's technical strength and reputation are strong in independence.

Second, because of the complete product line, Geely may be the only company in the company that has a fist product in the product line of SUVs, sedans, MPVs, and electric vehicles.

Because the quality is not bad, ** is not bad.

Not only car companies, but also chain giants such as CATL have encountered a rare ** in the past two years. The Wind New Energy Index shows that at the end of November 2021, the index was still at a high of 2,600 points, but on February 11, 2022, it has fallen to 1,964 points, a decline in less than three months. In contrast, the Shanghai Composite Index fell slightly more during the same period, and the Shenzhen Component Index fell slightly, but only the Chinext Index fell.

Most of <> automotive industry has experienced a wave, significantly underperforming the market performance. In the eyes of the market, this wave of capital market adjustment is a unilateral upward technical adjustment of the new energy sector in the past two years, represented by carbon peak and carbon neutrality"Double carbon"In the background, the basic logic of supporting the long-term improvement of the new energy sector has not changed. Geely Automobile released its financial results for the first half of 2020.

According to the report, Geely Automobile's revenue in the first half of 2020 was 100 million yuan, a year-on-year decrease of 23%; The net profit was 100 million yuan, and the profit attributable to shareholders was 100 million yuan, a year-on-year decrease of 43%. Geely explained that production disruptions and sales were affected due to partial lockdowns in most cities in China in the first quarter.

Geely's decline in revenue and profit is not a bad contrast in the global automotive industry. Volkswagen, the largest automotive group, reported sales of 96.1 billion euros in the first half of the year, a decline, and losses in electronic information and communication technology amounted to 1.4 billion euros. Renault's revenue in the first half of the year was year-on-year**, with a loss of nearly 7.4 billion euros.

PSA Peugeot Citroen's revenue in the first half of the year was 100 million euros, down year-on-year, while net profit was nearly 70%.

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My opinion is that Geely Automobile is indeed very good, both in terms of brand and quality, it is very good, and it is also a relatively large brand in China. If you don't know what kind of car to buy, buy Geely.

I think Geely Automobile, as a domestic car, is relatively cost-effective, and Geely Automobile, as a relatively fast-updating company, has relatively high market acceptance.

In this regard, I think that a good car brand will definitely be liked by people, Geely Automobile is developing very well, and the manufacturing quality of Geely Automobile is gradually improving.

In terms of **, Geely has always been producing civilian cars and the performance is not inferior to other brands, cost performance is an advantage, Geely's slogan is to create everyone's boutique car.

Word-of-mouth promotion, whether it is sales service attitude or after-sales maintenance, Geely Automobile has been training employees to achieve customer first.

Geely's exterior configuration is more in line with Volkswagen's choice.

These are the reasons why Geely cars are becoming more and more popular.

When Li Shufu proposed to "build a car that ordinary people can afford", many people were not optimistic about Geely, but who would have thought that 20 years later, Geely would grow from a "car imitator" to a "model of private car brand", growing up in the gap between joint venture brands and state-owned enterprises, until the acquisition of Volvo and the participation in Daimler, Geely's development itself is a legend.

As Geely's earliest formed product family with the most complete product pedigree, the Emgrand family has sold more than 2.35 million vehicles since its birth, which is rare in the entire Chinese auto market. Emgrand as the most mature and perfect product pedigree of Chinese brands, from sedans to crossover SUVs, from traditional gasoline engines to new energy models, there are sales masterpieces, Emgrand series sedans, Emgrand GL, Emgrand GS and other products, have become a sharp knife to compete with the joint venture camp in their respective market segments.

Since its launch more than two years ago, the total sales volume of Emgrand GL has exceeded 310,000 units. At the beginning of Emgrand GL's listing two years ago, many people were worried that it would conflict with Emgrand products, but from the perspective of development trends, family products not only did not have infighting, but also showed a benign trend.

Whether in terms of product design, space advantages, texture or driving and riding control, Emgrand GL is not weaker than its competitors at the same level, but it is more cost-effective. In the market where young people are upgrading, as long as there are good products, consumers are willing to pay. At the beginning of Binrui's listing, many people also thought that it would form a market conflict with Emgrand GL, but judging from the market performance of Binrui's continuous monthly sales of more than 10,000 yuan, this belief is obviously too much.

Geely has indeed been making cars with heart in recent years, and after the acquisition of Volvo, some technology sharing has also made people have a lot of trust in Geely Automobile. Secondly, Geely's after-sales service is also very good, which is the reason why Geely cars are selling well.

Because of the high cost performance, Geely's cars are now very good in terms of appearance and interior, and they are very low.

Geely has been very cost-effective in recent years, as a domestic car, in comparison with other models, in the case of the same configuration, ** is really good, as a city travel is a good choice.

This has a lot to do with the ** and style of Geely models, ** has more advantages than other brands of models, and the configuration is more high-end than other brands.

The main reason is that the advertising is strong, can call around, and Geely East is very so.

It is caused by a series of reasons such as his rust, the big store bullying customers, and not sending maintenance!

High cost performance and excellent quality.