Chen Feng
In 2004, as the economy car competition gradually entered a more tragic stage, if the manufacturer's overall strength does not dominate, then its models will also face threats. Without good follow-up support for after-sales service, brand awareness, and product quality under the price war, it is possible that some of the dark horses that are now in the limelight will become tomorrow’s yellow flowers.
Just in the past 2003, price cuts have become the most frequent vocabulary in the economy car market. According to statistics, as many as 40 price reductions in the automotive market have been combined into one stock undercurrent that impacts the original price system. Some experts predict that the three major questions concerning price will become the focus of the 2004 issue in the “down†of the economy car market.
Question one: The price approaches the bottom line?
If we say that most of the newly-listed economic cars that were used in the family car market previously used 100,000 yuan as a benchmark for pricing, this trend has begun to change in 2003. At the beginning of this year, Sail and other major models once again raised the price/performance ratio, and after the introduction of the 2004 new model, the 100,000 yuan benchmarking model of the year was officially aligned with 80,000 yuan.
Although some media believe that the overall auto market price will continue to decline in 2004, industry experts are doubtful as to how much room for price reductions exist for economic cars. They believe that the shortage of raw materials such as electricity and steel will increase the cost of auto parts, while the increase in transportation saturation and the increase in commercial transportation costs will increase the transportation cost of the entire vehicle. As an economical car that has experienced declining prices in 2002 and 2003, there is no room for significant price reductions. In the interview, the reporter also learned that the market segment for the economical car has increased from the three models two years ago to the current nearly 20 models. The full competition of the market has brought the price of economical cars to the bottom line of cost.
In the area of ​​economical cars, most manufacturers, including distributors, are in fact unable to drop. After another round of fierce fighting around the New Year, the price of economical cars will remain generally stable.
Question 2: Who did the price reduction hurt?
But cruel market competition will not necessarily stop because the price approaches the bottom line. From the perspective of industry, the price war is, after all, the contest of corporate strength. Then in 2004, who could really be proud of the market, who would lose their energy and exit halfway became a new suspense.
The price competition will have a profound impact on the company. In the Case of falling prices, will the company continue to maintain the high quality of its products, whether it can continue to maintain a good after-sales service quality, whether it can have enough capital to support the consumption of price wars, and whether it can continue to pay for brands to establish marketing expenses, And investing in the research and development of mid-to-long-term follow-up products is undoubtedly a great challenge to life and death. Only companies with strong comprehensive strength can persist until the end. This is also the inevitable result of any industry transitioning from full competition to a few strong brands leading the market. Therefore, people in the industry generally believe that in 2004 with the economic car competition has gradually entered a more tragic stage, if the manufacturer's overall strength is not dominant, then its models will also face threats. Without good after-sales service, brand awareness, and product quality underpinning the price war, it is very likely that some of today's dark horses will turn yellow yesterday.
Question three: price reduction is a magic weapon?
Two years after China's accession to the WTO, consumers who have experienced several fluctuations in car prices are becoming more and more rational. When they once again faced the tide of price cuts, their consumer hearts were already very mature. They not only care about new configurations and new prices, but also pay more attention to the after-sales service of vehicles, comprehensive strength of enterprises, and quality assurance of mature brands. Simple low prices can no longer trigger them to make a purchase decision. For families who purchase economical cars, most of the savings will be spent on new cars. Of course, they will not only consider the price factor, but also need to integrate the high cost-effectiveness of the products, the maturity of the brand, the cost of long-term car spare parts, and the after-sales service. The professional choice and other factors will make the final choice.
Therefore, for enterprises, only in the hearts of consumers to establish a good brand, quality and after-sales service recognition, can we win. Quality determines the vitality of products, and quality also takes time to test. In the highly competitive economy car market, the reason why a model can be sought after by consumers for a long time, quality recognition is naturally the most important prerequisite. In 2003, complaints from auto consumers mostly came from product quality issues. On the contrary, people call the “mature brandâ€, which has long been tested in the market and prosperous, it is because of the long-term protection of its product quality. Taking Sail as an example, along with the explosive growth of new models listed by other brands in the past two and a half years, it has been the champion of the economical car market for 27 consecutive months since it was listed in June 2001. In addition to adapting to changes in market demand and its ability to innovate, its excellent "quality reputation" is the true charm of a mature brand.
In addition to quality, the professionalism, convenience, and supply of spare parts for after-sales services are also important indicators that reflect the company's overall strength and have a great influence on consumers' brand loyalty. On the face of cost-effective products, if the service is not perfect, spare parts are incomplete and expensive, it will give consumers a bad experience, and it is only a matter of time before consumers are abandoned. The reason why mature brands are increasingly recognized in terms of service is not only because it has learned to grasp the needs of consumers in the long-term market, but also because of its long-term accumulation of ownership advantages, it has scaled-up capital operations. So as to bring more value-added after-sales service experience for consumers.
In addition to quality factors, services, product cost-effective and other rational factors, affective factors have become one of the important considerations of consumers, there is a rich brand of cultural connotation, and consumers with a consistent brand personality in the market is always prosperous.
"International Finance News" (February 12, 2004, seventh edition)
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