Latecomers are more suitable to enter the market segment


Last week, there were three news related to the Chinese auto market: First, Ssangyong Motors intends to borrow a large amount to restart the Chinese market. The annual sales of 100,000 vehicles will be made domestically; Second, DS plans to develop a full range of models to enter the Chinese market; Third, preparation for Saab The revival of the Chinese market in the form of electric cars. A few days before that, Dongfeng and Renault had just signed a joint venture cooperation contract.

In the context of China's auto production and sales reaching 21 million vehicles in 2013, the above-mentioned Chinese strategies of the auto companies appear to be at the time. For a long period of time, the Chinese auto market will be equated with the “infinitely broad” picture, but this is only for the establishment of large-scale car companies that have already established a foothold, and for the brand that has just entered or is preparing to enter, the opportunity is certain. Yes, but compared with several years and more than ten years ago, the chance of success is already very small, and its development space can only be more concentrated in very small market segments.

In 2013, China's automobile production and sales will reach 21 million, an increase of nearly 2 million vehicles from the previous year, and the year-on-year growth rate has also increased. However, compared with previous years, the growth rate of production and sales has slowed down significantly. At the same time, not only have various market segments models have been "shouldered", and almost all mainstream multinational car companies have production plants in China, it can be said that the market layout has been completed, the only change is the market share fluctuations. Shuanglong, which has a deep relationship with China, is making a comeback. It should see the SUV selling in the Chinese market and its main product is precisely the SUV. However, currently, the SUV market has strong mid-range products such as Tiguan, CR-V, etc., as well as products such as Haval H6, BYD S6, Chery Tiggo, and other 100,000 yuan, as well as compact SUVs such as Wing Bo and Angkola. A number of companies are preparing to launch SUV products. Currently, Shuanglong only sells a Kelando. Even if a new model is introduced each year, the situation in which two or three models will hit the world will be difficult to change in the short term. Under the premise that brand, price, and reputation are not dominant, It's hard to say how big a piece of SUV is. Perhaps in a pure off-road niche market, its products can have a place.

After years of development, the domestic auto market not only has saturated its models, but also the consumer's consumption concept has changed. The new consumer mentality is very clear. Over the past few years, many models of car companies have started their global launches in China, and models equipped with new technologies are more easily accepted, and many other facts illustrate the enthusiasm of Chinese consumers for new models and technologies. As latecomers, want to get the rapid recognition of Chinese consumers, in addition to brand, word of mouth, the most important thing is that the product should have advantages over the same level. But whether it is DS, Ssangyong or Saab, there are not many transcendent factors. In particular, Saab electric vehicles, even based on the models developed 10 years ago, based on the body shape has been outdated, I am afraid it is difficult to be accepted by the market.

In fact, not only do the above-mentioned companies want to rely heavily on the Chinese market, but most of the auto companies have put their development chips in the Chinese market. Those forerunners have occupied the time of day, geography, and people, and have enough chips. As latecomers, it is necessary to launch products that meet the tastes of Chinese consumers, and compete with strong competitors on the premise that brands and awareness are not dominant. Unless there is a “great move”, it will be more likely to be a partial one. Little slapstick.



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