From April 25th to 27th, the highly-recognized 2018 China Automobile Forum was held in Beijing. The theme of this forum is 'New Era, New Trends, New Strategies - Focus on High-Quality Development in the Automotive Industry'. This forum was closed. Summit, forum, nine thematic forums and three concurrent events. On the afternoon of April 26, the theme forum of “Trends in the automotive market trend and consumption promotion” held in the afternoon, was organized by the Department of Information and Industrial Development of the National Information Center. Mr. Liu Ming, Director Mr. Xiao Rongchen, Director of Policy Department of Market System Development Department of the Ministry of Commerce, Deputy General Manager of Guoji Automobile Co., Ltd., Chairman of China Imported Automobile Trading Co., Ltd. Mr. Jia Jun, Vice President of Nelson Greater China Zhang Zhenhua Ms. Kang Bohan, partner of Roland Berger, conducted an interactive dialogue at the site.
Interactive scene
Liu Ming: Thank you Mr. Xu for his wonderful sharing. Just now Mr. Xu has given us an overview of the overall automotive market and the new energy market. It should be said that the prospects are still very broad. The overall vehicle market is declining despite the declining growth rates over the past few years. It is far from being saturated and has a relatively large growth potential. The second new energy vehicle market has experienced rapid growth. We have now gone through a period from institutional transformation to private transformation. We are now passing through the stage from policy promotion to market promotion. Development, I believe that the future of new energy development, there are very good prospects. So now we have eight guests in the afternoon's keynote speeches are all over, eight guests from the automobile industry auto consumption automotive market, automotive import and export, Have done a wonderful sharing, I believe we are very rewarding, Here we enter the interactive link.
One of the themes of our interactive session today is that so many of our guests have just said that the entire automotive industry and the automotive market have entered a new situation. Today's interactive session focuses on what kind of characteristics the automotive market has in the auto market and what challenges and opportunities we face. First of all, we have asked our government departments to interpret what kind of challenges and opportunities our company will face under such a new situation. Please ask Director Xiao to make an answer.
Xiao Rongchen: I think today's guests are still very rich in content. After listening to everyone, they have an overall impression on the development trend of the auto market. After listening to Xu Zhuren’s speech, I have received a lot of inspirations. The prospects for the development of our automotive market are still very high. Yes, I personally think it can be summed up in a few words. The first one is definitely slow. Just when I said it, we also said that our national economy has entered a new normal, our overall economic growth has slowed down, and our automobile market is also Similarly, due to the large volume and large base, every 1% increase is a huge increase. This is reflected in all aspects. In the second word, our automobile market should reflect a lower character, that is, this car market. The focus shifted downwards. Just now, Director Xu also introduced areas where population density is high, adopted various measures to limit purchases, and was constrained by these factors on road parking lots. These incremental growth rates have been suppressed and our automobile market may have to To the third and fourth tier cities, and with the development of our country’s urbanization, our people’s income and living standards will increase, and the consumption potential in rural areas will increase. It will be gradually discovered that this increase will be very obvious. In the case of a slowdown in the growth of the entire automobile market, our market structure will change greatly from either the regional structure or the product structure. Then the third After the word is, our original automobile market is centered on new cars, and the new car market is driven by incremental growth. It may be a long period afterwards that our new car market will develop and the backward market will change. This is our second-hand car market, the accessories market, Beauty decoration These markets are developing rapidly. The fourth word is the new word. This new one is not a new energy source. I think it comes from the business model of innovation, but also includes the innovation of this kind of product service. Just a guest introduced a financial lease to share travel. All of these are new models. In addition there is still a lot of room for innovation, and we need to explore all of us. Then the fifth word I think is probably using a green word, that is our concept of green consumption, the concept of green development. It may be said that more and more people are deeply rooted, and just now Mr. Xu has introduced a great deal of space for the development of new energy vehicles. Even if it is a peak, the structure of our products will be adjusted. Most of the car's new energy is replaced by 600 million. This increase is also very large. Our new energy vehicles are growing at a rapid rate, the base number is very low, new energy vehicles are subject to change, environmental resources are also constrained, and new energy sources Cars have a broad space for development. The last word is service. It is service. We have long been driven by the supply of cars, relying on products to drive, and what kind of car we are buying. In the following period of time, our entire market focus will shift around our services. What kind of needs do consumers have and what kind of value-added services do they need? This is something that you are concerned about, and there are major changes in demand, attention, and supply. There will be six characteristics, and this process also said that applying these characteristics, we have targeted adjustments to our marketing strategy. But overall, our car market cake should grow bigger and bigger and become more and more. Well, the entire structure will be optimized. During the process of transformation and upgrading of our consumption, the automobile market has changed from a big automobile country to a powerful automobile country.
Liu Ming: Director Xiao gave us a very comprehensive, six-word summary. It should be said to be very comprehensive. It should be the entire auto market slow and then green and then new, then the second and third tier cities, and then extending to the service and extending to the back market. Go, so these aspects are worthy of us to grasp these opportunities. Then I’m going to ask about Jia Zan. It’s that we’re specifically involved in the circulation of our auto market. We have long-term exposure to imported cars. Imported cars are very high-end in our consumption. The product, I would like to ask Jia Zhan, what kind of challenges and opportunities our company will face under this new situation.
Jia Lu: As our company, it is mainly customers, two challenges, the first one to challenge changes in customer demand, because in the first few years we said that consumerism is the main body of consumerism after the 1980s, and in fact it is a swap after 80s. The theme, there are old and small, just talked about the continuous escalation of the entire customer needs, the upgrade is not only more to buy, more expensive to buy the car, more is an upgrade on behalf of demand, before the customer to buy a car to Look at the appearance, look at the space to see the power and preparation, the new generation of 80 after 90 mainstream consumer groups, in addition to these things just mentioned, more will consider whether green, whether the concept of green travel, this car is smart connected, no one It takes a long time to drive, the demand is not the same, my car is different from other cars, how can I express my personality, or I am more able to meet individual needs. This is a customer’s car This kind of change in demand. Well, there is actually a change in the customer’s experience with this type of car, including the future consumer car, because this generation is the generation that the Internet has grown up. It wouldn't be like our traditional way to go to the 4S store to spend a lot of time watching the car. The entire delivery will include maintenance in the future. If it is still as low efficiency as before, taking up so much time may not be accustomed to, so this is also the consumer One of the changes in demand. So for our company, the only way to adapt to market competition is to continuously meet customer needs. I think the biggest challenge lies in this.
Liu Ming: In fact, Jia always faces the biggest challenge is the challenge of consumption, consumers are more younger, and more emphasis on experiential consumption, these things may have a great impact on the business, so below I asked us Nielsen Zhang , Zhang Zong has always studied consumers, research institutions point of view, outside the entire automotive industry automotive market is facing those challenges and opportunities.
Zhang Zhenhua: Just now, the two previous speakers said very well. After finishing some large areas, I added some more microscopic trends. The younger generation has just said that it was in the post-90s era. We observed more subtleties below. The first of these two trends is the rise of women's forces. Before that, basically 70% of the owners were male-dominated. Nowadays, more and more female owners have started to enter the ranks of car owners. Under the same income of female owners, The selection of higher-end vehicles will include higher performance requirements. Therefore, I think this is also a point of opportunity for many car companies. Before the entire industry, male-dominated industries were studied. The target is also male-dominated and now deviates from the female aspect. There is another one. Compared to the young owners we talked about, we should not ignore the older generation. Those after 90 and the 60s also entered the ranks of the elderly. Compared to older people, the status of all aspects of their income is better than the older ones. They are also in the era of theirs, and they are also allowed to have a driving license to drive the car. At the time, Cai Minghe and Pan Changjiang’s skit, the elderly people must travel by car. Although we see that the growth of the entire automobile is indeed slowing down, this is the new normal. When our overall total reaches such a large amount, the slowdown is normal. We must be from an arrogant brutal growth pattern to an era of intensive cultivation. How to dig deeper into the characteristics of consumers and produce products that better meet their needs, so that we can better promote our business. This is an opportunity for our current car companies. point.
Liu Ming: Just now, President Zhang provided us with two unforgettable directions from a very good perspective. One is a relatively old consumer group of women and a very large consumer group that we are concerned about. The last one I asked Mr. Kang Bohan, he just introduced A very big change trend in our entire automotive industry. I would like to ask. From a global perspective, what are the most serious challenges facing the entire automotive and automotive market?
Kang Bohan: This question is very good. I can't think of the answer in half past one hour. The biggest one is for the producers. As I said just now, with the development of time, there are a lot of consumers who will no longer If you own a car directly, you may find a channel for OEM OEM to meet the demand for commuting. This means that these platforms for OEMs need strong connectivity. For specific brand technologies, specific brand technologies, It is not so important, but it means that the ability to meet everyone’s specific commuting needs will be more important and will bring about different investment. One of the biggest problems, from another aspect, is how to attract dealers. Consumers maintain profitability, so that everyone can always have the desire to own a car.
Liu Ming: The biggest challenge is whether it is consumers. In the future, with the demand for services, the connection between our OEMs and consumers may not be too intuitive. How to strengthen consumer and OEM connections is a big challenge. Four guests just now. All of these have provided a wealth of perspectives on our entire automotive industry challenges and opportunities. Next, I would like to ask you to look at prescriptions. How do we deal with these challenges in our OEM or distribution industry? Let’s first ask Mr. Kang Bohan to answer the OEMs he just mentioned. The connection between the consumer and the consumer is easily weakened. How do you face this problem?
Kang Bohan: There is a mid-term and long-term plan. In the medium term, for China's unique feature, it is to do a good brand strategy. That is, in the Chinese market, we now see that after 40 years of reform and opening up, we have the latest The Development and Reform Commission’s announcement is that we now have a variety of new policies. As a result, China’s auto market is more competitive. As a Chinese OEM manufacturer, we must quickly learn brand strategy and seize the consumers’ Look, and do a good job of technology, this is a mid-term solution, mainly for technology and branding. So for the long term, we are for our manufacturers, in this new environment, we are for large OEM manufacturers, in fact, What has been done is to be able to become a service provider and provide this commuter service. Then put these different departments of this business, such as this service of the shared platform, and the customer to build more In addition, it is to provide more comprehensive services. Then this is an option. In addition, it is the leader of the industry as a technology. The image appears. Then from this, through the development of technology, it is possible to win the dividends of technological development, and then to seize one of their own characteristics of the market, the third is this specialized production. For example, for those manufacturers without a brand, They can go on a professional path. Then they sell their professional skills and sell them to big brands. For example, in the electronics field, they often see this situation. For example, such high-end mobile phones are It's assembled with each other, bought someone else's, so I want to say that these three methods can all be effective, but none can be easily done.
Liu Ming: In the medium to long term, he has paid more attention to consumers and more attention to the industry. He has paid more attention to technology and made our entire industry more competitive. Next, I would like to ask about Zhang. From the perspective of consumer changes, manufacturers circulate. What is a business ready for?
Zhang Zhenhua: Actually, from China’s perspective, China now sells more than one hundred brands. When the Detroit industry in the United States is booming, there are more than forty brands. In the process of rapid growth in the early years, these problems can occur. Now, When our growth rate slows, these will inevitably face a process of consolidation and tend to concentrate. So for me, I don’t think there is a long-term goal or plan, because long-term brands will soon die out. For most of the countries in the world now, selling brands is about three or four, and relatively weak manufacturers will be concentrated. It's certainly bigger and stronger. For the OEM, the most important thing is the first one. Deepening the exploration of the market and understanding the consumers in depth, in this case, the company has made a big contribution. In the previous two years, it has been seen that there are a number of small car dealers selling very little, which is not worth a month's sales of big brands. , To deepen understanding of consumers and expand their market share.
Liu Ming: The prescription prescribed by President Zhang, we have so many brands, there may be some relatively weak brands facing relatively big challenges. So in the face of such a competitive situation, it is to do a good job of digging consumers, and then I Ask Jia Zhan, Jia is always doing industry. Just now many companies are facing some new retail attempts. From an industrial perspective, how do we deal with these new challenges?
Jia Wei: Indeed, according to the traditional circulation model, the efficiency is relatively low and the cost is relatively high. It is not good enough for consumers to satisfy the consumption experience of new consumers. Therefore, e-commerce does have a great impact on the traditional model. Of course, it was said in previous years. Subversion, of course, after two or three years of market competition, the traditional circulation industry also feels that it is not easy to be subverted. Of course, its own problems exist. It is because of the efficiency and cost, and it does not feel good to customers. Therefore, no matter whether it is from new retail or traditional channels, the two must be integrated. As a traditional channel, we must constantly innovate and change. We must always make some changes around the needs of our customers, and use some new technologies. Improve customer's feelings, meet some needs, promote products on the host, and more service links are our traditional sellers to make greater improvements.
Liu Ming: The prescription prescribed by Jia Zong embraces the Internet. Finally, he asks Xiao Xiao. There are six advantages of change. How do you escort the changes in the auto industry or automobile circulation? What are the policies?
Xiao Rongchen: In the two years of policy and institutional development, he has done some positive work. It should be said that some positive results have also been achieved. When I introduced it, I also said that our general idea is still centered on supply-side reform, the supply side. In reforming the first principle, we must also break the separation of the system and break these restrictions on this industry. The development of free competition that makes the market more fair and fair will inevitably produce an efficient model. I generally think that The government cannot dominate market development. Even the government can't even guide it. The government has to regulate the development of the market. We still need to improve our policies and systems, break down this monopoly through competition and monopoly, and let the market's vitality be released. Like our sales management approach, we mainly broke the authorization and turned out to be a good model. This guarantees the rigidity of management, but it affects the efficiency of our circulation. In this circulation area, it leads to some monopoly problems, including contradictions. The outstanding issues, including the problem of high prices, are due to the monopoly of monopoly products. , The monopoly after-sales service, the production and supply of spare parts will cause problems. This is what I said is the monopoly of this kind of market. Of course we also oppose this kind of administrative monopoly, cancel the limited use of used cars, and implement the market of restrictive transfer policies. Separated, the used cars have their own development rules. From the east to the east and west, there is a gradient transfer process. Everyone cuts the market. The used car market is dead. From the new car to the used car, the chain of used cars will be replaced. The parallel imports, including our parallel imports, are also our work in order to break the monopoly of international importers. I will not say much more. Like the reform of our scrapped automobile system, we are also trying to break through the constraints of the system. In 2001, the automobile was scrapped. The management approach, which is mandatory, requires that all five major business types have to be reconstructed, resulting in great waste and not meeting the requirements of the green development of the circular economy. We also propose to cancel such regulations in light of changes in the market and industry development. The transformation and upgrading of the entire industry will result in a qualitative leap. Generally, the mouth of our scrapped cars will be opened. The entire chain From the new car to the scrapped car, the more we went out, the more we came in, the entire product structure could be optimized, we still did more work in the field of institutional construction, and made our market more efficient, more standardized and orderly. More healthy and sustainable development.
Liu Ming: The prescription prescribed by Xiao Xiaofang has been liberalized and invigorated to promote competition. And just a few companies, researchers, and researchers are very consistent in expectation. We believe that through our common efforts, we will make our entire automotive market. , Or the circulation of the car to a new level, Because of the time, we ended this interactive session. Thank you very much for the active participation and wonderful answers of the four guests. Thank you for your participation. Thank you.