Recently, according to the data of shareholders messages Chery Automobile Holdings and Chery’s Wuhu City Construction Investment Co., Ltd. released 2019 annual total liabilities Chery Holdings has reached 73.88 billion yuan, total liabilities Chery Automobile has reached 68.25 billion yuan, assets and liabilities both the rate of 75 percent over the high cordon. The highest ever sales of its own brand of Chinese market as early as 2011, it achieved sales of 640,000, has 11 consecutive years ranked first brand of its own brand, and now the development has become increasingly passive.
[1] of 2011, 640000, 2019 740000, almost no growth in 8 years [ 123]
just said, Chery automobile as early as in 2011 to achieve 64 million sales, but since then, there is no greater Chery increased. According to statistics, 2017,2018 and 2019 annual sales of Chery Holdings were 680 000, 753 000 and 745 000, for three consecutive years has not completed the annual sales target. Chery from production scale, but also far behind the Geely, Great Wall, Chang’an, these independent brand and become a second-tier own brand.
In addition, Chery’s sales of other brands is not very good, in July of this year, car sales stardom is only 1400, down 5.8 percentage year on year, just before the July sales in 7511, as a subsidiary of Chery high-end brands, stardom is now far behind the leading grams, WEY these high-end brands of self.
[2] good products, the lack of good marketing?
In fact, most people always think that technology in its own brand Chery is relatively good, especially in engine technology. Chery headed 1.6T engine is turbocharged engine, thermal efficiency of 37 percentage own brand leader, while the output of 197 horsepower. Such a good technology applications in the car but did not return for good sales. So many people think, good Chery products, but lack of marketing. In fact, he says this is not entirely without reason. Chery in brand management, product layout does have some problems.
First, the high-end brand defeated. From the earliest unicorn, the concept of cause, and then to stardom, Chery had several attempts to develop high-end brand, establish a high-end brand image. However, they are all every attempt ended in failure. Today’s stardom brand, although the continued development, but whether it is the number of products, or on sales, had not even compete with collar grams and WEY. In mid-July, we launched the stardom LX 1.5T version of the wind and waves, less than 10 million starting price, manufacturers want to be able to boost sales by lowering prices, but with little success.
Second, the current Chery’s three major brands, Chery, stardom, Czech way, three brand positioning in the product, not the price positioning good reason clearly, many brands compete with each other. So there is a “hit stardom Chery, Chery Jie way to play” such a phenomenon on the market. Czech way, Chery and stardom three independent brands, three brands homologous technology. In fact, common in the industry, Geely and collar grams, the Great Wall and WEY technology, also has a great similarity. Not to mention Volkswagen Jetta, Skoda, Volkswagen, Audi MQB platform has a lot of models, it is possible to take advantage of the good not only reduce costs, benefit consumers, but also to better expand the scale. Chery is not a good use, leading three brands of cars fighting each other.
The three major brands Chery’s models, Tiggo 8, Czech Republic, as well as passers-X90 stardom TXL crowded with 120,000 to 150,000 yuan market space, while in the Czech Republic after the completion of updating the way X90, also Tiggo 8 We will launch Tiggo 8plus models in the near future. So the shift, the final damage is the Chery brand image.
1 2 3 [paragraph] enough to save the entire star models Chery
comprises the past Chery now, more children have been gang war strategy. Entered in 2020, Chery products faster update speeds, it has introduced a whole new generation of Tiggo 5x, a whole new generation Tiggo 7, a whole new generation Tiggo 8 upgraded version of Ai Ruize 5 Sport models such as, in August launched a whole new generation Tiggo 8, Tiggo 3x PLUS and a new generation of high-energy version Tiggo 5x. So many new models, but did not get much help Chery sales. Before August is only ranked sixth in their own brands.
At present, Chery’s best-selling model is the Tiggo 8, which is a model of Chery brand accounted for 30 percentage of the total sales volume of more than two and a star vehicle, not enough to save the entire Chery. The more children brawl marketing strategy, is far better than other manufacturers each year one or two good models of new cars to heavy effect.
Summary:
from Chery body, we actually see an independent brand from weak to strong, then weak development process. In today’s increasingly competitive auto market premise, Chery as soon as possible to sort out the relationship between the good within each brand, to create a car explosion models, Chery is the way to the future.