How does the Great Wall buck the price rise?

After visiting several 4S stores, Li Juan, who was planning to buy a scooter, was a bit confused recently: “I want to buy a A-Class car. I’ve been more comfortable with the Tengyi C30, but I’ve noticed the 2012 model. Compared to when my colleague bought last year, it rose by 1000. I consulted with other brands and found that some new models have fallen by four or five thousand compared to the old ones. I don't know what the Great Wall means.”

Originally intended to be cheap at the end of the year, but Li Juan found that he had no chance. In fact, not only Tengyi C30, the reporter noted that the Great Wall series of products such as Haval H, dazzling and other new models have different prices. “The Great Wall is determined not to fight price wars.” On December 21st, Wei Jianjun, chairman of the Great Wall, tossed on the 600,000 Haval delivery ceremony at Haval. “The Great Wall not only does not compete with other brands in the price war, but each product goes up. At a price of 1,000 yuan, the goal of the Great Wall is to be close to, close to, and closer to the price of foreign products."

H6 out of stock

On December 18th, the director of the Shanghai Sanzhong Warner Media Automotive Division sent a micro-blog on the Internet: The (Minister Shang Yugui) Minister had just seen a Haval H6 on the streets of Shanghai and was very beautiful. According to Shanghai dealers, they have already owed customers more than 300 orders. When will your production capacity be completely released?

The reporter learned that situations like Shanghai are not cases. For example, someone verified with Shangyu Gui: whether the information that Guangzhou dealers owed 500 orders was true. Although the news has not been verified, the shortage of stocks has become a reality. The reporter learned from the manufacturer that as of now, "Hover H6 is in short supply, and manufacturers have nearly 10,000 orders." After hearing this news, Ms. Li asked: “With tight production capacity, will the Great Wall not raise prices to mention cars?” In fact, Wei Jianjun, chairman of Great Wall Motors, is very opposed to dealers making unauthorized price fluctuations, although he himself is not satisfied with the pricing of H6. "I am not satisfied with the pricing of the car. I think the minimum price can be sold to 110,000. The marketing team does market research and thinks that 90,000 to 100,000 are the best choices."

According to Wei Jianjun, Haval H6 can also sell well for another 10,000 yuan. More importantly, companies can have more capital invested in R&D products. “Companies are not philanthropic and they need to be able to operate normally. The higher the price of products, the higher the tax revenue created for the country. The key is to allow consumers to experience cost-effective products.”

In fact, the Great Wall Tengyi C30 6.45 million to 83,500 yuan price is very close to foreign brands 70,000 to 100,000 yuan price, but since listing in June last year, has accumulated sales of more than 200,000 vehicles, including sales in November 2011 It has reached 15,209 cars and ranks seventh in sales of Class A vehicles nationwide. Wei Jianjun believes that "this fully proves that consumers are increasingly rational in their research on automotive products."

For the price war phenomenon, Wei Jianjun impolitely said: "Your value is to make the product continue to increase the price, the product should be sold to affordable customers, rather than to make customers affordable and cut prices."

“The value of the Great Wall is to make foreign brands under pressure.” In fact, after the Great Wall does not fight the price war, Wei Jianjun has a higher pursuit: “In the future, each product of the Great Wall will have to increase its price and be close to, and close to, foreign-funded products. Even closer, Great Wall Motors firmly refused to cut prices, and each car rose by 1,000 yuan, which is not the case for independent brands. We just want to narrow the gap with foreign investment."

Breaking 600,000 vehicles

Although prices have risen, Wei Jianjun seems to have more confidence in his products.

“In the past, it was always felt that there was a gap in the quality of the self-owned brand and the joint venture brand. Through the test drive, we feel that the H6 is not inferior.” This is the voice of Mr. Gao, the 600,000 owner of the Great Wall Haval SUV.

It is understood that in March this year, Haval SUV has just exceeded 500,000. In the situation where the sales volume of independent brands has been slowing down, the sales of the entire Great Wall Motors have been rising in a straight line. Statistics show that in November 2011, Great Wall Motor sold 51,885 vehicles, a year-on-year increase of 25.8%. Among them, Haval SUVs sold 21,105 vehicles, up by 50.1% year-on-year.

On the day of the 600,000 delivery ceremony for Haval SUVs, he was somewhat excited about the executives of a listed company in Beijing: “I was originally driving a joint venture brand car. I always wanted to change an SUV because of my work. I Buying a car pays much attention to the cost-effectiveness of the car. This year we compared several new SUVs. My family and I eventually chose Haval H6, mainly because of Haval's reputation for quality."

Although the development of the Great Wall is known as the "dark horse" of the corporate world, in the face of its own high-speed growth, Wei Jianjun only said: "There is no mystery, but a word - special."

Dedicated and first

What is specialization? Wei Jianjun has his own logic.

In order to vividly describe the "Great Wall model", Wei Jianjun gave the reporter an example of an Olympic champion: The Olympic pentathlon champion may not know who he is, but the 100m hurdle champion, everyone must know Liu Xiang. In the same way, cars are the same. Individual champion, Wei Jianjun's implication is to build the Great Wall into a “category expert”.

"The Great Wall has today's results, mainly focused on the use of limited resources, the absolute advantage of the category to do class experts." Wei Jianjun said.

It is not easy to want to be an expert. People who are familiar with the Great Wall know that the Great Wall has also gone through detours in terms of category development. It took two or three years to develop over-sized buses. Although the products are very elaborate, they can only be withdrawn because they are not good at marketing and operations. In 2008, the Great Wall entered the field of cars and launched the A00 and A0 sedan products such as Elves, Hyundai, Cool Bear, and Ling Ao. However, the sales volume was lackluster. Repeated setbacks have strengthened Wei Jianjun’s path to “category experts”. He is convinced that “doing business does not have to be big, big is not necessarily strong. In the future, as the market further returns to rationality, low-quality and low-priced products will be eliminated.” In order to take the road to enhance the quality of brand image, it is reported that the Great Wall is used annually. The cost of research and development accounts for about 3% of sales. "This is a lot of independent brands can not do." Rao Da, the Secretary-General of the National Passenger Vehicle Market Information Association, affirmed.

After several years of exploration, Wei Jianjun told reporters: “The development strategy of the Great Wall in the future is still pickup, SUV and A-class sedan. We must be simple, from the simple system, simple mechanism to simple products.”

Believe in the "simple and monolithic" model, the Great Wall gets the market's return but "is not simple." According to reports, Great Wall Feng Junpika has maintained sales and exports in China for the first time in 13 consecutive years. Haval SUV has also maintained sales and exports for the first time in eight years in a row. “There is an athlete named Shi Dongpeng in Baoding and Liu Xiang, an Olympic champion in Shanghai. Both men are 110-meter hurdlers, but no one has ever seen Shi Dongpeng to participate in activities or endorsements. This is the first value.” Wei Jianjun knows first. The importance of one.