Geely: To create a brand if the product is recognized by the market


On August 8, 1998, the first Geely “Pride” was off the assembly line. It was said that during that year, more than 100 “pride” models priced at only 32,999 yuan were sold out, but by 2001 it was not sold. Geely sold 24,000 cars at once. This made Geely dealers who felt the hot and disappointed taste for the first time had the impulse to give Li Shufu a banner. Time went to March 2003. When Li Shufu drove past the first street of China with the "China's first runner" red beauty leopard, his back could not help but make people wonder: For this reason, "Efforts to make the people affordable are good." For the privately-owned enterprises that are famous for cars, whether the off-line production of mid- to high-end cars means that the 21st-century Geely cars also need to change the original intention of the company's founding stage. Does Geely have to deviate from the usual "close to the people" line? The story is widely seen in Geely: When Li Shufu bought two Mercedes-Benz cars and quickly prototyped a prototype through a spin-off, Geely created the first Mercedes-Benz roof and used glass fiber reinforced plastic material creatively. . When Li Shufu happily sent this prototype to the relevant departments for inspection, he was very polite to tell him that such a car did not meet the national safety standards. Li Shufu was poured into cold water. “To create a car that all the Chinese people like and can afford. This was an idea I made when I first traveled through Detroit, the capital of automobiles. According to the income standards of the working class in China, it was just 30,000 yuan that they could accept. The price, said Li Shufu, chairman of Geely Automobile Holdings Limited. "It can be said that to a certain extent, it is the 30,000 yuan price and the concept of downward angle of view that have fulfilled the initial auspiciousness." Talking about the hardships and difficulties of starting a business, Li Shufu, chairman of Geely Holding Group, has never been forgotten. "Indeed, Geely won the living space by strict cost control. At present, the price of Geely's pride is 32,999 yuan. This price was still considered impossible a few years ago." As Geely's president and number two, Xu Gang and Li Shufu also believe that low prices are the unique advantages of Geely. In fact, as a member of the National Committee of the Chinese People's Political Consultative Conference, Li Shufu also proposed suggestions at the two sessions this year, hoping that the state will support the development of economical and small-displacement cars. In Li Shufu's view, this is the key to creating China's auto brands. “I am almost speaking. Some of my feelings may be considered “narrow nationalism.” It may also be because I’m a peasant or it’s because of my narrowness. Love and value the enthusiasm of the development and construction of China's auto brands.” Although the Geely car is selling very hot, Geely will never take the path of single brand development. Li Shufu, the title of "low-cost car king," has not expressed his recognition. "The concept of 30,000 yuan, we will always take it as an important development strategy for the company, but this does not mean that Geely will only create 30,000 yuan of products, if we can not accumulate power in this market, how do we compete with multinational companies? "Li Shufu made it clear. In fact, since 2002, Li Shufu has begun to adjust within Geely: from organizational structure to product development strategy, from technical cooperation to capital introduction. People in the industry generally believe that with the successive launch of models such as the American Leopard, Maple and other brands, Geely Automobile has quietly entered the ranks of mid-range car development and entered the “3 million era.” In the interview, Xu Gang completely described Geely's brand development strategy in the next five years, and expressed that it will comb the brand with some confusion. In Xu Gang's view, the problem of branding and service became apparent after auto companies solved capital, talent, and technology problems. He admitted that at present, Geely Automobile is the most missing brand. He even jokingly said, "Beloved only sold more than 30,000, because it is manufactured by Geely." The echo between the brand and the product will sometimes cause trouble to the company's operations. There was a time when Geely's sales were fluctuating. A good example. According to Xu Gang, the core value of Geely's brand is positioned as "value." Just as BMW's endorsements are dynamic, Mercedes-Benz endorsement is comfortable and Volvo endorses safety. According to the plan: In the future, Geely will strive to create three major brands under its parent brand. One is to build pride and the United States and Japan into the preferred brand of China's economy cars; the second is to make Shanghai Maple a mainstream brand of mid-size cars; and the third is to promote beauty leopards as the brand of fashion personality models. Xu Gang believes that the development of high-end products in Geely's sedan is actually an extension of the established concept. “It is not the market that determines our strategy, but the belief that supports us, but if our beliefs do not meet the market demand, we can not develop to this day.” Geely once had only reputation. Xu Gang recalled: “When I first surveyed in Guangzhou, I discovered that many people knew Geely because Li Shufu led the football industry’s crackdown. Therefore, Geely’s sedan is more famous than recognition, and recognition is greater than the reputation.” As for loyalty Because of the frequent price wars of economical cars, the vast majority of users in this market are price-sensitive. Of course, brand confusion has also plagued Geely cars for some time. Some industry insiders worry that with the introduction of mid- to high-end cars such as the American Leopard and Maple, Geely has entered a market area they are not yet familiar with. The rules of the game and consumer preferences are all related to economical cars. There is a big gap in the market. Some people think that it is a symbolic significance that the beauty leopard embodies more. It entrusts the dream of transforming Geili, realizing technological advancement, and becoming bigger and stronger. In fact, from "make the cheapest car" to "make a good car that the people can afford", and Li Shufu claimed that "in the future to build a Mercedes-Benz-class car," Geely is on the road to transformation. "Now to apply for the distribution rights of the American leopard, we must not only assess the capital, storefronts, manpower and many other qualifications, but also pay a prepayment of 5 million in guarantee, which is no less than the standard of a joint venture company." Geely dealers This sighs. In Li Shufu's view, he and his "beauty" must win the people's flowers and applause and they must pay attention to details. How do you think about the relationship between brand promotion and product promotion? What do you think is more important? Li Shufu: In the early days when everyone had doubts about the survival of the Geely car, the trust of the brand was not to mention. However, after several years of development, Geely's products have been recognized by everyone, users' good reputation has gradually formed, and the brand has naturally established itself. I can only say that it is “the market creates brands”.

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