Chapter Ninety-Three: The Power of Three Moves
Instead of sitting back and waiting, it is better to take the initiative.
The Jaguar Land Rover Dealer Alliance submitted a letter of earnest discussion to Chunghwa Group, listing the conditions for them to accept the acquisition of the joint venture sales company, and promising that all agents in the four regions will advance and retreat together.
The terms and conditions of the request for a stake in the joint venture sales company, the expectation of directorships, and the maintenance of privileges for an additional period of protection were unanimously decided after internal discussions.
Mercedes-Benz's original general agent in China, Lei Shing Hong, successfully made BAIC Mercedes-Benz bow its head and got the concessions they needed.
This gave them something to learn from, and Jaguar Land Rover's sales network was completely in their own hands, and they had the strength to compete with the Chung Hwa Group. As long as an offensive and defensive alliance is formed internally, the China Group can be made to back down and agree to the conditions.
"I can understand what the dealers are doing, but that doesn't mean I'm going to accept their terms. They have contributed to Jaguar Land Rover's entry into China, but they have also been rewarded enough.
Judging from the statistics in my hand, they have also made a lot of money by relying on Jaguar Land Rover over these years, at least it is not a problem to return the cost. There are a few loss-making outlets, but they are all second- and third-level franchise stores, and most of their profits are taken away by the four major general agents.
Times have changed, and dealers' minds have to keep up. In the past, the Chinese market was in the free-range stage, but from today onwards, it will become directly under the central government and open the regular army mode. ”
After reading the earnest letter submitted by the Jaguar Land Rover dealer, Han Hao did not reduce his willingness to cut the domain, but planned to speed up the pace.
In the future, it is the general trend for the joint venture sales company to manage the dealer network in a unified manner, because the existing four major regional agents have not adapted to the fierce market competition.
First, there are 43 Jaguar Land Rover dealers in China, which have their own ways in store decoration, service specifications and even price charges, and have not formed a unified management, and have been complained by consumers many times.
Second, the four major regional dealers divided the sphere of influence, lack of competitive momentum, only to keep their own one-third of an acre, without the spirit of opening up the market. In addition, the power of new 4S store outlets in the region is actually controlled in their hands, and under the guiding ideology of a game of chess in the national market, this is an obstacle that Han Hao cannot tolerate.
The third is to reduce costs and improve product competitiveness. The existing regional general agents sell cars at a higher price to the second- and third-level dealers, which has virtually added a layer of exploitation, resulting in a continuous increase in the terminal retail price.
Fourth, there is a lack of control over dealers. Regional general agents with too much power can directly import vehicles and pricing, which will have an impact on the same model after domestic production. In the future, outside the joint venture company system, there will also be channels controlled by dealers, in case the price of domestic Land Rover is 500,000, and dealers directly smash 450,000 through imported cars, the entire price system will be chaotic.
The existing 43 dealer network is temporarily inseparable, the newly established joint venture company will not invest in the operation of 4S stores on its own, and dealers will not change their doors when it is profitable to sell cars, so the two sides are destined not to publicly tear their faces and lift the table.
"Zhonghua Group is not BAIC Benz, and they are not Lei Shing Hong, even if Lei Shing Hong comes to me, there is not much qualification to negotiate!
It wasn't they who made Jaguar Land Rover, but Jaguar Land Rover's existence that made them where they are now. ”
Cheng Yanjin relied on three axes to fight the world, this time to solve the crisis of the dealer alliance confrontation, Han Hao also prepared three moves to pacify.
In response to the preemptive attack of the dealer alliance, Han Hao's first move was to "throw stones".
Throwing a stone is to throw a stone at the opponent's head, to meet the blow and show your attitude.
Han Hao directly rejected all the conditions set forth by the dealer alliance through the earnest negotiation letter, and released a message that the dealers who did not accept the integration would be disqualified as a distributor in the future. If the dealer actively cooperates, Zhonghua Group will consider giving certain positive and reasonable compensation conditions.
Such unrealistic conditions as shareholding, directors, and protection period will not be agreed to by Zhonghua Group.
This big stone is thrown out to show that the Zhonghua Group will not be threatened and will not compromise, and directly warns dealers not to take chances and stubbornly resist.
"It seems that the attitude of the Zhonghua Group is very tough, and it is not going to talk to us anymore! In my opinion, we have to be prepared with both hands to strive for the maximum benefit.
Making money is our ultimate goal, and confrontation with the main engine factory is only a means rather than a result. ”
After the Chunghwa Group's tough feedback on the earnest letter, the agents in South China wavered and were ready to seek a solution for both worlds.
It can be said that the stone thrown by Han Hao has achieved the desired effect.
The second trick is to "mix sand".
The four regional general agents implement the mode of division of spheres of influence, and the general agents in South China cannot open stores in East China, and vice versa. In their own territory, the major general agents have the absolute power of one word and become the "vassal king".
Since the general agent is an iron plate in the territory, in order to break their monopoly, it is necessary to introduce new forces to contend with it.
Sand mixing is to mix sand into the mud that is huddled together, so that the original tight mud cracks, and the resulting gaps are no longer monolithic.
In order to become a target of sand, it is necessary to be able to resist the oppression of the "vassal king", and the most suitable goal is to be equal to its power.
Hujiang is the largest metropolis in China and the leader of Jaguar Land Rover's domestic sales segment. The East China general agent personally opened two 4S stores in Hujiang City, monopolizing this lucrative city.
There have always been other dealers who want to open a third 4S store in Hujiang City, but they have been beaten back by the East China general agent.
In a big city like Hujiang, Jaguar Land Rover's regional general agent is a major force, but there are many dealers on a par with him. Audi, BMW, Mercedes-Benz, and even Volkswagen, Toyota, and Chinese brand dealers all have strong backers behind them.
After the establishment of the Jaguar Land Rover joint venture, many new dealers were eager to try and intend to get a piece of the pie.
Han Hao directly gave the third dealer in Hujiang City to the owner of the Zhonghua BMW 4S store, nominally the first new dealer authorized by the joint venture company.
He was chosen to act as the first grain of sand, firstly, he performed well in the cooperation of BMW 4S stores in China and had experience in operating luxury car brands; second, the other party had huge influence in Hujiang and was not afraid of the threat of the general agent in East China.
With the sword of Shangfang given by Han Hao to open the store, and the protection of local forces, the third 4S store in Hujiang was prepared in this way.
Such a move greatly shocked the original Jaguar Land Rover dealer network, after the Hujiang River, other cities mixed with sand to increase the power of new 4S stores is imminent.
The next third combo is "digging the foot of the wall".
No matter how strong the city wall is, it cannot resist the threat of being dug up, and once the foot of the wall is hollowed out, the city wall will collapse unbalanced as a whole.
The greatest threat to all alliances comes from within, and even if the four regional agents form an alliance and promise to advance and retreat together, the interests of each force are different.
What Han Hao has to do is to turn one of the representatives of the dealer alliance against him, which is enough to disintegrate the entire alliance and achieve the goal of breaking it apart.
Although the four regional agents promised not to invade each other, they did not open stores in each other's spheres of influence. But that doesn't mean they won't look at the market with good sales, it's just that they are hindered by the alliance to suppress impulses.
"In the future, the integration of the national sales network has been the general trend, and then the unlucky one can only be themselves.
It is impossible for OEMs to invest heavily in 4S stores by themselves, so they must rely on dealers like you. Whoever gets the first step and expands faster will win the next phase.
If you agree, the market in East China can give priority to you to choose the layout of the outlets. In addition, you will also be given preferential consideration to the existing quota for imported vehicles. ”
Pulling one faction to fight another faction is the best means to divide the alliance. The general agent in East China has a tough attitude, so it has naturally become the target of Han Hao's key attack.
On the other hand, the attitude of the general agent in South China is ambiguous, and there is a scene where Han Hao sent someone to meet him privately. If they actively support the new agency policy, then Han Hao will give priority to the high-quality market in East China, which will also indirectly break the original division of forces.
For Han Hao, the national sales volume is an overall cake, and it is also where he pays attention. As for how the cake is constituted internally, he doesn't care who sells more in the regional 4S store. Just re-cutting the cake is enough to make the dealers make their heads bleed.
With 43 4S stores as the standard, each of the four regional agents accounts for about 10 of them. If we can preemptively increase the number of self-owned 4S stores to 30, we will be able to exceed the existing benefits in terms of profits, and will no longer be limited to the current demands.
It can be said that Han Hao used the interests of the existing general agent in East China and the interests of the future store layout to persuade the general agent in South China to tear up the covenant, so as to achieve the purpose of digging the foot of the wall.
"If we don't agree, the Zhonghua Group will definitely look for a new target to cooperate, who can guarantee that the other party can refuse such tempting conditions! Maybe the name of the general agent in East China will be changed to our South China region, and we will eventually become a victim and be eaten by the other three. ”
The reason why the prisoner's dilemma is never realized is because you can choose the most beneficial behavior in order to take your destiny into your own hands.
As Han Hao expected, the South China general agent took the lead in announcing its withdrawal from the alliance and took the lead in responding to the new agency policy proposed by the China Group. Naturally, they also got everything they promised, without privileges, but with an increase in their national outlets, their long-term interests were not compromised.
As a result, the alliance of agents who intend to compete with the Chung Hwa Group is dissolved, and they must each choose the conditions that are most favorable to them.
In this confrontation with a huge disparity in strength from the beginning, it is not difficult to guess the outcome or defeat. Han Hao has the experience of integrating BMW dealers to deal with it, and he seems to be handy.
The three moves in a row disintegrated the agents' counterattack and forced them to obediently accept the reorganization.
In fact, Han Hao also prepared two other major moves to press the bottom of the box, but they didn't come in handy.
The first is to do a good job of the Jaguar Land Rover dealers to form an alliance to the end, then he will reduce the dimensionality of the vehicle at the source. At present, China's auto dealers still rely on selling cars as a source of income and profit. If you rely on maintenance alone, you can only earn enough interest money. Once Jaguar Land Rover does not send them cars, or deliberately delays the arrival of imported cars for a year and a half, dealers can only drink the northwest wind and close their doors.
In addition, Han Hao is ready to replace the old network with new dealers. If dealers close their doors en masse, the 4S stores of China Motor will be responsible for temporary repairs and maintenance, and at the same time recruit a new dealer network. As long as 6 months to a year, the new dealer network will be formed, and there is no fear of the threat of old agents to withdraw from the network.
Harmony but not concession, fighting but not breaking, this secret battle to incorporate Jaguar Land Rover dealers has vividly embodied Han Hao's business methods.