Chapter 782: Crazy Expansion
"Lao Zhou, that Geely Automobile, let's join forces to restrict it?" Mr. Chu called the boss of Modu Automobile.
"There is no need for this, except for taxi orders, the sales volume of Jili Automobile is not high, mainly because the number of their 4S stores is too small, the coverage area is too small, and it is not as good as one-tenth of ours. ”
These car companies also have directly operated 4S stores, but more of them are some brand 4S stores, selling a variety of models of one brand, even including imported cars.
These are all established under the leadership of foreign car companies, which can make the products more distributed across the country and save costs. The only problem is that it is a bit cumbersome to manage.
There are multiple car companies supplying in one store, not only mainland car companies, but also foreign companies, which leads to many of them being restricted by 4S stores due to sales problems.
If you don't give me preferential conditions, I'll let people promote models from other car companies, or put your car companies' models in the corner or something.
Of course, there is also healthy competition between these large domestic car companies, and there are some top-led cooperation, so they will not be threatened by 4S stores for the time being, after all, they are all state-owned enterprises.
At this time, there were far fewer 4S stores in China than before Wang Haoan's rebirth, when there were nearly 30,000 4S stores in the country, nearly 100 brands, and about 500 models sold.
And now, there are only more than 1,000 4S stores, and there are many car sales stores that are not 4S, and there are only a dozen brands and less than 100 models.
Many emerging brands, in fact, only have one or two styles, such as Jili currently has one style on sale, the previous old model has been discontinued, and there was not much production, and it was sold out in Zhejiang Province.
Even if it is a top international car company brand, there will not be many models on sale, and generally one or two styles are mainly promoted. Because many styles are specially developed for a certain market.
For example, sports cars are definitely not sold well in Huaxia, not only because there are few rich people in Huaxia and few people who are willing to buy expensive sports cars, but also because the road construction in Huaxia is not good.
Lao Zhou felt that there was no need to take Jili Motors in his eyes, just a dozen stores, how much could they sell? That is, a fraction of them.
I heard that this year, the production line has been expanded, from 50,000 to 100,000 units. It was a big ambition to expand the production line without selling a few cars, but the reality would hit them hard.
If it is only an annual output of 50,000 units, then the domestic and foreign taxi markets can be digested about the same, but 100,000 units, can not be digested, how much retail can be sold, if the inventory is too much unsalable, the company's capital operation will inevitably have problems, and Jili Automobile will be self-defeating!
There are many people who have the same idea as Lao Zhou, they don't take Jili cars in their eyes, you don't have a sales network, how many people can buy your car? Can you expect others to come all the way to your Zhejiang Province to buy it?
Li Dafu also saw the problem after Wang Haoan's words. After some investigation, he found that the sales network of Jili Automobile is indeed too poor, since this is the case, then speed up the negotiation with the agent, to open more than 50 4S stores in the middle of this year.
Li Dafu also wanted to open some simple sales stores, but Wang Haoan refused. A large part of the profits of the 4S store is provided by non-sales. It seems that the 4S shop has invested more, not only the storefront, but also some maintenance equipment, and the need for car repair technicians, but the profit is higher.
In this way, it can also exclude some agents who are not strong, and if there is not enough money, they can not afford to open a 4S store.
Of course, this also has a benefit for Geely Motors, that is, it can count the failure rate, know where the car is most likely to break in different regions, and make adjustments on the new model.
These data are also very important for an automobile company.
There is also a problem with the car, most of the 4S shops can solve it, instead of needing to return to the factory or something, and it can also allow those consumers to avoid going to some car repair shops to be slaughtered.
During this time, there is no phenomenon of stealing customers in 4S stores, and they are all using good service and cheap prices to attract more people to come to the store for maintenance and repair.
Like before Wang Hao'an was reborn in the previous life, the repair cost of the 4S shop was two or three times that of ordinary maintenance points, and the price of some very common spare parts on the market could be tripled after being labeled as the original factory.
This also led to the fact that many car owners did not repair in the 4S shop later, especially after the warranty period, which was too expensive. And some ordinary car repair shops are also blooming everywhere.
After talking to some agents, with the help of professional managers, Li Dafu set a price acceptable to both parties and quickly signed the contract.
In April 2002, the number of 4S stores of Geely Automobile increased to 20. By May, it had grown to 50, of which there were more than 20 directly-operated stores.
The frenzied expansion of the sales network of Jili Automobile has also attracted the attention of other car companies. The main reason is that many Geely's 4S stores are next to the 4S stores of other car companies, and the advertisements are about to hit the door of their stores, which is too annoying.
Some car owners have found that they can no longer ignore Geely Automobile. Before, they felt that their car companies were not affected by Geely Automobile, they did not promote taxi models, nor did they sell low-end cars under 100,000 yuan, Geely Auto was not at the same level as them, and there was no need to pay attention to it.
However, with the crazy expansion of Geely Motors, sales continue to rise, and the sales of some of their models have declined more seriously.
There is no other reason, that is, their models of more than 100,000 yuan do not look as good as Geele's cars of less than 80,000 yuan.
This makes many car company CEOs very puzzled, our performance is much better than Geely, you deny our products because of an appearance?
After careful research, they understood that it was because their models didn't look high-end anymore and the price was still so expensive. Geely's car looks upscale and cheap.
The performance of many cars is indeed much stronger than that of Geely, but Geely's performance has been able to meet the requirements of most consumers. What are you doing when you start so fast? Why do you do when you are flying so fast? In urban areas, this kind of performance is already very good, and it is also fuel-efficient.
The rapid expansion of Geely Automobile also represents the optimism of those agent investors about Geely Automobile and the feeling that they can make money by opening a 4S store of Geely Automobile.
Are those people blind? Just one special model, what kind of 4S store do you open? Can consumers choose anything else besides color?
The technology of Najili Automobile is second-rate in China, but it is just relying on low prices to seize the market. Now that Xiali and Jetta have also reduced their prices, I don't believe that Jili can still develop!