Experts said that the previous strategic mistakes of Brilliance Auto led to a decline in competitiveness. The key to the future depends on whether a stable core team can be established. Since the early stage of Brilliance Auto’s multi-brand strategy, the expectation that it was not optimistic is now becoming a reality.
According to the data, the sales volume of Brilliance's own brand, Zhonghua Automobile, was only 141,200 units in 2014, a decrease of 33.87% compared with the 213,600 units in 2013, accounting for 0.72% of the brand share in China, and China Motors is selling in China. The ranking of brands also fell from 23 in 2013 to 35.
For the influence of Brilliance brand in China's auto market from being tepid to being gradually marginalized, it has already been predicted by the outside world. Zhang Zhiyong, a senior expert in the auto industry, said in an interview with the Securities Daily that Brilliance Auto is The lack of success in the promotion of car branding has caused the brand to sink from 2009.
“The performance of Brilliance has been going on for a long time, and the reason for the sluggish performance is that the brand of Brilliance is too weak now. As early as 2009, Brilliance Auto spent a lot of thought on brand promotion and communication, which also made the year Brilliance Auto was famous for a while. But for various reasons, Brilliance Auto has no new ideas on the products, and the brand promotion is also unknown. The discontinuity of Brilliance Auto in the brand promotion process makes the brand competitiveness of Brilliance increasingly weak. Zhang Zhiyong said.
Multi-brand strategy was accused of contrarian. Last year, Brilliance announced the implementation of a multi-brand strategy and launched “Huaweiâ€, making it the third independent brand of Brilliance Auto after Jinbei and Zhonghua. Not only that, Huaying is positioned as “ High-end independent brand ".
But this move is full of stunned. Many experts in the industry judged at the time and thought that Brilliance Auto was in the “contrarian trendâ€. After all, there were too many “pre-carsâ€. Before that, the multi-brand strategy of Chery and Geely’s own brands has been announced in the past two years. Failure, and ultimately choose to return to "a brand" in the predicament; and the high-end strategy of independent brands such as Changan, Guanzhi, and Great Wall has also been effective, and even dragged down corporate reputation. Although the behavior of Brilliance Auto “Mingzhishan has a tiger biased toward Hushan†can be described as brave, but in terms of its strength, it obviously does not have the ability to “figh the tigerâ€.
Strategic strategy partner Peng Bo told reporters that the multi-brand strategy is obviously not matched with the Chinese auto market, but Brilliance Auto still adheres to this strategy, and the level of senior management is puzzling. “The development of multi-brand strategy in China is counter- The momentum is very small, and the probability of success is very small. The performance of Brilliance Auto so far proves that it does not have that charm."
At the same time, Peng Bo also felt that if Hua Wei was originally a series of China Motors, it might not be so embarrassing for Brilliance Auto today. "When the Brilliance Auto was smart enough, it should be included in the China Automotive Group. Through the richness of products and the popularity accumulated by China Motors, the brand of China Motors will be promoted, but Brilliance Auto did not do so, and the result is that both China Motors and Chinatown are not warm.
It is worth mentioning that BMW Brilliance's blood transfusion support performance is that Huachen Automobile directly or indirectly holds three listed companies, namely, Huachen Zhonghua Automobile Holdings Co., Ltd. (Hong Kong, US listed), Jinbei Automobile Co., Ltd. and Shanghai Shenhua Holdings Co., Ltd. Both the car and Shenhua Holdings have recently announced an announcement of their pre-loss losses. This also shows from the side that the performance of Brilliance Auto is bleak.
The Jinbei Auto announcement shows that the company expects a loss in its annual operating results for 2014, and the net profit attributable to shareholders of the listed company is a loss of around 150 million yuan. In the same period of 2013, the net profit of Jinbei Automobile was 17.67 million yuan. For the reason of the company's loss, Jinbei Auto explained that due to the reduced prosperity of the truck industry in 2014, the company's annual vehicle sales revenue decreased, the sales gross profit margin decreased, and the company's overall technical level was invested this year. More R&D expenses have led to a decline in the company's revenue and profits.
Coincidentally, Shenhua Holdings also showed in its performance forecast last year that the company expects a loss in its annual operating results in 2014, and the net profit attributable to shareholders of listed companies is about 198.3 million yuan. In 2013, Shenhua Holdings’ net profit reached RMB 172.7 million. For the company's performance so obvious fluctuations, Shenhua Holdings gave a simple explanation: "In the report period, the company's car sales fell more, and investment income fell sharply."
In this regard, Zhang Zhiyong said that the brand influence of Brilliance Auto has become more and more obvious with other competitors, and the sales volume continues to decline. It is inevitable that Brilliance Auto will have to spend a lot of thoughts on the breakout. Competition is getting closer and white, and the Chinese auto market is now forming a phenomenon of 'strong and strong, weak and weak'. It is not difficult for Brilliance Auto to achieve breakthroughs in such a competitive environment."
According to the data released by the China Automobile Association, the sales volume of BMW Brilliance domestic models was 279,100 units, a year-on-year increase of 34.57%. Moreover, with its performance in 2014, BMW once again achieved the second place in luxury brand sales. Peng Bo also told reporters, "If it is not BMW Brilliance's blood transfusion for Brilliance, the book score of Brilliance Auto may be more ugly."
The rise depends on whether the core team can be stabilized or not. The so-called "frozen three feet is not a cold day". The reason why Brilliance Auto has been indulged in recent years is that Peng Bo’s view is that the high-level changes frequently cause the core technical team to lose. The consequences of this, "Zhao Fuquan (formerly Huachen Jinbei Automobile Vice President) left Huachen in the same year, in fact, is equivalent to taking away the most important core competitiveness of Brilliance Auto. Many car companies for senior management but the core competition of enterprises The force is still solid, and Brilliance is different.
It is conceivable that when a car company's R&D team is in turmoil, it is imperative to cultivate a new R&D team, but this will undoubtedly take time to pay for it. “Many car companies, Changan, for example, the R&D team is very stable, and This also makes Changan Automobile (Weibo)'s sales increase steadily, because the stability of the core team means that it will not make mistakes that have been made, and ensure that the products are always in the stage of progress, which is why Brilliance has not made progress for so many years. The crux of the problem." Peng Bo said.
For the future of Brilliance Auto, it is still so tepid or able to achieve a gorgeous turn, Zhang Zhiyong told reporters, "First of all, Brilliance must be able to design a product that will make the industry and consumers shine. If not, can you take it? It is the biggest sorrow of the car company to get the product of the hand.
Peng Bo believes that Brilliance Auto has caused the consequences of today due to changes in the past few years. In the future, the performance of Brilliance Auto cannot be concluded. "A R&D team needs time to temper when it matures, and if Brilliance Auto The ability to establish a stable core team, the future competitiveness can still be expected, whether it can be out of the predicament can be reflected in two to three years.
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