·The private market expands the defeat and the red flag regains the bus procurement strategy

At present, the Hongqi integrated store in Asia City can only rely on the sales of Pentium brand models to maintain operations.

In the case that the private market has repeatedly failed to open the situation, FAW's high-end independent brand red flag has once again headed for the bus route, trying to get rid of the embarrassment of the market.

A few days ago, FAW Car released a message that the first batch of more than 1,000 red flag H7 cars have been successfully delivered to the General Armament Department. This is another domestically-owned brand sedan that has been included in the military official car after the Guangzhou Automobile Chuanqi and FAW Pentium cars. This is the largest order that the Hongqi H7 has received since its listing last year.

With this military order, can the Red Flag brand achieve sales and brand outbreaks in the private market? For this issue, FAW Red Flag has not responded. However, auto analyst Jia Xinguang believes that in order for Hongqi to succeed, it must succeed in both the official and personal markets. Nowadays, a large number of orders in the official car market reflect the failure of the Hongqi brand in the private market. It can only rely on the path of official vehicle procurement to solve the problem of long-term loss of the red flag.

Official car purchase dominates

Statistics show that sales have been declining since the launch of the H7 H7. Last year, the sales volume in the nine months after listing was only 3,000, most of which were government procurement orders.

According to FAW's marketing strategy, taking the official car procurement and private market routes is the only way for the Red Flag brand to revive. However, the slow sales in the private market and the reduction in bus purchases have caused the sales of the Hongqi brand to decline. After the listing of the Red Flag H7, along with the cancellation of the general official vehicles, the sales volume dropped from around 500 vehicles per month at the beginning of the listing to around 100 vehicles at the beginning of this year.

“Red flag sales data fluctuates too much, and it is not unrelated to the low ratio of red flag sales in the private market.” Jia Xinguang said that the current sales of red flag mainly rely on the large single purchase of bus, obviously the growth is unsustainable.

According to the data, starting from 2008, FAW Group officially launched the “Red Flag Renaissance” project to revitalize the Hongqi brand and strive to make the Hongqi brand a benchmark for high-end cars of China's own brands. FAW has invested more than 1600 people in 5.2 billion yuan, insisting on the development, independent innovation, independent research and development of H, L two series of new generation red flag cars.

“The red flag brand has a large lead in the official car market, but the red flag H7 has no advantage in terms of price and technology, even on the brand, compared with competitors. Automotive market expert Su Hui believes that long-term and private The disconnection of the market has caused the red flag to be unsalable in the private market to some extent.

It is understood that the annual domestic procurement of official vehicles accounts for about 5% of the narrow passenger car market, which also means that the official car market capacity is not large. The industry generally believes that the red flag relies too much on bus purchases to increase sales, although it will play a certain role in the private market, but because the products are too high-end, so the real sales can not be large.

Private market stall

In fact, in order to first order the bus order, the red flag has given up many private car orders. The salesperson of a red flag brand admitted that although the orders received by the red flag were not large, the number of shares allocated to each store was not low, and since most of the orders were purchased by the government, they were not included in the dealer's operating results.

At the same time, sales in the private market continued to decline, and the propaganda focus of the manufacturers was out of touch with the market, which also led to the fact that Red Flag did not attract more attention in the private market. After visiting the auto market, Beijing Business Daily reporter found that the red flag dealers have been eager to develop the private market and hope to get a share of the private market.

Previously, FAW Group did not hesitate to invest heavily in channel construction. According to reports, Jinbao Street's "Red Pavilion" has invested more than 30 million yuan. According to the current red flag channel policy, the investment of the Hongqi City Exhibition Hall, the dealer only bears 20% of the funds, and the remaining 80% of the investment is undertaken by the FAW Car Sales Company.

However, the “red pavilion” invested heavily did not allow the red flag to gain in the private market, and the proportion of the red flag private market purchase fell to a freezing point. In the Asian Games Village auto trading market, a red flag second-level dealer quietly opened, compared with the "Red Pavilion" high-end atmosphere brand image is extremely simple. There is only one salesperson in the exhibition hall, greedily greeting the passing car, but often there is little response, and it does not regard the history of the red flag and the brilliant performance of the "official car" as the focus of attracting customers.

“Now there are fewer people watching the red flag car, let alone private orders.” A staff member of the Asian city told the Beijing Business Daily that since the opening of the second-tier online store, almost no privately-departed vehicles have been seen. .

A dealer close to the Red Flag brand also revealed that in addition to the subsidies for the opening of the 4S store, the support of the red flag for the dealers has stopped. The dealers can only find their own way out, looking for opportunities to expand the private market, hoping to reverse the loss of sales of the red flag. awkward.

Product positioning is facing adjustment

In fact, the launch of the Red Flag into the private market by FAW Group has been the highlight of the revitalization strategy. FAW Group has not given up its efforts in the private market. It is reported that FAW Car will set up a special red flag marketing function department this year, which is responsible for the marketing activities of Hongqi's market promotion, sales management, channel construction and after-sales service, and concentrate resources to find the matching point between the red flag brand and the private car purchase market.

Previously, in order to display the market positioning of the red flag brand luxury car, FAW once sold the red flag and Pentium, and recruited more than 70 dealers from the country to be the special red flag agent. However, because the red flag products are slow-moving and the network operation costs are too high, the move eventually failed. Some red flag dealers later had to carry out the Pentium brand agent to ease the pressure of operation.

Nowadays, FAW has once again separated the Hongqi brand and repositioned it as a high-end brand with the market for official vehicle purchases. Obviously, this strategy will once again make the red flag turn to the private market strategy.

In Jia Xinguang's view, the failure of Hongqi in the private market is not a question of investment. The key is the product positioning of the Hongqi brand.

Compared with the introduction of more and more entry-level models by other luxury brands, the focus of the Red Flag brand in the next five years is still to improve its deployment in the high-end car field. According to the product plan, FAW will also launch a red flag brand SUV, and Red flag bus for Coster.

Although FAW once planned to explore the Hongqi brand and develop a B-class or even an A+-class car that is more affordable, it seems that it has not made up its mind. Instead, at the Beijing Auto Show this year, the high-end customized L5 was launched, starting at 5 million yuan. This high-end product sequence may restrict its penetration into the private market.

“Obviously, the Red Flag brand is hoping to go up and even achieve the same status as the ultra-luxury brand.” Jia Xinguang believes that regardless of high-end or bus purchase, Hongqi’s product positioning is subject to adjustment, if it is up-and-down, and over-reliance on official vehicles In the market, the goal of the red flag to be promoted from the private market will only gradually drift away.

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