Volvo how to develop the Chinese market
Who is Volvo Cars
For the Chinese market, it is not easy to find out who is the Volvo Cars. We need to figure out who he was, and who is now, and in the future who want to become.
Volvo Cars is a 88-year-old Swedish auto brand, Volvo is Volvo Cars, which was acquired by Geely. AB Volvo as well as make trucks, buses, airplanes, ships, and construction machinery. In 1999, Volvo car spun off from AB Volvo, was acquired by Ford. AB Volvo says the car industry was a huge investment, but smaller cases would not be profitable at that time. Compared with Ford, GM, Toyota, Volkswagen Group, Volvo size is too small, it is difficult to survive independently, so decided to restructure.
Big companies such as Ford intended to sell some assets 5 years before the start of strategic shrinkage, so Volvo cars for emerging market development did not keep up.
The reasons caused Volvo lack of scale and the high cost, except for Ford to its limited exceptions, brand aging, decline in brand power and brand positioning of the customer base is relatively narrow. This is why Volvo in two and a half years has been launching small, personalized products since be acquired by Geely.
Although the European luxury car market recognized miniaturization, opposite the Chinese market is still keen business executive-level models, while the SUV became very hot. Mercedes-Benz BMW Audi launched small car sequences were not occupied the position in the market. In addition, in the Chinese market due to Volvo OEM agreements previously signed by Ford and Changan Automobile, let the Volvo S40 and the Volvo S80 is basically in interrupted state, the domestic production base has not approved on time, the result is in China's luxury car market, the big bang, Volvo car did not outperform. There is still not a car to lay the location of Volvo cars in the Chinese market
The main battlefield of China
Geely acquisition of Volvo cars in more than a year ago, India's Tata Group acquired Jaguar Land Rover from Ford's hands. Jaguar Land Rover in the second quarter of this year contributed to the Tata Group, 90% of the profits, while Jaguar Land Rover in China in the first three quarters of the growth rate was 81.0%, the Chinese market will soon surpass the UK market as Jaguar Land Rover's largest market. The reason why Jaguar Land Rover in China market is so strong largely due to consumer enthusiasm demand for SUV, and strong brand influence, and these advantages even further is bound to be amplified in the future.
I have to say, Volvo missed China's luxury car market explosions in the process of being handed over to Geely. Because Ford and Changan group signed OEM agreement, the Volvo S40 and S80 models could not be rushed to market. At the same time, due to repeated delays in the Volvo China-made base problem delayed for some time, dealer network system encountered obstacles evolution. Volvo's sales company in China also because of turmoil has basically lost their backbone, decline in brand power. This is why Fu Qiang was appointed CEO of the Volvo China sales.
Fu Qiang has been the object of great concern to the media industry, except that he had led the Audi and Skoda beyond brilliant record, the most important is you never see his bureaucratic, he tried to be kind with people.
Fu Qiang said that various factors that influence the sales results are very important, Such as product, pricing, channels, how to communicate with consumers, in addition, including team and Volvo dealers own team, which is need to enhance and strengthen. Any place where there is a short board, it has a direct impact on the final result.
Sales channels of building for the future was summed up by Fuqiang, let cost be a little lower, the quality a little higher, so the scale a little reasonable. The tools are designed to rapidly expanding market coverage in the whole country of the Volvo brand, but also through rational planning, store size, to pursue higher investment returns of the dealer and store quality.
According to the plan, the next five years there will be more than 10 models of Volvo's new models into the Chinese market, while the Volvo China dealer network to expand from the current 131 to 250, mainly from a second-tier cities to third- tier cities extension.
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