You can't just make a big country and then you can't give up your own brand


Big production country should have its own brand

In 2003, China’s auto production and sales exceeded 4 million vehicles, ranking fourth in the world. After the production and sales volume of cars exceeded the one million mark in 2002, it is expected to exceed the 2 million mark. China has stepped into the ranks of big automakers, but there is still a big gap from the automobile manufacturing power. One of the most important signs is that in the car manufacturing industry that most reflects the development level of the auto industry, we have not yet developed an independent brand. The sedan products can occupy an important place in the world auto industry. Even in the domestic car market, the largest sales volume and the most profitable cars are from joint ventures established with the world's automotive giants. The models produced are imported from abroad and all use foreign brands.

“Without their own brand, it means that all foreign athletes are invited to participate in the Olympic Games.” Zhao Zhaojie, former general manager of FAW Group, who once worked for China’s “Liberation” brand trucks and “red flag” sedans for decades, said that “domestic cars are only produced. The brand of others is just an assembly plant, not a complete automobile company. In the long run, we must engage in our product development capabilities so that we can stand on our own feet."

No matter how hard you can not give up your own brand

The Chinese auto industry has developed for 50 years, and there is a problem. The industry has reached a consensus that its own brand must be pursued. Without its own brand of auto industry, it can only become the “OEM industry” in the end. Therefore, the new national industrial policy will clearly propose to vigorously support and encourage the development of China's auto brands; Second, after China's accession to the World Trade Organization, the Chinese auto industry's mentality is more open. This kind of openness shows that everyone has already understood that “closed doors” are inconsistent with the development trend of the contemporary world industry, and the promotion of independent brands with foreign cooperation will be the trend of the times.

After the launch of the domestic BMW, it was suggested to Brilliance Automotive that it would be easy and profitable to cooperate with BMW. It would no longer engage in independent brands, and it would be too risky to be tired. The answer of the Brilliance Autobots is that, no matter how bitter or tired, they must unswervingly develop their own brands. In the environment of foreign brands entering the Chinese automobile market in large numbers, it is indeed tiring for Chinese companies to engage in independent brand development. Just as some people have commented that Brilliance Automotive is on the path of the most difficult long march, there is great pressure. However, Brilliance Automotive will not give up because they see the advantages of long-term development in the development of self-owned brands. Su Qiang, chairman of Shenyang Brilliance Jinbei Automobile Co., Ltd., said that the first feature of Brilliance Automotive is the first to be inclusive. The Chinese car was not built in closed doors, but was built using the technology of the world. If Brilliance Automotive can't do it, it will invite international customers. The best companies do, although this will increase some costs in the early stages, but after all, is their own brand, can not be affected by the internal technology strategy of multinational companies, the use of global advanced technology for car design; and firmly grasp the brand Autonomy. Second, independent brands have a great cost advantage in China, which is price advantage. In terms of product cost and efficiency, there is also a great advantage in understanding the Chinese market.

Chery Automobile Co., Ltd., a latecomer to the Chinese auto industry, is a wholly independent branded auto company. Its sales have ranked fourth in the country for three consecutive months. How will Chery expand its survival and development space for its own brands in the future? The words of Jin Yibo, deputy general manager of Chery, can give us a lot of inspiration. "Onwards, only the forward, and constantly looking at the front of the car, is the only road to the development of independent brands." Chery has a slogan: to build an international quality car that Chinese people can afford. In order to promote the overall quality improvement, Chery hired German experts and adopted the advanced "Audiote" quality inspection system. Chery established a dedicated line in the assembly shop, which was systematically managed by Japanese experts and strictly controlled in the final process. Chery’s products have changed from being not very mature to being typical of quality in independent brands.

Can a joint venture plant produce its own brand?

People often compare the car joint venture to Chinese and foreign car companies to form a new family. The joint venture company, which has a half share of both companies, was in the early stages of its establishment. Because the domestic side lacks the technology and experience in producing cars, it is only natural that they can only adopt the “children” brought by foreign parties. However, in the long run, as a family, we always hope to raise our own children. The car joint venture should take improving its R&D capabilities and creating its own brand as a big goal. Ford Motor Co. Xie Nick said this in China: The auto industry is looking for the most economic miracle and national pride. As Chinese people, who does not expect China's car companies, especially those with strong current and most profitable joint ventures, to create cars with independent intellectual property rights and their own brands, so that the people feel happy?

The boss of a car joint venture said that I certainly hope to develop on my own, but we must acknowledge the reality. The development must first have a sufficient market size. If we now develop more than US$1 billion in a vehicle model, there will be a cost-sharing problem. The introduction of production models is the use of the global scale of multinational companies. The operation of the company is very realistic, and investment in the investment cannot be without benefit or return, or the market has the final say and operates according to the laws of the market.

The executive vice president of Guangzhou Honda Company stated that independent development is a direction, but it is necessary to gradually transition from joint development to independent development, to solve problems in development, and to take the road of independent development after maturity. Fortunately, Shanghai Volkswagen has decided to use its own product development capabilities to build a new model with Shanghai Volkswagen's own R&D content based on the German Volkswagen product platform. Based on the Buick sedans, Shanghai Grand GM has integrated the Chinese culture concept and developed the Regal Sedan, which has taken a solid step toward independent brands.
View related topics: independent brands, where to go?


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