Geely Automobile: Taking the Road of Multi-brand Parallel Development

Since the beginning of this year, due to the slight increase in the domestic auto market, the space for self-owned brands has been squeezed and the market share has further declined. According to industry sources, the self-owned brand “is a grim situation” and even some industry experts believe that it will “die out a batch” in the next few years. This year, some domestic auto makers have either actively or passively adjusted their brand and product strategies to better understand the impact of the deteriorating market environment.

As a leader in domestic independent brands, Geely Automobile Group began to plan strategic transformation as early as in 2007. It has now gone through five years. During this period, Geely has experienced a period of transformation and is also making a brand strategy. Amazing move, at the same time, overseas mergers and acquisitions Volvo also let Geely Automobile in the international automotive industry fame. Of course, all this is a highlight of the past. In front of Geely, it is still a road full of thorns. How will Geely face many uncertain factors from the market and how to use pressure as a driving force?

"Multi-brand strategy is unwavering"

The latest news is quite eye-catching. Chery Automobile will carry out brand strategy adjustments. The two major brands, Rui Wei and Wei Lin, will be cancelled and their products will be fully incorporated into the Chery brand sequence. At the same time, Chery Automobile Sales General Manager Ma Dezhen left office. This is Chery's adjustment of Chery's multi-brand strategy after the failure of its high-end brand strategy, and it also indicates that Chery must start again.

"I can say with certainty that Geely's multi-brand strategy will not be shaken and will not change." Said Yang Xueliang, director of public relations at Geely Group during the Chengdu Auto Show last month. The strategic transformation of Geely Automobile was earlier than that of Chery. The adjustment was more complete and the brand's thinking was clearer. Yang Xueliang said that as an important part of corporate development, the brand strategy and brand structure should be based on the actual development of the company and the market environment for research, development and adjustment. He said that when the self-owned brand has just started, the foundation is still relatively weak, and some impressions of the independent brand to the consumers and the market are not very good. Although the price is cheap, there are also poor product quality and poor after-sales service. It is difficult to mention the issue of added value. However, after ten years of development, Geely's entire product's R&D capability, product quality, brand building, and after-sales service capabilities all have a significant increase. With the relatively rich sequence of products, Geely took this multi-brand. Strategy.

Geely Automobile's multi-brand strategy has been implemented for more than three years. The development of more than three years has played a significant role in supporting and advancing the company. “So far, we still have to stick to the route of multi-brand strategy.” Yang Xueliang said that what needs to be done now is to deepen the multi-brand strategy and increase the unique personality, style and brand connotation of each brand. , and then go to complete the structure of those products under each brand, so that his own added value to enhance. “But not to say that the three brands have a complete cut-off, there are still some overlaps in some areas.” He said that although the three brands have their own unique personality and brand positioning, there are still some products that can share common If Geely goes inside this parent brand and uses it as a basis to support and disseminate it, I think it is no problem. For example, he said that the Global Hawk’s latest release of the GX7 received a five-star safety assessment, which in fact reflects the overall R&D and manufacturing of Geely Automobile, quality control, and management of spare parts supply systems, not The individual Global Hawk is superior to the other two brands in terms of safety. "Either in theory or in practice, every brand model that is made in accordance with Geely's standards will have the same level of safety."

"Geely has been doing clean and efficient powertrain technology, including direct injection of cylinders, turbocharged, etc. If these have formed a common advantage, will support the common development of three brands of Geely." Yang Xueliang Say, "Emperor, Global Hawk and England are three sub-brands of Geely Automobile, so we think we should tap Geely's brand value and characteristics at this level of Geely, so that we will save more resources, so We will not give up a certain brand or weaken a certain brand. At present, we will not do so. According to this kind of thinking, Geely will become a source of technology integration for the three sub-brands in energy conservation and environmental protection.”

Parallel Brand Strategy

“At present, some companies are in the process of brand reunification, and I think that there is a reasonable combination of benefits and benefits. This is a dynamic process. Coupling can make resources intensive, leaving consumers with the impression that the brand is consistent. Sex; but at the same time it created a problem. If he had a very long product sequence under a single product system, would he be able to support?” Yang Xueliang said. Sub-brands and co-brands are determined and arranged according to the degree of strategic evolution of each company. The strength of the company itself includes the support of his R&D, platform, technology, dealer network system, etc., and the change of a market, etc. .

He believes that if the growth rate of the market is relatively fast, especially in the three years of 2008, 2009 and 2010, it is basically a 30% increase. Under such high growth, a new brand will have a bigger chance to survive. “But there needs to be a complete product sequence to support its development.” Once the market suddenly cools down, new initiatives are needed to change. "Then, Geely is to upgrade the brand, deepen the regional market, improve efficiency, and realize the quality and quantity of channels, and go for a transformation and upgrading," he said. At least, Geely does not solve the problem by simply changing the current brand structure.

Is Dorje's high-end strategy deliberately created? Dihao brand has achieved remarkable results in the development of the past two years, and has become a leading model in the new generation of self-owned brand models. The response of the market to the emperor was quite positive. They all believed that Geely had a relatively good breakthrough and progress on the road to high-end brands. So, what kind of brand positioning does Jeremy have in Geely? Will it be based on the current three sub-brands to make high school low? Yang Xueliang said that Emgrand and the other two brands are adopting a parallel development strategy and will not deliberately distinguish between the high and low points of each brand, but he also stressed that there are still relatively obvious differences in brand positioning between the three major brands. Different consumer markets.

In January-July this year, Dorsett’s sales were close to 70,000 units, which is a top-ranking sales figure in the strong A-Class market. As an independent brand, but also a brand that is newly born, it has been a very good achievement in 3 years. “This achievement is a market response for Geely's overall upgrading of technology, brand, and services after the strategic transformation in 2007.” He said that Geely proposed not to rely on price to win, to improve quality, improve technology content, and then build brands and improve services. Infiltrated into Geely's brand value reflection step by step.

"A lot of people are talking about Emgrand's mid-to-high end brand positioning. In fact, we don't set a strict standard among the three brands who are high or low. We do not distinguish between the price range and the positioning. However, according to consumer characteristics, lifestyle habits, and value orientation, of course, each method of differentiation will have its own scientific side and its own inadequacies, and we will gradually introduce more standards according to the development. Consider the positioning of a brand.” He said that at present, some young, personalized, passionate and creative models will be placed under the Global Hawk. Mature, robust, luxurious and respectable models will be selected under the Emgrand brand. Family-oriented, car-loving models will be considered more under the British, but if according to future development, Geely is ready to launch 200,000 or higher models, in the end is placed under the emperor, or under the Global Hawk, this It is also worth exploring.