Sales network integration curtain opened Mercedes-Benz domestic will speed

At the beginning of the year, some dealers told reporters: “This year is a crucial year for Mercedes-Benz, and it may be a turning point. Dealing well with brands and dealers will greatly promote, but vice versa will not hurt.” Now, this statement It has been confirmed.

The key point in key years is network integration. Now, the big screen for network integration has been opened. Although this is inevitably controversial when it comes to striving for its own rights, it seems even to the outside world that it is a bit of a "flameful fight," which is dramatic. There are also many anonymous SMS messages from Deep Throat, but for the 125-year-old car inventor, Mercedes, this is just an episode of his Chinese road.

Everyone hopes that Mercedes-Benz's road to China will be better and more smooth, which means that the final integration will have a plan to advance Mercedes-Benz. Currently, only two domestically produced products that are relatively weak in sales, marketing, and other aspects of Beijing Benz will temporarily merge into Mercedes-Benz China, which is responsible for the import vehicle business, and eventually BAIC and Daimler will form a joint venture. In the company, the two parties will share the profits of both production and sales, thus promoting more domestic products, and achieving more market share through integrated sales and marketing.

● The “Deep Throat” has been set before the news

During the network integration process, it was very hilarious to have “throat hose” continuously sending out a message that broke the news. In fact, the reporter learned that on July 28th, BAIC and Daimler announced that the first message of the first day of network integration on the same day was two or three. Around the week, some dealers' investors already knew the general contents of the network integration. The core content was a joint venture company that established sales, and BAIC and Daimler shared sales profits.

As for who is "deep throat," I am afraid that no one will admit it. According to industry insiders, some reports began to point to Li Xingxing because of network integration. After the joint venture sales company was established, Fu Qiang was appointed as the general manager, which led to the dissatisfaction of some people and led to an anonymous message. Fuqiang's fault. It is reasonable to say that it should have been sent by a person close to Li Xingxing. However, the reporter learned that, since July 28 announced the network integration, the general content of network integration has been released, Li Xingxing should have known that there is no need to make unnecessary arguments.

According to reports, Xu Heyi, chairman of Beijing Automotive Industry Group, stated: "Some people are obstructing the integration, but the trend is unstoppable." Xu Heyi revealed that the design of the new sales company's organizational structure has started and some of the staff's positions will be adjusted, causing temporary problems. The dispute is inevitable.

● BAIC and Daimler share sales and manufacturing profits

In the near future, Mercedes-Benz China in Wangjing may be even more lively. Although staffing arrangements and final office locations are still subject to certain variables, it is inevitable that Beijing Benz’s sales and marketing business has been temporarily incorporated into Mercedes-Benz China as a transition.

The reporter learned from some Mercedes-Benz dealers that in the future, BAIC and Daimler will share the double profits of sales and manufacturing. Daimler has many advantages in terms of products, technology, services, etc. Beiqi has the advantages of understanding policies, good government relations, and familiarity with the Chinese market, and both parties have complementary advantages in sales.

Moreover, if we only share profits in the manufacturing process and the sales services are controlled by either party, I am afraid that it will be difficult to achieve harmony and finally form a joint force. Distributors generally expressed their willingness to cooperate in the sales field. The reporter learned that the future sales companies, Daimler and Beiqi will each exert their own advantages and arrange jobs according to this principle. However, the game of positions surrounding key sectors may be inevitable.

With more products made in the future, Beiqi will have more say in selling companies. Dealers generally stated that it is best not to create wrangling in the sales company to form a power struggle. For both parties, it is most important to be able to share sales profits through more sales. As for the staffing of specific businesses, I am afraid it is secondary.

● Lixingxing does not directly account for the sales company’s shares

It is understood that in the distribution of shares of the sales company, there was a scheme that allowed Lexus to withdraw from the shares of Mercedes-Benz China and directly accounted for 10%-15% of the shares in the sales company, but this scheme was obviously inappropriate. In a manufacturer-led sales company, Li Xingxing directly appears to be less suitable.

Li Xingxing, as a hero of Mercedes-Benz China's efforts to open up the Chinese market, has carried out some practices such as "withdrawal" and "marginalization" that are reported to be a bit of a taste of killing donkeys. Moreover, the relationship between Lixingxing and Mercedes-Benz China is long, complex and strong. Until shortly after the reporter's press release, Li Xingxing’s insiders still couldn’t accept that Li Xing’s line would fade out of the sales company and return to the dealer’s character.

However, in the face of Beijin Group and Daimler two heavyweight car manufacturers, even if the strength of the dealer as strong, it is difficult to stop the two sides are pushing for things. "I believe Li Xingxing will get the reward he deserves," said an industry source.

Many of the stories behind this channel integration are more about the rights and interests of the relevant personnel. It is normal for them to fight for their rights and interests. However, the stimulating nature of the channel cannot lead to the overall situation of channel integration. The smell of ignition may soon be extinguished.

Five reasons why integration is inevitable ● Reason one: Domestic E-class has not sold well

Beijing Benz long wheelbase E-class is a good car, originally with the Audi A6L and BMW 5 Series extended version of the same stage competition, can face the A6L monthly sales of over 10,000, BMW 5 Series line up a car is hard to find, domestic E However, the discount is almost 100,000 yuan and the discount rate is as high as 13%. Dealers told reporters that selling E-class money is to make money.

There are many reasons behind the poor sales of products. The most direct reason for the price decline is that before and after the domestic launch of the new E-Class last year, Mercedes-Benz China and Beijing Benz did not coordinate well. Prior to the launch of the new domestic E-Class, Mercedes-Benz China to clear the inventory of the E-class imports as soon as possible, so as to give dealers to increase the intensity of promotional notices, and given a few million subsidies, so that there is no preferential price firm E level The price plummeted from a discount of 10,000 yuan to a maximum of 100,000 yuan. After the domestically-produced E-class market went public, many consumers could not accept the price correction, causing domestic E-class sales to drop sharply. In order to complete the sales task, the distributors had to be promoted in the way of last year. Even so, many consumers abandoned their purchases with the mentality of not buying or buying.

In addition, there are also dealers and consumers complain that domestic E-level marketing is relatively weak, in addition, the back seat is too short and hard one of the issues. It is understood that the manufacturers have made dealers first-line sales managers put forward improvement suggestions for the products, and it is expected that in the new products, the E-class will have greater product strength.

● Reason 2: Double limit is good but a little bit

In February of this year, Fu Qiang left Skoda to assume the position of executive vice president of Beijing Benz in charge of sales and marketing. In the face of domestic C-class and E-class promotions, dealers are not willing to sell their cars to sell cars, they introduced limited sales prices and restrictions. Regional sales policy.

One stone provoked thousands of layers of waves. Some people said that Fu Qiang respected the Audi model and couldn't use the Lixingxing Group, which occupies 40% of the network and nearly half of sales in the network. However, the reporter learned that all dealers believe that the original intention of restricting the sales price is good, but the price can be limited to sacrifice sales, and manufacturers need to give up sales target assessment within a period of time. However, it is difficult for dealers to accept the reduction of sales promotion and sales pressure.

For restrictions on sales to outside the region, dealers have expressed no recognition, especially Beijing dealers, because many foreign customers like to buy cars in Beijing, this move to the capital of Mercedes-Benz dealers affected greatly.

Due to the influence of the dealer's interests, Fu Qiang's original "fire" did not burn up, especially when the dealers were relying on Mercedes-Benz Mercedes-Benz China to achieve sales profits, this is particularly difficult.

● Reason 3: Dual-network management increases dealer burden

“It is always difficult for two in-laws to manage. In the face of two teams, the report has to do two sets, the financial payment must be separated, different sales policies have to be studied, etc.” Many Mercedes dealers complained. In addition, two sets of marketing system also make dealers very tangled. For example, test drive activities could have been done entirely because the two mother-in-law could only give up some of them.

"Compared to the unified marketing actions of Audi and BMW, the internal consumption is very serious because domestic Mercedes-Benz and imported Mercedes-Benz belong to two marketing systems." Mercedes-Benz dealers have expressed similar views.

● Reason 4: Imports of strong domestic weak lose harmony

Benz dealers in the interview all agreed that Mercedes-Benz, which is responsible for importing the Mercedes-Benz business, outperforms Beijing Benz, which is responsible for the domestic vehicle business, in sales policies, product marketing, and marketing.

However, in addition to human factors, the richness of the product is also an important reason. Mercedes-Benz China is responsible for the lucrative imported car business, with a wide range of products and more marketing opportunities. The Beijing Benz has only two domestic cars, and the model has less profit. It is inevitable that marketing promotion will be weak, while marketing promotion will be less, and it will be difficult to sell the car better. This is a vicious cycle. Sales are also accompanied by Mercedes-Benz models, originally sold through two sales companies will generate internal friction, the difference in strength makes sales channels difficult to harmonize.

● Reason 5: The inevitable move to increase share

It is understood that according to the strategic cooperation framework agreement signed by Beijing Auto and Daimler in June, Beijing Benz shareholders will jointly invest 2 billion euros to expand production scale in China and put into production four new models including the Mercedes-Benz GLK. By 2015, China will become the world’s largest market for Mercedes-Benz, and its sales of domestically-produced cars in China will account for 70% of the total, which is currently only 30%.

From January to June 2011, Beijing Benz only sold more than 25,000 vehicles, with an average of over 4,000 vehicles per month. "This is a far cry from the shareholders of Beijing Benz who set a conservative target of 88,000 units this year and a target of 100,000 vehicles." For higher strategic goals, the integration channel may just be a necessary piece at the top level.

This year, BAIC and Daimler formed 24 resolutions on the two board of directors and decided to invest 25.3 billion yuan (excluding working capital) to build engine plants, R&D centers, expand production capacity, introduce new energy models, etc., in an effort to strengthen China’s market status.

Three Impacts After Network Integration ● Impact One: Dealers Welcome Network Integration Sales and Marketing Will Improve

This reporter learned that dealers are welcome to network integration, and increasing sales and marketing is a top priority. Many dealers believe that channel integration is “long and short”, which means that in the long term, it is a good thing. In the short term, because the internal workload of the integration process is large, it will temporarily affect sales and marketing for a while.

After channel integration, the first thing to be solved is the problem of domestic sales at the C-level and E-level, and the price confusion. For example, the new C-level should strengthen marketing, perhaps due to network integration, the new C-level factory test drive activities are scheduled to September. In addition, the reporter saw in the Asian Games Village automobile trading market, there are more than a dozen Mercedes-Benz secondary outlets, these outlets are not the regular secondary outlets, price chaos arbitrary bargain. FAW-Volkswagen has already cancelled its second-tier outlets. I wonder if Mercedes-Benz will be able to do so.

●Impact 2: Domestic cars are expected to speed up the introduction of more expensive Mercedes-Benz

As it is possible to split the profits between sales and production, the introduction of domestic cars will accelerate. Previously, Mercedes-Benz China did not seem to be willing to make more models domestically because it feared that domestic sales would not be able to share sales profits. After the network integration, this knot will be solved.

Industry insiders expect that the hot-selling Mercedes-Benz GLK will be made domestically in October. If the sales joint venture between BAIC and Daimler is officially established by that time, GLK is expected to be the first new car of the new sales company. After being made domestically, the cost of Mercedes-Benz can be reduced, and the configuration will increase the external comfortable configuration that many Chinese consumers like to make the cost-effectiveness higher.

●Impact 3: BAIC is expected to build its own 4S store or to no longer dominate
The reporter learned that with the acceleration of more domestic models and the rapid expansion of competitive brands, Mercedes-Benz has also accelerated the pace of network development. During the year, Mercedes-Benz's domestic sales network will increase to around 180, and in 2015 it will increase to 400, thus meeting the higher sales volume.

It is reported that the Beijing Penglong auto service trade section under Beijing Auto will also expand its own dealer network throughout the country. The name of the expanded dealer will include Peng Long, which will generally be wholly owned or controlled. This is similar to the establishment of direct sales stores by groups such as GAC Group and Dongfeng Nissan. In the future, Peng Long may become an important distributor of Mercedes-Benz in China.

It is also known that the eight-year network expansion protection period of Lixing has expired at the end of last year, and various types of dealer groups, including Penglong, Zhongsheng, and Kerry, are building Mercedes-Benz 4S stores. Although Li Xingxing has accelerated network expansion in second and third tier cities and implemented more stringent internal management such as regional management and unified procurement, Lixing Construction Stores often prefer to buy land for long-term business, and the network expansion speed will be more stable in the future.

However, Li Xingxing as an excellent and hard-working dealer, combined with the strong and comprehensive strength of its group, may lose billions of dividends every year from Mercedes-Benz China, but Li Xingxing may enter a broader market such as South China, and the future will be in the automotive sector. There will still be good development. In addition, Lixing Bank has extensive investments in many fields such as real estate and machinery, and this network integration will not hurt its vitality.

● Links ●

How does Audi and BMW sell Audi? The division's control over imported and domestic Audi's imported car business and domestic car business are all integrated into the FAW-VW Audi Sales Division. It is understood that this division does not have its own finances. FAW Group and Volkswagen Group share profits in manufacturing, sales, etc. according to the current 6:4 share ratio.

BMW: Although divided into practical marketing, the imported cars and domestic cars can be operated separately, which are led by BMW China and BMW Brilliance. However, in the implementation, the two companies combined into one and unified planning and management are responsible for Steinke, President and CEO of BMW Greater China. The reporter learned from the BMW dealers that they also feel that they perform more instructions from BMW China on a daily basis. However, BMW Brilliance and BMW China are financially independent, which needs to be coordinated by a higher leader, Sengke.