After entering Tmall, Suning and Bailian continuously, Geely signed a cooperation agreement with Jingdong Mall recently, and officially entered Jingdong Mall on the 23rd of this month.
At present, Geely's sales are not optimistic. Geely Automobile announced that Geely's total sales volume in the first eight months of this year was 235,000 units, a decrease of 29% compared with the same period of last year. Geely also had to sell 580,000 units this year. Reduced to 430,000 vehicles.
Geely has placed high hopes on new products, such as GX7 and EC8, and has not achieved the expected rescue effect. "The same is aimed at the SUV Blue Sea City Geely GX7 and Chery Tiggo 5, GX7 is far less effective than Tiggo 5, we are also studying, and Geely's parent brand is likely to be the main factor affecting the GX7 brand." Geely insiders also analyzed. In the early stage, Geely Desalination Group's brand prominent product sub-brands have now returned to “one auspiciousness” and the challenge is very large. Therefore, the positioning of Geely's mother brand is still being considered.
While e-commerce is increasing sales, its daily average of tens of thousands of page views is also the best opportunity for Geely to raise the popularity of its parent brand.
Tmall can sell 5,000 cars a year. "As long as you pay a deposit of 300 yuan, you can enjoy the special offers offered by the merchants in Jingdong. At the same time, we will also launch a specific model in Jingdong." Geely Digital Marketing Director Dai Shihui told reporters that Geely It is planned to launch a modified version of Jingdong's exclusive model, Jingdihao, on Jingdong.
The cooperation mode between Geely and JD.com mainly adopts the form of online payment of deposits and offline transactions. However, unlike offline transactions, online procurement currently offers more activities. Basically, each network platform has developed certain preferential strategies.
In the traditional physical market, like most self-owned brands, Geely is very squeezed by joint ventures, especially in the case of declining sales, it is easy to affect the sales enthusiasm of dealers, but for the new e-commerce In terms of things, Geely is doing better than most joint ventures. In the exploration of e-commerce marketing model, Geely is ahead of the curve. Previously, Geely had already covered the car e-commerce platform of Tmall, Suning and Bailian. At the same time, Geely was still stationed in the car platform of the car, the car platform and other vertical media. Consumers currently through online shopping have already accounted for 3% of Geely's total sales.
Geely was the first car manufacturer to enter JD. Only Chrysler had a short-term product promotion in Jingdong. In conjunction with the promotion of e-commerce, Geely Digital Marketing has set up an e-commerce division.
“Although the total amount is not too large, it is developing very fast.” Dai Shihui told reporters that Geely has sold 5,000 vehicles in the Taobao Tmall store this year, which is equivalent to an average of 3-5 customer transactions per day, although relative to daily In terms of 10,000 page views, the transaction is only a few ten thousandths, but in the sales statistics of Taobao Tmall, it is already the absolute first echelon, more than most joint ventures, and according to the plan, Geely plans to sell only Tmall. To reach 7,000 vehicles, it is more than 40% more than last year.
The conversion of the customer to the transaction has not been completed. There is no car manufacturer to open the store in Jingdong. The reason is actually related to Jingdong’s previous strategy. The car is a commodity, Jingdong hopes to sell large cars to make large sales, so before Jingdong proposed that consumers pay through the network in full, but it turns out that the car is completely ok through online purchase.
Dai Shihui told reporters that Suning had the same idea before, and after a few months of trials, this model was not accepted by consumers.
"We have done a lot of analysis on e-commerce, the amount of online payment has a lot to do with the income of consumers. Cars are a large consumer goods, consumers are generally more cautious, generally need to go offline to test drive, do routine After the inspection, the car will be picked up, unless one day, the consumer has a monthly income of more than 100,000 yuan, spend tens of thousands of dollars to buy a car, buy a car as easy as buying a piece of clothing, it is possible to realize online payment, the dealer delivers the car at home. Sales are completely realized through the network." Dai Shihui believes. Or it is the product has full advantages, such as Tesla, the new XC90, etc., its own products and positioning of the people have special characteristics.
At present, manufacturers are also clearly aware that the function of automotive e-commerce is mainly in gathering customers. "Automotive e-commerce is divided into several stages. At present, Geely is still in the first stage of e-commerce," Dai Shihui admitted, and the first stage is characterized by e-commerce is still a promotion policy and marketing means. Online is just a platform for collecting customers, and the final transaction is still done offline.
Geely hopes to double-edged. However, Geely's investment in e-commerce is growing very fast. The investment budget for e-commerce this year has more than doubled. Cars in the e-commerce platform are highly concerned. Only Geely’s stores in Tmall have an average of more than 10,000 people per day, and they have a higher level of attention when they encounter double-day events. The attention to brands and products is urgently needed by Geely.
According to data released by Geely Group, Geely's total sales volume in August was 27,676, a decrease of about 22% compared with the same period of last year. This year's continuous decline has caused Geely to reduce its sales target from 580,000 to 430,000.
Although the reasons for the decline in sales of Geely are multi-faceted, the external environment is not good, and the self-owned brands are generally down; the products are in the current period, and the replacement is too slow; but in addition, the Geely mother brand is not strong, and it is also a factor that cannot be ignored.
"The main reason is that the brand is not strong. The popularity of Geely's mother brand is obviously low, and the glory of the parent brand is lost. It is very difficult for new products to break through." People familiar with the matter said.
Although Chery and Geely have all undergone transformation before, and only in terms of sales, Geely's sales are better than Chery. Chery's transformation brands, Ruiqi and Weilin, ended in snow, and Geely's transformation product EC7 is still selling well. However, compared with the two, it can be found that while Chery is launching high-end brands, it has been tirelessly promoting and highlighting the parent brand “Chery”, while Geely has degraded Geely and highlighted “Emperor” and “Global Hawk”. "British" three major sub-brands, although, diluting the parent brand makes Emgrand's sales quickly and large, but without the support of the parent brand, Geely can only rely on the product force to speak, which also leads to strong and weak, weak; Deliberately diluting the parent brand also made the market forget about Geely.
The collectivization effect of the Internet is very necessary for Geely at this time. What's more, once the consumption behavior changes, it is difficult to say that the next marketing change Internet really sings the protagonist, then seize the e-commerce opportunity in time, and grasp the opportunity of Geely is even more double-edged.