Renault wants to eliminate three major obstacles to production in the country

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Renault will soon release the "Four Core Strategies" and "Eight Pillars" measures to achieve China's recovery plan. Among them, including the introduction of more than 10 new models; the introduction of "Nuo with the" after-sales service brand; remodeling Renault brand and consumer confidence; rebuilding the dealer network and brand identification system.

When talking about restoring the long-standing Renault-made domestic plan, Renou Greater China CEO Chen Guozhang put forward two preconditions: One is to achieve an annual sales volume of more than 20,000; the other is that Chinese consumers have accepted the Renault brand. However, on June 10th, four models such as Renault Landscape, Megane and Megane convertible suffered a “blocking order” by the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) because of “security problems” and the brand image was again frustrated. To achieve the revival of the Chinese market, Renault still lacks what?

1. The supporting system is relatively improved, but the domestic base is still weak

Renault’s China office has been upgraded to Greater China and established the “China Market Executive Committee”. "The Chinese market is already the core area of ​​Renault's global strategy, enjoying the priority of global supply allocation, and even surpassing South Korea," said Chen Guozhang.

At present, Renault has 5-6 production bases in the Asia-Pacific region. The Renault imported models that are sold in the Chinese market mainly come from South Korea’s Renault Samsung factory, and some parts are directly supplied by Japan. In addition, each of the five import agent companies in the Chinese market has also adopted a unified logistics company, which has changed the parts and components from the origin to the French headquarters to the Chinese market. This has to some extent reduced the intermediate links. The resulting logistics costs.

However, in the Chinese market, Renault’s spare parts supply system is still weak. Before the relatively strong joint venture partners were found, Renault alone could hardly make a big difference. Dongfeng Nissan Passenger Vehicle Co., Ltd. General Manager Otani Jun has made it clear that Dongfeng Nissan has no plans to produce Renault. In this way, even if Renault's annual sales of imported cars can break 20,000 vehicles in the past two years, its goal of achieving domestic production is still far away.

2. The product positioning is not in line with the tastes of Chinese consumers and the pricing mechanism is not perfect

Renault has been in the Chinese market for more than a decade, despite the introduction of a number of European best-selling models including the landscape, Megane Classic, Megane Cabriolet, Megane Gobe, and landscape RX4. The “bad smell” of Chinese consumers has caused the market sales and brand recognition to have not been improved to a large extent. Mentioned Renault, many people may think of first is the motor roaring F1 formula car, not Renault sedan, nor Renault has a certain advantage of commercial vehicles. A large part of the domestic consumer groups do not even know that Renault is selling cars under the brand name in the Chinese market. This is a rather dangerous signal.

Renault's first joint venture project in the Chinese market, Sanjiang Renault, originally planned to start production in CKD when it signed an agreement with the company to build three production lines for coating, welding and assembly, with an annual production capacity of 150,000 vehicles. However, the "Tafik" luxury van produced by the joint venture company is tens of thousands of dollars higher than similar products and its product competitiveness is very weak. The annual sales performance is only a few hundred. At present, the number of vehicles in the Chinese market is only about 23,000. Due to the imperfect after-sales network, related spare parts have no place to buy, and few people are interested in the used car market.

The problem of product strategy and pricing mechanism (price competitiveness is closely related to the supply chain basis of Renault in China) is a fatal flaw that Renault has not been able to open the market in the Chinese market. According to Renault’s recently announced China market revitalization plan, more than ten new models will be introduced one after another, and five models will be introduced in the second half of the year. Renault’s product richness and the establishment of a supply chain that can support price competitiveness have been placed on top of the list.

3. The construction of sales channels needs to be strengthened and the distribution system seriously restricts its development.

According to the information disclosed in the “four core strategies” and “eight pillars” of its China Recovery Plan, rebuilding the dealer network and brand identification system will be the revitalization measures Renault will implement in the near future. Since 1999, Renault has established a total of 38 agency dealers in the Chinese market for 10 years, and this number will be reduced to 30 now.

Renault is unwilling in the Chinese market. In addition to its imperfect product strategy, pricing mechanism and supporting system, its "three-tier distribution system" is also a serious obstacle to its development in the Chinese market. The sales network coverage is not broad enough, but the interior is obviously too bloated. In order to rejuvenate in China, Renault’s distribution system is the first to change.

Chen Guozhang revealed that it plans to build at least eight dealers with strong brand image that fully comply with Renault's new brand image, and build a new system to cooperate with distributors to break the high-cost business model of traditional 4S stores and reduce distribution costs. Improve product market competitiveness. Renault’s sales model is expected to have breakthroughs and innovations.



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