Automotive Black Technology Chapter 711: : The luxury SUV market is about to change! (10,000 extra rewards/5)

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Due to the weakness of the automobile industry, in the Chinese market, foreign car companies that have been monopolized for a long time have made some differential treatment, which makes Chinese consumers feel aggrieved.

Due to the weakness of the automobile industry, in the Chinese market, foreign car companies that have been monopolized for a long time have made some differential treatment, which makes Chinese consumers feel aggrieved.

A series of business practices such as reducing parts, cutting corners, raising prices to purchase cars, and being tough on after-sales service are actually pretty good.

A series of business practices such as reducing parts, cutting corners, raising prices to purchase cars, and being tough on after-sales service are actually pretty good.

The darkest thing about foreign brands currently on the domestic market is actually pricing! It’s pricing! It’s pricing!

The darkest thing about foreign brands currently on the domestic market is actually pricing! It’s pricing! It’s pricing!

For a long time, the domestic automobile industry has been weak and car companies have been unable to produce products with excellent quality and advanced technology. Relying on the technical advantages and competitiveness of their products, most of these foreign car companies add considerable moisture to their pricing.

For a long time, the domestic automobile industry has been weak and car companies have been unable to produce products with excellent quality and advanced technology. Relying on the technical advantages and competitiveness of their products, most of these foreign car companies add considerable moisture to their pricing.

Take Mercedes-Benz’s flagship luxury SUV model GLS-Class in this time and space as an example.

Take Mercedes-Benz’s flagship luxury SUV model GLS-Class in this time and space as an example.

The highest configuration of this car, namely GLS500 and 4MATIC, is priced at RMB 1.75 million in China.

The highest configuration of this car, namely GLS500 and 4MATIC, is priced at RMB 1.75 million in China.

Then the problem comes;

Then the problem comes;

How much does it cost in the UK?

How much does it cost in the UK?

The answer is 75,000 pounds, equivalent to 650,000 yuan.

The answer is 75,000 pounds, equivalent to 650,000 yuan.

How much does it cost in North America?

How much does it cost in North America?

About 110,000 US dollars, equivalent to 690,000 RMB!

About 110,000 US dollars, equivalent to 690,000 RMB!

The difference is nearly 300%!

The difference is nearly 300%!

Then the problem comes again;

Then the problem comes again;

Where did this 300% come from?

You must know that even after the import tax rate for complete vehicles has been adjusted and the tax rate has been significantly increased. Taxes such as customs duties, value-added tax and consumption tax together account for more than 50% here.

Where did this 300% come from?

How to explain the remaining 150%?

You must know that even after the import tax rate for complete vehicles has been adjusted and the tax rate has been significantly increased. Taxes such as customs duties, value-added tax and consumption tax together account for more than 50% here.

This is not a price that foreign companies increase based on their consumption level because they believe that Chinese consumers have too much money and have no place to spend it.

How to explain the remaining 150%?

But because in the field of luxury cars, foreign car companies have no local competitors from China at all, and the high prices created by these foreign brands jointly create them!

This is not a price that foreign companies increase based on their consumption level because they believe that Chinese consumers have too much money and have no place to spend it.

Before the establishment of Zhengxin, all luxury models in the Chinese automobile consumer market came from abroad. The profit-seeking nature of capital allows these car companies to reach a tacit understanding.

That is to adopt a joint monopoly in an environment without competitors and at the same time increase prices to obtain maximum profits!

But because in the field of luxury cars, foreign car companies have no local competitors from China at all, and the high prices created by these foreign brands jointly create them!

This kind of joint monopoly market behavior is actually difficult to maintain, but it doesn't matter, there are policy loopholes.

Before the establishment of Zhengxin, all luxury models in the Chinese automobile consumer market came from abroad. The profit-seeking nature of capital allows these car companies to reach a tacit understanding.

That is the general agency system formulated by the Ministry of Commerce of China for imported goods.

That is to adopt a joint monopoly in an environment without competitors and at the same time increase prices to obtain maximum profits!

According to this system, in order to ensure the service quality of imported goods, imported goods must be retailed in the market through domestic hierarchical agents.

This kind of joint monopoly market behavior is actually difficult to maintain, but it doesn't matter, there are policy loopholes.

As a result, with the cooperation of the frantically profit-seeking foreign companies and the domestic general agents of Liyingwaihehe, the selling price was stuck at a critical point that made consumers uncomfortable enough, but they could hold their noses and accept it.

That is the general agency system formulated by the Ministry of Commerce of China for imported goods.

Under such large profits, combined with lowering the prices of low-level, high-volume cars, the development of the domestic automobile industry is restricted. In less than ten years, foreign car companies have joined forces to create an airtight price barrier for the Chinese automobile market.

According to this system, in order to ensure the service quality of imported goods, imported goods must be retailed in the market through domestic hierarchical agents.

To be honest, even Li Fanyu and Zhengxin, who have incredible technology and development speed, are a little depressed by this invisible network.

As a result, with the cooperation of the frantically profit-seeking foreign companies and the domestic general agents of Liyingwaihehe, the selling price was stuck at a critical point that made consumers uncomfortable enough, but they could hold their noses and accept it.

The reason why Zhengxin has not launched a compact car so far is because of this relationship.

Under such large profits, combined with lowering the prices of low-level, high-volume cars, the development of the domestic automobile industry is restricted. In less than ten years, foreign car companies have joined forces to create an airtight price barrier for the Chinese automobile market.

At the beginning, A8 had the opportunity to break this barrier, but at that time, Zhengxin's production capacity and scale were extremely limited. Although the A8 was built, the cost was not controlled. There is only one flagship version with a price of more than 2 million yuan. At best, it has shaken the confidence of Chinese people in Chinese local brands and raised the positioning of Zhengxin.

To be honest, even Li Fanyu and Zhengxin, who have incredible technology and development speed, are a little depressed by this invisible network.

Really speaking, the A8 doesn’t show much competitiveness.

The reason why Zhengxin has not launched a compact car so far is because of this relationship.

But now that he has a certain level of strength and can control the cost of Range Rover's success, Li Fanyu has the capital to challenge this barrier!

At the beginning, A8 had the opportunity to break this barrier, but at that time, Zhengxin's production capacity and scale were extremely limited. Although the A8 was built, the cost was not controlled. There is only one flagship version with a price of more than 2 million yuan. At best, it has shaken the confidence of Chinese people in Chinese local brands and raised the positioning of Zhengxin.

In fact, based on the current status of the industry, the performance and price of competitive products of the same level on the current market are used as standards.

Really speaking, the A8 doesn’t show much competitiveness.

Li Fanyu can completely rely on the Range Rover's performance, technical configuration and exquisite workmanship to sell the Range Rover for more than one million and nearly two million.

But now that he has a certain level of strength and can control the cost of Range Rover's success, Li Fanyu has the capital to challenge this barrier!

But why does the Range Rover still have to be priced so low?

In fact, based on the current status of the industry, the performance and price of competitive products of the same level on the current market are used as standards.

It is said that Li Fanyu wants to vent his anger on Chinese consumers. Is there any reason for this?

Li Fanyu can completely rely on the Range Rover's performance, technical configuration and exquisite workmanship to sell the Range Rover for more than one million and nearly two million.

Yes!

But why does the Range Rover still have to be priced so low?

But the proportion is very small, maybe 2% of the motivation. In fact, it is more about considering the future development of the group.

It is said that Li Fanyu wants to vent his anger on Chinese consumers. Is there any reason for this?

Yes!

The first is to start from the development of the Land Rover brand.

But the proportion is very small, maybe 2% of the motivation. In fact, it is more about considering the future development of the group.

For a new brand or new product, how can it quickly gain a large market share in a short period of time?

The first is to start from the development of the Land Rover brand.

In the final analysis, it is nothing more than two means; revolutionary technological breakthrough, or setting a retail price that competitors cannot reach on the premise of reaching the average level of products in the current industry!

For a new brand or new product, how can it quickly gain a large market share in a short period of time?

These two methods are called market predatory strategies.

In the final analysis, it is nothing more than two means; revolutionary technological breakthrough, or setting a retail price that competitors cannot reach on the premise of reaching the average level of products in the current industry!

So this pricing is the first reason why the Land Rover brand can be established in a short period of time and occupy a certain market.

These two methods are called market predatory strategies.

The second point is to open up an opportunity for price comparison and prepare the group for a broader compact market in the future.

So this pricing is the first reason why the Land Rover brand can be established in a short period of time and occupy a certain market.

You must know that the key condition for supporting price barriers is that high-end products earn excess profits, and supporting low-end products is enough to suppress the prices of local products.

The second point is to open up an opportunity for price comparison and prepare the group for a broader compact market in the future.

If the Range Rover or even a series of subsequent high-end models drive down the prices of foreign companies' products of the same level, then these car companies will inevitably increase the prices of low-end products to make up for their profits as profits shrink.

You must know that the key condition for supporting price barriers is that high-end products earn excess profits, and supporting low-end products is enough to suppress the prices of local products.

In this way, we can open up space for the low-end market!

If the Range Rover or even a series of subsequent high-end models drive down the prices of foreign companies' products of the same level, then these car companies will inevitably increase the prices of low-end products to make up for their profits as profits shrink.

In this way, we can open up space for the low-end market!

When the time comes, when the two big mountains of cost control and scale that have been placed on Zhengxin are removed, will it be possible to just let the fish leap high into the sky and let the birds fly?

When the time comes, when the two big mountains of cost control and scale that have been placed on Zhengxin are removed, will it be possible to just let the fish leap high into the sky and let the birds fly?

Li Fanyu’s game of chess is a big one!

Li Fanyu’s game of chess is a big one!

Not to mention, even at the current price, each Range Rover can bring Zhengxin nearly 40% profit!

Not to mention, even at the current price, each Range Rover can bring Zhengxin nearly 40% profit!

On the 16th of the first lunar month, Range Rover rolled off the assembly line nationwide.

On the 16th of the first lunar month, Range Rover rolled off the assembly line nationwide.

Although we have passed the prime sales period of automobiles at the end of the year, the automobile market is slightly deserted. However, Zhengxin Land Rover 4S stores located in important first- and second-tier cities across the country are no less popular than they were a year ago!

Although we have passed the prime sales period of automobiles at the end of the year, the automobile market is slightly deserted. However, Zhengxin Land Rover 4S stores located in important first- and second-tier cities across the country are no less popular than they were a year ago!

At the Zhengxin Land Rover 4S store in Beijing, although it was only around nine o'clock in the morning, there were already more than 20 customers waiting for a test drive in the store.

But among this group of customers, several people behaved quite suspiciously.

At the Zhengxin Land Rover 4S store in Beijing, although it was only around nine o'clock in the morning, there were already more than 20 customers waiting for a test drive in the store.

These people came to the store without saying a word. No sales introduction is required, no test drive is required, just cash is required to pick up the car!

But among this group of customers, several people behaved quite suspiciously.

Most of Land Rover's dealers are recruited from Zhengxin Volkswagen's distribution network. In order to ensure that the brand provides the best service to customers when it was first established, most of the salespeople in the store are veterans transferred from Volkswagen 4S stores. In the usual sales process, they have also seen customers who directly picked up their cars.

These people came to the store without saying a word. No sales introduction is required, no test drive is required, just cash is required to pick up the car!

But what made them feel something was wrong was that what these customers bought was not a car!

Most of Land Rover's dealers are recruited from Zhengxin Volkswagen's distribution network. In order to ensure that the brand provides the best service to customers when it was first established, most of the salespeople in the store are veterans transferred from Volkswagen 4S stores. In the usual sales process, they have also seen customers who directly picked up their cars.

Instead, you have to buy all four models in the series with all cash!

But what made them feel something was wrong was that what these customers bought was not a car!

"Manager, are those customers spies?" Looking at the anxious customers going through the payment procedures at the front desk, a sales consultant pulled the manager next to him.

Instead, you have to buy all four models in the series with all cash!

"It's almost the same. The group will send a listing plan after the year. When I saw the pricing of the entire Range Rover series, I felt that Land Rover was going to be popular. The pricing was too low! Compared with competing products of the same level, the price It’s half the price. I think most of these people come from other brands to buy products and do research.”

"Ah? Do you need to report this situation to the above?" the sales consultant asked with a grin.

"Manager, are those customers spies?" Looking at the anxious customers going through the payment procedures at the front desk, a sales consultant pulled the manager next to him.

The manager touched his chin and chuckled: "What a shame! What can they do if they just buy it and study it thoroughly? Just watch, the luxury SUV market is going to change!"

"It's almost the same. The group will send a listing plan after the year. When I saw the pricing of the entire Range Rover series, I felt that Land Rover was going to be popular. The pricing was too low! Compared with competing products of the same level, the price It’s half the price. I think most of these people come from other brands to buy products and do research.”

"Ah? Do you need to report this situation to the above?" the sales consultant asked with a grin.

The manager touched his chin and chuckled: "What a shame! What can they do if they just buy it and study it thoroughly? Just watch, the luxury SUV market is going to change!"