On May 17 this year, FAW Xiali announced that xiali has been “snow”, but snow does not mean to exit the market forever, until the ice and snow melt, Xiali still has the possibility of revival, the focus of FAW Xiali in the future will be on the building of jun group brand. According to market analysis, the reason why old Xiali is “hidden” is mainly limited by brand and model, and in the development of the car market did not keep up with the process of consumption upgrading.
According to the 2017 annual report, FAW Xiali’s revenue was 1.45 billion yuan, down 28.34% year-on-year, and its net profit loss was 1.641 billion yuan, down 1110.64% year-on-year. In this case, FAW Xiali in order to improve the substantial loss, can only choose to survive.
Once upon a time, xiali this economical car brand is popular in the market, but also set a Beijing taxi nine chengdu is xiali legend. However, no matter how brilliant at the beginning, faW Xiali is now a hero in the twilight. And of old xia Li stop production besides let car fan regret besides, also cause market extensive attention. As a “national car”, how is Xiali from the beginning of the scenery is infinite to now dim fade away? Can broken arm really bring faW Xiali “survival”?
Unbreakable, faW Xiali will have real poetry and distance?
As the saying goes, “Thirty years on the east side of the river, thirty years on the west side of the river”, nothing in this world remains unchanged, only the length of time varies. Once a symbol of wealth and status, xiali has become a taxi as the market changes and consumption continues to upgrade. Nevertheless, Xiali has gradually become a major representative of the taxi market with favorable prices and practical products. Faw Xiali still has a foothold in the market.
But the good times did not last long, the most obvious change is the 2004 Beijing Olympic bid success, “change xiali taxi” program introduced. At that time, the taxi market is xiali’s main battlefield, this proposal is undoubtedly a huge blow to Xiali. The most direct manifestation is that in 2005, Shari was knocked out of the top sales position for the first time. After that, Shari began to decline. In addition to the policy impact, there is faW Xiali itself does not compete, in Geely, the Great Wall and other traditional car enterprises continue to reform and innovation, it has been in situ, no innovation.
In this case, FAW Xiali can only sink deeper and deeper in the swamp, long-term losses will almost drive the enterprise to insolvency. In the face of such a severe situation, enterprises can only learn “strong man cut wrist”, will xiali “snow”. But will this approach ultimately make the business invincible?
In fact, there are many businesses in the market to survive. In 2014, Chery Automobile also suffered from a broken arm. At that time, the company was short of profitable projects, and its stores were too large, including cars, heavy trucks and other projects, as well as some joint venture projects that were in the initial construction stage. In this case, the only way to survive is to leave the joint truck. Let Chery can focus on the layout of the main business.
According to the forward-looking database, in 2016, among the top 20 passenger car exporting enterprises, except Chery, the exports of other enterprises increased by 13.4% compared with 2011, while Chery’s exports decreased from 155,300 in 2011 to 88,000 in 2016. In addition, gm, FAW Bridge and other vehicles are also implementing the “slimming plan”, but the results are not satisfactory.
As it turns out, the enterprise’s “slimming plan” may relieve the pressure of capital to a certain extent, but it also makes the enterprise lose some loyal users and markets. Pay attention to the era of quality and consumption upgrade nowadays, faw Xiali will be “cheap” xiali put down, can you really usher in poetry and distance? Not easy, I’m afraid.
As the saying goes, neither break nor stand, but after breaking the old, can the enterprise really gain new success? Faw Xiali is reduced to today’s point, in addition to self-entrenched and their own problems in the operation, there is a more important reason is the development of the automobile market rapidly changing, a knife will be old Xiali cut faW Xiali really can achieve brand Renaissance? The outcome is hard to say, after all, things have changed, today’s market is not the original market.
Dying struggle or rebirth for a smart Internet?
The “death” of the brand is not only lamented by its loyal fans, but also saddened by its performance. Faw Xiali’s “fall” comes down to eight words: lack of innovation, stalled. Not only in the automotive field, but also in the commercial market, any enterprise that is stuck in its own ways will eventually bring its own limitations. If it does not follow the market to achieve transformation, it will be difficult for the enterprise to develop in the long term in the changeable market.
According to the 2018-2023 Analysis Report on Demand Forecast and Investment Strategy Planning of China’s Automobile Manufacturing Industry released by Qianzhan Industry Research Institute, new energy vehicles and intelligent vehicles will become a hot topic of investment in the industry in the future. It is understood that last year, excluding Hong Kong, Macao and Taiwan, China’s total investment in new energy vehicle projects is as high as 450 billion yuan, investors are no lack of industry giants such as BAT.
Under the policy support and market demand, new energy intelligent vehicles will dominate the market in the future. Under this understanding, many new car manufacturing forces have emerged, such as NIO, Weima, Xiaopeng, Byton, and Zero-run vehicles. Some traditional car companies are also seeking transformation. For example, Mercedes-benz will complete the transformation to new energy by 2022. In addition to Mercedes-benz, Volkswagen, Toyota, Jaguar Land Rover and Lincoln are also seeking transformation. In order not to be eliminated by the market, FAW Xiali, which was popular in China at the beginning, also began to develop to the direction of new energy intelligence.
Faw Xiali “strong man broken wrist” behavior can be said to be the company’s substantial losses, insolvency under the helpless move. As a traditional car enterprise, FAW Xiali’s positioning in the market has always been known as economic benefits. In the arm to survive, “Junchi plan” is the first step for enterprises to regain market share, starting from this year, will launch new new energy vehicles. However, FAW Xiali still faces many challenges as it enters the field of new energy intelligent vehicles.
One, in order to cater to the direction of market development, FAW Xiali implemented the “Junchi plan”, launched the first intelligent car Junpai A50. They compete on price to gain market share. But today’s demand for cars is more about quality, experience and practicality than price.
Second, for FAW Xiali, at this time into the new energy intelligent field is a little late. Not to mention tesla’s priority in the market layout, niO Automobile, Singularity Automobile and other new car manufacturing forces have entered the market ahead of FAW Xiali. At this time, although the new energy intelligent vehicle market is still in the stage of development, but the user’s preconceived awareness has brought innate advantages to Tesla, NIO, Xiaopeng and other enterprises. Faw Xiali’s entry at this time has no new ideas at all, and it can only be regarded as one of many new energy intelligent vehicle enterprises.
Intelligent cars are in the ascendant, and with the support of the policy, the market presents a “crazy growth” trend. In the smart car market, innovative enterprises such as NIO Automobile and Weimar Automobile have emerged in the transformation from traditional automobile enterprises to intelligent ones. Of course, there are also enterprises eliminated by the market, for example, LeEco is a typical case. Therefore, FAW Xiali to join the new energy intelligent vehicle camp is not foolproof, crisis time exists.
Bogged down in the mire, faW Xiali how to stage a “stunning reversal”?
At the beginning of this year, the National Development and Reform Commission announced the “Intelligent vehicle Innovation and Development Strategy” mentioned that by 2020, intelligent vehicles will account for half of the market share, that is to say, two years later, half of the cars in the market will be intelligent vehicles. This brings more development possibilities to the intelligent vehicle industry. Faw Xiali to intelligent transformation to conform to the mainstream trend of market development, but this does not mean that FAW Xiali can rely on their own more than 30 years of car manufacturing experience and “integration” with the field of intelligent vehicles to achieve market “Renaissance”. For a turnaround to happen, companies have yet to step up.
On the one hand, faW Xiali due to the long-term lack of innovation, coupled with long-term losses, capital constraints, and intelligent vehicles is the most “money burning” things, the enterprise may still face insufficient funds and other problems. Therefore, what enterprises need to do now is to find partners, which can not only avoid many detours, but also to a certain extent to build publicity for enterprises and accumulate some “regular customers”. For example, GAC cooperated with NIO to jointly promote the process of intelligent networked new energy vehicles, and the results are quite effective. It is reported that LAST year, GAC ranked 238th among the world’s top 500 enterprises, with a year-on-year growth of 21.5%.
On the other hand, FAW Xiali has been giving people the basic impression of low-end brand, and even the new energy intelligent vehicles launched today are also popular route, facing the low-end market. But for the current FAW Xiali, in order to maximize the market attention, the launch of popular products is a good choice. Now, there are not a few new energy intelligent enterprises in the market. Faw Xiali can start from the high-end market and gradually sink after attracting the attention of the market. Because faW Xiali before are low-end route, this contrast can quickly attract people’s attention, so as to achieve the effect of brand publicity.
The market changes rapidly, the original all-powerful traditional car enterprises, many have become “the past”. No matter how beautiful before, if you don’t think forward, no innovation, sooner or later will be eliminated by the market. Now the automobile industry has entered a new stage of development, faW Xiali and other traditional car enterprises to not be “after wave” beat dead on the beach, the most critical is to see the market development situation, timely “update” themselves, only in this way faW Xiali are likely to reproduce the scenery of the year.
Article/Liu Kuang public account, ID: Liukuang110