Commercial vehicle export risk big brand building is critical

According to the data released by the China Association of Automobile Manufacturers, in March, commercial vehicles exported 29,600 vehicles, a year-on-year increase of 65.96%, and a year-on-year increase of 50.68%. From January to March, exports of commercial vehicles totaled 72,100, an increase of 641.24% year-on-year. Such a high rate of increase illustrates the positive trend of commercial vehicle exports; on the other hand, it also proves the weakness of commercial vehicle exports during the same period last year.

“Currently, the scale and amount of commercial vehicle exports have not yet reached the level before the financial crisis.” On April 14, Yang Aiguo, deputy secretary-general of the Automotive Sub-committee of the China Machinery & Electrical Products Import & Export Association, said in an interview that although commercial Car exports are recovering, but there are still some gaps from the peak period before the financial crisis.

Market risks need to be prevented "This year, there has been turbulence in some parts of the world, and in these areas there is a key area for domestic commercial vehicle exports." Yang Aiguo told reporters: "The most obvious impact is in North Africa and the Middle East. According to statistics, the export volume of domestic commercial vehicle companies in these two regions basically accounts for about 31% of the total export value."

Yang Aiguo analyzed that the political turmoil will cause the local financial system to be disordered, which is not conducive to the export of domestic commercial vehicles. Whether it is the dealer's capital chain or the loan demand of the user's car purchase, it faces great challenges. In this regard, Yang Aiguo believes that domestic commercial vehicle companies need to be more cautious when exploring overseas markets. They must conduct comprehensive investigations and understandings on many aspects including political trends and economic situations. They cannot rush into the market because of orders.

In addition, attention must be paid to the renewed high international oil prices. “The direct impact of rising oil prices is the increase in transportation costs, which may increase the prices of domestic products.” Yang Aiguo said: “At the same time, high oil prices also have an inhibitory effect on the overseas customers’ purchase behavior, especially the emerging countries that are developing. The sensitivity of oil prices is relatively high. The rise in oil prices will affect the demand for cars in these markets.” As domestic commercial vehicle users are trapped in the repeated increase in oil prices, overseas markets are also suffering from this pressure. Can this be addressed? The situation will put more appropriate products and adopt more effective marketing methods, or it will become a new test for domestic commercial vehicle enterprises.

The appreciation of the renminbi is the problem that we have to face in the future. For a long time, domestic commercial vehicle products have been well-known for their outstanding performance in the international market, and the RMB appreciation slowly devoured the "price-performance advantage." In this regard, Yang Aiguo believes that the cost advantage of domestic commercial vehicles will not disappear soon, but it may also be weakened. "However, I believe that domestic commercial vehicle companies will take corresponding measures in advance to avoid this potential risk." Yang Aiguo told reporters.

The order of export cannot be dismissed Although Yang Aiguo talked about a number of export risks, what he was most worried about was the export order. "The order of export must not be disordered, especially since the export of commercial vehicles is still at its infancy. The disordered export order will not only adversely affect current exports, but will also affect the future export trend." Yang Aiguo said that as an association organization, China Electromechanical The Chamber of Commerce of the Chamber of Commerce of the Chamber of Importers, Exporters, and Importers of Imports and Exports has also been studying the mechanism adopted to regulate export order

In recent years, the domestic commercial vehicle market has developed rapidly, and many companies have taken advantage of the potential to build bases and increase production capacity. However, the capacity of the domestic commercial vehicle market will not grow without limit. Under this premise, once the production capacity is greater than the market demand, companies have to find a way for this part of the production capacity.

In addition, although export profits have decreased in recent years, compared to domestic sales, the high profits brought about by exports are the reason why many companies have joined the ranks. In some periods, even if some companies have seen overseas sales stronger than domestic ones, this “fundamental instability” model can easily cause companies to fall into trouble due to changes in the overseas market environment.

What is even more crucial is that when it comes to overseas markets, most commercial vehicle companies have slight reservations. This also reflects, to a certain extent, their concerns about disorderly competition. "Copying the competitive situation in the domestic market directly to overseas markets will have a negative impact on China's commercial vehicle exports," said Yang Aiguo. Because of this, Yang Aiguo believes that in the initial stage, a relatively standard export order is of utmost importance, and this requires the joint efforts of the industry and enterprises.

Brand building is critical The future of overseas market competition will focus on branding, which puts high demands on domestic commercial vehicle companies. “In overseas markets, corporate credit is very important. If the promises made to users are not fulfilled, the negative impacts caused may be magnified. This has a greater impact on corporate brand image.” Yang Aiguo said: “Once a market The bad word of mouth has been left, and companies wanting to enter the market again are basically hopeless."

“A commercial vehicle company with a strategic vision will not give up the brand in overseas markets.” Yang Aiguo told reporters that in the overseas market, the overall brand advantage of China’s commercial vehicles is still not obvious, and domestic commercial vehicle companies have to accelerate their pace. Reduce the gap with foreign brands as soon as possible.

Yang Aiguo believes that domestic commercial vehicle companies have their own plans for the construction of overseas brands. However, at the current stage of starting, there will be many ideas that cannot be realized. This requires a process. "You can't lower the standard because of this. Whether it's product quality or service system construction, you have to do your best." Yang Aiguo said.

At this stage, domestic commercial vehicle companies are closely related to brand building and sales in overseas markets. Using sales to drive brand building is still very practical. “Implementing exports first, and then gaining a foothold in the local market to create a brand image is a necessary period for the early stages and the basis for brand building overseas.” Yang Aiguo believes that despite the painful process, domestic commercial vehicle companies still To adhere to this, after all, the brand effect will not appear immediately.