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“Due to the increasing downward pressure on the domestic economy, in the next three years, the development of the domestic auto industry in the foreign market will be strengthened, especially for commercial vehicles.†A truck dealer in Henan recently sent such a feeling to reporters. To this, he lamented that the reporter has placed more emphasis on the commercial vehicle overseas market, namely "commercial vehicle export".
Referring to the export of commercial vehicles, many commercial vehicle company personnel expressed concern. As Zhang Xue, Chairman of the China Road Society Bus Branch, said: “Currently, commercial vehicle companies are taking the path of internationalization. However, some issues that arise during product export, such as vicious competition and price warfare, must attract the attention of the industry. Otherwise, the overall image of Chinese car brands will be damaged in overseas markets.†In addition, he also said that the industry must establish a reasonable and orderly export order.
Then, how can a rational and orderly export order be established? Can we learn from foreign practices?
There is no point in the short term
Regarding how to establish a reasonable and orderly export order, the reporter asked a number of corporate executives and senior industry experts. Among them, Du Fangci, an advisor to the China Association of Automobile Manufacturers, said that at present, there is no way to “turn a stone into gold†in the short term. Yu Chunyin, deputy general manager of Zhongtong Bus, also admitted that although there have been vicious competitions in overseas markets, it has also been harmed. However, there is still no good way to curb this phenomenon because it is related to the Marketing strategies are closely related. Valin Xingma Chairman Liu Hanru believes that perhaps the lessons are profound and the export order will become better. Overseas exports have been elevated to a strategic level by many commercial vehicle companies. Although the phenomenon of vicious competition in overseas markets is not uncommon, why is there not a good way to stop it?
According to Du Fangci, one of the most fundamental reasons why this or that problem occurs in the export process is that the overall quality of the company is not high. The emergence of vicious competition shows that the development of the automotive industry is not yet mature. Although there is no way to establish a good and orderly export order at the moment, in the process of exporting overseas markets, large companies should take the lead in setting an example. The relevant state departments can also make some adjustments in their management. But more still need the conscious and self-discipline of the company.
According to reports, a few years ago, bus companies had signed a self-discipline agreement on bus prices, which was mainly aimed at disorderly competition in the domestic market, including price wars. "At that time, the industry association took the lead in organizing the company's commitment to price self-discipline. It was hoped that the company would consciously and self-discipline. However, due to various reasons, it did not play a major role."
Yu Chunyin stated that “some confusion in overseas exports is like a person catching a cold, and it is understood that eating antibiotics is not good, but the reason for eating is the same.†It is learned that some companies have competition in overseas markets. In order to win the customer orders, some are to fill the production line, some because of the company's marketing strategy, and ultimately to fight price vicious competition.
Can learn from foreign differential competition
Does the practice of foreign companies have implications for Chinese companies?
An industry source told reporters that foreign companies have also experienced problems such as those encountered by Chinese companies in the international market. However, as the differentiation of products between enterprises becomes more and more obvious, different brands of cars are entering the same After overseas markets, there are loyal users of its own brand in each segment. In addition, there is a "tacit understanding" among foreign auto companies to jointly create a fair and just competitive environment. "For example, German cars, French cars, Japanese cars, and American cars have their own characteristics and are subdivided into various brands. The differentiated characteristics of their products are very obvious compared to Chinese cars." Spring India said, “The passenger bus in China is again homogenized too seriously. The key parts and components of the engine and transmission between the companies and even the product assembly can be the same, but only a slight change in the appearance. This objective fact causes The result is that apart from brands and services, there is only a difference in prices between brands."
It is understood that the order of truck exports is better than that of passenger cars. As far as China's trucks are concerned, differentiated competition is becoming more and more obvious. Truck companies, in particular, have their own engines and have their own characteristics in power matching. In addition, truck companies also produce products through joint ventures with foreign companies, which, to a certain extent, promotes the product differentiation between companies. When you go to the international market, you can make your own unique business card. “Now, the overseas market of commercial vehicles in China is still in the development stage, brand differentiation is gradually taking shape, and the competitive landscape of overseas markets is also being formed.†Yutong bus overseas market personnel told reporters. From this point of view, to establish a reasonable and orderly export order, what companies can do is product differentiation and make their products irreplaceable. In this way, with the brand, products and services, overseas markets may be able to avoid the price war.