So far, Dongfeng commercial vehicles have two figures in the status of the middle and heavy truck market: In Sichuan, one in every two vehicles is Dongfeng; in the country, one in every five vehicles is Dongfeng. In the past two years, due to the downturn in the domestic commercial vehicle market, sales of medium and heavy trucks have fallen sharply. How companies survive and develop will be major issues that all commercial vehicle companies, including Dongfeng, have to face. In order to achieve development in the face of adversity, marketing transformation has become the focus of this company's efforts to build next year.
"In 2013, Dongfeng Commercial Vehicles' target for heavy truck sales and market share was no less than 2012, with sales exceeding 180,000 units and a share of more than 20%." Recently, Huang Gang, General Manager of Dongfeng Commercial Vehicles Corporation, at Dongfeng Commercial Vehicle Company 2013 The annual dealers’ conference stated that in view of the uncertainty of the future market and the expectation of the micro-growth, Dongfeng Commercial Vehicle Company will accelerate the pace of the second transformation and change from an extensional growth enterprise to a content growth enterprise.
Marketing responds to market changes
In 2012, the production and sales volume of Dongfeng Commercial Vehicles is being increasingly challenged. The deceleration of the domestic macro-economy and the lack of effective demand have brought the commercial vehicle industry, which produces production materials, into a downturn.
Statistics show that from January to November, the total sales of domestic heavy trucks totaled 842,000, a decrease of 23%. Among them, heavy trucks declined even more, falling by 29%. Although Dongfeng Commercial Vehicles still maintains the top position in the medium-to-heavy trucks, cumulative sales of 167,000 units in January-November and 180,000 units in the full year are expected to fall far behind the expectations of Dongfeng Commercial Vehicles.
In the face of the overall downturn in the commercial vehicle industry, Dongfeng Commercial Vehicles has chosen a network transformation and service transformation strategy. Tong Dongcheng, deputy general manager of Dongfeng Motor Co., told the reporter, “Dongfeng Commercial Vehicle has slowed its pace in the past year, but in 2012 it has paid more attention to the development of quality, depending on the market for the winter of marketing.â€
It is understood that in order to create a transformation in marketing, from 2007 to 2012, Dongfeng Commercial Vehicles has basically completed the first phase of the marketing transformation task, and established a “three-dimensional marketing model†for sub-sectors, sub-regions, and sub-industries, and established them initially. The strategic dealer system.
“The five-year period 2013-2017 will be the second phase of the marketing transformation. At this stage, Dongfeng Commercial Vehicles will initiate network transformation and service transformation, and pursue customer satisfaction and after-sales value enhancement.†Tong Dongcheng said.
According to the plan, in 2013, the backbone dealers of Dongfeng Commercial Vehicles will all expand into a 4S shop model, with a sales coverage rate of over 65%, and strive to achieve a post-market return of more than 60% of the total revenue.
Heavy-duty card switch
In the domestic commercial vehicle industry, new models of "multigenerational cousins" have historically been the growth factor for domestic automakers. However, at the dealer conference, Dongfeng Commercial Vehicle did not make any new models unveiled.
Huang Gang told reporters that next year's implementation of commercial vehicle IV emission standards will be the industry's biggest challenge in 2013. The overall sales of medium- and heavy-duty trucks are expected to remain flat this year. Dongfeng Commercial Vehicles also paid a huge price for the smooth transition. At present, the Dongfeng Commercial Vehicle's China IV model has become the main model, while the State III model is implementing order-based production, which only accounts for a small share.
By the end of November, Dongfeng Tianlong had sold more than 62,000 vehicles and Dongfeng Tianjin had sold more than 52,000 vehicles. This also means that Dongfeng Commercial Vehicle is currently in line with the national IV standard products, a new generation of products has been fully completed, in the field of medium and heavy trucks took the initiative.
It is reported that after 43 years of development, Dongfeng Commercial Vehicle has already possessed the competitiveness that others can not duplicate, and after three times of product vertical replacement, it has been recognized by the industry relying on the advantages of a new generation of medium and heavy truck products.
Target impact industry first
According to the “Twelfth Five-Year Plan†announced by Dongfeng Motor, the production and sales targets are directed to a scale of 5 million vehicles. According to Zhu Fushou, general manager of Dongfeng Motor Corporation, the commercial vehicle segment will be the key to the realization of Dongfeng's production and sales targets. According to the medium-term plan of Dongfeng's own brand business, the commercial vehicle segment will challenge the annual production and sales of 1 million vehicles in the next five years, and will hit China first and the world's top three.
In order to achieve this production and sales target, Dongfeng Motor adopts the “N+3†mechanism to effectively respond to market changes in production management, roll up market forecasts, dynamically adjust production and sales plans, and continuously reduce inventory to ensure the safety of the entire value chain. The strategic projects planned while continuing to strengthen low-cost operations are still steadily advancing, including the construction of the second phase of the heavy truck new plant, and the new plant of the powertrain has entered the equipment installation phase, which greatly enhances the sustainable development capability.
However, the problem ahead of Dongfeng Motor is that the commercial vehicle segment is currently in a period of strategic breakthrough, and it lacks a strong partner to strengthen its advantage in the commercial vehicle sector and help it to enter the international commercial vehicle market. Therefore, expanding the scale and finding suitable partners have become the top priority for Dongfeng Commercial Vehicles.
There are reports that Dongfeng and Volvo Commercial Vehicles will set up joint ventures and they are expected to formally sign contracts early next year. Although this information has not been further confirmed, Tong Dongcheng stated that Dongfeng Commercial Vehicle has always been in line with the production and sales model of European and American car companies, and Volvo is also a model for Dongfeng Commercial Vehicles to focus on learning.
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