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Jingguan Automobile

"My phone is about to explode with calls. If it's convenient for you, please come to the store for a test drive in the next two days! Another call came in." After Fang Chengbao adjusted the price of Leopard 5, it is triggering another round of buying craze in the market.

According to media reports, on the second day after the new price was released (July 30), a Fangchengbao salesperson said that his store's daily transaction volume exceeded 20 orders, and consultation calls came one after another. The store was extremely busy and it was expected that there would be a new peak in customer flow over the weekend.

Leopard 5 delivery site

Recently, BYD Formula Leopard released its one-year brand renewal strategy. Under the new development strategy committed to "technological equality", the brand's Leopard 5 model adopted a new price. The four models of Leopard 5 Exploration Edition, Pilot Edition, Yunnian Deluxe Edition and Yunnian Flagship Edition have all undergone a price adjustment of 50,000 yuan. The new price range is 239,800 yuan to 302,800 yuan.

The outside world is puzzled by the move of Fangcheng Bao without knowing the inside story. In fact, the adjustment of the price system of Bao 5 is based on the redeployment of Fangcheng Bao's brand renewal strategy, and is also an appropriate strategy to cope with changes in the external environment.

At the product level, the Leopard 5 has not only changed its price system, but also ushered in a new positioning of "electric drive off-road self-pleasing home" and a new opportunity to reshape its value. At the brand level, Fangcheng Leopard is about to enter the 2.0 stage of development and is re-adjusting and deploying its channel system, product structure and price. Once the "deployment" is completed, it will launch a new round of "charge" into the market.

A wider price range, a richer product structure and more diversified sales channels will help the Fangchengbao brand to quickly grow from a niche brand with personalized positioning to a major brand in the new automotive era. BYD will also be able to "switch from defense to offense" in the price range of more than 200,000 yuan, and promote the development and growth of Chinese brands in the mid-to-high-end market.

Fang Chengbao "changes formation"

In the eyes of consumers who are unaware of the actual situation, the price system adjustment of Leopard 5 was a passive decision made due to its poor market performance.

In fact, since the launch of the Leopard 5 in November last year, the company has sold nearly 25,000 units in the eight months since its launch. In the first half of this year, the company sold 18,000 units, with an average of 3,000 units per month. From the perspective of the average transaction price of 330,000 yuan and the off-road segment, the Leopard 5 is at an upper-middle level. This shows that the price adjustment of the Leopard 5 is not due to poor market performance.

Screenshot of Fangchengbao user order sharing

Therefore, when analyzing the reasons for the price adjustment of Leopard 5, we can expand our horizons to observe. It is understood that at the brand level, recently, the Fangcheng Leopard brand has undergone a strategic renewal one year after its release: on the one hand, based on user feedback, Fangcheng Leopard has made some adjustments to its own positioning this year and has comprehensively expanded its product line; on the other hand, Fangcheng Leopard is about to enter the 2.0 stage of development from the 1.0 stage. Against this backdrop, Fangcheng Leopard has readjusted and deployed its channel system, product structure and price.

Specifically, after a year of exploration, Fangcheng Bao adjusted its own positioning. While focusing on individual positioning, it will expand the individual market from the individual market that is more niche and narrow to the individual market that includes some mainstream value attributes. Based on this, Fangcheng Bao has determined the strategy of three parallel product lines: brand value electric drive off-road products + urban life individual hard-core products + sedan products based on sports car design. With the expansion of product lines, the price range of the brand will also increase accordingly. The adoption of a new price for Bao 5 is one of the important measures.

In addition, in the first year after the brand was launched, Fangchengbao has completed the core tasks of brand awareness and channel construction. Today, when consumers mention Fangchengbao, they all know that it is BYD's mid-to-high-end new energy brand positioned in the personalized market, and is BYD's main brand to promote brand development. In terms of channels, Fangchengbao has built nearly 200 directly-operated stores within a year, and the coverage and number have reached the initial expected scale. Therefore, the development of the Fangchengbao brand is about to enter the 2.0 stage from the 1.0 stage, and the core of the development has also changed from brand awareness and channel construction to sales growth.

To this end, Fangchengbao is making corresponding changes in many areas. For example, in terms of channels, in June this year, Fangchengbao brand opened for investment, and the sales model is changing from direct sales to direct sales + distribution. It is reported that in less than two months, about 60% of the top 100 dealer groups in China expressed strong intentions and applied for multiple cities, multiple channels, and multiple outlets. At the same time, more than 100 provincial and municipal head dealer investors submitted applications.

In addition to internal factors, changes in the external environment are also an important reason for the adjustment of the Leopard 5's price system. It is understood that since the beginning of this year, the overall sales volume of the domestic automobile market in the price range of more than 300,000 yuan has declined. Among them, in the B-class SUV field where the Leopard 5 is located, although the absolute sales volume has increased, the prices of many products have dropped below 300,000 yuan. In response to this market change, Fangcheng Leopard combines the comprehensive product strength of the Leopard 5 and the new stage goals to refresh the sales strategy in real time.

A new storm in the auto market

In fact, the adjustment of Leopard 5 is not only about price, but more importantly, its positioning has also changed based on the new goal of promoting "technological equality". At present, Fangcheng Leopard has given Leopard 5 a new positioning of "electric drive off-road, pleasing to the home". Compared with the previous one, the new positioning highlights the comfort of Leopard 5 at home.

Previously, Fangcheng Leopard focused on the powerful off-road attributes of Leopard 5 in its promotion, mainly emphasizing that Leopard 5 is equipped with BYD DMO super hybrid off-road platform, which achieves stronger power and lower fuel consumption than traditional fuel off-road vehicles, bringing consumers a new experience of off-road scenes under the blessing of new energy.

However, the publicity of the comfort and home use advantages of Leopard 5 itself is relatively insufficient. In this respect, BYD's Yunniang-P system and refrigerator, color TV and large sofa perform better than the same level models, which gives Leopard 5 a strong advantage of "starting from off-road but not only off-road", and can truly achieve both off-road and urban use, both "pleasing to oneself" and "home use".

The new positioning combined with the new price will drive Leopard 5 from the hard-core off-road market into the larger urban SUV market. Its target consumer group will increase from hundreds of thousands to tens of millions, and its market performance will also undergo earth-shaking changes.

The all-round adjustment of the Leopard 5 is the first step for BYD to "expand from a niche personality to a personality market that embraces some mainstream value attributes". Its purpose is to fire the first shot in the technological equality of domestic hard-core SUVs, benefit consumers, and allow more consumers to experience BYD's core technologies such as DMO and Yunnian at a lower cost.

In the future, the consumer groups targeted at the urban lifestyle personalized product series launched by Fangchengbao will include the mainstream masses, and the width of the entire brand price range will be further widened accordingly.

With the expansion and widening of product lines, channels and price ranges, the Fangchengbao brand will become a new important growth point for BYD Group. For the industry, Fangchengbao will bring about a new storm in the personalized market, pushing the entire industry to a higher level of development in a more sufficient market competition.

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