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Targeting the Fortune Global 500, Huang Zhaogen explains the path to stardom "upward and into the future"

2024-08-27

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In April last year, Xingtu Motors officially launched its new energy product series, Xingjiyuan. Among them, the debut of Xingjiyuan ES, Xingjiyuan's first medium-to-large pure electric sedan, quickly attracted widespread attention. On August 21, Xingjiyuan ES 2025 was officially launched, and the starting price of 195,900 yuan attracted countless attention.

At the launch event of the new car, Yin Tongyue, Party Secretary and Chairman of Chery Holding Group, said: "Building a number of recognizable luxury brands around the world is the only way to become a powerful automobile country, and it is also Chery's long-term strategic goal. Star Era, in particular, must take on this mission."

As for Xingtu Automobile, since it has been praised by Chery as the "Pearl on the Top of the Pyramid" and is also an important tool for Chery Group to "rise to higher dimensions", what kind of strategic planning should be used in the future development process has naturally become a focus of attention.

Brand Upward Adhere to Long-termism

In early August, after Chery Group entered the Fortune Global 500 for the first time, Yin Tongyue, Secretary of the Party Committee and Chairman of Chery Group Holdings, put forward a new requirement for Xingtu - to become one of the top 500 brands.

Huang Zhaogen, assistant to the general manager of Chery Automobile Co., Ltd. and general manager of Xingtu Marketing Center, believes that brand building requires a long-term process and cannot be achieved overnight or through a marketing event or an activity. "My understanding is that brand, products and technology, users and terminal experience form a closed loop, and it can slowly form its own brand."

Huang Zhaogen admitted that although the strategy sounds complicated, for Xingtu, its core is "firmly moving forward". He further explained that the "upward and future-oriented" strategy summarized by the Xingtu brand includes two levels: one is the comprehensive upgrade of the brand, products and people, and the other is the new energy transformation for the future.

Huang Zhaogen pointed out that from January to June this year, the average selling price of the Xingtu brand has reached 195,500 yuan, a significant increase over the same period last year. In terms of user structure, the proportion of civil servants is as high as 38%, showing that the influence of the Xingtu brand in the high-end market is gradually increasing. At the same time, with the launch of new energy products, the number of Xingtu channels and the proportion of new energy are also growing rapidly. It is expected that the proportion of new energy will reach 70% in the second half of the year. This indicates that the Xingtu brand has gradually shifted from mainly fuel vehicles to mainly new energy vehicles.

When talking about the future development direction, Huang Zhaogen said that the new energy field will be the key to the qualitative leap of the Xingtu brand. He revealed that the primary goal this year is to make the monthly sales of Xingjiyuan ES and ET exceed 10,000 units. In the long run, Xingtu hopes to increase the monthly sales in China to more than 20,000 units by continuously launching new products, and plans to achieve monthly sales of 10,000 units in the international market, and eventually achieve the goal of annual sales of 300,000 units, laying the foundation for a luxury brand.

In terms of user structure, the Xingtu brand will continue to expand upwards and attract more high-end users. Huang Zhaogen shared a set of data: in the first half of this year, the proportion of teachers and civil servants has risen to 38%, and the proportion of Xingjiyuan car owners who have owned or are currently owning BBA brands has reached 9%. In addition, the average age of Xingtu users has dropped by 5 years compared with last year, showing that the brand's appeal to young consumer groups is increasing.

Double improvement of technology and brand value

In order to enhance its brand competitiveness, Xingtu has also made great efforts in the field of technology. Huang Zhaogen introduced that Xingtu has successfully established a technologically advanced image through a series of technical marketing activities, such as high-altitude drop tests and cross-collision tests, and has established the three major technical labels of "safety, intelligence, and long endurance".

At the same time, Xingtu also focuses on enhancing its brand value by injecting more emotional and cultural elements into the brand through red-themed press conferences, model shows and other forms.

Huang Zhaogen stressed that in addition to products and technology, service experience is also an indispensable part of building a high-end brand. He pointed out that Xingtu's terminal sales experience still has room for improvement and needs to better meet the growing needs of users.

To this end, Xingtu is actively learning industry best practices, such as the service models of companies such as Pangdonglai and Haidilao, to enhance the team's service capabilities. In addition, Xingtu has also launched service projects such as quality lunch and quality afternoon tea to improve user experience.

Star Era ES has a "magic weapon for winning"

Although Tesla Model 3 has performed well in the mid-to-large electric sedan market, this market segment still has a lot of room for development. Jin Xin, executive vice general manager of Xingtu Marketing Center, pointed out that the sales of Xiaomi SU7, Zeekr 001 and other models have been growing steadily, which also provides a good market opportunity for Xingjiyuan ES.

"After the 2025 model of Star Era ES is launched, the first step must be to gain a foothold, to stabilize at an average level of around 3,000, and then enter the top three. There will be an extended range at the end of the year. So my goal and ambition is not just to meet a passing line, but to move into the top three, with sales close to 10,000."

It is worth mentioning that at the press conference, the Star Era ES 2025 model targeted BMW 5 Series and Model 3 as its competitors, rather than popular models such as Xiaomi SU7 and Zeekr 007. Jin Xin explained that this was mainly based on user research and market competition. "The BMW 5 Series enjoys a high reputation in terms of handling and comfort, and is an ideal choice for many users. As a market benchmark, Model 3 is also highly recognized for its intelligence and endurance performance. The Star Era ES 2025 model has been fully upgraded in terms of intelligence, handling and comfort, aiming to provide users with a driving experience that surpasses these two models."

In addition, Jin Xin further elaborated on the "winning magic weapon" of the Star Era ES 2025. He pointed out that the model is positioned as an elegant sports sedan, focusing on controllability and intelligent performance. In terms of product strength, the Star Era ES 2025 has achieved significant improvements, especially in terms of intelligence. In addition, the red theme design also adds more emotional value to the model, attracting more attention from young family users.

Huang Zhaogen added that the Star ES 2025 model has made great efforts in appearance, intelligence and control. From the bright body color to the standard headlights, electric rear wing and other configurations, it shows that Starway has a deep understanding of the needs of young consumers. At the same time, the model has also achieved industry-leading levels in terms of intelligence, bringing users a more convenient and safe driving experience.