Chapter 972 - Differences
Chapter 972 – Differences
Advertising is not enough. Feng Yu also arranged some people to drive Songjiang Genie along the main roads during the morning and evening peak hours.
When most people were going back from work on buses or motorcycles, they saw a Genie zooming past them. This car is very beautiful, and people start to think of getting one.
When posters of Songjiang – Genie were put up at bus stops, there was an increase of customers at the 4S store.
Before the appearance of Genie, 30,000 RMB can only buy an old second-hand car. This car is brand new and is manufactured by Bing City Machinery Company!
This model changed people’s perception of private cars. Private cars are used for transport and convenience. The selling points of Genie is the appearance, color, fuel efficiency, and price. These selling points also affected other Chinese Automobile Manufacturers.
China does not have small cars before? Yes. Alto. This model started production during the early 1990s. But Alto’s sales are very bad, because of their backward technologies and ugly designs. The quality is too bad, and there is a lack of marketing. Despite these flaws, many manufacturers in China are still producing them.
When the manufacturers were contemplating giving up on small cars, they saw Genie’s success. Both are small cars, why is Genie so popular?
The four General Managers of factories that are producing Alto had a meeting to talk about their future developments.
“Their small cars are so many years after us, why are they selling so well?”
“It should be the prices. Our cars are selling for more than 60,000 RMB, and they are selling below 30,000 RMB.”
“What’s the difference between 29,900 and 30,000 RMB? Do you think their customers will mind spending 100 RMB more? This is their gimmicks!”
When the four General Managers were about to give up the small car market, they saw Songjiang – Genie selling well. They sent people to go to visit the sales points in Beijing, Shanghai, and other major cities. Many people were checking out and buying Genie. Even when the craze is over, there will be lots of Genie around. It will be another form of marketing, and more people will buy it.
Genie’s sales should be over 40,000 units this year! What about their Alto? They can’t even hit 4,000 units!
This are the differences between them!
“Old Wu, stop talking about all these. We need to learn from them and see how we can improve our Alto. We are not here to grumble. Other than prices, are there any other reasons?”
“The appearance. Look at them. Their advertisements in the newspaper had gone on for a month, and you can see their advertisements on TV, radio, printed media, posters, etc. everywhere. They should have spent 20 million. If their profits for one car is 1,000 RMB, how long can they get back their capital?”
“Anything else?”
“Of course. Look at their sales channels. Songjiang Motors has more than 100 4S shops across China. We only have a few sales points, and they are located in secluded corners. Who will notice us?”
“I feel the main difference between us is the specs. Their engine is much better than us. The car’s performance is even better than Xiali, and might be as good as Citroen.”
Xiali and Citroen are common cars on the streets because they are used by Taxi companies.
After some discussion, all of them kept quiet. Technology is their major flaw. If they have good technologies, the gap will be closed.
The few leaders thought for a while and decided to start from the appearances. It would be better if they can lower their production cost. If they still can’t make improvements, two or three out of the four factories will be closed.
……
“What the hell is the technological department doing?! Look at Bing City Machinery Company! They can introduce new models every year, and you all can’t even design a new car? What’s the point of telling me that we had learned overseas technologies? Are we going to buy technologies from others in the future? Why are we paying you?” SAIC’s General Manager Niu shouted at his Chief Engineer.
“We can also introduce a new model, but we will not have the competitiveness. A new model requires marketing, and we need to recalibrate our production lines. At the minimum, the outer appearances must be different. We had designed a new car last year, but that project is axed!” The Chief Engineer replied.
Our breakthrough on the engines is not considered results? We had also made breakthroughs in other areas. How can you say we are not improving?
Stop comparing us with Bing City Machinery Company. They invested lots of money in their R&D every year, and have three research centers working together. What about us? We only have one R&D center, which is much smaller than them, and we lack funds! How do you want us to develop new technologies without money? We can’t even afford to conduct experiments!
“You are full of excuses! Have you all reversed engineered their Genie? Are we able to manufacture it? How much is the production cost?”
“We cannot build the three cylinders engine and turbo technologies. If we are going to produce small cars, our production cost will be at least 40,000 and the performance will be worse than them. There is no way for us to compete with them.”
How did Bing City Machinery Company lower the cost to around 20,000? The difference is almost 30%.
“Never mind. We will be introducing the Audi A6 this year. Your technology department must buck up. We will double the development funds this year. If we still can’t introduce our model, I will fire you!” Manager Niu waved his hand impatiently.
Damn! Li Mingde will be in the limelight again!
Just when the automobile manufacturers thought Genie only has this cheap model, they introduce a new version that cost 49,900 RMB. This new version’s interior is more beautiful, and more importantly, this model is using Automatic Transmission!
This model is China’s first own automatic transmission car, and it is a devastating blow to the other Chinese manufacturers. They have no way of catching up with Bing City Machinery Company. This was when the other manufacturers realized their differences in technologies.
The other automobile manufacturers were puzzled why Bing City Machinery Company used such advanced technology on a budget car.
This pricing is also one of Feng Yu and his men’s tactics. Using automatic transmission will increase the Genie’s status and can test out this technology at the same time. These were to prepare for their Songjiang Olympic Automatic Transmission model.
After the automatic version of Genie is launched, more people took note of them. In the future, this model of the car will also be known as ‘Mistress cars.’
Translator’s notes: I am not sure why small cars are known as mistress cars in China. Maybe men in China will buy small cars for their mistresses.