Data-driven is the future of the auto industry

In 2022, the automobile industry defied the pressure of the supply chain and overcame numerous difficulties to achieve an upturn in production and sales in the second half of the year, demonstrating strong resilience. The 2022 China Automotive Forum, known as the "Davos" of the automotive sector, was held in Shanghai from November 8 to 10. As a top event in the automotive industry, China Automotive Forum has been successfully held for 11 years since its inception in 2011, and its influence is increasingly extensive.

This year's forum is hosted by the China Association of Automobile Manufacturers with the theme of "Gathering strength, Moving Steadily and Building Momentum for a New Journey". Government leaders, international industry organizations, leaders of major auto companies and new power companies gathered together to explore ways to stabilize the growth of the industry. Autohome, as an official partner of the conference, is here to bring you the wonderful views of the participants. At the China Automotive Forum 2022, Ma Zhenshan, Executive Vice President of Chery Jaguar Land Rover Automotive Co., LTD., Executive Vice President of Joint market Sales and Service Organization of Jaguar Land Rover China and Chery Jaguar Land Rover delivered a keynote speech. The following is the transcript:

I have worked in the whole automotive industry chain, but now I still need to continue my study in the age of electric. Why? The whole connotation has changed dramatically.

This graph is actually one of those of us who study consumer purchase analysis know, what does it mean when there's a huge turning point between the first purchase and the trade-up purchase? If we look at 2022, the position of initial purchase and additional purchase is reversed. Why? In fact, the market dominated by purchase and increase is not just needed, it must be innovation-driven. When a car is available, I can change it or not. If a new car is attractive enough to me, I will change it, but if not, I will not change it. This is one of the reasons why China's auto market has entered the stage of single-digit or even negative growth. We have to know where we are in the market.

At this stage, the penetration rate of new energy is greatly developed, and the electric vehicle must be the traditional energy. In such a market, everyone feels "internal volume", there are few internal volume, parts and Oems are internal volume, there is no way, this is the reality. What to do? I think to get out of such a dilemma, the theme of today's sub-forum, "brand" may be the only two words that we can find the answer in the era of internal volume in the future.

The penetration rate of new energy, whether in first-tier or second-tier cities or small cities, shows the same rising trend, indicating that the whole new energy is popular. In fact, new energy has some characteristics such as fuel saving, convenience and driving speed. We see that everyone is developing, and the whole unilateral benefit is in the initial stage. At present, the whole dealers still basically rely on the pre-sale gross profit to operate, and the return of the dealers actually does not contribute much to the profits.

Think about a question, in this era, whether as an OEMS or parts supplier, you must think about something? Because The Times are changing, the attributes of cars are changing. Although it does not have the characteristics of FMCG like the complete realization of FMCG, it has the characteristics of fashion, FMCG and traditional cars. How to change the Oems, what to base on, how to choose the brand, how to choose the technical route, especially how to change the organizational efficiency, are facing the pressure of survival.

In the era of internal volume, it is very difficult for new energy vehicle enterprises to achieve operating profits. Parts enterprises are also facing the same problem. Traditional parts are undergoing tremendous changes in organization and division of labor, which is also a great test for parts.

Here is an example, including the governance structure of automobile enterprises is a test. In such an era, competitive products emerge repeatedly, enterprises can not make mistakes, including the choice of technical route, including the choice of brand. To give a few examples, in fact, there are still a lot of car companies do not have the main designer of product modeling, customer-centric is not easy to be said by anyone, this is the biggest problem. In this era, we need both persistence and innovation. How to strike a balance? This includes our product launch, our product strategy actually at the most important point, how do we define that? These are all areas where traditional enterprises are excellent. However, in the current era of electric vehicles, we should stick to them and make innovations at the same time, including the theme of "brand" and culture.

It is also a huge challenge for components. Under the premise of hardware structure, software controls the hardware of the car. How can we cooperate? It is also a huge test for components. I have also looked up some information and found that there are eight major factors for the competition of automobile enterprises in the future. If traditional automobile enterprises are products, brands, scale and systems, then users, ecology, capital and innovation should be added in the new energy era. That is to say, when these dimensions are added, it is possible to basically ensure that the enterprise does not make mistakes.

For example, the capital chain is continuous, the technological innovation is guaranteed, the ecology can support your development, and the user's thinking can be reflected. According to such an element of competition, we can empower these, which is also a reflection, that is to say, the development of enterprises should not be chaotic, even if innovation must have a basic basis to follow.

This is the smile curve of the new energy era, showing that our future manufacturing links may be low-value creation links, and the future must be in algorithms, software and core hardware. Each enterprise should construct its own competitive advantage according to such a pattern.

Here the core talk about the brand, today is the brand forum, talking about the brand is actually can not catch, can not touch, in fact, is to create huge wealth. Today's forum said an internal point of view, 300,000, 400,000, 500,000, 600,000 is not the heap, nor the heap algorithm, the test is the long-term doctrine of the enterprise, the test of the brand construction system ability, the test is the perseverance of the enterprise investors. From this point of view, the brand is not an overnight success, it must be the "constitution" of the whole company, under the leadership of the brand, the company's values, the company's technical route, the cost of technology, the supply chain is such a test. This is my thinking, the whole brand runs through the whole value chain.

In the industrial age and the era of traditional fuel oil, brand emphasis is still on cognition. Now is the digital age, and the future is the era of intelligence. It must be feeling or even embedding and symbiosis. From this point of view, we can basically judge the future direction, the intelligent era is embedding, is symbiosis, is seeking dependency. Because the core of brand is emotion, it must be the whole scene experience, is a lifetime ecological end-to-end experience, which is a future trend we believe brand development. If we do not understand this process theoretically, it is meaningless for us to stay at the level of slogan and VI for brand experience.

If traditional development is a series, the future is likely to be data-driven. I put forward a point of view that if you want to become a strong brand in the future, the first prerequisite is that the enterprise must realize the whole digital transformation. From your development, production, manufacturing to marketing, you must realize data-driven and self-driven through the introduction of customers, so that your products and your brand can be born in this ecological environment.

I'm a big fan of this model, the three-wheel drive model of brand strategy: value, culture, relationship. Value, which is easy to understand, is useful. For example, the value of our products and whether the technology of our products can produce disruptive innovation have a strong support for the brand structure. Monolithic die casting, for example, is a disruptive innovation.

Culture, the whole culture is representing our values, our beliefs.

Relationship, the hottest ESG right now, is to the entire enterprise, to talk to the outside world, let the outside world understand, recognize your value, support. That's the core idea. Faith is at the bottom.

In the future, in addition to the strength of traditional luxury, including top-level experience, including attraction and values, I'm afraid electric luxury will also introduce all the experience of science and technology, intelligent technology and lifestyle.

I would like to introduce the innovation points of Jaguar Land Rover in the world. The chief brand officer is responsible for all the touch points and experience of the five senses of all customers, including the shape of product development, including materials and functions, and all the touch points of traditional marketing, online and offline, including experience. The chief Brand officer is responsible for all customer experiences. Only in this way can we ensure the realization of a true customer-centric philosophy.

In this era of internal volume, I think we can only survive if we find our way out from the brand. Porter's strategy, cost leadership, differentiation and focus, brand is focus differentiation. In the future, the quantity may take the cost route, and the remaining brands will take the differentiation strategy.

Jaguar Land Rover, like the current Range Rover, also reflects the brand building achieved under the concept of new modern luxury. For example, under such a brand concept, all processes and materials are subject to the brand, and even the shape of the whole body and the shape of the lamp are bound with the same element to achieve the consistency of the whole brand. Brand is definitely not a slogan, must be in the whole action plan to achieve.

To sum up, the current is a new energy transition, there is pressure, but we must find the vitality.

The competitive factors of Oems and parts factories are being restructured. Who knows what the future holds? But you have to iterate. Economies of scale continue to underpin the strategy.

Value - driven, culture - driven, relationship - driven will be the three pillars to win a strong brand; Automobile enterprises are facing digital transformation, and data-driven becomes the future, linking the C end and the B end; As long as we adhere to the ecological logic of brand diversification, every brand has a foothold; Brand charm is the core technology, to have concentration, uniqueness and unique attraction.