Recently, Chery Automobile and Souche signed a strategic cooperation agreement with the retail business as the entry point. The two parties will focus on the “financial leasing” model, so that more young people can have a wonderful car life in advance, and build a car digital retail All-round cooperation on the platform. For this cooperation, Souche founder and CEO Yao Junhong said: “Chery is both pragmatic and innovative in the exploration and practice of new retail. As a close partner of Chery’s new retail, Souche is delighted to see Chery serve customers. Created new value and set an example for auto companies to seek growth in the ‘cold winter’.”
In recent years, as China’s auto market has begun to become saturated, the competition in the first- and second-tier markets is fierce, the growth rate of auto sales is slow, the third- and fourth-tier markets are difficult to sink, and the cost of acquiring customers for dealers has risen. At the same time, the saturation of the auto market in first- and second-tier cities has also ushered in new opportunities for third-, fourth-, and fifth-tier cities. It has become a major trend in the current auto market to sink channels into third-, fourth-, and fifth-tier cities.
Faced with the current downward trend of the automobile consumer market, Chery has focused on the development of the secondary network in the past two years, launched the “Super Deep Sea Plan” to ensure vertical penetration, and encouraged the sinking of various channels to penetrate the county and district markets. The scale of Chery Automobile’s second network is maintained at around 1,300. The cooperation between Chery Automobile and Souche can further accelerate the penetration of Chery brand in regional markets.
Based on the understanding of young users, in November 2016, based on the open platform of Ant Financial, Souche launched China’s first “[10% down payment, first rent and then buy]” new car retail platform – Dan Geche, as an emerging car On the new retail platform, young people under the age of 30 account for half of the users who buy a car. Its flexible car purchase model of “10% down payment, rent first and buy later” has greatly lowered the threshold for young people to buy a car. Combined, the consumption power of young people can be further released. Therefore, the cooperation between Chery and Souche is also a continuation of Chery’s brand rejuvenation strategy.
At the same time, Chery Automobile, which has been adhering to the vision of “creating an excellent brand with ingenuity”, is also transforming towards younger, smarter and more connected consumers for young consumer groups who have grown up in the digital environment. On the one hand, in terms of new product design, it is more youthful and fashionable, and at the same time, a large number of the latest cutting-edge intelligent interconnection technology is applied, so that the young and new generation who dare to try new things can fully enjoy the driving experience in the digital age. On the other hand, in terms of marketing, vigorously build a digital marketing system, strive to maximize the “funnel” of consumer customer acquisition data, simultaneously pursue the precision of marketing activities, and the sceneization of online experience.
This strong alliance with Souche will further assist Chery’s channel sinking strategy and further strengthen its coverage of fourth-tier, fifth-tier and sixth-tier cities and below markets. It is understood that Dangeche is actively deploying offline community stores. As of now, there are more than 5,500 Dangeche community stores, covering 31 provinces, 325 cities, and 2,079 districts and counties. It is currently the fastest-growing and largest community car sales chain system in China. In the next three years, Dangeche will also complete the national high-density network layout, and finally realize that one store per 10 square kilometers will cover the urban population of China.
It is worth mentioning that on June 28, the first product Tiggo 7i launched by Chery Automobile New Retail was sold in ICBC, Postal Savings Bank of China, Ping An Bank, Autohome, SF Express, Yixin, Dasouche, Youxin Under the witness of 12 platforms including Xinxin, Tuanche, Peanut Haoche, Suning Automobile and Dianchedi, it was officially launched. As the beginning of Chery’s new retail, Tiggo 7i has an official guide price of 115,800 yuan, is equipped with a 1.5T engine that meets the National VI standard, and has achieved a number of configuration upgrades. At the same time, Chery Automobile provides triple car purchase privileges for the Tiggo 7i model.
This cooperation with Souche will further expand Chery Automobile’s sales network and channels, enrich application scenarios, cover users more accurately, and effectively solve the marketing blind spots under the traditional model. To bring users a more standardized and convenient car purchase platform. For consumers, it can reduce the non-monetary costs in the process of choosing and buying a car. And it can save the time and energy spent on searching, asking prices, comparing models, etc.
This time, Chery Automobile and “Souche” jointly explored the new retail of automobiles, which not only led the innovation and upgrading of the marketing model of the automobile industry, but also further boosted Chery’s sales growth in 2019.
