Recently, Chery released the sales data for 2019. In 2019, Chery Group sold a total of 745,000 vehicles, including 639,000 self-owned brand models, a year-on-year increase of 6.9%, achieving contrarian growth despite the sharp decline in the overall domestic auto market.
The reason why Chery can outperform the general trend against the backdrop of the slowdown in the growth of the auto market is inseparable from a series of strategic layouts it has made in recent years. Whether it is system construction, core technology breakthroughs, product iteration speed, or marketing capability enhancement, Chery is making steady progress and has achieved continuous breakthroughs. To sum up, it mainly comes down to four aspects of “real, fast, stable, and new”.
Reality: system strength support, strong technical strength
The system is the foundation for the high-quality development of an enterprise. Only on the basis of a comprehensive and healthy system can we form high-quality product power and brand power. In recent years, through strategic transformation, Chery has established nine systems including strategic operation, quality management, product management, procurement management, production management, marketing management, financial management, human resource management and IT management, laying a solid foundation for the high-quality development of the enterprise Base.
In addition, Chery Automobile has also created an integrated R&D system that integrates R&D talents and technologies including Chery and joint ventures, and has formed a global R&D base layout covering Wuhu headquarters, Shanghai, Europe, North America, the Middle East and Brazil . In terms of international R&D team, Chery R&D Center has a global R&D team of more than 5,500 designers and engineers, who come from more than 10 different countries.
With the support of the system, Chery achieved a series of core technological breakthroughs in 2019, including core technologies such as vehicle development platform, powertrain technology, new energy technology, intelligent interconnection and autonomous driving.
Chery ACTECO’s third-generation 1.6TGDI engine won the 2019 “China Heart” Top Ten Engines
It was ranked in the “2019 Automobile Patent Innovation Index” released by the China Automotive Technology and Research Center in October. In terms of the overall corporate innovation index, Chery ranks among the top three self-owned brand companies; in the field of intelligent network connection representing cutting-edge technology, it ranks first in self-owned brand cars; in terms of the most “golden” patent quality, it ranks among the domestic The position of the “technical brother” of the car. Strong technical reserves have laid a solid foundation for the enhancement of Chery’s product strength and promoted the enhancement of Chery’s brand and market competitiveness.
Fast: fast product iteration and upgrade + fast market response
Thanks to the development of system construction and platform technology, Chery’s current new product iteration speed is faster, and the development cycle of new products has been shortened from 46 months to 24 months.
The new generation of Tiggo 8
Taking Tiggo 8 as an example, Chery launched a new generation of Tiggo 8 just one year after its launch, which has been comprehensively improved in the fields of power, interior, and intelligence, and has achieved an all-round upgrade of product strength; the main product of the Arrizo series is Arrizo. GX and Arrizo 5 have also achieved new product upgrades. In addition, thanks to the strong accumulation of core technologies, Chery can respond to the upgrade of policies and regulations at a faster speed. Before the national implementation of the National VI emission standards at the end of June 2019, all its series of products have undergone National V and National VI emission standards. The orderly switching ensures the smooth transition of the market and effectively guarantees the market sales.
Stable: stable quality, stable sales, stable channels
Throughout 2019, on the basis of accelerated product development and market response capabilities, Chery’s overall performance in terms of product quality, sales and channels has also become more stable.
In terms of products, this year, Chery’s Tiggo and Arrizo two series of products have been steadily upgraded in terms of design, power, intelligence, interior and exterior decoration, to meet the ever-changing consumer demand. The market performance of major products including the new generation Tiggo 8, Tiggo 5x HERO, Arrizo GX Pro, Arrizo GX Champion Edition, and Arrizo 5 Pro was stable. In the “2019 New Car Quality Survey Report” released by JDPower in the second half of last year, Chery’s brand ranking has increased by 26 places compared with 2018, and it is at the same level as many joint venture brands.
In terms of sales, in 2019, Chery’s two core car series, “Tiggo” and “Arrizo”, performed stably. Among them, the sales volume of the new-generation Tiggo 8 reached 116,494 units, a year-on-year increase of 130.4%; the sales volume of Arrizo series cars reached 124,506 units, an increase of 11.8% year-on-year, ranking among the top sales of self-owned brand cars.
Arrizo GX Pro
In terms of channels, Chery has adopted the strategy of “stable development and structural adjustment” since 2018 to adjust the dealer structure. In 2019, Chery formulated the “Super Deep Sea Plan” in which the first-level network is dominated by quality improvement, and the second-level network ensures vertical penetration. The scale of the network is steadily increasing. In terms of channel management, in 2019, Chery also organized and implemented a series of activities such as the “Forestation Program” and “Qisihui”, which achieved remarkable results. Up to now, the scale of Chery’s first network has stabilized at 500, and the scale of its second network has reached 1,300. At the same time, the dealer’s capacity has been greatly improved.
New: user update + brand renewal + marketing innovation
In addition to being “real, fast, and stable”, Chery’s ability to achieve steady sales growth against the trend in 2019 and reach new highs is also inseparable from innovations in marketing and communication.
Statistics show that in 2019, more than 50% of Chery Automobile’s new customers are young people born in the 90s, and the user structure is further younger. In this context, in order to better communicate with young people, Chery launched a new brand communication theme “i-Chery”, and created a series of products and promotional activities that young people love to see, with a younger image and more open attitude, and accompany nearly 8 million car owners around the world to start a wonderful life.
For example, Chery jointly launched the “Tiggo 5x HER Havoc in Heaven Limited Edition” jointly with Shanghai Animation Film Studio, which has attracted the attention of a large number of young people with its rich national fashion elements, trendy design and impressive strength.
Tiggo 5x HERO
In order to create a different image of young Chery in the past, Chery also invited the popular actors Yang Shuo and Guli Nazha to endorse the new generation of Tiggo 8 and Arrizo series in 2019. Figo’s 5X5 Football League and other activities allow young people to feel Chery’s vitality up close.
Actor Yang Shuo endorsed the new generation of Tiggo 8
Throughout 2019, Chery Automobile also launched a number of experience activities with a scale of 100,000+: “Chery Family Banquet” with 100,000+ people; “Arrizo Spring Sports” with 100,000+ people; The new generation of Tiggo 8 Hundred Cities Public Beta. These activities have further enhanced the influence of Chery brand among young people.
Chery family banquet
Arrizo and friends’ spring sports meeting
New Generation Tiggo 8 Hundred Cities Public Beta
In addition to youthful passion, there is also full of warmth. This year, in combination with its own business, Chery also carried out various forms of social responsibility practices, striving to become a caring and responsible Chinese auto brand. For example, Chery invited celebrity Yang Shuo to visit the First-Class National Nature Reserve of West Lake in Dunhuang, Gansu Province with Chery to conduct the “Przewalski’s Wild Horse and Bactrian Wild Camel Public Welfare Scientific Research”; The “smile” trip to protect endangered animals hopes to arouse the public’s attention and attention to wild endangered animals. This series of marketing measures has made users feel a different Chery.
The “Przewalski Mustang and Bactrian Wild Camel Public Welfare Research and Research” initiated by Chery Automobile
At the same time, in 2019, Chery also developed some emerging channels as an effective supplement to traditional channels. For example, Chery has actively tested new retail this year, and has established new retail partnerships with nearly 30 platforms, including Yixin, Ping An Leasing, Souche, and Postal Savings Bank of China, and launched its first new retail model – Tiggo 7i. While bringing different consumption experiences to users, it is also constantly exploring new paths for car sales.
Chery’s new retail car Tiggo 7i
With the support of digital technology, during the “Double 11” period this year, Chery’s series products ranked first in car purchase orders on the Autohome platform, and ranked in the top three in the Tmall Auto Brand Index. An increase of 156%, setting a new high in double 11 sales.
Based off the line and relying on the Internet, Chery not only creates a more convenient, cost-effective, and trendy new car purchase model for consumers, but also leads the innovation and upgrading of the marketing model of the auto industry and establishes a new ecology of auto marketing.
For Chery Automobile, 2019 is also a year of both sales and brand success. In the face of the wave of consumption upgrades, Chery’s promotion of “real, fast, stable, and new” has revealed its infinitely wonderful and powerful charm. In 2020, Chery Automobile will continue to focus on the new brand communication theme “i-Chery”, link domestic and international superior resources, comprehensively improve user experience from three dimensions of product, technology and lifestyle, and strive to grow into a Chinese auto brand that “breaks the ice” the backbone of the.
