Automotive manufacturers began to lay out the secondary and tertiary markets
November 14, 2022
Wal-Mart announced on April 4 that it will open more than 50 new stores in the United States in the next two years in a relatively poor living environment. 60 years ago, Sam Walton used a $5,000 short-store Wal-Mart in a remote town in the western United States and now stands at the top of the pyramid with annual sales of more than 263 billion US dollars. Its success rule is that it was despised by its opponents. The "rural route" was later hailed by the industry as "the Wal-Mart effect."
Today, the domestic automobile manufacturers' network layout plans have also started to develop the secondary and tertiary markets as the next round of focus. Because, if you ignore China's vast number of small and medium-sized towns and rural markets, it is likely to lose the future. The Walmart effect will also appear in the Chinese auto market...
In the automotive industry, there is no clear concept of market-level division, but generally the small cities in the “Three Economic Circles” of the Yangtze River Delta, the Pearl River Delta, Beijing-Tianjin-Tangshan, and the surrounding radiation areas, and the suburbs and surrounding counties and cities of major cities. As a secondary market, small and medium-sized towns and rural areas are classified as tertiary markets. In the past few years, the secondary and tertiary markets have only been regarded as "potential shares." Today, more and more manufacturers have begun to regard them as genuine "blue chip stocks." This is due to the fact that in recent years, the secondary and tertiary cities' automotive market has become The development is very rapid. According to statistics from the National Information Center, last year's secondary market represented by Jiangsu, Zhejiang, Shandong, and Guangdong increased automobile sales by about 40%, far higher than the national average of less than 15%. The relevant survey also showed that the top 10 cities for household car consumption are Dalian, Yuxi, Zhuhai, Kunshan, Chengdu, Xiamen, Wuxi, Changsha, Ningbo, and Suzhou. Most of them are second- and third-tier cities. The use of the car environment is also more advantageous than the big cities.
An economist's words are intriguing: "Do not forget that American family cars are more rural." This is more realistic for China with a population of 900 million people. In 2004, the per capita net income of farmers in Zhejiang reached 6,096 yuan, in Jiangsu, 4,840 yuan, and in Guangdong, 4,350 yuan. With the rise of the private economy in the Mainland, the development of township and township enterprises, and the increase in business and entrepreneurial farmer households, micro-facility, micro-cards, light passengers, low-end SUVs, and pickup trucks are suitable for rapid transit in vast rural markets. Become popular, and the pace of economic cars into the small and medium-sized cities in the Mainland is equally unstoppable. Therefore, since last year, major auto brands have set strategic sights in the suburbs of major cities and district/county level two and three markets. A new round of competition from “urban to rural” is quietly taking place.
The secondary and tertiary markets have become an important driving force for the Chinese auto market, and will also affect the layout of auto makers in the future. Due to the urgent need for a large number of low-cost energy-saving vehicles in the secondary and tertiary markets, there is no doubt that micro-cars and economic vehicles have provided opportunities for development. The price of 50 thousand yuan, the maintenance of low-cost micro-cabinet, micro-surface can be the most affordable consumers in the second and third-tier markets. Economic cars under 100,000 yuan have also begun to bend down to the second and third-tier market segments. For economy-conscious small and medium-sized cities residents and farmers, fuel saving is undoubtedly the biggest appeal. Therefore, it is also reasonable for small-displacement vehicles such as micro-facility, micro-fabric, and economical cars to enter the secondary and tertiary markets first.
It is understood that many manufacturers have begun to accelerate the layout of the secondary and tertiary markets. Dongfeng Motor and Chongqing Panan launched Dongfeng Xiaokang; Chongqing Changfa and Nanjing Changfa launched a new low-cost express train of around 20,000 yuan; SAIC-GM-Wuling continued to strengthen its mini-vehicle strategy and positioned the flagship market for micro-surfaced Wuling Light. The secondary and tertiary markets such as rural areas, county seats, and district-level cities; Tianjin Xiali, despite its apparent appearance, is losing momentum in major cities, but its low price, low fuel consumption, cheap accessories, and mature service network make it a secondary or tertiary market. The road to the market has gone more smoothly.
From the rapid expansion of micro-vehicle production capacity to the centralized launch of new models, this intention of manufacturers can also be confirmed. Earlier this year, Chery, Geely, Gio, BYD, SAIC-GM-Wuling, FAW-Volkswagen, Tianjin FAW, BYD, and Guangzhou Honda competed to increase the production and delivery of mini-vehicles, which all indicated that the manufacturers were The attention of the secondary and tertiary markets is constantly increasing.
China's second- and third-tier markets are undoubtedly a place that can create commercial miracles and dreams. Who can quickly understand the market demand trends, develop and produce products that meet consumer demand, and who will be able to implement the market in the next two or three levels in the future.