I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 525 355-356: Gao Ling Wen Jie sales are out! (4000 words)
The best SUV under 1000 million!

This was a joke that Gao Huaijun made before Hillhouse Wenjie's car was launched on the market.

Although it seems that its benchmark product is definitely not a super luxury car of the level of Rolls-Royce Phantom.

It’s not a luxury car like the Fengtian Alpha.

However, it is indeed the largest SUV around 500,000 yuan in the total price range.

A 1.8-meter-tall man stood next to the car. He didn't look petite, but he certainly didn't look very tall.

Therefore, Gao Huaijun did not hesitate at all when it came to creating a sense of space.

You have a luxury car, but in order to save ten or twenty thousand yuan in costs, it becomes smaller and smaller.

That is actually not the mentality of an investor, but more of the thinking of a professional manager, who is thinking about maximizing the profit of a car.

But in fact, doing so will not maximize the profit of a car.

For Hillhouse Capital, this car actually has a high degree of overlap with the actual customer groups of Porsche and Maybach.

Its customer base is actually between 35 and 50 years old. They like driving big cars, high configurations, and high-luxury products.

More importantly, I like to follow the latest trends!
Gao Huaijun is targeting such a consumer group, and the initial original customer group will definitely not be those with conservative personalities.

Conservative people will definitely not accept an electronic technology brand like Hillhouse.

And more of them are groups that hope to try something new.

However, even with this attempt, Gao Huaijun does not think that sales will improve much. It would be good if he could achieve a level of around 10,000 units.

However, it is obvious that he completely underestimated the disruptive impact of driverless technology on human senses!
Compared with the Hillhouse Wenjie, many actual users of luxury cars feel that the cars they are driving now seem to be still stuck in the 20th century!
what the hell!

In this world, there are cars that are so awesome.

Therefore, the violent cleansing of the luxury car market began in July 2018, a few years earlier than in Gao Huaijun's previous life!

"The sales volume is so strong? Are you sure the calculation is correct?" Gao Huaijun looked at the July financial report handed over by Wang Fengying with some disbelief, with a trace of disbelief on his face.

"Mr. Gao, don't worry. The people below won't have any intention of doing anything with these cars." Wang Fengying said with a smile on her face.

Gao Huaijun nodded.

But even so, he still felt very surprised.

This month, we placed a direct order for 5 cars!
He simply couldn't believe it.

You know, this is a large SUV worth 10 yuan, not an ordinary car worth more than yuan.

Fifty thousand cars, that’s a sales volume of 250 billion.

This single car alone can reach a market value of hundreds of billions.

What is this concept?

This means that if Hillhouse develops just one of its cars well, it will very likely be able to rank last among the Fortune Global 500 companies.

What a terrifying product power!
What a brutal way of cleaning the market!
Gao Huaijun has already anticipated that in the next few months, sales of BBA, Porsche, and super luxury models such as the Rolls-Royce Phantom, which are priced above 500,000 yuan, will not be very good.

Because, in the market for luxury cars priced above RMB 500,000, whether it is SUVs, high-performance sports cars, off-road vehicles, MPVs, etc., the annual sales volume is just over 500,000 units, but less than 600,000 units.

Now Hillhouse has placed orders for 50,000 units in one month, and the products will continue to sell well in the future.

The NPS (Net Promoter Score) of good products will continue to increase.

These buyers are from a certain circle of people, and they will definitely tear a big hole in the luxury car market.

By then, it won’t be as simple as 50,000 units!

In a year, 150,000 units, easily.

In other words, about a quarter of the luxury car market share will be taken away directly and violently by Hillhouse Capital.

The impact this will have on the domestic luxury car market priced above RMB 500,000 is huge!
what does this mean?
This does not mean that all luxury cars will have their share taken away equally, one quarter.

It is certain that some people get more and some manufacturers get less.

Will some car manufacturers be forced out of the Chinese car market?

This is obvious in the future Chinese luxury car market!

However, even if luxury car brands are not forced out of the Chinese market, they are not safe.

And it will definitely be a huge blow!

Lowering prices is the most basic thing.

It is even possible that the price may drop by more than 20%, which is very normal.

Luxury cars have always had very high profits.

For a car worth 500,000 yuan, if the profit is cut in half, then those are all conscientious players.

It is outrageous that the actual manufacturing cost of a Porsche Cayenne is less than 20% of the sales price!
This car has been sold for a very long time and has not been updated for a long time, so the R&D costs have been spread to the point of being zero.

Where else can you find a company like Hillhouse that employs a large number of R&D personnel, or even a large number of PhDs in the field of artificial intelligence?

The money from foreign bosses, the money from various suppliers with connections, the money from 4S stores, and so on, when it comes together, everyone lives a very comfortable life.

But if Hillhouse Capital continues to play the game like this, how can you raise the price of Cayenne?
How can you cheat on the IQ tax?

There's no way to play like this!

Gao Huaijun had already sensed the nervousness of other friendly competitors.

As an outstanding Chinese brand car, it has successfully broken the Chinese people's inherent perception of car brands.
With its excellent performance, exquisite design and advanced technological configuration, it demonstrates the rise and strength of China's automobile brands.

This was unimaginable in the past.

The big cake of China's luxury cars is already clearly visible.

It's going to change!

Simultaneously.

The data from Hillhouse shows that this car is quite successful.

The ones who are most shocked here should be other car companies, especially imported car companies.

After so many years, there is finally a company that truly studies the needs of its target customer group and then produces cars.

This strategy of thoroughly understanding the target customer base is the first time it has appeared in the product line of a Chinese car company.

In the past, Chinese car companies’ approach to car production was basically to follow the strategy, basically imitating an overseas company and learning from it.

Imitate a car with high sales volume, and then compete on cost. Now, Hillhouse Wenjie has positioned its target customer group and target pricing range from the very beginning, and then started to design and produce models for this part of consumers, without paying attention to external voices - Internet noise, which has made this car successful.

This business approach of becoming an industry leader in one go and being able to achieve high quality is truly shocking.

This is the difference between imitation strategy and leadership strategy. Chinese auto companies have never had this strategic level of play before, and they did not know how to do it, so they failed.

With sales of 50,000 in the first month, this approach has proven to be successful. The confidence and ambition shown by this approach has shocked everyone.

Including Gao Huaijun himself!
"I myself find it hard to imagine that this car can sell so well."

"Don't worry if you laugh at me, Mr. Gao. Many suppliers now don't want to be paid. They hope we can directly pay for the vehicles, and they specifically want Gao Lingwenjie. The more the better."

"This is against Tian Gang's will."

Wang Fengying said with a helpless smile.

She used to work on long distance and loved doing this.

It's just some payments for goods, instead of paying in cash directly, they are paid directly to the supplier.

One is to solve one's own sales targets, and the other is to let one's suppliers help one experience the products so that if there are any problems, they can be corrected in time.

But the main purpose is still the first one.

Who would use the most precious cash flow when you can use your car to pay the bill?
Naturally, those suppliers would not agree to that and would rather delay the delivery than have the car.

What do you need so many cars for?
After getting it, you have to sell it to a used car dealership and sell it at a discount. It’s so troublesome!
Now, they don’t want cash, they just want the car.

And this phenomenon is not just one or two isolated cases, but almost all suppliers want to do this.

According to Wang Fengying's explanation.

Now it is the market outside, and Hillhouse Wenjie is a hot commodity.

However, Hillhouse’s production schedule is far from enough!
According to estimates, they think this car can only sell 8000 units a month at most.

After all, it is a car worth more than 500,000 yuan, and it has to compete head-on with brands like BBA and Porsche.

So in terms of production capacity, we set a target of 10,000 units per month.

And you can reduce it at any time.

Now we have received orders of 50,000 units in just one month!

This has caused Hillhouse to owe a lot of money.

So, these suppliers also came to their senses.

One is that Hillhouse Capital is now the hottest topic among the wealthy circle. For suppliers, it would be very prestigious if they could get ready-made cars and help their friends get a few.

The second is that Hillhouse’s production capacity is so tight now that it will definitely give priority to customers and is reluctant to meet the needs of all suppliers, so the number of cars it can deliver will be very limited.

what does this mean?
It means scarcity!

Isn't this just a way of showing off without spending any favors?
If you don’t show off when buying a car, isn’t that like walking in the night in fine clothes?
"I used to be quite familiar with one of my third-tier suppliers. We got to know each other when we were in the long-term business."

"He bought a Maybach worth more than 200 million yuan before, but he never showed it off. Now he is pestering me and I can't stop him. I gave him a stock Hillhouse Wenjie."

"This guy chats with everyone he meets now. He insists on asking you to sit with him and show you his smart driving skills."

"It's just like when we were kids, when boys bought Transformers, it was just to show off."

"It's fine if he's just showing off, but he also posts about it on his WeChat Moments every day, which has made the Chinese regional managers of several BBAs I know dissatisfied."

Wang Fengying told some funny stories in a somewhat amusing and helpless manner.

After hearing this, Gao Huaijun first laughed out loud, and then felt a little proud in his heart.

This third-tier supplier is showing off like a kid buying a Transformer.

His circle of friends and influencers are all from the same circle. Not to mention the wealthy ones, they are basically all rich people.

When you see the information about this car.

Are you greedy?
Are you also itching to go to Hillhouse’s flagship brand store for a test drive?
After a test drive, do you want to buy it?

At this time, the net recommendation value has gone up!
There is a huge difference between the luxury car market and the ordinary car market.

In this market, more emphasis is placed on the dissemination of information between people, which is often referred to as introductions from acquaintances.

This group of people are basically very busy and usually do not use online media to familiarize themselves with a product.

Therefore, introductions from acquaintances are the best marketing channel.

What Wang Fengying said was actually on point, as it shows that the marketing of Hillhouse's car is not lagging behind. Its product strength and marketing strategy are both top-notch!
"The cost of this car is about 330,000 yuan, and the unit price is still a bit high." Gao Huaijun muttered to himself after seeing what happened.

The largest cost of this car is the three-electric system: including batteries, motors, and electronic control systems, with a total amount of approximately 13.2 yuan, accounting for approximately 44%, of which the battery pack assembly accounts for a relatively large proportion.

After all, the battery cost is a hard cost and is difficult to reduce.

The total cost is around RMB 34.5, which means that the gross profit margin of this car is %.

Although he knew that the R&D cost of this car was very high, he still felt heartbroken when he saw the gross profit margin.

Other people’s insurance policies cost more than 100,000 yuan per bike, but they can easily sell more than 50 of them.

He is lucky enough. Even though his car has such strong product power, he still sells it for more than 500,000 yuan. Compared with others, the money he makes is so hard to come by!
"The cost of this car is not high. Our hardware is more than one level higher than that of our competitors. We have more than 20 laser radars alone, which our competitors cannot even compare with."

"Moreover, this car has now sold at the same volume as a B-class car. Compared with BBA's X7, Q7 and other products, its total profit is simply not at the same volume level."

"More importantly, after Hillhouse Capital has risen, their products from the 20th century will definitely drop in price. For example, it is very easy for the Cayenne to drop by more than yuan. Their gross profit margin will be much lower in the future."

Wang Fengying is still very experienced, she said over there.

Gao Huaijun couldn't help but nodded.

This is a typical case of making the battle report look good first, no matter what the situation on the front line is!
The current luxury car market is a market where old forces are intertwined.

If you play according to the original rules, you will definitely fall into the trap set by the original players.

Now this pricing seems to be correct.

This is just like the banker in the stock market. He first shakes the market at the bottom, shakes out some retail investors and small hot money, washes the market fiercely, and then rises slowly to enjoy the fattest cake.

The luxury car market is the most delicious market cake in China.

The highest profit margin and the strongest added value.

Not to mention anything else, just the after-sales service alone is incomparable to those cars that are just for basic needs.

Now that Hillhouse Wenjie is selling so well, not to mention others, all the channel partners of Hillhouse Vehicles are going crazy.

This means that they can now get a share of the after-sales maintenance projects that previously belonged to BBA and Porsche!
(End of this chapter)