From knock-off old-man's electric vehicles to industrial giant

Chapter 28 Xu Yi: Am I surrounded by competitors?

"Mr. Xu, good news..."

"Our updated model has received excellent feedback offline, earning unanimous praise from consumers. In particular, the 'Starry Sky 02,' priced at 28,000 yuan, has sold even better after the increase in range, and its sales once surpassed those of the 'Starry Sky 01'!!"

Inside the meeting room, everyone was very excited.

thought.

Consumers in this price range are extremely price-sensitive.

At least that's how they perceive it.

If you've already bought a car worth 20,000 yuan, it's understandable that you'd be "sensitive" to prices that are a few hundred or a couple thousand yuan cheaper.

This is also the case, according to feedback from offline dealers.

Many people originally had no intention of placing an order, but because of the store's test drive event, which included a free umbrella costing a dozen yuan and a readily available thermos, they were willing to make the trip.

Ultimately, quite a few people decided to place an order.

The strategy of "giving away eggs" is always effective in lower-tier markets.

Just according to convention.

The entry-level model of a product is often the best-selling one.

The entry-level model is cheaper, making it the most affordable option for consumers.

This can be seen by looking at other car companies.

There's no car model where the top-spec version can outsell the standard version.

This is common sense in the industry.

But they, Xingchen, actually did it.

The Starry Sky 02 is priced higher, and after the self-developed motor rolled off the production line and a series of production line optimizations, its gross profit margin has increased to a new level.

Xu Yi looked at the excited crowd and smiled without saying a word.

This sales ratio is roughly the same as his previous prediction.

It's completely under control.

obviously.

The concepts of "performance ratio" and "cost-effectiveness" are not yet widely recognized in the industry, so this might seem surprising.

The fundamental logic behind consumers' purchases is not simply seeking cheap deals.

To put it simply...

Is a car that costs 20,000 yuan cheap?

Very cheap!
But there are plenty of cars on the market, including cars priced at 18,000, 15,000, and even less than 10,000.

Aren't those cars cheap?
What consumers care about most is—

The concept of "performance ratio" is being able to buy the most things with the least amount of money.

Admittedly, the Starry Sky 01 offers very generous features as an entry-level model.

The Starry Sky 02, as an advanced model, boasts a longer battery life, a more user-friendly large entertainment screen and reversing camera, and a deliberately extended interior space by ten centimeters.

These are things that consumers can see at a glance.

Moreover, it's the kind of configuration that's more likely to attract the attention of ordinary people.

The price is only six or seven thousand more than the Starry Sky 01.

Many people have a "one-stop shop" mentality when buying things.

This is especially true for products designed for long-term use.

Don't those who buy cars like the features of flagship models?
The main reason is that some cars have an entry-level price of only 120,000 to 130,000 yuan, but the top-of-the-line model can cost as much as 200,000 yuan.

Some luxury brand cars, the entry-level base model costing 200,000 yuan, can reach 400,000 yuan when fully equipped, a staggering doubling of the price.

This pricing strategy has emerged.

This is mainly due to different production strategies.

For manufacturers, producing the base model is the most efficient and efficient way to utilize the production line.

Higher-spec models require separate assembly, and custom paint jobs require separate painting, which increases production costs.

In addition, the procurement quantity of high-end components is lower, and the supply chain does not have large-scale production, so prices cannot be suppressed.

In addition, some manufacturers deliberately align "high-configuration pricing" with "high-end brand image".

Various factors have led to the premium price of fully equipped models.

It seems so.

Those who are willing to spend almost double the price to buy a fully equipped model are the true fans.

On the manufacturer's side, however, there were too few customers willing to buy the fully equipped model, and they needed to accumulate more orders before starting production, so they decisively postponed its production.

The most frustrating thing is that some high-end parts are not available at 4S stores, so if a user has a problem and needs repairs, they have to wait for the original manufacturer to send them.

What should have been a few days of car repairs took half a month to get the parts. So—

A bizarre phenomenon has emerged: "I paid twice the money, but the quality of service I received was worse than that of a roadside stall!"

Ultimately, the problem stems from an inefficient supply chain and outdated strategies.

When a large number of domestic car manufacturers emerged, they brought the same approach used to sell mobile phones online to the automotive industry.

Many leading new energy vehicle brands have even sold the same number of high-end flagship models as entry-level models.

By reducing the price gap between entry-level and flagship models, increasing the proportion of self-developed original components, dividing the total configuration into two to three fixed levels, and making advance production line layouts, production costs can be significantly reduced.

And now.

Xu Yi simply copied a small portion of the strategy and tactics.

Have all the old models been cleared out?

Xu Yi asked.

Their cars sell very quickly offline, with almost no inventory.

However, the transition between the old and new models must be done well, otherwise it is easy to lose consumer goodwill and turn what should have been a good thing into a bad thing.

Yu Nian said, "As you said, the old model was discounted by 1,200 yuan. For customers who bought it before and came to the store to inquire, the dealer gave us an extra maintenance service as compensation."

This is a discount offered by the factory.

The manufacturer covers the costs of discounts and maintenance, so consumers naturally won't refuse promotional offers on older models, and those who have already bought them won't object to receiving some compensation.

After all, the microcar market has always had a faster pace of product updates and replacements than the traditional car market, and it lacks the established market rules of traditional companies.

It's common for some small factories to be selling cars one day and then disappear overnight with their shops the next.

Currently, weekly sales of four to five thousand units are not even Xingchen's limit.

The positive market feedback has put everyone in a rather excited mood.

By the afternoon.

A breaking news item shattered this atmosphere.

"Mr. Xu, there's been an unexpected incident; it's bad news..."

Yu Nian strode into the office and pulled out several photos from his phone.

"The dealer sent a message saying that Leding Auto launched a new model in the last two days, with the price reduced to 20,000 yuan. And you can take a look at their exterior design..."

At this point, Yu Nian seemed to be losing his composure.

Xu Yi took a closer look.

He was stunned for a moment.

The car in the picture looks very similar to the Starry Sky 01.

Even if they weren't born to the same mother, they still share a significant blood relationship.

"They moved so fast? They're already listed on the stock exchange?"

Xu Yi was slightly surprised.

This speed was somewhat beyond his expectations.

in fact.

He didn't think about a single question.

Their Starry Sky four-wheeled vehicles have already made their way from other provinces to the old folks' home base. It's like they're dancing on their own doorstep or having a rave on a grave. Nobody can tolerate that.

"This is outrageous! This is blatant plagiarism! They've clearly stripped down the original features and created a shell car! Shameless!!"

Yu Nian said rather unconvinced.

Xu Yi: "..."

"Never mind... after all, we're not exactly original."

……

"That doesn't mean they can open a physical store near us and hang such a big advertising sign. That's intentional!"

Yu Nian then took out several more photos of messages sent offline.

can be seen.

Their offline distribution stores have a relatively large volume of shipments.

Right now, not far away, a new Reading brand store has opened, displaying all the cars alongside Xingchen's.

At first glance.

Like twins.