Second-tier high-end brand dispute: why Volvo fell to "third-tier"

In April, Volvo sold 1.04 yuan in China.
Ten thousand vehicles; Cumulative sales from January to April 3.92
Ten thousand vehicles, the lowest sales volume among the four second-tier brands, even less than half of Cadillac’s sales volume, were also thrown far by Lexus and Jaguar Land Rover.

According to industry insiders, Volvo has gradually declined in the second-tier high-end brands, mainly because the flagship model failed to establish a high-end brand image and could not be recognized by consumers; The low growth rate of Volvo is in
SUV has not formed an effective growth point, the main model XC60.
Nor did it keep up with the mainstream of the industry.

It must be said that ABB is a convention in the high-end car market, especially in the domestic market, Audi, BMW and Mercedes-Benz (
ABB) The three major brands account for more than 70% of the total, but you don’t say ABB.
No way. In fact, the share in ABB "
Head "space, often referred to as"
The high-end car camp of "second-line brand" is undergoing profound and drastic changes: the overall growth continues and gradually erodes.
ABB’s market share. Among them, some brands began to stand out and set aside other competitors; Some even after domestic production, even if there are two brands, they can’t do a single imported car brand, and the market ranking drops again; Other brands have grown compared with themselves, but they have lagged behind the overall growth of the high-end car market, and have actually fallen behind and been moved out.
"second line" …

Therefore, for the high-end car market that has maintained a high growth rate, the Economic Daily-China Economic Net auto channel is concerned about both.
An old performer like ABB also pays attention to other new performers with various possibilities. Today, let’s take a look at Volvo’s market performance, and explore why it lost its rivals in the competition of second-tier brands and even fell into the ranks of third-tier brands.

Recently, some media reported that Geely Automobile told the banks applying for the lead underwriter that only Volvo Car’s market value exceeded 30 billion US dollars would conduct an initial public offering (IPO), which was considered by some analysts as "too high expectations".

Judging from the market performance of China, Volvo’s largest single market in the world, Volvo’s IPO road may really be uneven. The data shows that in April, Volvo sold a total of 10,400 vehicles in China; From January to April, the cumulative sales volume was 39,200 vehicles. Cadillac, Lexus and Jaguar Land Rover, both second-tier high-end brands, sold 81,100 vehicles, 53,200 vehicles and 50,300 vehicles respectively in the first four months. In contrast, although Volvo achieved growth year-on-year, its sales volume was the lowest among the four second-tier brands, even less than half of Cadillac’s sales, and it was also far behind by Lexus and Jaguar Land Rover.

Compared with the above-mentioned high-end brands, Volvo’s decline has already appeared before. In 2017, the gap between second-tier high-end brands began to widen. Among them, Volvo sold a total of 114,400 vehicles, and the gap with the previous one was 18,000 vehicles, which should not be underestimated for second-tier high-end brands whose annual sales just passed the threshold of 100,000 vehicles.

  Lack of brand power
The flagship model is difficult to build a high-end image.

According to public data, Volvo’s flagship SUV model XC90 sold a total of 2,831 vehicles from January to March, while BMW X5, Audi Q7 and Mercedes-Benz GLE, as its "imaginary enemies", sold 14,201 vehicles, 13,511 vehicles and 9,203 vehicles respectively in the first quarter. This shows that Volvo XC90 is weak in competition.

  Volvo XC90

Cun Wang, Vice Minister of Investment and Marketing Department of SINOMACH, pointed out that for large and medium-sized imported SUVs, consumers are more interested in brands, while Volvo, which is in the second-tier and high-end category, is relatively weak in brand power, so it is difficult for XC90 sales to increase significantly.

As Volvo’s flagship car, the domestic S90 is highly anticipated. When S90 was unveiled at the Guangzhou Auto Show in 2016, Chen Lizhe, general manager of Volvo Car China Sales Company, once said, "The new S90 long-wheelbase luxury sedan is superior to German competitors in terms of technological leadership and luxury comfort configuration, whether it is an entry-level T4 model or a T5 model."

The reality is that the "advantage" of Volvo S90 is not reflected in the sales volume, and the new car only sold less than 1,000 vehicles in the month of listing; In 2017, S90 sold a total of 24,700 vehicles, less than 20% of Audi A6L; From January to April of 2018, S90 sold a total of 11,500 vehicles, which is only equivalent to the monthly sales of Audi A6L. Obviously, the so-called "domestic flagship" of Volvo S90 has not started, let alone enhance the brand image.

  Volvo S90

Faced with the pressure of poor sales, Volvo had to choose a strategy of sharply reducing prices to deal with it. The reporter from Economic Daily-China Economic Net learned during a visit to a Volvo 4S store in Beijing that the current Volvo XC90 has a "comprehensive discount" of 170,000-180,000 yuan from the entry model to the top model, while the official guide price of S90 entry model is 369,800 yuan, which also has a discount of nearly 90,000 yuan. The staff even said, "If you really want to buy it, the price can be discussed again."

In the eyes of the industry, Volvo has gradually declined in the second-tier high-end brands, mainly because the flagship model failed to establish a high-end brand image and could not be recognized by consumers.

"Volvo XC90 offers such a big discount, mainly because there are very few consumers looking at cars and there is basically no sales every month." The staff said helplessly, "There are group buying activities in the 90 series in the store these two days, and the discount range is even greater. For the sake of capital turnover, there is nothing we can do."

Lack of marketing power
The main models are difficult to pick the sales beam.

After being acquired by Geely Group, Volvo’s product upgrading accelerated and new models appeared constantly. Among them, XC60 and S60L are both suitable for walking. However, in product marketing, it seems to be somewhat inadequate, which has affected the market performance to a considerable extent. For example, Volvo has been committed to promoting "being the safest car" for a long time, but when "safety" has become an essential element or basic guarantee for high-end cars, and when a number of independent brands such as WEY also focus on "safety", Volvo’s almost unchanging statement has no advantage.

During the visit to the market, the reporter of Economic Daily-China Economic Net found that Volvo salespeople are still old-fashioned words: "The proportion of boron steel in Volvo body can reach 45%, far exceeding other brands"; "Preventive protection for rear-end collision, which can safely brake when the difference is 50KM/h"; "XC90′ s self-driving has reached L3 level, so far there has not been an accident" … However, when asked about other advantages, the staff only brought a product color page and said, "Look for yourself, you can ask me if you don’t understand". Can this help users’ cognition and sales promotion?

  Volvo XC60 offers a comprehensive discount of 65,000 yuan.

In addition, Volvo’s inflated price has also become a hot spot for consumers to vomit. Last December, Volvo’s new generation XC60 went on the market. However, at the moment when the price of high-end cars is generally lower, the price of new cars is further raised on the basis of high price, and the starting price has risen from 358,900 yuan to 369,800 yuan, which is not too much compared with BBA, which directly leads to its sales volume hovering around 3,000 vehicles. The data shows that from January to April, the sales volume of Volvo XC60 was 11,564 vehicles, up 9.31% year-on-year, which was based on the substantial price reduction. It is understood that the current comprehensive discount of Volvo XC60 is more than 50,000 yuan, and the Beijing area can even reach about 65,000 yuan.

  Netizen tucao Volvo XC60 price is too high.

Netizen yuken12900 said in the forum, "Volvo typically has no self-knowledge, and it will be even worse after X3 and Q5L come out! The expected price reduction of 100,000 may not be useful. By the way, I almost forgot, and GLC will soon be extended. Spend the same money and give a reason to choose Wo (Er) Wo? "

In this regard, Cui Dongshu, Secretary-General of the Association, said that the low growth rate of Volvo was mainly due to the lack of effective growth point in SUV, and the main model XC60 did not keep up with the mainstream of the industry. In addition, the price of Volvo XC60 is too high, which may be because it hopes to enhance its brand image through price and let consumers recognize the positioning of its luxury brand, but the effect remains to be seen. (Economic Daily-China Economic Net auto channel Original Reporting Group)

Book six people and five people can’t enter the store? Online celebrity chain store is accused of overlord clause

 

  Have you ever had to wait in line for dinner, and people can’t go in to eat if they don’t arrive regularly? Recently, Xiaoyun, a netizen in Chengdu, encountered such a wonderful thing when friends were waiting in line for dinner. There are 6 people in the row, but because there are only 5 people present, the store said that they can’t enter the door, and they must be here to eat. Xiaoyun felt unreasonable. "This is simply the overlord clause!"

  Huaxi Dushi Bao-cover journalist found that the store’s practice is not a case. In response to this matter, lawyers believe that "this requirement of merchants is obviously unreasonable, and consumers can complain to the Consumers Association or industry and commerce."

  Netizen’s complaint: people who line up to eat can only enter the venue when they arrive.

  On March 22nd, Xiaoyun made an appointment with some friends to eat skewers after work, and the place was Xiaoyuejun liver skewers in the fifth district of the steel pipe factory in Chengdu Zongfu Road. Because she was working nearby, Xiaoyun hurried to the string store to wait in line after work, and got the "big table C2".

  "There are often many people waiting in line in this store, so I want to come early and line up first, and I can start eating immediately when several other friends arrive." Xiaoyun told the reporter, "I ordered five people when I ranked the number, and then I added one person, a total of six people. But when five of us had arrived, we were told by the staff of the store, ‘ People can’t enter the venue until they are all here ’ 。”

  Xiaoyun’s queuing receipt for reporters also clearly stated that those who take the B number must be at least 4 people, those who take the C number must be at least 6 people, and those who take the D number must be at least 8 people. But Xiaoyun felt unreasonable. "This is simply the overlord clause!"

  On-site visit: you can’t sit at a table when you have a table.

  On March 26, the reporter went to Xiaoyuejun’s liver in the fifth district of the steel pipe factory, located at 54 Huaxing main street, to string incense. At this time, it is already more than 6 o’clock in the afternoon, which is at the peak of work. The equal benches have been placed at the door of the shop, but no one has come to line up yet. In the store, there are already customers eating.

  Subsequently, the reporter asked the merchant as a customer: "Is there a place for six people to eat now?" However, I was told by the merchant that there is an empty table now, but I can’t enter the store because I am not here.

  The staff responsible for numbering at the door handed the reporter an equal receipt and said, "Let me know when everyone is here."

  The small ticket shows that there is still a table waiting in front. The staff member told the reporter: "None of them are here. The big table is too tight to occupy a seat. It takes at least four people to get in. Anyway, whoever gets here first will go first. "

  Store response: improve the utilization rate of tables and shorten the queuing time

  Why do chain stores have such regulations? A few days ago, the reporter met the person in charge of the store’s surname Xu.

  As for "people can’t enter the store until they are here", Manager Xu explained that this is to improve the utilization rate of tables and tables and the seating rate of guests, and at the same time shorten the waiting time of guests.

  "From the perspective of the catering format, the queuing time on our side is relatively concentrated, and some tables, especially middle tables and large tables, are relatively few. For example, some guests only have two guests. They occupy the table and don’t order, or their friends are not here, while other guests have already arrived, so they have to wait outside. This can’t turn the table, and the guests outside are also very anxious. "

  When the reporter asked, is such a request reasonable? Manager Xu bluntly said: "We are not the only one in this regulation, and so are some hot pot restaurants nearby."

  According to the industry, it is not a common phenomenon to avoid "occupying a table without spending"

  The reporter visited and found that it is not a case to string incense like Xiaoyuejun’s liver in the fifth district of the steel pipe factory. Through online search, it was found that netizens from Shenzhen, Hangzhou and other places also spoke out that "there has been such an experience that people can’t enter the store until they arrive."

  "This kind of situation is still rare, and it only appears in some restaurants with many people waiting in line and very hot." Yang Hang, a person in Chengdu catering industry, thinks that the requirement that "people can’t enter the venue until they are together" is actually a helpless choice for businesses. Yang Hang told reporters: "Because some very hot restaurants will have guests ‘ Placeholder ’ ‘ Occupy the table without spending ’ The phenomenon, even the equal guests will have a dispute. In the face of such a situation, the most important thing is that businesses and customers should communicate well in advance and fulfill their obligation to inform. "

  Some insiders also told reporters that the requirement of merchants is to maximize the passenger flow and income during business hours. "Sometimes there will be cases where guests and others don’t order or three or four people occupy a big table, which will reduce the turnover rate and passenger flow of restaurants." Law/teacher/view/point

  It is unreasonable for businesses to restrict consumer rights.

  "Whether it is from the consumption habits of the industry or the Consumer Protection Law, it is wrong for businesses to do so." Chen Fengfeng, a lawyer of Yingji Law Firm, told the reporter, "Even if only one of the six people comes, consumers can enter the store. And the merchant proposed ‘ You can’t enter the store until everyone is here ’ The requirements are unfair transactions agreed by themselves, which limits consumers’ consumption rights. "

  Luo Ping, a lawyer of Sichuan Xuxing Law Firm, also believes that "this requirement of merchants is obviously unreasonable, and consumers can complain." According to Article 16 of the Law on the Protection of Consumers’ Rights and Interests, operators should abide by social ethics and operate in good faith to protect the legitimate rights and interests of consumers when providing commodities or services to consumers. Unfair and unreasonable trading conditions shall not be set, and trading shall not be forced.

  "If unreasonable and unfair regulations are imposed on merchants, and additional conditions are unilaterally added to normal consumption activities, which affects consumers’ normal consumption activities, you can call 12315 Consumers Association to complain or directly complain to the local industrial and commercial department." Luo Ping said.