Testing Tmall.com: SAIC remains its price structure

Open the home page of SAIC flagship store in Tmall.com, white words with blue background flared up: “Cash! Awesome Gift! Ridiculous price!” The new found SAIC flagship store has caught up “Car Purchase Festive” of Tmall.com in time. It sold 350 cars online as short as 18 days totally.

350 is a tiny volume against a 2 million annual sales company. However, it is a new marketing consideration. “It is not possible that online auto trade becomes mainstream one, but it is a direction in the future. As a new brand, we hope to develop new territory.” Qilin Zhou, digital marketing staff of SAIC so expressed to media.

However, it still has a long way to go. Online trade has not developed enough. Online-sales-testing-SAIC is still looking for a better operation model. Because the special price structure of auto commodity, how to balance the profit between online and offline is a question for SAIC.

The first time SAIC cooperate with Taobao.com was “dual-11” activity of Taobao.com. SAIC launched a special offer for Taobao.com. The sales record is not impressive, but it triggers SAIC testing sales online.

“Sales by online clue of SAIC passenger car have doubled.” Qilin Zhou told reporter SAIC has cooperated with Autohome.com.cn, Bitauto.com, and Pcauto.com.cn etc. professional auto website before. Consumer can access sales consult by website. However, Tmall.com is another story. It is a typical e-business platform. As long as handing in 500 Yuan deposit, company will choose which 4S shop to conclude transaction, or consumer can choose a particular dealer too.

“It is a new channel for us, and we definitely will provide certain discount for our consumer. “Qilin Zhou said frankly “compared with buy offline, consumer can take promotion discount. Besides, they can enjoy a gift by Tmall.com.”

“We have triple benefit by Tmall.com sales, build reputation, increase sales and access customer demand and improve our product targeted.”

Qilin Zhou said that company has not pushed her too much since it is the first time to test Tmall.com sales. “We walk very carefully, and will adjust some strategy according to feedbacks.” The most important question now is how to balance its price structure.

Different from traditional consumption goods, car price does not the same over different areas. Some inland cities, such as Hu Nan and An Hui Provinces, have strong controlling dealers. The price there is higher than other cities’. However, SAIC flagship store requires the same price over nation. It influences dealers’ profit. Therefore, some dealers refuse to take Tmall.com order to fulfill at their shops. An online customer wrote that local dealer asked for extra 1,000 Yuan. He had to pay, but very unwilling.

We consider developing a better online trade model, Qilin Zhou said, we may provide special product for online selling only or price structure will not as transparent as before.