Wuling Brand Channel Integration Testing

Tiger RUAN From Gasgoo.com

At present, SAIC-GM-Wuling Hongguang S has launched market officially. Jianfeng Bin, vice general manager of SAIC-GM-Wuling sales company, said to media that Hongguang S will join Baojun sales channel, and consumer can buy it both at Baojun 4S shop and Wuling original channel. Jianfeng Bin said sales system of Baojun sells Hongguan S will contribute to open market for it. What’s more, we wish to dig segment by the marketing strategy adjustment.

It has channel integration case before, but it does not like SAIC GM which integrate commercial vehicle with passenger car. FAW tried to integrate Red Flag with Pentium before, but have to quit because of little success.

“We have different method to integrate Wuling Hongguan S with Baojun than FAW did”, Jianfeng Bin said, Hoangguan S will launch market in the first 30 Baojun 4S shops synchronously. And we will develop more sales network step by step. Meanwhile, Wuling Hongguang S will be incorporated into “Baojun Butler”service, and share Baojun service system.

In fact, Baojun is under pressure this year as a passenger car because of the entire industry decline. Baojun only has a 630 model by now, so how to profit Baojun dealer is the most important issues for SAIC-GM-Wuling.

According to statistics, Hongguang totally sold more than 750 thousand since launched market 2 years ago, and sold more than 50 thousand per month sometimes. Hui Su, market specialist, believes that sales channel integration benefits for Hongguang S moving forwards to upper auto segment, and Baojun dealer will benefit profit as well. However, it is a two-side-sword which is also a risk to put two type brands into one channel.

Jianfeng Bin told reporter of that it is only a test for two brands integration. Their will consider about the final result to decide to continuous or stop the test after Baojun successor come into market.

Which noteworthy that Baojun has planned to have MPV and SUV in the next 2 years, which means Hongguan S will compete with Baojun MPV in the same segment in the future.

“The sales channel integration success or not, to the end, is based on whether or not it can help dealer earn profit, make customer satisfaction, and build brank reputation.” Hui Su said it is far from enough to adopt channel integration only to increase sales of Baojun, but still needs various models and innovate technology. Or even if Baojun successes by support from Wuling Hongguang S, it cannot last long in the fast moving pace Chinese auto market.

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