Insist on being a global car, doing a good job of branding, and strengthening tonality

Mondo Cars Updated on 2024-01-31

**: New Travel.

On October 21, 2023, the Smart Times 2023 Global Fan Carnival was held in Suzhou, which is the largest Smart Times in history, and also gave birth to the first brand spokesperson of the smart pure electric era - Henry Liu Xianhua. At the same time, the new Smart Phantom 1 Platinum Edition was announced, with Smart Pilot Assist 2 as an option0 intelligent assisted driving system, opening a "smarter" travel scene experience. The official retail price of the new car is RMB 239,900.

1. When it comes to going to sea, smart's advantage lies in the best of the world

On the eve of the press conference, Mr. Tong Xiangbei, CEO of the global brand company, told what he had just seen and heard after returning from Europe in an exclusive interview. We asked him, now that everyone is going to sea, do you have any advantages?He said: "smart's brand development strategy is 'China-Europe dual-core, global layout', Europe is our main market, in order to enhance the global operation, smart has set up marketing centers in China and Europe at the same time. We established Smart Europe GmbH in June 2020), and we have professional teams in various European countries, all of whom are veterans of smart or Mercedes-Benz in the past, all of whom are very experienced and have worked in the smart brand for a long time, and are very emotional and passionate teams. “

Hearing this, a word "return" suddenly flashed in my mind, as if smart was in Europe, and I didn't want to call him "going to sea" but using a more professional team to "return" to the home market. Only when you have a tough team can you win the battle!

2. There are really a lot of differences between Europe and China!

The European market is very different from the Chinese market, so to speak, very different. There is market competition, China is a volume, and Europe is facing another kind of competition. For example, Mr. Tong shared with us that the average age of smart users in the current orders delivered in Europe is 55 years old, and 70% are maleIn China, users are in their early 30s, and 70 percent of car buyers are women. Especially the owners of the smart Elf 1, of course, many of the 1 are also driven by male users after the purchase of female customers. This car (user portrait in the two markets of China and Europe) is too different. Hearing this, it is conceivable that the demand for intelligence is also very different!Smart's audience in Europe is more concerned about the mechanical properties of products, while in China, it focuses on intelligent experiences such as car machines and OTAs. In Europe, few users are accustomed to using voice to control the car machine. Mr. Tong asked his colleagues in Europe: "Why don't you use the car machine?"Colleagues in Europe also reported that users rarely asked about these aspects. But Mr. Tong said that he immediately showed his colleagues smart voice control, such as the panoramic sunroof sunshade electric opening and closing, and then the glass lowered and raised, as well as the atmosphere light from purple to blue, everyone was very surprised, "Isn't this a new technology in the sky?"”

This is the situation in Europe, not to mention the field of intelligent assisted driving and intelligent cockpit, which European users rarely ask about. Users just use the car to navigate, and they still point with their fingers, and many European users still focus on the controls from the perspective of a racing driver.

3. In the face of markets in different countries, does smart have any marketing strategies?

Mr. Tong said: "My main goal when I went to Europe this time was to be familiar with the market, and I had to understand the market to make adjustments. What kind of adjustments did we make this time?Two adjustments:

First, in the past, it was mainly in the German-speaking circle, and our marketing efforts were mainly in the German-speaking circle, and this time we ran in various language circles such as German, French, Spanish, English and Italian. And the smart tradition is very strong in France and Italy. In this regard, we need to adjust the allocation of resources and balance the layout of other language markets.

The second is to target the (European market) user portrait and promote it according to their habits of obtaining information, for example, European car owners choose to watch TV to obtain information and obtain information that they can trust, followed by newspapers and magazines.

This trip to Europe gave our team a deeper experience, and I will help them make up their minds to make such a turnaround. From the original digital position to the traditional position, more traditional ** is invited to do in-depth test drives and do some roadshows to let them experience in depth. It is then published in newspapers, magazines, and on television. This allows our local market team to work better as well. We did an OTA upgrade in October and will continue to do it soon. We will also respond to the demand for carplay in the local market. Smart is also very popular in Europe at the moment. The markets in Europe and China are quite different. In the future, we need to run on both sides and know the state of both sides flexibly. We will also "cultivate" European users to accept leading technology and emerging things, and we also have a lot of advanced technology and product experience at smart, which you can play and see. ”

4. How does smart deal with the decline in domestic sales and how to balance the overseas and domestic markets?

"China-EU dual-core" makes shareholders a strategic support for smart, and smart can easily achieve a balance between China and Europe. If smart is made in China and sold in China, then there is no doubt that my expression will not be so relaxed today, after all, today's Chinese market is very volatile. We have the "dual core of China and Europe", and then there is the "expansion of the south and the west", and we continue to conquer cities around the world, which makes our operation more balanced and marginal.

In fact, in the environment of such a volume in China, everyone is fighting the best war, but Mr. Tong said that we need the global steady development of the brand, not a single sales, we want to achieve sustainable development of the brandTherefore, as a global brand, there are many points to consider in operation, and the long-term interests of car owners and users in various markets should be considered. Our newly launched car also has ** adjustments compared to the previous one. This is from the cost of the first chain and enterprise operation considerations, the price reduction of core components and raw materials, such as the first fall of lithium mines, affects the cost of BOM, so that the natural margin is to give back to users in a timely manner, which is a normal ** adjustment, and the "** war" is not the same concept.

5. How does smart avoid internal friction and competition between "brothers" in the future, and how to make long-term plans?

This is a strategic issue of brand positioning, and the shareholders of the joint venture have already considered and formulated a clear strategic direction before the establishment of the joint venture, and have given the smart brand a lot of brand space, which can give us at least the first ten years of room to play.

Mercedes-Benz and smart are two strongly related brands, Mercedes-Benz is a luxury brand, while smart is a young new luxury brand. The smart brand image is based on the strong endorsement of Mercedes-Benz to maintain such positioning and tonality, so we use Mercedes-Benz's styling team to do the product styling design, including the logo behind it. This is all the endorsement of the Mercedes-Benz brand to smart, and the smart brand is maintained at such a height. Geely has a very rich brand matrix, and the senior management of Geely Holding Group has clearly defined how each brand will play and how to go at the strategic level, and the brand positioning is also very clear. Although the product has dimensions and overlapping spaces, the brand tonality is different. So what we have to do is to strengthen our own brand, our previous interviews have always emphasized that the smart brand is the core asset of the enterprise, the most powerful**, everything we do is around the brand. Including today's smart times user party, it is like constantly depositing money into one account, and we enjoy the advantage of compound interest. Continuously invest in the smart brand and continue to strengthen the characteristics to differentiate the brand.

To be a smart brand, we are also constantly strengthening the tonality of this brand and making it clearer and clearer. Because smart is a lifestyle and lifestyle brand. We continue to strengthen the brand, and for users, the choice is less tangled.

6. "541" layout, what markets will this "1" focus on?Which does this "1" refer to?

Our development strategy is "China-Europe dual-core, global layout". When it comes to "global layout", the current direction is to expand to the south and west.

In September, our first batch of smart Phantom 1 right-hand drive production models have officially launched pre-sales in the Malaysian market and have been shipped, and the first launch event will be done in Malaysia next month, and will be delivered to users in the fourth quarter as planned. The others are Singapore, Indonesia, Thailand, and even other ASEAN countries. Further south is Australia, New Zealand, "Nantuo" this road is the right-hand drive car market, we have to provide to the European market mature right-hand drive models, there are ready-made products to hit Southeast Asian countries and Australia and New Zealand market.

"Westward expansion" is the Middle East area, and at present, we have announced that we will enter Israel and the United Arab Emirates, and then the six Gulf countries in the Middle East, which is the direction of "westward expansion", and the proportion of these emerging markets is "5:4:1" of "1".

7. How does smart respond to the investigation of "anti-dumping" (anti-monopoly and anti-subsidy)?

smart has maintained an equal focus on the Chinese and European markets, and has been developing markets on the basis of complying with local laws and regulations. So we prepared very early, Smart's market principle is to cultivate Europe as one of the core markets, and our products have done WVTA EL certification (EU high-volume vehicle type approval certificate E1), which is issued by the German Road Transport Agency (KBA), which is a very strict certification. In terms of safety certification, we have obtained the "double five-star safety certification" of China C-NACP and European Euro NCAP, and for Europe, starting from July 1 next year, the EU general safety regulation GSR will implement stricter certification standards, and we have also passed. It's all seamless to meet local laws and regulations. Then there is the R155 network security and R156 software upgrade VTA E1 certification, which we can legally do OTA in Europe. R156 is a regulation on OTA that the European Union has been preparing to introduce for six years, and the technical standards are very demanding and difficult to pass. As soon as this bill was introduced, Mercedes-Benz immediately applied for certification. Among the brands manufactured in China, we have obtained the first R156 certification issued by the German Road Transport Agency in China. smart has always taken the European market standards and norms very seriously and made a lot of preparations.

As a global brand, the challenges you mentioned are just one of the many global challenges we face on a daily basis that we are tackling seriously.

8. Smart has a global layout, will it build a factory in Southeast Asia?

Tong Xiangbei: During the ASEAN Expo in September, we revealed that we would be working with Malaysia's Proton Motors to explore the possibility of building production capacity overseas. To put it more precisely, it is necessary to start a feasibility study of local production capacity.

When it comes to building a factory, there are many forms. You can build it yourself, maybe you can build a factory with others, or maybe someone else will build a factory to do OEM. Therefore, it is too simple to simply say "building a factory", and what can be said at present is that smart is doing a feasibility study to build production capacity in Southeast Asia.

Production capacity should be localized, and when you enter the market and sell more, it will naturally prompt you to consider this aspect of things. Naturally, we will consider it as well.

9. How to interpret the concept of "trust mileage".

Tong Xiangbei: Smart Elf 1 Platinum Edition has arrived in the store, and Smart Pilot Assist 2 is optionalVersion 0, with the NSP function of intelligent pilot assisted driving, can be delivered this year.

Compared with our competitors, our difference and focus lies in the concept of "trust mileage", which was first proposed by the intelligent driving team.

At present, to evaluate the overall performance of intelligent driving systems, the industry generally uses the "coverage mileage" that the system can work to describe it, such as the area of cities and regions covered and the mileage that can run intelligent driving in these areas. Within the overall "mileage covered" range, there are also some statistical indicators to describe the reliability and stability of intelligent driving, such as MPI (Miles per Intervention), and system reliability indicators will also be used to describe intelligent driving systems, such as MTBF (mean time between failures).

These indicators can clearly describe the "usable state" of the intelligent driving system, but the "usable state" of intelligent driving cannot be well described. It can really improve the experience of consumers and make the system more "easy to use", which will make the intelligent driving system more valuable.

Within the expected operating range of the ODD (Operational Design Domain) of the intelligent driver assistance system, the driver with an average driving level can use the intelligent driving assistance system when the body and mind are relaxed, give the feedback experience of the system evaluation as "good", and trust the system's assistance to the vehicle, and we can describe such a journey as "trust mileage".

smart is committed to continuously improving the "trust mileage" of users, making the smart intelligent assisted driving system more user-friendly, allowing customers to have a more comfortable driving experience, and making the technology experience more warm. What do users want?I want to be able to be safe and secure when I partially transfer the driving rights to the car. When your car takes over, are people nervous?For a lot of intelligent driving technology that just shows muscles, people can't trust the auxiliary operation of the system after activating the intelligent assisted driving, and still nervously pay attention to every subtle operation of the system on the vehicle, and can't relax the use of the system and the vehicle, although the system can be used and activated, but it does not relieve the fatigue of the driver, so we can't say that this journey is a "trust mileage".

For example, in the platinum version, the performance and parameters may be indistinguishable from the industry. The point of our efforts is that the R&D team pursues "trust mileage", and we focus on letting the car take over the driver and when he takes over the driving, he behaves like an old driver. The feeling of the old driver driving and the new driver driving is completely different, so this feeling is what we are after.

10. In the face of the price reduction of friends, smart does not want to cut leeks, so what kind of strategy and preparation does it have?

Tong Xiangbei: At present, the domestic new energy market is fiercely competitive, and there are indeed severe challenges. Compared with last year, the 200,000 compact SUV market in which the Phantom 1 and 3 are located has ushered in more competitors, and the competition is particularly fierce.

Sales volume is important but not the only one, and smart's pursuit of long-term sustainable development on a global scale is the key to consolidating the brand, product and operational foundation. This year, we are accelerating our operations in new market development and R&D technology. First, Europe is gaining momentum at a rapid pace, in a rapid ramp-up phase. Next, the markets of Oceania, Southeast Asia, and the Middle East are making efforts, and the team is also focusing on other high-potential market opportunities and continuing to expand.

Second, product research and development has been accelerated. Smart Pilot Assist 20 / 3.Version 0, the intelligent cockpit has achieved results, and it will be launched soon. Next year, the third car will cut into a larger segment that smart has never set foot in before, and I am very confident.

Previously, smart was a niche brand in the minds of consumers, with the highest annual sales in China of just over 20,000 units (23,000, 2017). The new generation of smart has more than 40,000 users in China, and nearly 35,000 units were delivered in China in the first three quarters. Our products, as expected, have opened up more market segments. Next, we will work more closely with our dealer partners to improve the quality of our operational services.

Blindly exchanging price for volume is not in line with our development strategic direction, but tactically, we will flexibly use market policy tools according to the actual market environment to enhance the market competitiveness of our products. Providing users with high-quality, market-competitive products is also the core pillar of our long-term business development.

11. Will smart have a 2-seater car like Fortwo?

If we want to do things one by one, we will definitely make two seats, and we have already started the development of a pure electric architecture based on two seats, and the name "smart Phantom 2" is reserved for two-seater models. Smart is more of a lifestyle brand than just a two-seater. In the past, it has been said that the two seats are just the lifestyle advocated by smart, that is, new luxury, trendy co-creation, technology-oriented, masterpieces in the A00 market segment, the two seats are smart masterpieces, but they cannot be represented by the representative brand. The smart brand lifestyle can do so much more. For example, when I bought a two-seater car in the past, I was alone, but now I have two children and children, and they are still smart fans. With 3, we can meet such user needs, we must keep pace with the times and meet the needs of market segments. But both are still our strengths, and we are the originators in this area.

We're going to make two-seaters, and we're already starting it, and it's very difficult to develop a two-seater model these days. It is difficult to build a small-sized pure electric architecture, and the mileage, performance, and safety are all based on the EU safety regulation GS20, we do global cars, safety and quality standards should be very high. The degree of intelligence, intelligent cockpit, and intelligent assisted driving are very high, and "although the sparrow is small", it must be supported by the architecture, and we have already started the development of this pure electric architecture, so stay tuned.

Summary: After listening to Mr. Tong's output for almost an hour, I am very clear that he wants to make the smart brand a long-term and stable determination, and also sees his goal of making a global car, not only pursuing sales, but also listening to the voice of users, and creating more reputation with the ultimate pursuit of product safety. Writing this, I just happened to see two pictures on the Internet, and Net**Li** also came to test drive smart, this Internet celebrity who came to China to play all the way and buy all the way**, you said, did he buy smart?

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