FAW Volkswagen: To Establish a Mature Auto Marketing System is Our Important Goal.
Reporter: We are impressed by that FAW VOLKSWAGEN advanced the subject “Self-confidence, Striving, Mutual Progress and Win-win Approach” in this business conference. Would you please explain the contents of the subject?
Edward Chen: It is said that market is an ocean. Whether can we adapt its turbulence and pull through? I think we are too early to be satisfied. We cannot get once and for all even we make joint investment and have an international product. In the international cooperation, we are usually asked whether we can make cars.
To be sure, auto manufacturing cannot be finished only by use of two hands but needs a complete system. Really, I think we haven’t thoroughly learned how to form a complete system of auto industry; in other words, we haven’t master the entire process of distribution and service of products, from the product development and the whole technical process to distribution, and up to the end of product using.
In the meantime, we shall refrain from restlessness and learn what courage and ignorance are. As a matter of fact, everything experiences a process in changes. In order to fully realize Chinese auto to meet international standards, it needs 10-15 years for trucks and 20 or more years, we think, for cars in terms of the car system. During the course, we should gradually develop our own system and its corresponding talent system. Therefore, those who are engaged in auto industry need to endure loneliness and restlessness. Self-confidence comes from the maturation of planning and system, and the development of planning and system is of great importance to one enterprise and distributors.
At present, the entire circumstance seems uncertain, e.g. it is certain that American economy is dropping but it is uncertain how much it brings impact to the world economy and how long it will last; in a similar way, it is certain that Chinese economy is declining with the world economy but it is uncertain how much this influence is; it is certain that China joined WTO but it is uncertain how much this influence is. As a microcosmic enterprise, one shall find its certainty in the link of distribution in such uncertainties. FAW VOLKSWAGEN is clear that, in the tenth five-year planning, we will reach the goal to distribute 700 thousand to 800 thousand autos, to realize 100-billion distribution income and over 4-billion profit, to carry out the “One, Two, Three, and Three” principle, and to establish a whole distribution and marketing network, which is certain and unchangeable. I think the restlessness can be avoided when there are a mature planning and a whole mature system.
Therefore, I suggest that our marketing system and distributors combine the reality of all trademarks, so as to have more studies to the planning of marketing system we will establish, and to make the planning become concrete, operable, dynamic and amendable procedures, which is often talked as that it ”Advance with Time”.
I think our marketing system, which is also called the marketing management system of FAW VOLKSWAGEN, can thoroughly study our development planning together with the whole distributor system of FAW VOLKSWAGEN. Once the planning is decided, we may refrain from restlessness to some extent, and will not fall into a panic for a lot of uncertainties appeared in the future, and can decide the right investment directions and establish the right management objectives, which are what a mature marketing system works fundamentally.
Reporter: Since FAW VOLKSWAGEN is the strongest and the oldest in Chinese auto industry, why do you stress on “Striving” over and again? How will you strive?
Edward Chen: I want to talk about the questions from distribution system. We cannot simply say how many cars we have distributed but how much our distribution ability has increased. The ability should be that to command the situations of customers, to allocate resources and to deal with the whole marketing system. In the meantime, we must pay much attention to structural readjustment in the ability. Our marketing system needs readjusting; in other words, we shall follow what objective on earth to decide our marketing and investment structure and make a deep and thorough study to the value links. The whole value increment system is embodied in such a process after auto manufacturing. So how does it realize the increment in value? How is it commanded in accordance with China’s economy feature? This is a concrete method by which we shall strive.
Meanwhile, we shall increase our quality. We are happy to learn that the team of our distributors is increasing in quality and improving in image. Our members of FAW VOLKSWAGEN have advanced the slogan “To study, to resist, to innovate and to strive”. However, whenever the word “to resist” is referred, some people express pessimistic, solemn and sad. Probably the word is inappropriate, but it is an uttered word that has suppressed FAW VOLKSWAGEN members for a long time. We have many difficulties, so we must resist.
During the course of their quality improvement, the distributors, I suggest, can continuously study, resist the uncertain environment and the difficulties during their development, and innovate in accordance with China’s market, so as to acquire self-dependence.
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