Own brand has not yet won the opportunity for consumers to have small cars

Recently, the market share of China's auto brands has fallen into a hot spot in the industry. Last week, Chen Zhixin, vice president of SAIC Group, pointed out the current ambiguity of self-owned brands at the Chengdu Global Automobile Forum. A survey conducted by an internationally renowned survey company by SAIC revealed that 28% of Chinese consumers do not consider purchasing autonomy under any circumstances. Brands, while the rest of the consumers will consider their own brand models under the premise of a 10%-20% price gap with the joint venture model.

On October 14, Xinhuaxin released its own brand competitiveness analysis report, pointing out that in the market segments where the share has risen rapidly, namely the compact and medium-sized auto markets, the growth of self-owned brands has been slow, which is the first 7 months of the year. The direct cause of the decline in market share of independent brands.

Data from the China Association of Automobile Manufacturers shows that in the first 7 months of this year, the market share of self-owned brand cars dropped to 35.6%. At present, crossover passenger cars, compact cars, SUVs and mini vehicles are still important market segments for their own brands. The market share of self-owned brands in these markets is 40.4%, 22.5%, 9%, and 9%, respectively.

Xinhuaxin analyzes the competitive pressure of joint venture brands faced by self-owned brands from both horizontal and vertical perspectives. Lateral analysis focuses on how the user selects self-owned brands and joint-venture brands in the same purchase decision. Vertical analysis focuses on how many independent brands they have when they purchase again. The users are loyal, and how many independent brand users are lost to the joint venture brand.

Judging from horizontal competition, independent brands can gain greater opportunities for joint venture brand users in the mini-vehicle market. The survey found that 33% of mini-car users had considered their own brands and joint-venture brands before buying a car. Ultimately, 18% of users selected their own brands; 23% of small-car users considered their own brands and joint-venture brands at the same time before buying a car. The final 13% The users chose their own brands; 19% of compact car users considered their own brands and joint venture brands before buying a car. Ultimately, 12% of users chose their own brands.

From the perspective of vertical competition, the defects in the product quality of the self-owned brand are an important reason for restricting the repurchase of self-owned brands by independent brands. Since there are fewer products of higher-level self-owned brands, it is less likely that self-branded buyers can continue to choose their own brands when they purchase cars again.

In general, if you want to increase market share, your own brand should work hard on the comfort, power, and handling of compact products. The mini vehicle market currently has a relatively high share of independent brands, and its product advantages are focused on price and fuel consumption. There are obvious disadvantages in terms of brand, quality and appearance. Once the market is facing a relatively strong joint venture brand competition, the competitive advantage of independent brands It is easy to break. Therefore, there is still a long way to go for self-owned brands to increase their brand competitiveness at this level of the market. Taking into account that the joint venture brand may enter the market in a large amount of time in the future, this level of self-owned brand still has a chance to maintain a higher share in the future.

The current market share of self-owned brands in the small car market is relatively low, but the appearance advantages of the products are relatively obvious, while the brand power is still weak, and the comprehensive price/performance advantage is not prominent. In general, the demand for cars for small car users is higher than that for mini cars, but lower than that for compact car users. Therefore, there is still a relatively large chance for the development of small cars for self-owned brands.

In the compact car market, the current share of self-owned brands is relatively low, and the appearance advantages of the products are very prominent. However, the lack of comfort, power and control of the products is also very obvious. Compared with the micro and small car market, the increase in market share of self-owned brands at this level still faces very big challenges.