The rejuvenation of self-owned brands must be detached from the system
Column:Company News Time:2017-11-16
Recently, China's three major independent brands have returned to people's attention. Following the media reports that the Hongqi brand cars will become the provincial and ministerial level leading cadres standard models...

Recently, China's three major independent brands have returned to people's attention. Following the media reports that the Hongqi brand cars will become the provincial and ministerial level leading cadres standard models, the Shanghai brand cars have also entered the latest batch of Ministry of Industry announced the vehicle manufacturers and products (No. 233) announcement, since then, Beijing Automotive Corporation Came out, Beijing card will become the official name of Beijing car sedan.

These three major brands are all local brands that China has launched after the founding of the People's Republic. However, as the foreign brands entered the Chinese market through joint ventures after the reform and opening up, the three major brands have successively withdrawn from the market. Although the red flag then started production, its market performance has been unsatisfactory.

So, the three major independent brands launched today, whether it will be able to achieve a real revival?

Owing to the establishment of China's own-brand enterprises in the late 1990s, local brands started to emerge a little bit, and gradually expanded their share of the low-end market in China.

However, local enterprises started to face more and more serious difficulties when the development of their own brands gradually lost their advantage of potential growth potential in the Chinese automobile market.

According to the Federation by statistics, a total of 4,810,196 units were sold for self-owned branded general purpose vehicles in 2011, a decrease of 208,682 units or -4.2% from the previous year's sales volume; while the joint ventures sold a total of 9,662,701 units and sold 92,3089 units more than the previous year , An increase of 10.6%.

It seems that the advantages and leadership of the original brands that they have already obtained will gradually diminish as the competition between Chinese and foreign brands grows.

In the self-owned brands into a long trap by the time, the Shanghai brand, Beijing brand and Hongqi brand revival, will be smooth sailing, or will it really rejuvenate it?

The predicament faced by independent brands has many factors. The lack of core technologies, the short development time, and the imperfect management system are all the important factors that cause the current status quo.

However, there are still some difficulties that need to be overcome in the dilemma of own-brand, and the reasons of the system in particular need to be further clarified.

Imagine why the original brand Shanghai and other independent brands will withdraw from the market, and later Chery, Geely and other companies are able to make great strides on the basis of a poor and lonely?

The most important thing is to eliminate the administrative color of state-owned auto companies.

At present, the state-owned automobile enterprises are not owned by the state, but are owned by the local governments. The ownership of such ownership system has caused the administrative restraints in the management of state-owned automobile enterprises.

This bondage manifests itself in the fact that the operation of state-owned automobile companies must be on the path of a two-track system.

State-owned auto companies must be accountable to the central government or the SASAC. As a state-owned enterprise, it is perfectly justifiable for state-owned automobile enterprises to be accountable to their shareholders.

However, in a general joint-stock enterprise, the general meeting of shareholders made by shareholders does not interfere with the day-to-day operations of the enterprise and the specific strategic planning. But in China's state-owned auto companies, government intervention is often for administrative purposes.

What is even more important is that the leaders of some state-owned enterprises are included in the sequence of administrative cadres. As a result, the leaders of these enterprises may be subject to more administrative will because the government determines the career development of the leaders of these enterprises Determine the strength.

The development of automobile enterprises is often determined by the ability and courage of the principal leaders of the enterprises. When the leaders of enterprises are restricted by the administrative direction, for example, they may consider serving other enterprises or being transferred from the enterprises to the administrative organs, resulting in the development of enterprises The administrative effect.

At first, the exit of Shanghai brand cars, can not but say that it must be the needs of the market. If the Shanghai brand did not opt out in the current year, at least the development of some of its own brands will be better now than it.

So, the resurgence of the Shanghai brand today, but also for what? Really is the market needs of an old brand revived?

Shanghai Automotive already has the Roewe brand, Roewe brand is already a Shanghai Automotive over a full range of products brand, then the Shanghai brand comeback will be what kind of positioning to face the market consumer?

For the Beijing Automotive Group, due to the car brand has not yet formed, the beginning of the launch of the original car when the original Beijing brand, will launch a brand new car name, more market appeal, which is easier to open the market.

However, Beijing Automotive Group is still far from the limitations of state-owned automobile enterprises in Beijing's municipalities.

This limitation will let the development of Beijing Automotive Group, we must consider the economic development of Beijing as a whole, as well as the development of Beijing's automobile industry needs. However, the administrative requirements of the government do not necessarily meet the needs of the market.

The limitations of this management system of state-owned automobile enterprises are also reflected in the way of thinking of enterprise development, with the characteristics of the implementation of superior and subordinate administrations, and the way of doing things in sports.

The development of self-owned brands has become a sport in recent years because of the government's constant demand for encouraging the development of its own brands across a wide range of policies.

The absence of state-owned large-scale automobile enterprises in their own brands is no longer a problem today. Since the three major brands have gradually withdrawn from the market, the automobile market in China has become the world of foreign-funded brands.

So, today's Shanghai brand, Beijing card, red card brand new high-profile launch, can become the main force of the Chinese local brand in the future?

If the launch of these brands only to complete the task assigned by the government, then the development of independent brands will be obstacles. Because, grow a brand, the final still need to have the final say. Only brands that have a bigger market share are strong brands.

If only to implement the government policy, then the development of independent brands may be out of tricks, businesses may be more concerned about the launch of the vigorous, but ignore the brand's final performance in the market.

It stands to reason that it is normal for an auto company to develop its own brand, but the enthusiasm of independent brands today is the result of government policies requiring supervision.

The administrative characteristics of the state-owned automobile enterprises often cause the enterprises to place too much emphasis on the government's policies and aspirations. The government's policy orientation often dominates the development direction of the enterprises.

Therefore, just as children ultimately want to leave their parents' care, state-owned auto companies can develop more independently if they are separated from the government's intimacy.

Let enterprises from the administrative sequence, so that the leaders of state-owned auto companies no longer return to the administration, so that these business leaders fully enjoy the benefits of business development, so that the personal development of business leaders more closely linked with the rise and fall of the business Only in this way can state-owned enterprises become real enterprises.

Only under such circumstances, the development of independent brands such as Shanghai brand or Beijing brand or Hongqi brand can achieve substantive breakthroughs and successes in accordance with the track of market development.