China BYD announced its domestic sales network

China BYD announced its domestic sales network today. Here are 15 exhibition halls for 6 dealers in the first picture. I share my thoughts while watching this.

First of all, there is not enough 'Seoul-Seoul Metropolitan Area' exhibition hall. Car sales are heavily influenced by the network. In other words, we have to be realistic about how often people can see and experience the brand and the car. This is approached by dividing the depth of experience in stages from a marketing/sales perspective.

First of all, we deliver indirect experiences with legacy media (newspapers, broadcasting and magazines, online media) and new media (blogging, professional YouTube, etc.). BYD sent many people involved to China to deliver the "experience" of driving around the factory.

If you create an exhibition hall after launching a brand, it becomes a stage where ordinary consumers experience it themselves. High-ranking women (people who are interested in cars and actively comment, Innovator + Early Adapters) who are commonly referred to here will actively express their opinions first. After the brand is known, people who are about "early majority" will check the location on the way by saying, "I heard there is an exhibition hall here?" They are also targeting to run pop-up stores in crowded shopping malls. It's about actually checking what you've seen in the media.

Normally, imported car exhibition halls are "collected." These are the "Gangnam Exhibition Hall" near the intersection of Dosan Park, "Daechi Exhibition Hall" between Samseong Station and Hakyeoul Station, "Songpa Exhibition Hall" near Olympic Park, "Bangbae Exhibition Hall" and "Dongdaemun Exhibition Hall" near Janghanpyeong Station. Seocho, Yangcheon, and Gangseo, where BYD is located, still have a lot of room to expand.

Of course, it is not easy to do (deliveries) a multi-billion dollar exhibition hall in these days. I think Hansung Motors, which was mentioned as an early BYD dealer, may be missing due to its profit from car sales and the characteristics of the group, which thinks it is a real estate investment in the long run. So, there is a high possibility that the brand will settle in the market and open an empty exhibition hall after the sale comes up. Even if it's not necessarily Hanseong, it's not necessarily Hanseong.

In addition, there are a lot of areas to expand such as Guri/Hanam, Bucheon/Bupyeong, Uijeongbu, Haeundae, Daegu Suseong, Jeonju, Chungcheong Cheonan, Chungju and Daejeon, Changwon/Jinju, etc.

The problem is one. Dealership exhibition halls where "sales and service" is the core requirement to make a living. You can make money by selling cars somehow. Even if you subtract the financial returns (losses) from your investment in real estate (land and buildings), you have to earn the basic operating expenses (such as labor costs). In particular, the service sector sees car parks, which are the number of cars operating in certain areas, and with the exception of accidents, electric cars with low repair and maintenance frequency are more difficult to make profit from their dealers.

If it's just a customer experience space (e.g., Tesla or Polestar), the importer can just spend it on expenses, but the dealer, the sales network, has to make a profit. Of course, the importer can "preserve" it with marketing support, etc., but this could cause other problems.

The second is Harmony Auto, which is in charge of the Jeju exhibition hall. It is also known as a car sales company in China. I once wrote about the acquisition of Lotte Rental by Upper Nutty, a Chinese private equity fund, on Dec. 7. In the process of sales through the official Chinese car importer (BYD) - official seller (Harmony Auto), which I pointed out at the time, I think a way to create a market share increase by entering the market through rental cars and distributing used cars after use was created.

What happens? First, Harmony Auto will supply rental cars for use in Jeju at the Jeju exhibition hall. There are also SK rental cars that have already become the same group as Lotte Rental. And we can supply them to small companies.

Take it one step further and acquire a small rental car company. It's actually a concept of buying a license, but there's also a way to run it yourself. What if it's free for 3 nights and 4 days (rental, insurance, charging, etc.) to celebrate the launch? Will it not be a Chinese car? Should we ride it one way or the other to experience it?

Once again, taking distribution out of your car is only half-viewed.

One thing, make sure you mention the source when you write an article or make a video with something similar. Have a conscience.

#BYD #ChineseCar #CarDistribution #RentCar #CarColumnistLee Donghee