The enormous upheaval in the automotive industry can be seen in the sales networks. Savings in sales, taking the contact with the customer into your own hands, is considered the future. The potential for savings seems enormous, with a higher margin. This meets the desires of the manufacturers. Established brands are (still) struggling here.
It looks different with the newcomers.
You do not have to take any existing structures into consideration. All options are open. Sales via the Internet, stationary sales, own centers. Or rely on partners. The path that Evergrande Hengchi will take has not been clarified in detail. But the first cornerstones are known, the development of sales in China is proceeding at full speed.
Because in the second half of 2 the first electric cars will be on the road.
Evergrande is one of the largest real estate developers in China, a detail that plays a role in setting up the sales network. Because the new brand plans on a large scale and builds on its own. 36 Hengchi worlds of experience are to be created in the metropolises. In the sign of the lion, the coat of arms of Hengchi, interested parties can be advised and find out everything about the premium electric cars.
In addition to the adventure worlds, there will be 1.600 Hengchi sales outlets nationwide. The Hengchi network is supplemented by a further 3.000 authorized service centers. Evergrande builds all real estate itself and thus remains true to its original core business.
That is very big.
Even by Chinese standards. For comparison: Tesla is successful in the Chinese market. By 2022 will be predictsthat 40% of global Tesla production will find its customers in China. In China, the Americans have 103 sales outlets. Or, as a benchmark, BMW-Brilliance (BBA). In 2019 the most successful premium brand in China, and in the focus of Evergrande's claims.
The BBA network includes 1.700 bases across the country. With over 4.600 points of contact under the sign of the Hengchi lion, a distribution network more than twice as large is being created. Evergrande Hengchi basically does everything right.
Beyond electric cars and digitization, there is valid commercial wisdom. Conquering the home market before expanding abroad is one of them. The rule is from Germany - not from China. More precisely, from my grandfather.
Evergrande seems to know them.