Bundled Merchant Jaguar Land Rover made before the "crazy" weaving net

Following the establishment of a wholly-owned sales company last year, the trajectory of Jaguar Land Rover's expansion in China has begun to exhibit a parabolic that has accelerated.

Two weeks ago, Jaguar Land Rover officially opened its first 4S center in Henan, the Zhengzhou Tongfu Xiangja Leopard Land Rover 4S Center in Henan. This 4S shop, which covers only two-thirds of the standard football fields, is based on Jaguar Land Rover is one of the first domestic distributors of the latest standards in the country.

This 4S shop is not the same as the general sense of the Jaguar 4S shop or Land Rover 4S shop, but is also authorized to operate Jaguar, Land Rover and Range Rover (Land Rover sub-brand) flagship dealer.

According to report, this is a bolder plan taken by Jaguar Land Rover to accelerate the network layout in China. By tying the three brands together, Jaguar Land Rover can realize the number of dealers in China in the short term from 60. A radical plan that soared to 100 homes.

Before the joint-venture-made plan “falls into the water,” Jaguar Land Rover’s expansion has been described as “madness” in the least. According to the observers' analysis, behind Jaguar Land Rover's crazy “web”, there are both concerns about the adjustment of existing industrial policies and long-term considerations that deliberately increase the bargaining chips for future joint ventures.

Inject fresh blood

The time for Jaguar and Land Rover to enter the Chinese market was 2004 and 2002, respectively. In the following years, only two brands, Jaguar and Land Rover, had already opened 4S stores across the country to add up to 60 (as of the end of 2010). Only this year, the number of new distributors for these two brands will exceed 40.

“The dealers who will open in the future will all be authorized to represent the three brands of Jaguar, Land Rover and Range Rover. This is the biggest difference from the past dealers.” Insider of Jaguar Land Rover China told reporters that since Land Rover entered China earlier, its The popularity and popularity are much higher than those of Jaguar. Therefore, in the actual investment promotion process, “Land Rover has to bring Jaguar together to grow together”.

In 2010, the sales of Jaguar’s models in the Chinese market reached 2,655 units, an increase of nearly 50% compared to the same period of last year, and the sales record of Jaguar after entering the Chinese market was again refreshed; Land Rover’s annual sales totaled 23,500 units, an increase over the same period of the previous year. 100% also created the highest sales record in China.

However, compared with the doubling increase in the sales volume of Land Rover in China for many years, Jaguar can only be counted in China “just got a little feeling”. In terms of absolute sales, Jaguar’s sales in China last year were only a little more than one-tenth that of Land Rover. In terms of the number and density of network layouts, Jaguar is far behind Land Rover.

However, with the implementation of the “Intranet” investment promotion, Jaguar Land Rover China will soon change this status. After an in-depth interview with the reporter, he learned that for new franchisees, first acting as a representative of Jaguar and then acting as a representative of Land Rover, or acting as a representative of Jaguar Land Rover, it has become a necessary condition for dealers to join Jaguar Land Rover.

Starting from the end of last year, the Yanjun Group (formerly Yanbao Group), a luxury car dealership group that started with BMW, has opened two Jaguar brand cities in Beijing and Tianjin. Next, Yan Jun will invest in the establishment of Land Rover brand 4S stores in the two locations.

Prior to this investment in Beijing, the establishment of the first independently operated Jaguar 4S store in China (now withdrawn) has also won the authorization to establish a 4S shop for Land Rover brand in multiple locations. At the same time, another investor Zhonggeaoute invested heavily in Jiangsu Wuxi and Zhengzhou, Henan Province to establish two Tongfu Xiang Jaguar Land Rover 4S stores.

With the continuous injection of "fresh blood" like the Yanjun Group and Zhonghao Canoat, Land Rover China has been controlled by four regional distributors (Shanghai Shimao, Beijing Huitong Luhua, Shenzhen Zhongqi South, and Dalian Zunrong). The channel has been completely subverted. This is exactly what Jaguar Land Rover China likes to see. According to reports, the investment management of Zhonghao Canot was directly "split up" from Huitong Luhua.

Staged "Last Madness"

Jaguar Land Rover has been able to aggressively implement its expansion strategy, thanks in large part to Jaguar Land Rover China, which was established solely in China last year. The new company, Jaguar Land Rover Auto Trading (Shanghai) Co., Ltd. (namely Jaguar Land Rover China) was registered as early as 2008 and was officially launched in the second half of last year. The acceleration of Jaguar Land Rover's expansion in China started from then.

In order to support the growing network of dealers, Jaguar Land Rover recaptured the Beijing training center previously led by Huitong Luhua and spent 10 million yuan to build another training center in Shanghai. At the same time, in order to solve the financing problems of the new franchisees, Jaguar Land Rover signed a strategic agreement with CITIC Bank twice, and the two financings were close to 10 billion yuan.

“As of today, there are 34 dealers that have conducted business cooperation with China CITIC Bank, accounting for more than half of the total number of Jaguar Land Rover China distributors; the total discounted bills amounted to more than 4 billion yuan.” Jaguar Land Rover China stakeholders The reporter told reporters that the two sides signed a further RMB 5 billion financing agreement last week. According to the agreement, China CITIC Bank will provide a 5 billion yuan inventory credit line for Jaguar Land Rover China.

“Currently, China has become Jaguar Land Rover’s third largest market in the world and the fastest growing market. China’s strong market performance has further strengthened the confidence of UK headquarters in increasing its investment.” Last July, “airborne” to Jaguar Bob Grace, president of Land Rover China, told reporters that Jaguar Land Rover will continue to expand its network of distributors in China this year.

In terms of organizational structure, the expansion of Jaguar Land Rover China can also be described as "crazy". In just over six months, Jaguar Land Rover China's team has grown from two to thirty people to more than two hundred. Moreover, according to Jaguar Land Rover China insiders, the company is still clamoring for "recruitment."

The dealers who are unwilling to be named will sum up Jaguar Land Rover’s current ultra-conventional expansion to the “last madness” before the domestic production. The distributor manager admits that Jaguar Land Rover just completed the "rights-raising action" for the four major regional distributors last year. Before the government's competent department made adjustments to the existing industrial policies, it was good to lose the "golden season" of the Chinese luxury car market. "Jaguar Land Rover must race against time and fully exercise its "general dealership" function.

Bigger joint venture chips?

What Jaguar Land Rover has to worry about is that the current Chinese automobile industry policy that has helped it to become the “general distributor” has the potential to change at any time.

In 2005, China promulgated the “Implementation Measures for the Management of Automobile Brand Sales”, and the “Measures” clearly stipulated that: Automobiles imported from the same brand are generally represented by the manufacturer or a designated general distributor. Since then, imported car brands including Mercedes-Benz, BMW, Volvo, Renault and Jaguar Land Rover have successively established wholly-owned sales companies in China, and have fully controlled the imported vehicle resources and channels in the name of “general dealer”.

However, since the "Measures" have shifted the control of imported vehicle channels to foreign investment, it has repeatedly prompted the industry's call for "revised" since its promulgation and implementation. During the "two sessions" this year, there were still representatives of the "two associations" from the local automobile industry who suggested that the "measures" should be suspended and the relevant provisions should be revised.

According to some industry watchers, the current expansion of Jaguar Land Rover will not only benefit from the high profits of high-end imported vehicles, but also be a long-term consideration for bigger joint venture chips.

“Jaguar Land Rover’s joint venture to produce cars in China is no longer a news story. Imagine that once a joint venture project is started, the Chinese joint venture partner will have to “interest in interest.” Will Jaguar Land Rover, as a foreign investor, be able to independently plan its own sales network?” Industry watchers point out that if a foreign company had an independent and well-established sales network before starting a joint venture project, this would undoubtedly push up the latter's negotiating leverage.

According to the principle clause of “who produces and sells” in the current auto industry policy, the production and sales of auto products cannot be “disjointed” and must be completed by the same investment entity. The “Mazda 3 production stoppage” incident that had ignited a few years ago has also proved from one aspect: The one who dares to cross the red line of policy, the consequences will be “very serious”.

Public information shows that around the joint venture production project in China, Jaguar Land Rover has negotiated with local companies such as Chery and Great Wall. In public, Jaguar Land Rover China executives said that there is no clear timetable for the joint production of Jaguar Land Rover models in China.