With the "cost-effective" strategy, electric houses or next year to achieve a positive gross profit margin

At the moment when the new forces of car-making are telling new stories with speed, the emergence of the pure electric mobility brand electric house has refreshed this record. Since the release of the brand in August, its first pure electric model product YOUNG Has been officially delivered to users, and it is expected to achieve the brand's annual product delivery volume by the end of 2021.

Seize the A00-level market

The electric house brand adopts the unique DOCK expansion dock operation mode, which realizes the production and delivery of the first product in only one year, and quickly builds sales and service outlets covering 95 cities within 4 months, completes the foundation of the DTC user digital direct sales system, and explores a new development path in China's new energy vehicle market.

This year, China's new energy vehicle market ushered in a new inflection point, the industry is rising at a high speed, has long been showing a blowout trend, there are constantly traditional car companies transformation or new brands to enter, China's new energy vehicle competition environment has become more intense. In this context, the "latecomer" electric house quickly found the correct positioning and focused on the demand side. Hu Jun, managing director of the electric house, said frankly: "In such a huge track, it is easy to get lost or drowned without clear positioning. ”

In the consumer demand for new energy vehicles, the demand for additional purchases of second vehicles in households is expanding rapidly. The consumption behavior of buying a second car is obviously more rational and pragmatic, and the use scenarios are more clear, such as daily commuting scenes such as picking up and dropping off children, supermarket shopping, etc., they pay more attention to the flexibility, convenience and economy of the vehicle, and the cost-effective small new energy models have become the focus of their attention. Secondly, Generation Z young people have begun to become the main force of consumption, and they have a completely different consumption concept from the post-80s generation. For them, the car can become a kind of FMCG, and "fun and not too expensive" is their most choice. In addition, it is the upgrade and exchange of low-speed electric vehicle users, which is also a large incremental market.

"Looking at these needs, there is a commonality behind them, that is, high cost performance", Hu Jun analysis pointed out, "how to bring users to meet their needs of products, and have excellent product cost performance, is the key to gaining the favor of users." Based on this, in the first year of the brand entering the new energy track, the electric house will take the "cost-effective entry-level pure electric model products" as the entry point to enter the market, and seize this huge demand market segment through entry-level pure electric model products below 100,000.

The layout of electric houses is in line with the law of market development, which is very wise. Taking October sales as an example, according to the data of the Association, the wholesale sales of A00-class new energy vehicles in October were 94,000 units, accounting for 31% of the sales of pure electric vehicles; the wholesale sales of A0-level were 51,000 units, accounting for 17% of pure electric sales, which shows the weight of the small electric vehicle market.

Xu Haidong, deputy chief engineer of the China Automobile Association, told the "China Times" reporter: "With the increase in the penetration rate of new energy, the private purchase rate is also increasing, and it is these two points that trigger the purchase of new energy into a rapid stage." Among them, entry-level models account for the highest proportion and are also the most suitable for China's consumption level. The layout of the entry-level market of car companies is very wise, which can quickly attract consumers, which will further promote the development of the new energy industry. ”

In this context, the electric house strives to create a "100,000-level" cost-effective pure tram advantage, and the victory of the first battle is more clear about its strategic advantages from the low-end market.

Rely on cost reduction to speed up the opening of the first year of the product

And how to make the product more cost-effective? In the view of electric houses, the key is how to improve the efficiency of enterprises and save unnecessary costs for users.

The electric house found that China's new energy industry chain has been very mature, including a mature third-party professional research and development system, redundant production capacity in many places, a perfect spare parts supply chain, and a leading sales and after-sales service concept. How to make the enterprise become a lightweight and high-concentration brain, integrate these existing resources with the docking station external connection, create a perfect systematic collaboration ability, to achieve lower cost investment, more efficient enterprise operation, to achieve high cost performance of market-side products and services, and to improve the speed of market development, this is the core concept of the DOCK model, and it is also the core competitiveness of the electric house brand.

Different from the high-investment and low-speed model of self-built factories, self-developed technologies, and self-built stores, electric houses strive to create an efficient collaboration system that integrates superior industry resources. Under this mode, the electric house will become a high-speed computing brain, grasp the needs of users, focus on core technology research and development, define products and services, directly connect various resources in the new energy vehicle industry chain through different ports, and establish a digital and efficient collaboration system. Its four important ports include: R&D, manufacturing, marketing, and users. The electric house will be parallel to independent and joint research and development, independent quality control and manufacturing OEM integration, parts supply chain cooperation, high-quality dealer partners jointly layout sales and service outlets, with self-built user big data system and online communication channels, to create DTC brand model direct operation and maintenance of users. In all aspects, we will reduce costs in an optimal way, improve the speed of operation, and finally achieve high cost performance on the user side and rapid landing on the market side.

Liu Hongwei, chief marketing officer of the electric house, told the "China Times" reporter: "The electric house is expected to achieve a rapid positive gross profit margin next year, which stems from the fact that we have adopted the industry's first DOCK model. Our DOCK model can achieve cost reduction in four aspects: R&D, production, marketing and operation. Especially in terms of production cost reduction, China's passenger car production capacity has approached 60 million, but this year's sales volume is only 20 million, the capacity utilization rate is very low, and a large number of enterprises are under-operated. We chose to cooperate with Sinotruk VGV, which has a very mature manufacturing process, but completely dominated the quality control and supply chain, rather than choosing to build our own factory, saving at least 2 billion yuan in capital burden. In terms of channel cost reduction, we adopt a regional exclusive operation mechanism, that is, a dealer partner mechanism. This reduces internal competition and enables separation of shops and plants. At present, our channel expansion speed is very fast, and the country has achieved coverage of 95 cities. ”

Liu Hongwei believes that the upcoming 2022 will be a big year for electric brands to fully open the market, more products are new, the network continues to speed up, and products go to sea, which will be the keyword of next year and the key year for electric house brands.

When talking about future planning, he frankly said: "Next year, we plan to launch three pure electric products, complete the improvement of products from A00 to A0, and aim to achieve a single month sales of more than 10,000, and achieve a positive gross profit for bicycles." Following YOUNG's new light, we will launch a more intelligent A0-class model and continue to seize the C-end market with high cost performance. At the same time, we will also launch a more economical A00-class model to explore the development of the shared car market horizontally. Third, for the taxi, ride-hailing market, we will launch an A-class model that meets the actual demand and has a high cost performance, which will be an MPV. ”

Responsible Editor: Li Yan'an Editor-in-Chief: Yu Jianping