On January 19, Kia sponsored the League of Legends Mobile Game Professional League, becoming the exclusive automotive partner of the event, actively exploring in the theme activities such as event customization, brand linkage, star team/player cooperation, joint peripherals, city races/regional competitions, etc., to bring a richer brand experience to Chinese consumers.
In 2022, Kia sponsored the Australian Open for 21 consecutive years, the EV6, the fourth generation of Jawa, Sportage became the official racing cars, and this year Kia will start its marketing activities with the Australian Open as the starting point.
It is not difficult to see that with the establishment of the new joint venture, Kia will open a new stage of China's development. Based on the Turn-around strategy and "All New Kia, All New Start!" "Business policy, Kia will accelerate the implementation of the global strategy, integrate global resources, better feed the Chinese market, so that more people can see a different new Kia."
Brand renewal is beginning to pay off
In 2021, Kia will continue to adjust its product structure and accelerate its mid- and high-end product layout in China through the listing of the Smart Run Ace and the fourth-generation Jawa of the "Global Flagship MPV". It is worth mentioning that as Kia's first model in China with a price of more than 300,000 yuan, since its launch in September, the sales volume of the fourth generation of Jawa in first-tier and new first-tier cities has reached 47.5%. Driven by the fourth generation of Star models such as Jiahua, Zhipao Ace, K5 and so on, in December 2021, The average MSRP of Kia reached 141,300 yuan, compared with 108,400 yuan in 2019, an increase of 32,900 yuan, improving the revenue of new cars, changing the perception of the Kia brand in the hearts of Chinese consumers, and laying the foundation for the increase in brand premium.
At the Shanghai Auto Show held last year, Kia released a new LOGO, a "customer-centric" brand concept and brand purpose, launched an Experience New Kia national test drive activity, expanded the user brand experience touchpoints, and let more Chinese consumers recognize the different new Kia. In addition, in response to the Chinese government's dual-carbon strategy, at the Guangzhou Auto Show, Kia released its corporate vision of "Sustainable Mobility Solution Provider" and "2045 Carbon Neutrality Strategy" in China, committing to becoming a sustainable mobility brand.
At the same time, the operation and management of enterprises has also embarked on the track of a virtuous circle, and the data shows that in 2021, From Asia adheres to the "retail-centric" sales method, cancels the assessment of car pick-up indicators, formulates reasonable retail indicators, and continuously optimizes business policies, improving the profitability of dealers and enhancing the competitiveness of dealers in the regional market. The inventory of dealers has been reduced from 46,000 units at the end of 2020 to 19,500 units at the end of 2021, and the operating conditions have been well improved, laying the foundation for meeting future market challenges.
The medium- and long-term strategy of "Plan S" is determined
Kia released its "Plan S" medium- and long-term strategy last year. According to Kia's revised "Plan S" medium- and long-term strategy in early 2021, it is committed to transforming into the two core directions of the future of "electric vehicles and environmentally friendly mobility", and plans to launch 11 electric vehicles by 2026, including 7 E-GMP special electric vehicles; by 2030, it will achieve annual sales of 1.6 million units of pure electric, hybrid, plug-in hybrid and other environmentally friendly models, and 880,000 units of pure electric vehicles, accounting for 55% of total sales, ranking among the world's first-class electric vehicle brands.
It is understood that in 2022, Genia will set up a new joint venture in China to open a new stage of China's development, with a total of five business policies:
First, integrate into the global system and increase resource investment in the Chinese market. After the restructuring of the enterprise, on the one hand, it will refer to the successful experience of global Kia and introduce more global system resources; on the other hand, it will more closely combine China's actual situation and re-set sail with the attitude of a new power startup, pay more attention to the needs of Chinese consumers, and better realize the combination of globalization and localization. In the future, Yancheng will become an important hub for Kia's new energy production and overseas exports, and play an important role in Kia's global strategic layout.
Second, strengthen brand building and let new Kia penetrate the hearts of the people. The marketing headquarters has been newly established to strengthen the online and offline integrated marketing of the target groups of the MZ generation, carry out cross-border cooperation according to user preferences and life scenarios, hold IP activities such as brand days, and take advantage of the opportunity of the 30th anniversary of the establishment of diplomatic relations between China and South Korea to strengthen brand building, strengthen consumer experience, and establish an innovative brand image.
Third, the management is efficient, and an efficient organizational system is formed. Internal high-quality talents will be promoted to core positions, and at the same time, local professionals who understand the Chinese market will be introduced to greatly enhance the competitiveness of the organization. In addition, by adjusting the organizational structure and establishing an organizational system that can quickly respond to market changes, we have newly established sales training departments and other departments, increased the functions of regional business departments, strengthened the support and management of dealers, cultivated a first-class sales team with professional quality, and continuously improved sales and service capabilities.
Fourth, product quality, to provide Better choices for Chinese users. It will gradually stop production of models under 100,000 yuan, accelerate the introduction of more competitive global models, and win consumer recognition through product competitiveness. This year, Kia will unveil a new flagship SUV, the Sportage, and its hybrid version, as well as a K3 facelift. 2022 is the first year that Kia started electrification, in addition to the introduction of HEV hybrid models, the hot-selling pure electric model EV6 in overseas markets will soon be introduced into China, and it is planned to introduce at least 1 pure electric vehicle per year from next year to provide consumers with more diversified mobile solutions.
Fifth, rationalize operations and work together with dealers. Focus on the improvement of the profitability of terminal dealers, carry out business work, set pragmatic operating indicators according to the ability of dealers and the actual needs of the market, continue to promote the "retail-centric" operation mode, and achieve sustainable development with dealers.
In terms of carbon neutrality, Kia is also actively deploying, planning to achieve 100% electrification in the European market by 2035 and major global markets by 2040. By 2030, the utilization rate of recycled materials for vehicle production will reach more than 20%. At the same time, solar power generation systems will be introduced in production facilities at plants in South Korea, the United States, and China, and the conversion to renewable energy will be completed at global plants by 2040.
In 2021, after the baptism of the epidemic, chip shortage and deep adjustment, China's auto market showed a warming upward trend, bringing new opportunities. For Kia's development in China, this year has far-reaching significance. Although facing many difficulties and challenges, from the brand renewal at the beginning of the year to the corporate restructuring at the end of the year, I believe that Kia can successfully change the brand perception in the hearts of consumers.