The new generation of Range Rover helps Jaguar Land Rover "reinvent the future" | specially planned

A new round of technological and industrial revolution is in the ascendant, and the automotive industry is also undergoing a critical period of transformation and change. In this context, traditional car companies hope to embark on a strategic path that not only conforms to the background of the times but also strengthens its characteristics and advantages.

This time last year, Jaguar Land Rover unveiled its new global strategy – reinventing the future. Based on this strategy, the company will focus on the two British brands of Jaguar and Land Rover, and interpret the concept and strategic layout of the future development of new modern luxury through new design, new products and new technology empowerment.

Today, a year later, how is Jaguar Land Rover doing?

A new generation of Range Rover landed in China

Recently, a new generation of Range Rover is about to land in China. The product is the first model released by Jaguar Land Rover after proposing a global strategy to "reinvent the future".

Half a century after the release of the first product in 1970, the Range Rover has become the land rover brand's well-deserved flagship model. Regarding the new model, Li Dalong, president of jaguar Land Rover China and Chery Jaguar Land Rover's joint marketing sales and service organization, defined it as "a very pure classic Range Rover, but also a new generation of Range Rover".

It is also the embodiment of Jaguar Land Rover's "reinventing the future" strategy. In the "Reinventing the Future" strategy, Jaguar Land Rover expects to present the car experience of the future, and the new modern luxury is the core representative. In Li Dalong's view, the design of the new generation of Range Rover precisely reflects the new modern luxuryism described by Jaguar Land Rover Chief Creative Officer Professor Zhe Ruixun.

The first is a unique British design concept. "Neo-modern luxury" is based on the British brand jaguar Land Rover on the basis of emphasis on design, so neo-modern luxury has a stronger demand for model design.

The design of the new generation of Range Rover, on the basis of retaining many classic elements, the design language of the new model is more minimalist. Classic body design and minimalist concepts blend to complement the body proportions, surfaces and lines. Land Rover empowers by design to interpret the concept and strategic layout of the future development of neo-modern luxury.

The second is the use of high technology. Another hallmark of "Neo-Modern Luxury" is the use of new technologies and electric platforms based on a brand that emphasizes design. Throughout the history of Range Rover iterations, Range Rover has achieved innovative technology iterations in the SUV segment many times. For example, the first disc brakes in the SUV segment, ABS, air suspension, all-aluminum body-bearing models, and so on.

The new generation of Range Rover models was designed, developed and manufactured in the UK, and in the process Land Rover filed as many as 125 patents covering everything from groundbreaking chassis technology to advanced powertrains.

When announcing its "Reinventing the Future" strategy last year, Jaguar Land Rover made a clear plan for the electrification of future products: Land Rover will have its first pure electric model in 2024; Land Rover will have six pure electric models in 2026; and Jaguar will have its own unique pure electric platform in 2025. In 2030, all Jaguar Land Rover models will have pure electric configurations.

The new generation of Range Rover is based on the MLA-Flex luxury electrified architecture platform. On this platform, it can realize the different requirements of the car for energy or power configuration in various countries and regions, such as supporting gasoline, diesel, plug-in hybrid, pure electric, etc., to meet the policy and regulatory requirements of different countries and markets. The new generation of Range Rover is achieving a competitive advantage under the "Reinventing the Future" strategy through its unique product capabilities.

"Our engineers can achieve all the required power configurations on such a platform, because the needs of each market are different, and the needs of consumers will change, and our production method is very forward-looking." Li Dalong stressed, "There are some key words in the 'reinventing the future' strategy, one of which is to create the products of dreams. ”

In the Chinese market, practice the strategy of "reshaping the future"

The new generation of Range Rover was officially unveiled in overseas markets in October last year, and although it has appeared in China slightly later than other markets, Li Dalong said it will fight for more resources for Chinese users. In the "reinventing the future" strategy, China is clearly an important battlefield for Jaguar Land Rover.

According to the data released by the Association of Automobile Manufacturers, compared with other models, luxury SUVs have the highest growth rate in the Chinese market, and the market performance of luxury SUVs will become an important driving force for automobile brands to compete for the Chinese market.

Jaguar Land Rover's performance was also very impressive: in 2021, Jaguar Land Rover's cumulative sales in the Chinese market were 103,888 units, an increase of 9% year-on-year; dealer margins increased by 2.2 percentage points, and the proportion of profitable dealer groups reached 88%.

"We pursue sustainable growth. Development is important, but to develop on the basis of dealer profitability, only dealers have a strong profitability, in order to have the opportunity to provide customers with better after-sales service. Li Dalong added.

In addition, in the context of sustainable development trends, Jaguar Land Rover will be committed to serving consumers with a more flexible business operation model.

In today's luxury car market, a new generation of consumers are more respectful of "experience is the product", after-sales service is of great significance to the strengthening of brand loyalty and brand differentiation, will also promote the penetration of luxury car brands. Especially considering the purchase habits of consumers, luxury car transactions will still be completed in dealerships, so it is particularly important to ensure customer service at dealer terminals.

Li Dalong revealed that one of the most important KPI indicators of Jaguar Land Rover in the Chinese market is customer satisfaction and customer service, which is also an important link throughout the customer life cycle. For example, in view of the current Chinese market, where the epidemic situation is repeated and epidemic prevention measures are cautious, Jaguar Land Rover pays special attention to the health and safety of dealers and car owners when carrying out after-sales service.

One of the measures is to use digital methods as much as possible. Due to the epidemic, the new generation of Range Rover listing activities that cannot be carried out at the Beijing Auto Show will also be changed to online, and the corresponding purchase and follow-up service experience will also be changed to delivery to the car. Jaguar Land Rover will take more similar measures to ensure the convenience of consumer life.

It is foreseeable that with the advancement of digitalization, the sales and service model will further integrate online and offline in the future. In terms of customer experience, Jaguar Land Rover will also carry out scenario-based branding around the application of the customer's overall digital touchpoint. It is also a perfect embodiment of the more flexible business model and fast and clear action set out in the global strategy of "Reinventing the Future".

"We make different choices based on the personality of each product and the circumstances and timing of the market. There will still be a lot of uncertainty this year, and it will continue for some time. We must be flexible, respond quickly to both actions and thoughts, and change plans at the same time. Li Dalong explained.

Look for a healthy and sustainable development strategy

In Jaguar Land Rover's global strategy to "reinvent the future", "sustainability" has been the cornerstone of the process. Define neomodern luxury through design empowerment, create a positive social impact with products, and build a sustainable and resilient business model by making scale, functional and organizational adjustments around customer service.

There are also environmental problems that cannot be ignored at present, not only to achieve higher requirements for people's travel experience, with the rapid development of science and technology, the continuous improvement of emission reduction requirements, the automobile industry is bound to develop in the direction of health, green and environmental protection.

When introducing the new generation of Land Rover Range Rover, Li Dalong stressed that this model is equipped with a new interior material, which is not only more avant-garde, but also more ecologically responsible, and more diversified. Land Rover has chosen to partner with Kvadrat, a premium European textile manufacturer, and combines an innovative leather alternative made from Ultrafabrics imitation leather, achieving a lightweight reduction while emitting a quarter of the carbon footprint of conventional leather. "I believe that in the future, more and more people will be happy to choose this environmentally friendly material. But for very pro-eyelid cortex users, we will also respond to different markets and different needs. ”

In line with the "Reinventing the Future" strategy, Jaguar Land Rover's vision for the realization of neo-modern luxuryism is consistent with the concept of sustainable development priorities. Jaguar Land Rover will work more closely and share knowledge across the Group to reduce emissions and enhance sustainability, while maintaining leadership in next-generation technology, data and software development.

As Jaguar Land Rover Global CEO Thierry Bolloré once said, within a decade, every Jaguar Land Rover model will offer electrification options. In order to meet future needs, Jaguar Land Rover is accelerating the development of clean hydrogen fuel cell technology to achieve Jaguar Land Rover's 2039 net zero carbon emissions target and fully open the road to future mobility.

Zhang Qian | wen

Qian Zhang is a contributing writer for the Chinese edition of the Harvard Business Review