Smart kills back

The Smart brand, which handed over a global sales report card of 150,000 vehicles, has gradually declined as the micro-car market shrinks. However, the parent company Mercedes-Benz chose to pull Geely to let the Smart brand get back to the fight for electrification. On April 8, Smart Genie #1, a new model of the Smart brand, made its world debut in Berlin. As the first model launched after the establishment of a joint venture between Mercedes-Benz and Geely, Smart got rid of the mini-car "human design" and aimed at the compact electric vehicle segment, from products to channels, Smart chose to reinvent itself.

Jump out of the niche

Two years after mercedes-Benz and Geely established a joint venture, smart genie #1, a new pure electric car under the Smart brand, was officially unveiled in Berlin. Beijing Business Daily reporter learned that smart brand's new pure electric car Smart Genie #1 made its global debut in Berlin, this time the Smart brand "from oil to electricity" to the automotive market. Smart brand related sources said that although the specific listing date has not yet been disclosed, what can be revealed is that this product will soon be available.

It is understood that the Smart brand was born in 1998 as a mini car brand of Daimler, with global sales of 150,000 vehicles in 2012. However, as the market share of A00-class models has shrunk, the Smart brand has fallen into a sluggish sales volume, with global sales of only 38,500 units in 2021.

In this regard, Kang Linsong, chairman of the board of directors of Daimler AG and Mercedes-Benz AG, once said bluntly: "If the Smart brand does not seek change, it will probably be 'swept out'." Subsequently, Mercedes-Benz Pulle geely sought a turnaround for the Smart brand. In January 2020, Smart Brand Global Joint Venture Company established by Geely Holdings and Mercedes-Benz was established. As Conlingson said, the Smart brand was "torn down and restarted" under the joint incubation of Geely and Mercedes-Benz.

According to the data, the new Smart Genie #1 concept car has a length, width and height of 4270 mm× 1822 mm× 1636 mm, and a wheelbase of 2750 mm. At the same time, the car is equipped with a ternary lithium battery with a capacity of 66 kWh, and the maximum pure electric mileage can reach 560 kilometers. You know, the former Smart brand is to hit the world with "fuel cars", and the body size of the new car means that the Smart brand directly enters the compact electric vehicle market.

In fact, the choice of the Smart brand is not difficult to understand. Today, the global automotive market has entered a period of electrification transformation, which is a challenge for traditional car companies, but it is an opportunity for the Smart brand to seek change in the face of accelerated market shrinkage. In recent years, compact models have gradually become the main force in the electric vehicle market. Among them, in the European market, Renault has created a sales record of 100,000 vehicles with the Zoe model. At the same time, the rising upstream costs of the industry and the low profit margin of micro-electric vehicle models have allowed many car companies to choose to concentrate on compact electric vehicles.

Yan Jinghui, a member of the expert committee of the China Automobile Dealers Association, said that at present, the cost of raw materials and supply chains is constantly increasing, and the market for micro-electric vehicles is gradually shrinking, allowing the Smart brand to turn products to compact models and return in a "bigger" way. At the same time, with electrification as a springboard, the Smart brand wants to knock on the market door through new models.

Standalone channels

The Smart brand is changing not only the product, but also the production and sales channels.

"Without relying on Geely and Mercedes-Benz, the Smart brand will operate completely independently of its own channels, and stores around the country are in the final preparation stage, and there will be relevant information disclosure in the next period of time." The above-mentioned Smart brand related person said.

At the same time as independent channels, the Smart brand will also adopt a new sales model. It is understood that in the Chinese market, the Smart brand will adopt the D2C (Direct to Customer) direct sales agency business model with "user center, digital drive" as the core concept. Partners can focus more on improving service quality, so as to achieve a win-win situation for brands, partners and users. "At present, the D2C direct sales agency business network is rapidly taking shape." The above-mentioned relevant people revealed that in the future, the Smart brand will grasp the right to sell, hold its own vehicle inventory, ensure a unified, transparent and stable price system, and directly provide users with vehicle delivery services. At the same time, recruiting partners are responsible for providing users with a sales experience and after-sales service, but do not have to bear inventory.

"The Smart brand that has returned this time is not only updating the product, but also the brand concept." In the view of Cui Dongshu, secretary general of the Passenger Car Market Information Joint Association, now "post-90s and post-95s" are becoming the main force of consumption, and if you want this part of consumers to pay attention to products, you must understand their consumption scenarios and habits, and the new sales model adopted by the Smart brand is precisely out of the analysis of this part of the population. In addition, a relevant person on the Smart brand said: "The Offline channel of the Smart brand will also include the brand center, the supermarket showroom, the delivery center and other places. At the same time, it will also launch an App to provide consumers with a smart new retail experience through online and offline interaction. ”

In addition, after Geely and Mercedes-Benz formed a joint venture, the origin of new models has also become the focus, and Ningbo and Xi'an have become the production sites speculated in the industry. The above-mentioned relevant person said that the location of the factory cannot be disclosed at present, but the new model is definitely produced in China and sold globally.

Industry insiders believe that the Smart brand China made back and sell global planning for two considerations, on the one hand, can use Geely's resources to reduce production costs, on the other hand, China has become the main battlefield of new energy vehicles, supporting resources are more perfect, in this production is bound to bring more benefits to the brand. If you can save production costs, the pricing space of new cars is more flexible, after all, pure electric models, compact models are hot models in the market, and now consumers focus on how to price the Smart brand, Tesla is the best example.

Break through electric

From the entry into the compact electric vehicle market and the adoption of a new sales model, it can be seen that the Smart brand is fully prepared for a new kill, but it still faces a lot of competitive pressure.

Mercedes-Benz and Geely hatched the Smart brand "return", but for the market, how to re-establish brand awareness in the minds of consumers is particularly critical. At the same time, the Smart brand's competitor, the MINI brand, has not stopped. Compared with the Smart brand, which has been discontinued in sales, the MINI brand has a relatively moist life in the global market. The data shows that MINI's global shipments in 2021 were 302,000 units, of which about 17% of sales came from hybrid or electric models. It is reported that more than 1/10 of MINI customers choose THE PURE electric model, which means that MINI electric vehicles have gradually gained a foothold in the world.

While global sales are growing, parent company BMW also plans to produce MINI brand pure electric models in China. In 2019, Great Wall and BMW launched a joint venture to establish Beam Automotive, with a total investment of about 5.1 billion yuan, which is expected to be completed in 2022 and will be a domestic MINI brand electric model. This means that the Smart brand will once again meet its old rivals in the era of electrification.

In fact, the Smart brand has realized today's market pattern, in addition to product positioning, model changes, in order to meet more opponents, the Smart brand has also made adjustments to the product to adapt to the market. It is understood that Smart Genie #1 is equipped with an exclusive App and is equipped with Avatar, a genie assistant based on artificial intelligence AI technology. "The dynamic real-time update function of the OTA of the new car, more than 75% of the ECU electronic control units of the whole vehicle can be continuously upgraded remotely." Smart brand related people said that the Smart brand has entered a new stage of full-speed development, and the teams located in Europe and China will continue to collaborate efficiently to further implement the development strategy of "China-Europe dual core and global layout".

Beijing Business Daily reporter Liu Yang liu xiaomeng