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A dollar for Shali

Do you know what my first ambitious goal was 30 years ago? Own a Charlie, even if it is a 7-hand one. Don't say I don't have a big ambition! You know, in China in the 90s, Xiali Automobile's market share and consumer reputation can surpass Santana, Jetta and other brands, and until 2011, Xiali has always been the first in the production and sales of economic cars. However, just such a car company, a brand, do you know how much it will be worth by 2020? A dollar. At this price, it was sold several times before it was sold.

A dollar for Shali

Shali Cars

In 1986, Tianjin FAW wanted to build a car, but there was no technology, two no experience, three no equipment, how to build? So they introduced Daihatsu's Charade model in the form of CKD and began the road to building their modern sedan. What is the concept of CKD form car building? That is, the parts of the whole car are all imported from Japan in the form of loose parts, and then assembled in Tianjin, which can be put on the market and sold. As a result, a domestic car with high cost performance - Xiali was born. Why is it so cost-effective? Because at that time, Santana was priced at about 200,000, and Charlie only needed 100,000. Why is it so cheap? Because at that time, the import of complete vehicles and the import of industrial spare parts and accessories had a huge difference in tariffs. In fact, today's Hengqin is also taking this road, as long as the value-added of the products you import in Hengqin is more than 30%, it is exempt from import tariffs. In this way, Xiali tasted the sweetness of the low-price advantage.

A dollar for Shali

Zhuhai Hengqin

However, it is also this inertia of thinking that makes Xiali lose its market position in the subsequent wave of consumption upgrading. Xiali's competitive magic weapon is price, but at the same time, it has also become synonymous with low-end cars and LOW, Guo Degang in order to damage Xu Deliang, said that he bought a 7-lot Xiali, this is not the end. Once This label of Charlie is attached, it is not easy to take off. But the key is that Since the 1990s, China has entered a stage of high-speed consumption upgrading, no matter what products and brands, as long as they can't keep up with its pace, they will be eliminated. From permanent bicycles to Jialing motorcycles; from Hongta Mountain to Raking Huahua, no one can escape this law.

A dollar for Shali

Jialing motorcycle

So in 2018, FAW Xiali issued an announcement that it would sell 100% of its equity to Nanjing Zhixing for 1 yuan. Nanjing Zhixing may not be known to many people, but it is actually the parent company of Byton Automobile. But at this price, it was not even sold; later, Xiali found Bo county automobile, a new force for car manufacturing, but still did not reach a cooperation; until 2020, it was finally sold to FAW for 1 yuan. Why is Charlie so uninvited today? It is because it has not kept up with the pace of consumption upgrades.

Attention Ha! Consumption upgrading is still the main theme to this day. In such a difficult year as 2021, the fastest sales growth among the first-line brands is bmw. The best development of new energy vehicles is the mid-to-high-end positioning brands such as Tesla, Weilai, Ideal and Xiaopeng. You may find it strange that BYD is not also positioning the low-end market from birth? Isn't it also developing well? If you look closely, IT's DM-i and models in recent years are not difficult to find that they have been rushing to the mid-to-high-end market, but the process of washing off the low-end brand image is very time-consuming, and it is difficult to reverse the public perception for a while.

Finally, consumption upgrading is a megatrend, in such an environment, Maslow's hierarchy of needs theory has guiding significance for entrepreneurs, when people's low-level needs are met, we must go to their higher-level needs.

A dollar for Shali

Maslow's hierarchy of needs

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