Analysis of three pricing strategies for Xiaomi SU7

With the increasing popularity and attention of Xiaomi SU7, how to price this star model has become the biggest mystery in the recent car market. Especially after the Xiaomi SU7 press conference, there are more and more competitors in the same level, and the competitors are becoming more and more heroic and good at fighting, setting off round after round of price reductions, making the pricing strategy of Xiaomi SU7 more difficult to deliver.

At present, in the same market segment of Xiaomi SU7, there are at least more than ten models of the same level, the previous blue ocean market, in a very short period of time has become the red ocean, fierce competitors have been in place, began to chase and intercept Xiaomi SU7.

A "fierce and vicious" competitor

At present, in terms of price, there are at least a few models in the same class that can pose a sufficient threat to Xiaomi SU7:

BYD Han EV Glory Edition, the guide price is 179,800 yuan to 249,800 yuan. The market-leading model has high visibility, large ownership, outstanding cost-effective advantages, and better competitiveness after price reduction.

Galaxy E8, the guide price is 175,800 yuan to 228,800 yuan, a new model, the price is cheap, the top configuration is only 228,800 yuan, 800V fast charging, 45-inch large screen, 8295 chips are all arranged, and the acceleration is 3.49 seconds.

Star Era ES, the official guide price is 198,800 yuan to 339,800 yuan, and the product power is highly close to or even slightly exceeded that of Xiaomi SU7. In January, the starting price of the entry model was 225,800 yuan, and after the release of the Xiaomi SU7, the price of the entry model was quickly adjusted to 198,800 yuan. The main advantages of the whole system are standard air suspension + CDC, and the CLTC has a maximum range of 905 kilometers, both of which are significantly more than the Xiaomi SU7.

ZEEKR 007, the guide price is 209,900 yuan to 299,900 yuan, the Galaxy E8 is the same platform model, but the brand is more advanced, and the performance and configuration are upgraded by a level, similar to upgrading from Volkswagen to Audi. The advantages of the product are lidar, high-speed pilot, dust parking, the whole 800V architecture, 2.84 seconds to break 100, and the maximum range of 870 kilometers.

Zhijie S7, with a guide price of 249,800 to 349,800 yuan, is far ahead of intelligent driving, completely independent high-end chips, and the light coverage of the Huawei brand.

……

In short, in the face of fierce competitors like wolves and tigers, the price strategy of Xiaomi SU7 is indeed difficult to formulate. In particular, the all-important entry starting price, too high or too low will bring unintended consequences, and the subtlety of the price positioning may determine the life and death of this Xiaomi strategic model. In the face of such an intricate competitive landscape, I believe that Xiaomi SU7 also has at least a variety of price plans, we analyze them one by one.

The first possibility: the entry guide price is 170,000 to 190,000 yuan

This is a price strategy that relatively caters to market expectations, directly entering the hinterland of competitors, and the entry price is on par with the Han EV Honor Edition and Galaxy E8 and other peers, and the main product features are 400V architecture, 668 km range, and some configurations can be slightly reduced. Coupled with extremely sophisticated and skillful marketing strategies, it can quickly gain market recognition by logging in at a lower price than expected, and quickly enter the market with the momentum of cutting butter with a hot knife or splitting bamboo poles with a big knife, becoming a phenomenal model in the same level of the market. And become the market leader, while forcing competitors to continue to cut prices, and then promote the deep reshuffle of the same market segment, and establish the industry position of Xiaomi SU7.

However, this possibility is very small, because as a new entrant, Xiaomi SU7 still lacks accumulation in cost control, quality control and process management, and cannot be compared with BYD, Geely and other masters who have been working in the industry for many years. At the same time, Xiaomi signed a battery contract at a high point in the industry (Lei Jun personally said that the price of a 100-degree battery exceeds 100,000 yuan), which also limits the price space of Xiaomi SU7. So at the same price, friends may make money, and Xiaomi SU7 may lose money, so the possibility of this pricing is not high.

The second possibility: the entry price is about 200,000 yuan

The second possibility is that the starting price of Xiaomi SU7 Youth Edition is about 200,000 yuan, or 190,000 to 210,000 yuan. This price is highly overlapping with Star Era ES and ZEEKR 001, and it is also a relatively moderate pricing strategy.

Although Lei Jun said before that 199,000 yuan is impossible, 200,000 yuan is always okay, right? If you are not serious, then Lei Jun can also continue to convince the board of directors and convince himself to "sacrifice his reputation and surprise everyone". From Lei Jun's rapid reversal of public opinion by donating 100 million yuan at a critical moment, it can be found that Lei Jun's talent in manipulating public opinion and marketing methods far exceeds that of competitors. Therefore, even if the price of 200,000 yuan is set, Lei Jun must have the ability to "not only will not make people feel that they have broken their promises, but will make the rice noodles cry bitterly".

The price of about 200,000 yuan has become the marking line of the market at the same level, and it is also the forefront of the most fierce war. There are Galaxy E8 and BYD Han EV below, Zeekr 001 and Chery Star Era ES in the same class, and different models such as Zhijie and NIO above. However, compared with ZEEKR 001 and Star Era ES, Xiaomi SU7's hard power is not outstanding. Especially at the entry level,800V architecture、800km endurance and high performance of more than two seconds will definitely not appear,Want to rely on400V architecture and Krypton 001 full system 800V architecture and Star Era ES full system air suspension + CDC comparison,XiaomiSU7Product power is indeed not dominant,Even with Xiaomi's marketing methods that far exceed those of competitors,It is not a big problem to occupy a place,I am afraid it will be difficult to kill the Quartet。

The third possibility: the entry price is 220,000 to 250,000.

The third possibility is the starting price of 220,000 to 250,000 yuan. Judging from the current information, this price range should be the price positioning range that Xiaomi SU7 is more inclined to before. This starting price is obviously higher than that of the same class of models, not only surpassing the cost-effective models of the same class such as the Han EV and Galaxy E8, but also far exceeding the high-performance models such as the Zeekr 001 and the Star Era ES.

Frankly speaking, if a few years ago, even a year ago, or even half a year ago, there was no problem in setting such a price, it would still have been possible to become famous overnight and burn down the company's battalion. But in the ever-changing market, especially in the last six months, no, in recent months, the new energy market has completely experienced a round of price diving, this price has been less attractive, and will almost cause widespread criticism and questioning, except for some die-hard fans, most consumers may think, "The price is so expensive, there is no experience in making cars, why not go and look at the better performance of the Krypton 001 and Star Era ES"?

After all, the entry model of Xiaomi SU7 is only a 400V low-endurance model, and it may be very difficult to win in the face of the full range of 800V and the maximum range of 905 kilometers. So this price, although it should have been the most expected price of Xiaomi, but if you want to achieve it, I'm afraid it's not easy.

Write at the end

Of course, in addition to the above three price strategies, it is not excluded that Xiaomi SU7 entry version may formulate a more extreme price, such as less than 170,000, or more expensive than 250,000, although the possibility is very small. Of course, no matter what, how to price the Xiaomi SU7 is really a difficult problem, but the ugly daughter-in-law will inevitably see her in-laws, no matter how difficult the pricing is, the Xiaomi SU7 price always has to be announced, and it won't be too long.

We waited, and we kept waiting.