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When it comes to Huitong Luhua, many people will not be strangers. As one of the longest and largest Jaguar Land Rover dealers in China, Huitong Luhua has a total of 27 authorized dealers since its establishment in 2000, of which 22 are Jaguar Land Rover brands.
Huitong Luhua Beijing Jaguar Land Rover 4S store
As a 21-year-old dealer group, Huitong Luhua may be lagging behind many of its peers in its expansion. But in that era of barbaric growth of the car market, it was rare to maintain a restraint. When many "huge" dealer groups are difficult to complete the "elephant turn" after the car market enters the stock era, Huitong Luhua sails smoothly in the rough waves of the car market. In 2020, which was fully affected by the epidemic, Huitong Luhua's annual revenue increased by 10% against the trend, and its ranking in the Top 100 Dealer Groups of the China Automobile Dealers Association also rose from 30th to 27th.
President of Huitong Luhua Group Liu Tong
Behind Huitong Luhua's steady progress, what kind of development code is hidden? Standing at a new starting point for 21 years, how will this established dealer group face the challenges of the future? A few days ago, The Che Emperor "Discussion" interviewed Liu Tong, president of Huitong Luhua Group, to explore the answer to the question.
<h1 class="pgc-h-arrow-right" data-track="93" > stand on the "moon" and look at the "earth"</h1>
Unlike many dealer group managers who come from the auto sales business, Liu Tong has 13 years of financial experience and retail industry background before entering the auto circulation industry in 2007. At that time, the retail industry had already completed a round of reshuffle in the cruel competition, and the automobile market was in a period of rapid development of barbaric growth.
"Only by jumping out of the earth itself and standing on the moon and observing can we truly understand the whole picture of the earth." Despite the differences in the industry, my past experience has helped me a lot in my work as a car dealer. "For example, Liu Tong said that the general retail industry will have 50,000-100,000 or more items, suppliers at least 2,000, and 4S stores all the different colors of the model parts together do not add up to 10% of the retail industry, the most core supplier is only one OEM." With data-based thinking, car dealer management is actually not difficult to do, and it is the most critical to do customer service with heart. He said.
In the operation and management, Liu Tong will focus on multi-dimensional data such as balance sheet, income statement, cash flow statement and business statement, and decompose the business indicators step by step, so as to achieve refined management and assessment. Taking the inventory depth, the key indicator of dealer health, as an example, in the ordering process, Huitong Luhua will select relatively best-selling models and models among many models based on sales data and user demand analysis to speed up turnover.
In the sales management link, for models with an inventory depth of 60 days and 90 days, an early warning will be put forward and the store will be reminded to pay close attention in time; in terms of price strategy, for models with large inventory depth, by increasing marketing efforts and improving the means of sales staff commissions, the turnover efficiency is accelerated.
In the performance appraisal, the "big warehouse age" vehicle is included in the appraisal indicators for the sales manager. According to Liu Tong, under the joint action of a series of means, the current turnover cycle of new cars under Huitong Luhua's brand is about 35 days, and the proportion of "big warehouse age" vehicles with more than 90 days is about 6%-7%.
<h1 class="pgc-h-arrow-right" data-track="99" > recognize "loyalty"</h1>
In Liu Tong's view, car dealers are a combination of the retail industry and the service industry. His understanding and reflection on the development process of the retail industry made him realize the importance of systematic service capabilities and customer experience for brands early on. Unlike the relatively "short and fast" customer chain in the retail industry, there are many interactions between car dealers and customers, and any omission can have a huge impact on the customer experience.
Liu Tong divides the relationship between dealers and customers into four stages - recognition, recognition, satisfaction, and loyalty, which is also a process of building a brand. "Awareness is the most basic first step. If we can follow the standard process of the manufacturer and have a good basic service, the customer can have a basic identity with us. Liu Tong told the author, "To be satisfied, we must provide better service beyond the usual standards; and to obtain a loyal customer, it must be that we provide a series of personalized, exclusive services, which are beyond the imagination of customers." ”
As the "Whampoa Military Academy" of Jaguar Land Rover technicians, Huitong Luhua has won many championships in the skills individual and team competitions held by the manufacturer, and has achieved good results in the global skills competitions for greater China. However, meeting the standard specifications required by the manufacturer is only a routine action of Huitong Luhua to gain the "recognition" of customers. Bringing surprises to users through high standards of service is the goal that the Group constantly pursues.
Huitong Luhua customized exclusive brand service commitment
In the field of second-hand cars, Huitong Luhua has also promoted its business from multiple dimensions such as new car replacement, replacement and upgrading of old customers, consignment services, platform auctions, and social procurement, and laid out in advance.
In terms of daily services, in addition to the standardized service process of the manufacturer, Huitong Luhua summarized 21 customer contact points, including pre-sales links such as security, sales front desk, test ride test drive, latent return visit, delivery ceremony, etc., as well as after-sales links such as telephone appointment, SA reception, CRM3 day playback, etc., and formulated a detailed specification process for each contact point. For example, store security guards need to salute customers when they arrive, ask for customer needs, guide them, and open the door for customers when they get off the bus.
Huitong Luhua implemented standardized services for each position for 21 customer touchpoints
According to the theory of behavioral psychology, the formation of a habit needs to be repeated for at least 21 days. Liu Tong is well aware that compared with changes in actions, changes in thinking are the key to improving services, so strict inspection and reward and punishment measures in the early stage of system implementation are indispensable. "Building a solid connection with our customers is at the heart of our dealers' future growth, and in the next step we will promote the standardisation of customer touchpoints across the Group." In this way, we hope to enhance the service awareness of all employees of the Group and continuously exceed the expectations of our customers. If 20% of our customers are loyal, it is very proud. He said.
<h1 class="pgc-h-arrow-right" data-track="108" > the same desire wins</h1>
Unifying thinking within the group is an important part of improving the service level, and the coordinated development of dealers and manufacturers provides a guarantee for business development in a larger dimension.
"The premise of all management is that the thinking must be unified, and the so-called 'the one who wants the same thing from top to bottom wins'. From manufacturers to dealer groups, from group executives to store managers to the middle level, everyone has a unified thinking, which is the premise for achieving good business results. Looking back on the three years as president of Huitong Luhua Group, one of Liu Tong's outstanding feelings is the change in the jaguar Land Rover brand's dealer management thinking, which coincides with the refined management he implemented within the group. It is this "same desire between upper and lower" that has become a booster for the development of Huitong Luhua, bringing the effect of 1+1>2.
The shift that Liu Tong is talking about began in early 2019. After Pan Qing, Global Director of Jaguar Land Rover and President of Jaguar Land Rover China, acted as President of IMSS (Jaguar Land Rover China and Chery Jaguar Land Rover Joint Marketing Sales and Service Organization), Jaguar Land Rover began to take the initiative to adjust and optimize the dealer management system.
Liu Tong told the author that on the one hand, Jaguar Land Rover's assessment of dealers has changed from the previous batch sale to retail, and the local brand rate serving local customers has become an important assessment indicator; on the other hand, the determination of key models and flagship models has made the product positioning more clear, and also made the sales business more targeted.
In the past 2 years, the joint efforts of manufacturers and dealers have achieved obvious results. Jaguar Land Rover's sales in China have increased year-on-year for 10 consecutive months. The cumulative sales volume of Huitong Luhua in the first half of this year also increased by 38% year-on-year, maintaining a rapid growth trend. With the recovery of the luxury brand car market, the future market space is more promising.
<h1 class="pgc-h-arrow-right" data-track="114" > actively lays out service-oriented</h1>
Auto live broadcasting brings clues and new increments of transactions, the tide of new energy vehicles is surging forward, and the second-hand car field is facing broad room for growth... In the face of future opportunities and challenges, Huitong Luhua took the initiative to attack and actively laid out.
In the field of digital marketing such as automotive live broadcasting and short video, based on the successful experience of several previous stores, Huitong Luhua has established a complete plan and begun to systematically promote it.
Huitong Luhua Tesla authorized sheet metal spray center
In the field of new energy vehicles, at present, with the advantages in hardware facilities and technical talent reserves, Huitong Luhua has cooperated with Tesla, Weilai, Ideal and other groups to actively lay out the after-sales maintenance and sheet metal spray business of new energy brands; in the field of second-hand cars, Huitong Luhua has also promoted its business from multiple dimensions such as new car replacement, replacement and upgrading of old customers, consignment services, platform auctions, and social procurement, and advanced layout.
"For Huitong Luhua, we still hope to deeply understand the great changes in the entire automotive industry, where will it go in the future?" We hope to lay out early, but the value of the terminal channel is to do service, serve our authorized brand, and serve all customers, which is a purpose of our dealers. Liu Tong said.
<h1 class="pgc-h-arrow-right" data-track="120" > conclusion</h1>
In the past three years, Huitong Luhua, led by Liu Tong, has continued to cultivate luxury brands such as Jaguar Land Rover, Mercedes-Benz, Volvo, lexus and so on, and achieved stable performance improvement in the ever-changing market environment. However, for Huitong Luhua, the biggest change is not the expansion of the scale of operation, but the construction of standardized internal management processes and systematic service capabilities, as well as the continuous improvement of customer relationships brought about by this. This is where Huitong Luhua's confidence lies on the way to the "century-old brand".