In the first half of this year, Michelin successively suspended or closed down some of its factories in Algeria, the United States, France, and other countries, and conducted many large-scale layoffs. However, the global contraction of Michelin not only did not include the Chinese market, but instead made some unexpected moves. First, it ended the cooperation with the Shuangqin Group and planned to convert Shanghai Michelin from a joint venture into a wholly-owned enterprise, and later planned to abolish the Beijing representative office. Move marketing business to Shanghai. Its intention is very obvious. It is to strengthen the Chinese engine. Why is China The Michelin Group, a world leader in tire technology, was founded more than a hundred years ago in Clermont-Ferrand, France, and has achieved a lot of impressive results: the first car tires, train tires and truck tires in the history of manufacturing, the inner tube into the tire structure to become The originator of inner tube design, the first aircraft and motorcycle radial tires. Today, the Group has set up 75 factories, six rubber plantations on five continents, and research and testing centers in France, Japan, the United States, Thailand and China, and sales and marketing organizations in more than 170 countries. According to 2007 figures, Michelin’s global share of 17.1% is the world’s largest tire supplier. Michelin entered the Chinese market in only 20 years. In 1989, Michelin set up a representative office in Beijing. In 1995, Michelin Shenyang Tyre Co., Ltd. was established in a joint venture with the Shenyang Tire Factory, which firmly established the first step in landing in China. In 2001, Shanghai Michelin Warrior Tire Co., Ltd. was established in a joint venture with Shanghai Tire & Rubber Co., Ltd. and began to implement a diversified brand strategy in China. After 20 years of development, Michelin has established an industrial layout that spans the north and the south in China, from cars to trucks, to meet the needs of China's multi-level market. It is reported that Michelin has more than 4,000 sales stores in China and has the largest tire retail network. In addition, Michelin’s "Go with you" service in China now has 700,000 members. The sudden outbreak of the financial crisis in 2008 caused the global market to shrink rapidly. According to Michelin’s financial report for the first half of 2009, in the first half of this year, the group’s global sales fell by 23%, and net sales fell by 13.4%. Although the report did not separately disclose the business figures and growth rate of the Chinese market, Xia Yifu, general manager and chairman of Michelin (China) Investment Co., Ltd., has repeatedly stated publicly that “In recent years, the annual growth rate of Michelin in China Both have reached double digits, and this growth rate is rare in the European market. China is Michelin's fastest growing market in the world." It is precisely because of this that Michelin has paid a lot of attention to China's business. This year Michelin Group plans to reduce capital expenditures by nearly 45% globally, while maintaining the same investment plan in the Chinese market and conversely accelerating the frequency of new product launches. Hidden worry about development Of course, the development of Michelin in China is not without its obstacles. Michelin has entered the Chinese market through cooperation with local companies. However, whether Michelin Shenyang Tire Co., Ltd. established in cooperation with Shenyang Tire Factory or Shanghai Michelin Co., Ltd. established in cooperation with Shanghai Tire & Rubber Co., Ltd., the outcome is a joint venture. Become sole proprietorship. Although some people have speculated that this is Michelin deliberately creating losses and driving away partners, due to many problems in the management system and personnel conflicts, the cooperation between the two parties is not very pleasant. This is true, and it is worth reflecting on the failure of repeated cooperation. . Although Michelin has always been winning with technological innovation, its production of “economized tires†and “green tires†has a high reputation among domestic consumers, but its pricing is much higher. As the market has shrunk, many automakers have been forced to give up Michelin tires and have chosen cheaper tires to equip new cars. According to statistics from the online auto market, among the 40 new models that were listed at the end of last year, only Michelin tires were selected for six models, including Mercedes-Benz C, Platinum Rui, and New Tianyi. The brand diversification strategy is an important factor in Michelin becoming the leading Chinese tire market, and as a result, in the process of ending the cooperative relationship with Shuangqin Group, Michelin strives for the right to use the “Baili†brand. The industry generally believes that China's private auto consumption has a rapid growth period of more than 10 years. Major tire manufacturers have joined the competition in the Chinese retail tire market. Changes in the market have increased the brand appeal of tire companies at home and abroad. Most Chinese consumers still have little knowledge of cars, but tires know less about them. Knowing that several well-known tire brands such as Michelin, Goodyear, and Hankook are not easy, there is no concept of the names and characteristics of various products. . How to increase the popularity of its own brand and cultivate consumer loyalty has become a major challenge for Michelin to dominate the Chinese market. Decisive Chinese Marketing Michelin has technology, funds, and talent. Through business integration, companies can increase their ability to resist risks and respond to the impact of the financial crisis. Through technological innovation, the implementation of brand diversification strategies can increase the cost-effectiveness of products and reduce the market losses caused by over-pricing. However, after escaping the financial crisis and recovering the market, brand awareness and loyalty will always be accompanied by Michelin's entire development history. In order to solve this problem, Michelin conducted a serious study, and strived to tackle a multi-faceted problem and launched Chinese-style marketing. Michelin is best at designing and producing high-tech products. In foreign countries, products are mainly sold through agents with certain operating strengths. However, in China, facing such a huge and complex market, Michelin has always been committed to the development of retail networks through retail sales. Businesses provide some preferential business policies, rebates, and services, and maintain a solid and good relationship with them. According to Xiayifu’s introduction, Michelin has established a cooperative relationship with 3,500 retailers relying on the three major brands, 500 of which are Chijia, and has also established an extensive network of truck and bus tire services, including 1,800 trucks and buses. Tire sales service center. Today, Michelin's launch of the "Michelin with your 24-hour road service" and "Rescuer 24-hour tire free assistance service" has become very popular in China, reflecting its service philosophy. According to Nielsen's 2007 survey data, Michelin's “According to You†brand ranked first in the field of after-sales service in tires, up to 48%; after learning about the “as you go†service, consumers buy Michelin tires. Intention increased by 39%. Another third-party survey agency data showed that the members' satisfaction with Michelin's “along with you†service was as high as 89%. In order to bring products closer to Chinese consumers, Michelin made a bold attempt to use this year's new product launch in May. In order to facilitate the identification of Chinese consumers, Michelin has changed its practice of naming the product line or specification, and has given it a Chinese name; it has added a variety of Chinese elements to the design of the new product launch conference, such as ancient music and Chinese style. The promotional videos, etc., add a strong Chinese color to new products; the most important thing that highlights Michelin’s intentions is that Michelin also specifically requested the National Tire and Rubber Products Quality Supervision and Inspection Center and National Car Quality for the Chinese people’s reliance on the authoritative thinking model. The supervising and testing center conducts real-vehicle inspections on new products and third-party agencies certify product data. On September 4, Shuangqian’s resolution to sell its shares in Shanghai Michelin was formally approved by the board of directors. Shanghai Michelin’s joint venture became a step closer to becoming sole proprietorship. Michelin has lost 1 billion yuan in cooperation with others for 8 years. We will wait and see how the business situation of its single leader is. Plastic Transparent Mold,Precision Plastic Injection Mould,Plastic Injection Mould Making,Plastic Molded Injection Part Dongguan Kaisijin Intelligent Technology Co., Ltd , https://www.oemsmartlock.com