·MPV market or autonomous breakout channel

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In the vast market of rural China, MPV, as a suitable product for both household and commercial use, has always been a favorite of farmers and small businesses. Sales data in recent years also shows that the sales volume of Wuling, Liuqi and Changan can be kept high, thanks to the vast number of rural third- and fourth-tier cities.
In the November sales data just released by the China Automobile Association, the cumulative sales volume of China's MPV market reached 195,000 units in November, an increase of 41.7% year-on-year, accounting for 11.5% of the narrow passenger cars; the cumulative sales of the MPV market from January to November was 1.626 million vehicles, an increase of 43.8% year-on-year, accounting for 10.1% of the narrow passenger vehicles. Among them, Wuling Hongguang sold a total of 670,000 units, ranking first; Changan Onofrio and Liuqi Lingzhi ranked second and third respectively with sales of 130,000 vehicles and 120,000 vehicles. This increase has surpassed the SUV and has become the fastest growing market segment in the country. What is more noteworthy is that in the top ten list, only the eighth and tenth GL8 and Odyssey are joint venture brands, and the rest are all independent brands. Zooming in to the top 20 or even the top 30 list, there are few joint venture brands. It can even be said that more than 80% of MPV sales are self-owned brands. This is in stark contrast to the rare brands in the top ten list of the sedan market, and it is much better than the SUV market. Why is this happening? It is not difficult to understand. First of all, the current joint ventures in the MPV market are not complete. Many companies do not have MPV models at all. The strong joint venture brands in the market are only GL8 and Odyssey. Second, the consumer groups in the domestic MPV market are quite special. Before this year, there were not many urban families who actually bought homes, mainly small merchants and urban and rural consumers for production. Third, the independent brand MPV is very cost-effective. Advantages, this is also difficult to achieve joint venture brands; Fourth, the flexibility of independent brands is very high, such as Lingzhi, actually divided into V3, M3 and M5 models, but also have five, seven and nine seats Edition to meet the needs of different segments of the population. If you are not engaged in this industry, I am afraid I will not study these MPV models that seem to be far away from our lives. Today, this market has begun to face changes. With the increasing maturity and rationality of domestic consumers and the actual demand of more and more second-child families, urban households are increasingly demanding MPVs. However, there are not enough MPV models for home use at present. The joint venture brand has not yet had time to extend the arm to the MPV market, and the independent brand has completed the adjustment and upgrade of the product line in the past two years, which makes the independent brand expected to be in the MPV home. The market once again leads and becomes a lever in the car market. For example, Wuling launched the Baojun 730 on the basis of Hongguang, which has become an important factor in sales growth. As another important force in the MPV market, Dongfeng Fengxing also announced the official launch of the 2015 Lingzhi at the Guangzhou Auto Show, with a price of 49,900-11,290 yuan. In the impression, the independent MPV models rarely have a price of 100,000 yuan. This is enough to show that self-owned brands are not only satisfied with winning at a price-performance ratio, but also want to seize a higher-end market. But one can't eat fat. On the road of high-end, independent brands must be urgent. For example, in the past few years, Chery launched the Kirin and Ruiqi brands in order to promote the high-end. Among them, Ruiqi is a sub-brand of Chery MPV. However, due to the lack of accumulation in this area and the lack of consumer awareness and recognition, the Ruiqi brand has been underperforming. On the contrary, like Wuling and Liuqi are based on the original brand, the introduction of a higher Baojun 730 and Lingzhi M5 is easily accepted by consumers. According to data from Sohu Automotive Research Laboratory, the competitive substitutability of Baojun 730 and Lingzhi is 7.1 and 7.5 respectively, and the alternative is closer to the “God Car” Sagitar (6.9) in the passenger vehicle market. There is a famous saying, "Give me a lever, I can pick up the whole earth." For independent brands, the MPV market is also a lever, which is enough to benefit the deeply cultivated brands and usher in a broader market space.

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