2003: Starting with Foreign Trade

Chapter 1030 The Confidence to Reach the Top

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Although travel was somewhat hindered, the Spring Festival still had to be celebrated. Most people, apart from routine check-ups, continued to celebrate as usual, complaining about the Spring Festival Gala and the Spring Festival film season, and talking about Huang Xiaoming and Angelababy's official divorce announcement the day before the Spring Festival.

Of course, the biggest buzz was about the Winter Olympics. The popularity of Bing Dwen Dwen once boosted a considerable number of concept stocks in the A-share market, and the popularity of a certain female athlete also reached its peak in China.

"We don't pursue trending figures. We have long-term plans for our spokespeople and have no plans to add more spokespeople at the moment."

Li Xiang's Weibo post was flooded with comments from athletes and fans. These comments included not only athletes who were very popular during the Winter Olympics, but also athletes from other sports. The trend of fandom becoming more and more prevalent in the sports world is becoming increasingly serious.

This isn't the first time fans have tried to get endorsements for their idols. As the most well-known high-end independent brand in China, Weilai is a prime target for fans to submit their resumes to their idols.

To some extent, this also increased the workload for Wei Lai's employees and caused them some trouble. Li Xiang's public response was a last resort.

Weilai does have its own system when it comes to choosing spokespeople, but ultimately it is mainly based on Tan Jincheng's will. Whoever the boss says goes. When it comes to generating traffic, Weilai's biggest traffic comes from Tan Jincheng himself and Li Xiang.

Finding a celebrity to endorse a product seems completely unnecessary these days, but the extremely high traffic also put pressure on Tan Jincheng. Traffic can easily backfire, so finding a celebrity to endorse a product is still necessary.

Firstly, outstanding celebrities can bring positive feedback to the brand image. Secondly, they also help to distribute the negative impact, as these fan groups will automatically defend the company when it faces negative public opinion, in situations where it is not important.

"Why don't you become the spokesperson for BMW MINI?"

Located in the only villa area in Beicang City, in Tan Jincheng's home, Liu Yifei and her daughter sat elegantly in the living room, accompanied by Gu Qingqing. The mother and daughter were using the guise of paying New Year's visits, but in reality, they wanted to secure Wei Lai's endorsement contract.

Liu Yifei has always wanted to become the spokesperson for Weilai Motors, but Tan Jincheng has always refused. The reason why fans flooded Li Xiang's Weibo comment section this time is because the news that Xingtu S01 is choosing a spokesperson has already spread in the industry.

Just on the third day of the Lunar New Year, before even releasing its financial report, Weilai officially announced its car sales figures for January 2022, and the results dazzled the market.

Despite significant reductions in new energy vehicle subsidies, Weilai's sales growth remains remarkably strong.

In terms of gasoline-powered vehicles, the Yuechi series delivered a total of 7.02 units in January, a year-on-year decrease of 19%, while the Tank series delivered 1.04 units, a year-on-year increase of 72%. The sales decline of the Yuechi series is still severe, but it is within expectations.

Wei Lai's expectation for the delivery of gasoline vehicles is a decline of 10% to 20% for the whole year. A decline of less than 10% would be considered better than expected. Although it is within expectations, it is almost the worst performance yet, and Wang Fengying is under a lot of pressure.

Fortunately, the Tank series continues to perform very well. In addition, Yuechi Auto's hybrid model, Galaxy P1, delivered a total of 13279 units in January, making it the third best-selling hybrid model on the market.

Hybrid sales exploded across the board in January, with BYD's Qin PLUS DM series delivering 1.85 units and the Song PLUS DM series selling 1.64 units, both showing remarkable performance.

However, the most outstanding performer was Weilai Auto. Including the sales of Xinghe P1, Weilai delivered a total of 9.42 vehicles this month, ranking first in global new energy vehicle sales.

The aggressive Weilai, starting from the first month of 2022, aimed for the world's number one spot and was determined to dethrone Tesla.

The range-extended electric vehicle L1 delivered 1.23 units in January, bringing its total sales to 2.55 units together with the Galaxy P1, accounting for 24.02% of Weilai New Energy Vehicle's sales.

Unlike BYD, whose hybrid and pure electric vehicles have almost equal sales, Weilai's hybrid vehicle segment is still somewhat weak. However, the launch of its new range-extended electric vehicle model in the second quarter will alleviate this situation considerably.

Among all the models from Weilai, the most eye-catching is still the Exeed S01. In the pure electric A-class sedan market in January, the Exeed S01 still has no rivals. The sales volume of 20,300 units is not only the first time that the monthly sales volume has exceeded 20,000 units since its launch, but it has also dethroned the Tesla Model 3 as the king of pure electric vehicles in China.

The Exeed S01 became the first model under the Exeed brand to achieve monthly sales of over 20,000 units, and also the fourth model nationwide to achieve monthly sales of over 10,000 units, following the Wuling Hongguang MINI EV, Maodou Y, and BYD Qin PLUS DM.

The Exeed S01, a star model since its launch, has surprised both industry insiders and consumers with its market performance. For a pure electric sedan priced at 15 yuan, the inclusion of driver assistance systems was expected to be well-received by the market.

A monthly sales volume of over 10,000 units was basically the lowest market expectation for this model during its promotional period. However, sales of over 20,000 units in such a short period of time greatly exceeded market expectations. The key factor is the rapid ramp-up of production capacity in Weilai, which puts enormous pressure on BYD, which also has a large number of orders.

These days, there is no shortage of orders for excellent new energy vehicles, and there are many consumers willing to wait in line. However, the ramp-up of production capacity is the biggest problem for blockbuster models. It is one thing for consumers to be willing to wait in line, but it is also not a good thing for the delivery period to be too long.

It hasn't been long since Tesla was nearly driven to bankruptcy by overcapacity. While it's not quite that bad, any car company would be anxious if it couldn't make a lot of money.

"Really?"

Liu Yifei was somewhat surprised. To date, she has many commercial endorsement contracts covering luxury goods, cosmetics, food, games and other fields, and she is also an honorary employee of Flash Technology.

The 10 shares of Flashpoint Technology stock that the board of directors awarded her that year, worth more than 300 million yuan, may not be much for a celebrity, but it is equivalent to a relatively high-quality commercial event.

They have many commercial endorsement contracts, but there is no car endorsement, which is probably the biggest regret for the team at present.

Wei Lai initially approached Hu Ge to endorse the ES series, and later also sought a spokesperson for the L series. Liu Yifei's team also tried to get a spokesperson, but Tan Jincheng rejected it because the image did not fit. In the end, the spokesperson for the L series was given to Deng Chao.

This year's Spring Festival Gala was uninteresting and had very few highlights. However, the comedian who made his Spring Festival Gala debut was probably too excited and had too much fun during the modern chorus performance. He was jokingly called the busiest person at this year's Spring Festival Gala by netizens.

Despite his goofy personality, Deng Chao, a highly popular artist, has excelled in film, television, variety shows, and other programs. His humor and approachable nature have won him the love of audiences of all ages.

At the same time, Deng Chao has done a good job in terms of his family image. Whether it is a persona or not is not important to the company. His current image does indeed fit the positioning of the Weilai L1 family. Tan Jincheng attaches great importance to the alignment of their ideas.

When choosing endorsement contracts, he may have some personal motives or offer favors, but everything is based on the interests of the company. With his current status, he doesn't need to consider anyone's opinion on such trivial matters.

Tan Jincheng nodded: "The Exeed S01 doesn't suit your image. Although the BMW MINI doesn't sell as well, it's more in line with your image."

The Starway S01 emphasizes technology, fashion, and cost-effectiveness. According to Tan Jincheng's idea, he still wanted to find a celebrity with a youthful and energetic image. In terms of celebrity selection, Tan Jincheng preferred celebrities born in the 2000s.

Among the users of Exeed S01, more than half are young people under the age of 30, with those born in the 2000s accounting for more than 20%, and female car owners accounting for more than 40%, which is an unexpected surprise.

WILAY Auto has never been very popular with female car owners. The fact that female users account for more than 40% is something that WILAY did not expect. Therefore, the company prefers female brand ambassadors.

"Are you implying that we're too old?"

Liu Yifei made a timely joke. They're all shrewd people. The Starway S01 focuses on technology and fashion, targeting a young demographic. From Tan Jincheng's words, you can tell they want to find a young celebrity to be their spokesperson.

"That's not what I meant; sigh, celebrities these days are getting worse and worse."

Tan Jincheng shook his head. There were very few Gen Z stars who fit the image of Star Journey S01, had a good reputation, and had certain acting skills or popularity. If all else failed, he would have to let Xiao Zhao take the role.

Compared to Liu Yifei, Zhao Liying has a more approachable public image, making her a more suitable spokesperson for Xingtu S01.

"I'll talk to BMW ZG and you guys should sign a contract with Weichi Power. Let's see how it goes first. If it works well, I'll recommend you as the global brand ambassador for BMW MINI."

In terms of image and audience fit, Liu Yifei is a good match for BMW MINI. As for the specific operation of Yuchi Power, Yuchi Power adheres to the same principle as its cooperation with Mitsubishi, without interfering. However, there are several senior executives dispatched by Yuchi Power in the management team. A domestic brand ambassador is just a matter of Tan Jincheng's word.

Affected by the transformation and special events, BMW MINI's global sales experienced a decline of 15.61% in 2020. However, sales in 2021 have rebounded rapidly, basically returning to the pre-special event levels.

In terms of global sales, MINI mainly relies on the sales of gasoline-powered vehicles, but in China, sales of MINI's pure electric models have begun to rise significantly.

The Yuchi MINI factory in Zhangjiagang has officially started operation, but its capacity utilization rate is low. The current annual production capacity can only maintain about 4.8 vehicles, but this is more than enough.

The architecture and driver assistance systems of MINI's pure electric vehicles rely entirely on the technology of Weilai. Weilai has extensive experience in the field of pure electric vehicles. While he may not be an expert in MINI's pure electric transformation, he is certainly much better than the original MINI team.

After localization, the cost of MINI has decreased by 20%. In terms of price and positioning, it has formed a differentiated competitive relationship with the Model 3 and Exeed S01. With a range of over 400 kilometers, it is sufficient to meet the needs of daily commuting and short trips.

Equipped with the Weilai in-vehicle system, it features intelligent configurations such as voice interaction, online navigation, and automatic parking, which better meet the needs of domestic users for a sense of technology.

With its British trendy brand image, MINI still holds a certain appeal among young people. After being produced domestically, it has strengthened its trendy attributes to some extent through collaborations with several popular IPs, attracting female users and trendy toy enthusiasts.

MINI's electrification strategy positions it as a pioneer in technology, avoiding direct competition with Tesla and BMW. Precise pricing, localized marketing, and upgraded services contributed to MINI's strong performance in 2021. "Don't underestimate MINI's sales last year. Its electrification rate is significantly higher than that of the German Big Three (BMW, Mercedes-Benz, and Audi). Having caught a favorable wave, MINI's sales will only continue to improve while maintaining quality and service."

MINI sold a total of 3.87 vehicles in China last year, of which 8000 were pure electric vehicles. This electrification penetration rate has exceeded 20%, and it should be noted that last year was only the first year of MINI's pure electric vehicle deliveries.

"No, no, how could I possibly dislike it?"

Upon hearing this, Liu Xiaoli quickly waved her hand and said, "How could I possibly look down on it? Wei Lai has plenty of endorsement opportunities now, and Tan Jincheng, who is firmly the richest man in China, has a very high status. Celebrities would only flock to endorsements from Tan Jincheng's companies."

Moreover, BMW MINI is also a BMW brand, a global brand. It's a bit of a pity that they couldn't secure the endorsement for Exeed S01, but having an endorsement from a niche "famous brand" is a pleasant surprise.

In fact, after the news broke that Xingtu S01 was going to hire a spokesperson, and because of its target user group, it is very likely that a female spokesperson will be hired.

Since Weilai already has two male celebrity spokespeople, it is reasonable for Xingtu S01 to find a female spokesperson. After the news came out, female celebrities in the industry who do not meet the requirements have all been eager to participate.

Given their relationship, how could they not give it a try?

"8000 pure electric vehicles sold isn't a lot, is there any explanation for that?"

Liu Yifei asked with some curiosity, "8000 units sold in a year is not even comparable to the sales of Exeed S01 in its first month on the market. In terms of sales volume alone, the two are not in the same league. In terms of brand influence, although Exeed S01 is a brand that has been on the market for less than a year, its influence is already no less than that of MINI."

“This involves some industry knowledge that you wouldn’t understand. Go back and learn more about the brand. You know our rules for choosing spokespeople.”

The frequent scandals involving celebrities in recent years have been a major headache for their partner companies. There's nothing new under the sun, and no one knows when a celebrity's image will collapse. Companies can't keep an eye on them all the time.

Wei Lai is quite strict about endorsement contracts. For example, if Hu Ge endorses the ES series, then he cannot appear next to other car brands in public. If he is not careful, he will face warnings or even lawsuits from Wei Lai.

When it comes to litigation, the celebrity's team is no match for Weilai's legal department. However, although they are demanding, Weilai is not a stingy company. They provide basic transportation, and even the nanny van is produced and modified by Huanghai. They also pay generously.

As long as the spirit of the contract is strictly adhered to, the cooperation with Wei Lai is still very pleasant, and at least it is a form of protection for celebrities.

"Understood, understood, we all know the rules."

Liu Xiaoli seemed very happy. Not only did she secure an endorsement contract, but Tan Jincheng also promised her a reward: if the results were good, he would recommend her to BMW as a global brand ambassador.

Few female celebrities would refuse a cake recommended by Tan Jincheng.

"In that case, we'll head out now and go back to prepare. We'll wait for Mr. Tan's good news."

Tan Jincheng wasn't in the mood for further discussion, and Liu Xiaoli was also quite perceptive.

"Why don't you stay for a meal?"

While listening in and playing with the child, Gu Qingqing said, "It's still the New Year, and Liu Yifei and her daughter brought a lot of gifts under the guise of paying New Year's visits. It's normal for them to ask for a meal."

"No, no, we have to get back, so we won't delay you any longer."

Liu Yifei wanted to stay. She had a good relationship with Gu Qingqing, as well as with Tan Jincheng's sister and two children. However, since Liu Xiaoli had already spoken first, she couldn't say anything more.

After thinking for a moment, Liu Yifei added, "You're all going to the capital next month, right? Come visit us then."

"Okay, I'll definitely bother you then."

Tan Jincheng's residence in the capital was in the same neighborhood as theirs, and the two families lived relatively close to each other.

After seeing Liu Yifei off, Gu Qingqing asked with some curiosity, "8000 units sold is indeed not many. Is there anything different about it?"

Gu Qingqing has known Tan Jincheng since college, and her consumption views are greatly influenced by him. She doesn't have much of a halo around big brands, and BMW doesn't hold much prestige in her eyes, especially since she's heard so much about Wei Lai's sales figures.

8000 units are typically found in monthly sales figures; it's rare to see a car model appear in annual sales.

Tan Jincheng smiled and said, "There aren't many, especially given the huge outbreak last year, but the significance is different."

BBA's electrification progress has been slow, and throughout 2021, they were completely overshadowed by the W1 L1. Their sales in January of this year also did not improve much. They have all seen the benefits brought by Tesla's localization.

Although BMW has maintained a deep cooperative relationship with MINI, the joint venture to build a factory and promote electrification is just an experiment for BMW. The initial launch of the MINI brand is more of a test of the market.

MINI's first model did not officially begin delivery until 2021, due to the slow progress caused by market uncertainties. However, the penetration rate of new energy vehicles, which exceeded 20% throughout the year, greatly exceeded their expectations.

For a niche brand with no major highlights to achieve this level of market penetration in its first year of operation under the management of the Wei Lai team is enough to have a comprehensive ripple effect on the BMW Group's electrification strategy, resource allocation, and market strategy.

BMW views the success of MINI's electrification as a turning point in its ZG market strategy. At the end of last year, BMW began to adjust its global resource allocation, bringing forward the production of the all-electric MINI Aceman, originally scheduled for 2023, to 2022.

This is a compact SUV that will be prioritized for the ZG market. In addition, BMW plans to accelerate the release of production capacity at the Weichi plant, aiming to achieve full production by the end of 2022, reaching an annual production capacity of 16 vehicles.

BMW has adjusted the full production capacity of its Zhangjiagang plant to 16 vehicles. In addition, BMW plans to reduce the proportion of MINI electric vehicles produced from the original plan of 50% to 30% to meet the demand of the domestic market.

In terms of brand positioning, MINI globally will follow the same brand strategy as MINI in China, shifting from a retro British small car to a global pioneer in electrification.

At the Beijing Auto Show in April, BMW MINI plans to unveil the MINI Electric Vision concept car to enhance its technological attributes and improve its brand image.

In terms of research and development, BMW also plans to establish a dedicated MINI electrification laboratory in China, jointly develop battery packs adapted to user needs with Jinshidai, and cooperate deeply with Weilai Intelligent Driving Department to develop customized intelligent cockpit systems.

In terms of resources, the BMW Group has given a lot of support to MINI. During the New Year's Day holiday, Tan Jincheng also received an email from BMW. In addition to this series of resource allocations, BMW also plans to increase spending by 500 million euros at one time to bring the Weichi plant to full production ahead of schedule.

The funding was provided by BMW, but they also hope that BMW can allocate more resources to MINI to support their progress.

According to BMW's internal assessment, the first batch of 8000 MINI electric vehicle customers is very likely to contribute about 4% to BMW ZG's overall revenue growth in 2022, and increase the proportion of electric vehicles from 1.2% to 6.5%, approaching the level of Volkswagen's ID series in China.

从长期的财务回报来看，宝马至2025年全球电动车销量的目标可能从从之前的200万辆上调至250万辆，其中国内市场的贡献率从30%提升至40%。

This is of extraordinary significance to BMW.

“8000 are the original users. Think about how many original users Tesla and we have. This is a really big number.”

If BMW, as the main brand, only sold 8000 electric vehicles in a year, it would definitely be a failure. However, the influence of the MINI sub-brand is not as high as one might imagine.

In its marketing efforts, Qin Zhi followed the same approach as Seres, leveraging the popularity of Wei Lai.

BMW sent an email to Tan Jincheng, actually to learn about the cooperation process between Seres and Chrysanthemum, and to learn about the current popularity of the Hongtu X5. The X5 was officially delivered in March this year, and after the pre-sale started, the number of orders exceeded 6000 within 48 hours, and the number of pre-orders exceeded 30,000.

Big Mouth even announced a target of delivering 30 vehicles in 2022, and the brand endorsement of Chrysanthemum is beginning to show its influence.

Having tasted success with MINI, BMW clearly wanted to use the Weilai brand for endorsement. Qin Zhi could capitalize on the Weilai brand's popularity in his advertising, but he wouldn't dare to directly have the Weilai brand endorse MINI.

Ultimately, these are two separate companies. Apart from having the same boss, Wei Chi and Wei Lai don't have much of a relationship.

Tan Jincheng has not yet given BMW executives a definite answer. Brand endorsement is not so simple. Obviously, BMW has shown great sincerity by covering the entire 500 million euro cost of achieving full production ahead of schedule.

But that was clearly not enough. The fact that Weilai had taken the top spot in global sales in January gave Tan Jincheng the confidence to do so.

(End of this chapter)