2003: Starting with Foreign Trade

Chapter 1033 Competitive Collaboration? Boss Tan is really playing dirty tricks!
PS: I'm still asking for a guaranteed monthly vote. The guaranteed monthly votes at the beginning of the month are so important for traffic. Last month, I didn't have enough guaranteed monthly votes, so I had almost no traffic.

"BYD's marketing is getting more and more impressive."

The launch event for the Seals was led by the Dean of the Engineering Research Institute and the Design Director. The absence of "Boatman Brother" at the Seals launch event, in a sense, also demonstrates BYD's confidence.

The press conference focused on strengthening the brand's technological image from an engineer's perspective, differentiating it from the user operation style of companies like Nu Skin.

This is also the brand image that BYD has been promoting in recent years. In addition, BYD's technology and design language have improved a lot. It's almost like switching companies. It's very effective in marketing strategies.

"Yes, we also know that the price will not be announced directly at the press conference, and users will be able to choose to pre-order blindly."

Hu Zhengnan replied with a smile that the Seal's press conference also adopted the live streaming model across the entire network. The live streaming model for press conferences, which was created by Wei, has now become the standard for car companies. The Seal's press conference had over 500 million views, which is quite popular.

The most frequently appearing words in the comments were "price" and "3.8-second acceleration".

Price is naturally the core concern for users. The 3.8-second acceleration comes from the Seal 4WD version, which claims a range of 650 kilometers and a 0-100 km/h acceleration time of 3.8 seconds.

In 2022, pure electric vehicles with a range of 500 kilometers were common, but those with a range of more than 600 kilometers were still relatively rare. 600 kilometers has become a new threshold for electric vehicles.

Currently, the pure electric vehicles on the market with a range of over 600 kilometers mainly come from three companies: WooLong, Tesla, and BYD. In addition, Geely and some leading new energy vehicle brands also have a few models that can meet this standard.

In addition, traditional companies such as Geely, Cadillac, Mercedes-Benz, and SAIC also have this technology and each has one or two models on sale, but they are not considered mainstream models.

However, when it comes to the longest driving range, it has to be Weilai. Weilai has always had the habit of putting the most mature and advanced technologies into the Aion models. The Aion S Plus version has a driving range of 602 kilometers, while the Aion LX Plus has a combined driving range of up to 961 kilometers.

However, this car did not sell well. It was mainly launched as the benchmark range model for Weilai, and its price was not very "affordable".

In fact, Tan Jincheng did not think the pricing of the Aion LX PLUS was too expensive. The core competitiveness of the LX PLUS is its ultra-long range, as well as its L2+ level assisted driving and spacious rear seats, making it comparable to the BYD Tang EV.

As the model with the longest driving range on the market, the starting price of 24.99 yuan is not considered expensive by Tan Jincheng and the Aion team. It's just that the image of the Aion series as a ride-hailing vehicle is too deeply rooted in people's minds.

This model is not designed for ride-hailing services, and users find it relatively difficult to accept the Aion series if it is not for ride-hailing.

To date, the Aion series product matrix is ​​relatively complete, with SUVs divided into economy and high-end flagship models, namely the Aion Y and Aion LX, with the lowest price for the Aion Y being only 10.96 yuan.

Another option is the Aion S series, a coupe-style car. Similar to other brands, the Aion series also offers three models. However, the Aion series does not have a mid-range model. In Tan Jincheng's opinion, launching a mid-range model is somewhat redundant for a company that is targeting the ride-hailing market.

The launch of the LX series was also to set an example for itself and boost the sales of the Aion Y series. In fact, the so-called "poor" sales of the Aion LX were only perceived by Aion and its internal staff.

With such a long driving range, it's no surprise that some people are tempted. The starting price of 25 yuan also targets the psychological price range of users with a budget of 25 to 28 yuan. With its many selling points, it's easy to sell more than 1000 vehicles a month.

The LX's annual sales target is between 1.2 and 1.8 units. In the mid-size pure electric SUV segment, this sales volume is already considered entry-level. In the mid-size SUV segment, the threshold for the top ten sellers is 1.5 units.

So it's not exactly a failed model, but compared to the Aion S and Aion Y series, the sales figures are somewhat lacking. In addition, for SUVs, it's really rare to see a model with sales under 30 units selling only a little over 1000 units a month.

The ES8 is priced much higher than the LX series, yet it still sells better. Not to mention the Weilai L, a model priced at over 300,000 yuan, which is an anomaly in monthly sales, exceeding 10,000 units.

The root cause is still the brand image issue. Non-ride-hailing users wouldn't feel there's anything wrong with buying an Aion car in the 10 to 15 yuan range and driving it, even if their friends ridicule them for using a ride-hailing car.

However, if you buy an Aion model priced over 25 yuan and are mistaken for a ride-hailing vehicle, you might feel a bit uncomfortable. After all, there aren't that many people who truly understand cars, and even fewer who are completely indifferent to the opinions of those around them.

Whether it's gasoline-powered vehicles or new energy vehicles, Weilai has done very well in the SUV field and has a certain market dominance. Although the sales of the Aion LX are not high, it cannot be considered a failed model.

In today's market, the head effect is becoming more and more obvious. The really hot-selling models are still the same few models. New models need to put in more effort to break through, and it is even more difficult for established brands to break through to higher levels.

However, Tan Jincheng believes that with the passage of time, the Aion brand image will evolve, and with changes in consumer attitudes, the LX series will gradually be accepted by the market.

The 960km range is not an exaggeration; it has been verified through live streaming by independent media outlets. The Aion LX has passed real-world tests by leading automotive media such as Yiche, Autohome, Dongchedi, and DianDongBang.

In winter conditions with temperatures ranging from 0 to 8 degrees Celsius, 60% urban driving and 40% mixed road conditions, with the driving mode set to ECO, the air conditioning temperature set to 23 degrees Celsius, and the fan speed at level 1, the actual range was 961 kilometers.

In other environments ranging from -8 degrees Celsius to 16 degrees Celsius, and under different driving modes, the LX's range is between 826 kilometers and 921 kilometers. In extreme driving conditions, with a driving speed of 120 kilometers per hour on the highway, the final range can reach 518 kilometers.

The stated range of 960 kilometers is accurate and not exaggerated at all. In fact, the LX could easily be advertised as having a range of 1000 kilometers. On this point alone, Weilai has earned a good reputation. The live broadcast format also makes it more authentic.

Exaggerated mileage is a problem in almost all car models. A certain degree of exaggeration is acceptable to users. It's similar to mobile phone batteries; different user environments and usage habits will affect the battery's range.

However, some car companies exaggerate their specifications too much, which is what users find objectionable.

From a company's perspective, falsely labeling batteries can actually bring considerable benefits. On the one hand, it can be used for advertising and attracting attention; on the other hand, it raises suspicions of subsidy fraud.

Weilai understands user pain points and has been very restrained in its battery range claims. In addition, it does not want to engage in false advertising regarding its flagship range. When a company's highest range model is seriously overstated, then all its models will be questioned by users.

The Seal is a key product under BYD's pure electric strategy, featuring its first integrated body, a brand-new platform, and a technological breakthrough as its main selling point.

With a design language that appeals to young people, the sloping roof and hidden door handles, along with the main Atlantis gray color scheme, all hit the sweet spot for tech enthusiasts.

In terms of design language, BYD clearly targets young tech enthusiasts, which differs from the business style of the Dynasty series.

Young tech enthusiasts are the main user group for both WooLan and Tesla.

BYD, using its Seal series as a starting point, officially entered the main battlefield of Tesla and other major players through technological breakthroughs. The reason why Tan Jincheng said that BYD's marketing is getting more and more powerful is still in terms of pricing.

At the press conference, BYD did not announce the price, which was obviously intended to guide users to guess the price range in order to maintain the popularity of the Seal series. At the same time, it also used data collection to determine the psychological price range of users for the Seal series.

If the official price is lower than users' expectations, it will definitely be a huge selling point. And based on Tan Jincheng's understanding of Boatman and BYD, the final price of Seal will definitely be lower than users' expectations.

Or rather, it was a psychological expectation deliberately created by BYD. In fact, the psychological expectation of 22 to 28 yuan during the pre-heating phase was created by BYD through media hype.

After the press conference, it was time for Seal to open blind pre-orders. Blind pre-orders mean that users can reserve a new car and lock in their rights by paying a deposit or even the full amount before seeing the actual car and even without fully understanding the vehicle's configuration, price, and specific launch date.

Compared to the traditional "experience before ordering" model, blind pre-orders rely more on brand trust, product concepts, or users' anticipation for the new car. To put it bluntly, it's similar to buying a house off-plan, or a car on the way out.

The earliest blind pre-orders appeared on the Maodou 3, BYD's first blind pre-order came from last year's Yuan PLUS, and the Seal is the second time it has opened blind pre-orders.

For users, those who dare to place a blind order can be considered to have a lot of trust in the brand, and can even be called fans. This trust will bring benefits such as priority delivery, limited-time privileges, or locking in popular models at a low price.

For automakers, this means they can optimize production plans and reduce inventory risks by collecting order data in advance, while also generating marketing buzz.

However, correspondingly, the risks are also very high for both users and car manufacturers. If the new car does not meet expectations, it will be difficult for users to return the car, and they will turn from loyal consumers into so-called "haters".

For automakers, if a product's reputation falls short of expectations, in addition to the potential for a wave of order cancellations, the biggest risk is damage to brand trust. Most automakers are quite cautious about blind orders.

However, some car companies are keen on blind pre-orders, namely domestic emerging brands. They usually promote the so-called user co-creation concept through blind pre-orders, allowing users to participate in configuration through voting, thereby increasing user stickiness.

But frankly, this is actually a sign of a lack of confidence, similar to crowdfunding products in online shopping, where they decide on a car model based on the number of orders.

There are only two types of car models and brands that dare to engage in blind pre-orders: those with strong confidence and those without. To date, no model from Weilai has participated in blind pre-orders; all pre-orders have only been opened after all the data and specific prices have been released.

Given Weilai's current brand influence and the performance of its models, Weilai is actually capable of generating buzz through blind pre-orders. For example, last year's Exeed S01, after announcing its specifications, could have easily used blind pre-orders to create hype through pricing strategies. However, Tan Jincheng is quite cautious about blind pre-orders. Building brand trust takes a long time, but destroying it may only require one or two models.

Starting with the Yuan PLUS last year, BYD has had two blind pre-orders in just six months. In addition to demonstrating its confidence in technological breakthroughs, this also reflects significant changes in brand strategy and product marketing.

Throughout 2021, the frequent appearances of "Boatman Brother" (BYD's nickname) aimed to enhance the brand's premium by focusing on technology, attempting to transform BYD from a value-for-money brand to one with a technology premium. In terms of brand image, BYD also began to transform towards a younger and more globalized approach.

The marketing campaign, which lasted for over a year, has yielded significant results for the seals.

"Should we give President Wang a call and sound him out?"

Tan Jincheng watched the live broadcast at the Weilai Research Institute, along with Hu Zhengnan, Thomas, and others. Based on the entire press conference, it was clear that the Seal series was targeting the Maodou 3 and ET5 market.

The researchers almost unanimously agreed that this model was aimed at the ET5, while the Maodou 3 was on a completely different level.

Hu Zhengnan suggested that Tan Jincheng call the boatman to sound him out and inquire about the price.
"You're dreaming. There's no way we'd tell you this, but making a phone call won't hurt."

Tan Jincheng chuckled. As a strategic product for pure electric vehicles, the price, which was not announced at the launch event, was definitely BYD's top secret. Very few people would know the specific price, and anyone who leaked it would be in serious trouble.

However, it wouldn't be a problem to make a phone call to congratulate them; you might even find out something about their thoughts.

As soon as the call connected, before Tan Jincheng could even speak, the boatman's hearty laughter, tinged with an accent, came from the other end. Clearly, he was quite satisfied with the buzz generated by the seal's press conference.

"You're not here to ask about the price, are you? Let me tell you, don't try to find out what I'm thinking."

"Uncle, you're being a bit petty. Can't I just offer my congratulations? This car is sure to sell well, right? I just wanted to ask when it will be delivered. I'd like to support you by buying one."

"I can't tell you that either. If you want to support us, I'll send you one right now. You can drive it around for a bit and give us some advertising."

Boatman Bro was clearly not falling for the trap. At the press conference, he only announced that the product would be launched within the year, without mentioning the specific delivery date or even the month. But if he were to reveal the delivery time to Tan Jincheng now, Wei Lai would definitely launch a counterattack immediately.

The ET5 is a mature model, and the 2022 version has a range of 700 kilometers. In addition, WYD is significantly better than BYD in terms of driver assistance. If the other party retaliates, they will have a hard time dealing with it.

Currently, the ET5 is not heavily promoted in China and is mainly exported. Domestic production capacity is not at full capacity, with monthly sales remaining at around 6000 units. The same applies to the ES3.

"Sure, send one over then. I'm quite interested in seals. Just so you know, I'm not paying for it."

"No problem, I can afford to give you a car. I can even go to the traffic management office to register it for you, and register it in your name."

"I don't mind, a collaboration isn't out of the question."

Tan Jincheng chuckled. BYD's marketing has really caught on. They were able to seize the opportunity with just a joke. However, he didn't mind giving the Seal some publicity. The Seal's technical specifications were almost identical to the 2022 ET5. Regardless of the final price, the market would compare it with the ET5.

The period between the press conference and the official launch will definitely be a time for extensive promotion by Seal. Leveraging Seal's popularity and linking it with ET5 can boost the popularity of ET5.

Tan Jincheng's straightforwardness surprised the boatman. It's common for car company executives to endorse each other, but it's extremely rare to be photographed driving the other company's brand, especially a competing model.

However, he quickly understood Tan Jincheng's idea. After a moment's thought, the boatman replied quickly, "You're the one who can handle marketing. Okay, it's settled then. I'll make the arrangements right away."

Tan Jincheng attempted to capitalize on the window of opportunity created by their substantial investment to boost the popularity of ET5 and reduce marketing expenses. This little scheme couldn't be hidden from him, but one still has to admire Tan Jincheng's magnanimity.

Although it may benefit oneself, not everyone is willing to do it. After all, they are competitors, and they are the most direct ones.

"The collaboration with competitors is actually a big gimmick. If you don't mind, then I don't mind at all."

There's no need for car companies to crush each other and rise to the top using the kind of overwhelming, far-ahead tactics employed by Yu Dazui. Healthy market competition is actually quite good. In recent years, there have been many frictions in the various market competitions.

For example, there's the recent lawsuit with Tesla and the online spat with Musk. Although there hasn't been direct competition with domestic companies like BYD due to differences in car models and target users, there have been frictions.

Overall, however, BYD has never belittled its competitors' products. The Seal is currently BYD's most direct competitor and can be seen as BYD's counterattack against the Exeed S01 from last year. Both are pure electric vehicles, and BYD is trying to launch a counterattack against BYD in the direct market.

Competition is everywhere, but as domestic independent brands, we should unite against external competition.

Although it was a spur-of-the-moment idea, at that moment, Boatman and Tan Jincheng quickly reached a tacit understanding: to use this collaborative approach to convey the attitudes of the two companies in their competition to the outside world.

"We can negotiate on technology, on price, and even do some targeted marketing schemes behind the scenes, but we must acknowledge the excellence of the other party's product. The Seal is an excellent product, and BYD's breakthroughs in pure electric technology are worthy of respect."

The launch event for the Seal was held at the end of March. After announcing the excellent data of 20,000 blind orders, photos of Tan Jincheng driving a Seal on his way to work at the Weilai factory appeared on the internet at the right time.

The source of the leak is a well-known car reviewer famous for his catchphrase "Can you handle this?" This person has a positive view of BYD's technological transformation, is an early user of the Seal engineering vehicle, and has a cooperative relationship with BYD.

Tan Jincheng reposted Liu Lu's video on Weibo and wrote the above paragraph.

In a very short time, this repost received a huge number of likes and comments, bringing great popularity to the seal. Three hours later, Tan Jincheng's repost went viral.

Li Xiang, CEO of Weilai Group, who already has 200 million followers and has been unusually active on Weibo recently, came to comment: "If you can't wait for the Seals, you can also check out our ET5."

Li Xiang's comment received likes and reposts from Li Yunfei. As the General Manager of BYD's Brand and Public Relations Department, Li Yunfei is responsible for the overall planning of the Seal launch event, brand communication strategy, media relations, and public relations for major events.

Two direct competitors, the two largest new energy vehicle companies in China, have joined forces to present netizens with a new kind of marketing spectacle.

"Wow, they're playing this game. But Boss Tan has made quite a sacrifice. He was photographed driving a competitor's car, which is basically a free endorsement."

"The sacrifices are great, but the vision is also great. As expected of a leader in domestic new energy vehicles, I am truly impressed by their vision."

Since March, when Weilai officially announced that it would not follow the trend of raising prices, nor did it reduce discounts like Tesla did, effectively raising prices in disguise, the public's goodwill towards Weilai has risen to another level.

This time, the way they promoted the other party's strategic model also won the favor of a lot of netizens. Not all netizens like to see crushing and dominating; the asymmetry of pressure in real life makes most people need this kind of warm and tender feeling.

The mutually beneficial marketing approach between BYD and Weilai has brought a breath of fresh air to the increasingly chaotic car market.

Li Xiang appeared in Tan Jincheng's comment section in a novel way. Speaking of which, these two leaders from Weilai don't interact much on Weibo. Tan Jincheng's main social media platform is Douyin.

Li Xiang is known as the CEO of a group who lives on Weibo, especially after March.

This year, Weilai only released one new car, the L9, so it must have been given a lot of attention. Li Xiang, as a "die-hard fan" of range-extended electric vehicles, personally took to the streets, releasing daily updates for nearly a month, like a TV series, keeping the L9 a hot topic.

Controversial remarks on March 3, proactive disclosure of vehicle dimensions on March 9, and interior leaks on March 15—under Li Xiang's guidance, topics related to the Weilai L9 repeatedly trended on Weibo, garnering over 200 million views.

The CEO's personal promotion of products, coupled with the daily, piecemeal approach to releasing information, while drawing ridicule from the industry, actually allowed L9 and Weilai to greatly benefit from turning the controversy into free traffic.

The two who criticized the product the most were Yu Dazui and Li Bing. However, despite his criticism, Yu Dazui is a staunch supporter of the "true fragrance" principle, and Seres' latest Hongtu X5 has already adopted this marketing model.

The Hongtu X5, which officially began delivery on March 5, delivered 3045 units in its first month.

A brand-new brand delivering over 3000 vehicles in its first month typically foreshadows annual sales of over 50,000 vehicles, demonstrating its formidable momentum.

(End of this chapter)