2003: Starting with Foreign Trade

Chapter 1043 "Boss Tan's Skill is Heartbreaking"

Amid the booming development of new energy vehicles, BMW MINI sales have also increased significantly after ramping up production capacity.

Before being integrated into the Weilai APP, MINI's average monthly sales were around 1400 units, excluding gasoline models. The MINI models integrated into the Weilai APP are limited to pure electric models and other hybrid new energy models.

Currently, the Weilai APP only sells new energy vehicles. For gasoline vehicles such as the Yuechi A series and Tank series, they have their own dedicated APP. Weilai implements a policy of separating channels for gasoline vehicles and new energy vehicles.

Even without joining the Weilai APP, the sales of MINI's domestically produced pure electric models could still double for the whole year; however, given that BMW has allocated so many resources, simply doubling the annual sales is not enough for them.

Even if sales double, it would only amount to 16,000 units. BMW's sales target for MINI's pure electric models this year is 20,000 units. Seeing that it would be impossible to achieve this target, BMW, after holding on for several months, finally decided to join the Weilai APP system.

As the most active car app in China, with tens of millions of users and daily active users consistently exceeding one million, its commercial value is extremely high. If it were a typical utility app, with these figures, the revenue from advertising and paid memberships alone could reach over 200 million yuan per month.

If operated by a small internet company with a few dozen employees and headquartered in a second- or third-tier city, such an app could not only support the company but also generate some profit.

The Weilai APP definitely doesn't advertise, at least not the overt kind. It only promotes the order of peripheral products in the mall, so users don't feel much difference in the experience.

However, an app of this size can no longer be considered a niche app. Therefore, the changes in MINI arrivals and sales after logging into the app are quite significant, especially when mentioned at the L9 launch event that Wei Lai had meticulously prepared.

On that day, due to the impact of L9 traffic, the Weilai APP was flooded with a large number of L9 subscribers and onlookers in a short period of time, and the server was temporarily down, but fortunately it was quickly restored.

Many users also logged into the app to check out the MINI electric version. It has been two months since the launch event, and MINI's distribution channels have exploded, expanding from the traditional channels that were previously limited to first- and second-tier 4S stores to third- and fourth-tier cities.

There are still quite a few wealthy people in third- and fourth-tier cities and some small counties. Compared with big cities, they have more trust in traditional brands and also more trust in overseas brands, especially young middle-class people in third- and fourth-tier cities. Previously, Tesla was the most popular electric car among them.

This is somewhat similar to the mobile phone industry. Young people in third- and fourth-tier cities and small counties tend to prefer Apple phones, and there is a gap of several years in their consumption concepts compared to those in first- and second-tier cities.

After MINI was added to the Weilai APP, sales broke through 2000 units in July, a traditionally slow sales season. In August, sales exceeded 2500 units, showing a significant growth rate.

MINI's digital direct sales efficiency has increased from 10% to 30% to 50%, greatly shortening the car purchase decision cycle. Among these incremental sales, users from third- and fourth-tier cities and small counties account for the majority.

For MINI connected to the APP, the sales figures for the first two months are not sufficient as a benchmark, as there is still a nearly six-month adjustment period. The data will not be truly stable until the beginning of 2023. However, judging from the current growth, the conversion rate of MINI brought by the Weilai APP is still very obvious.

"In the long run, the new channels will contribute about 800 to 1200 additional MINI vehicles per month, while offline orders generated through online conversion and APP traffic should be between 300 and 500 vehicles per month."

"Overall, MINI's average monthly sales should remain above 2000 units next year, with an optimistic forecast of 2500 units, which is about 30,000 units per year; of course, this does not include the increase in sales of gasoline vehicles."

"The most optimistic expectation is that, while accelerating its own channel and after-sales construction, the monthly sales of the MINI pure electric version should reach the range of 3000 to 4000 units by 2024."

In Hangzhou, at the Weilai Gongshu Delivery Center, today is the first on-site delivery ceremony for the Weilai L9. Tan Jincheng, who is attending a meeting in Hangzhou, also decided to attend this delivery ceremony.

For each new model launched, Weilai holds a collective delivery ceremony for the first owners, which is usually attended by senior executives. Originally, Li Xiang was supposed to attend the first delivery ceremony of the L9.

However, Li Xiang was currently bragging in Europe, so Tan Jincheng took over instead. In the past, Tan Jincheng would also randomly appear at some delivery sites when new cars were launched, the locations of which were not fixed and depended on his schedule.

Meanwhile, Qin Zhi, the general manager of Weichi Power, happened to be on a business trip in Hangzhou. He took the opportunity to report to Tan Jincheng on the changes in MINI's integration into the Weichi APP sales system in July and August.

Have you ever heard of the term "socialite"?

Qin Zhi was taken aback, not quite understanding why his boss would suddenly bring up this term. He had naturally heard of the term "socialite" before; it was originally a positive term, but in recent years it had completely changed its meaning.

Nodding, Qin Zhi said, "I've heard of them, and I know about this group."

"The range of 3000 to 4000 vehicles is close to the entry-level level of the Tesla Model 3. If it reaches this level, MINI can be considered a true success. You can try to understand this group. In fact, this group also exists in third- and fourth-tier cities and small counties."

MINI is a niche brand, and niche brands cannot achieve the sales volume of a mass-market brand. If annual sales are stable between 50,000 and 100,000 units, then MINI can be considered a success. Moreover, this level is almost equivalent to most of Volkswagen's sales in China.

No matter how much MINI promotes itself, its target audience is still mainly female users. In addition, the stigma of being a "car for mistresses" is difficult to eliminate in a short period of time. So, could we take advantage of this?

Everything has two sides.

There are many different interpretations and personas of the socialite group, but they all share a common thread: a passion for discounted luxury goods or secondhand luxury items, and a preference for entry-level luxury cars as their mode of transportation.

In the past, they were keen to buy used luxury cars on installment. However, in recent years, with the rise of new energy vehicles, Tesla has become one of the top choices for this group. MINI has always been in competition with Tesla, so why not try to win over this group in third- and fourth-tier cities and small towns?

To be fair, MINI has a good appeal to this group. However, the consumption ecosystem in third- and fourth-tier cities and small towns is completely different from that in first- and second-tier cities. Therefore, two different marketing plans can be implemented.

Qin Zhi's eyes lit up: "Through some self-media and marketing accounts, combined with algorithms, we can target specific users and implant their consumption values ​​into the MINI brand to replace Tesla?"

As expected of someone with an internet media background, Qin Zhi understood immediately after Tan Jincheng only pointed it out.

With a smile, Tan Jincheng nodded and said, "That's right, you can take a look."

This move is somewhat detrimental and will certainly harm the MINI brand. However, Tan Jincheng believes that Qin Zhi can accept it. By integrating into the Weilai APP, MINI has already suffered brand dilution, so this additional step to boost sales is nothing.

"That's a great idea, hehe."

Qin Zhi accepted the plan almost without hesitation. At this point, he already had several options in mind. This kind of marketing uses cultural implantation and a long-term, subtle approach. It may not have a significant impact in the short term, but the effect will be very obvious over time.

In fact, this is the most common marketing tactic of internationally renowned brands, especially North American consumer goods such as Apple and Tesla. Tesla often boasts about its low marketing costs, but do you really think they don't have any advertising?
That's impossible, of course. It's just that their marketing strategies are different. BBA does the same thing, silently implanting their image into users' minds.

As a sub-brand of BBA (BMW, Mercedes-Benz, Audi), MINI is actually quite adept at this approach.

"You can handle the marketing aspects, but the delivery logistics and after-sales service must be done well. Wei Lai endorses MINI, so MINI cannot affect Wei Lai's image."

MINI currently still operates under a traditional dealership model, with its distribution network mainly concentrated in first- and second-tier cities. As of this year, it has only 150 stores. For deliveries to third- and fourth-tier cities, it relies solely on a small number of comprehensive auto dealerships, resulting in weak delivery capabilities.

This is also why sales have been sluggish. For Weichi Power, the first thing to solve in the short term is the delivery issue, which will be handled by Weichi Power in the early stages.

Wei Lai's endorsement is not just about providing an app; it's like how Chrysanthemum is to Seres, providing sales channels and delivery capabilities.

Currently, Wynn's delivery support for MINI mainly adopts a hybrid delivery model.

In terms of warehousing, a combination of forward warehouses and central warehouses is adopted. By utilizing Weilai's existing regional warehouses, MINI vehicles are stored in batches to reduce inventory costs. In third- and fourth-tier cities, Weilai's cooperative body repair and painting centers or charging stations are selected to set up small delivery points.

It supports in-store pickup or door-to-door delivery. Through the satellite warehouse model, the delivery cycle is shortened to within one week. In addition, MINI delivery services are provided through authorized dealers. A certain service fee is paid for each vehicle sold. This can quickly cover more than 80% of the target cities.

In terms of logistics and transportation, we also utilize Weilai's transportation network. For the last mile, we can cooperate with local new energy logistics companies, such as Lalamove and Didi, to deliver vehicles to your door using electric trucks, keeping the one-way cost below 500 yuan.

By connecting to the Weilai logistics system, users can view the vehicle's transportation location in real time. In terms of after-sales service, Weilai will temporarily provide support when MINI's after-sales service is insufficient.

This approach is much cheaper than building its own channels, and Weichi Power can also make a profit by charging service fees. However, Weichi Power will definitely need to take over after-sales service.

In addition, Weichi Power also needs to prepare contingency plans for risk control. Due to the doubling of sales in the past two months, Weichi Power's overall response capability is still somewhat insufficient. However, the two companies have already connected in terms of key system data.

The after-sales service system here allows us to effectively monitor changes in the delivery and after-sales service of Yuchi Power.

In the digital age, every company should focus on digital development; a strong digital presence translates to a competitive edge.

"Understood, we will definitely resolve it within this year, boss, please give us some time." Qin Zhi was somewhat embarrassed. The joint venture implemented a rotation system, which strictly speaking meant two teams. In addition, the business volume was not large, so the work pace was usually much slower. Over time, these managers who had come and gone all became "slower".

The sudden doubling of sales caught them off guard, and he knew the boss was targeting them.

"Okay, that's enough for now. Would you like to come along?"

Qin Zhi glanced at his boss and, seeing that the boss's expression didn't seem casual, nodded in agreement. He ultimately wanted to return to Captain's. Making some achievements at Weichi Power was one thing, but getting more involved in the group's business and showing his face would also be beneficial for him.

As the second delivery store in Hangzhou, the Gongshu Delivery Center integrates sales and delivery. The brand-new decoration style is eye-catching. With Starbucks, flowers and snacks, Weilai is as generous as ever.

The delivery process is similar to the past. First, the store manager, as the host, gives a brief speech. Then, the car inspection is unveiled and the car is inspected, the functions are explained, the formalities are completed, and finally, the car owner takes a group photo.

Tan Jincheng's arrival caused a stir, and the car owners at the scene were also pleasantly surprised. They really didn't know that Tan Jincheng had come to Hangzhou to participate in the delivery.

This can be considered a "surprise" in the delivery of new cars by Weilai. Whenever a new car is delivered, Weilai's top management, including Tan Jincheng, will appear at the delivery site in various places.

As for Tan Jincheng, the core of Wei Lai, no one knows which city he appears in except for a very few people who know his itinerary. It can be said that Boss Tan's participation in the delivery is completely random.

It could be in first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen, or it could appear in a small county town. For the owners who participated in the first batch of deliveries, this Easter egg-like style was full of unexpected surprises.

Take the car owners and their families at the Gongshu Delivery Center, for example. As soon as the highly recognizable Boss Tan appeared, there was a commotion at the scene.

At this point, the delivery center's ability to respond will be tested. Boss Tan's method of randomly refreshing locations is a huge test for the delivery center staff, but fortunately, they have been trained over the years.

No matter where the boss appears, the local delivery staff have prepared contingency plans for the boss to appear in their store, so that they won't panic if the boss does show up.

"Hello everyone, today is the first batch delivery ceremony of L9. Thank you all for your support of Weilai L9. I noticed that most of the people who came to the delivery site were families, which is very much in line with the characteristics of our model."

"I just received some data. The first batch of Weilai vehicles delivered to users totaled more than 15800. Hangzhou is the city with the most deliveries nationwide. We are very grateful to the users living in Hangzhou for their support of Weilai L9."

"We hope everyone is satisfied with our service. We also wish you a happy delivery. We have prepared some snacks on site. We hope you enjoy them. If you have time, you can also drive your new car around Hangzhou."

Before the official delivery began, Tan Jincheng also said a few polite words.

It's quite interesting that the target audience for each of the different series of new energy vehicles is different. For example, at the delivery site of the L series, most people bring their families.

At the delivery site of the Exeed S01, the majority of attendees were young couples, while the E series was more diverse, including families, young couples, and even individuals who came alone.

As for the Galaxy series and Zhidou cars, the situation is even more complicated.

In terms of cities, the L series has the largest user base in Hangzhou, while the E series is mostly in Shanghai, and the Exeed series is mainly in Guangzhou. However, regardless of the new energy vehicle model, Hangzhou, as the base city in Zhejiang Province, consistently ranks among the top three in terms of the number of vehicles owned.

In Ningbo, according to publicly available data, Weilai occupies five of the top ten spots in terms of new energy vehicle ownership. This is even more exaggerated in Beicang, where Weilai vehicles are now ubiquitous.

The ride-hailing vehicles that travel through the streets and alleys are almost all Aion series, the buses are produced by Huanghai, and the new energy vehicles are everywhere, including the E series and L series; of course, the most common is the Exeed S01, which is relatively cheap and has a well-developed local charging network.

"Of course, everyone is welcome to visit Ningbo for seafood sometimes. The fishing season has started, and it's the peak season for plump swimming crabs. However, please be sure to obey traffic rules and pay attention to safety on the road."

"Safety is the greatest luxury; intelligent driver assistance systems only provide auxiliary functions."

Before Tan Jincheng could finish speaking, some car owners who knew him shouted out the two most common slogans in Weilai, which drew laughter from the crowd.

Tan Jincheng smiled and said, "That's right, this friend is right. Safety is the greatest luxury, especially driving safety. Alright, enough with the chit-chat, let's get started and not waste everyone's precious time."

The process was similar to the usual routine: staff presented flowers, Mr. Tan bowed to open the car door, and took a photo with the owner. As netizens jokingly put it, the billionaire's skill in opening the car door was almost pitiful.

"Mr. Tan, will you be at the MINI Cooper EV delivery event? I saw Mr. Qin from Weichi Power there too."

The person who spoke to Tan Jincheng was a car owner wearing glasses. He had just introduced himself as surnamed Wang. His face was mostly covered by a mask, but judging from his skin and the age of his child, the child should be around the same age as him.

"Mr. Wang, you know Wei Lai very well, so why would you ask that?"

Qin Zhi, the former CEO of Autohome, is a well-known figure in the internet industry, but being able to recognize him and accurately name Weichi Power clearly indicates that he has a deep understanding of Weichi.

However, there were quite a few car owners like this at the scene. When the store manager was giving his speech, some even called him "Brother Ming".

"Yes, I recommended the MINI x Weilai collaboration to my wife next year. I wonder if you will be at the delivery site then."

Currently, MINI only sells one model, the MINI Cooper EV. However, with its integration into the MINI ecosystem, rising sales, and plans to reach 50,000 and 100,000 units in sales, MINI has announced the release of subsequent models.

MINI's product lineup naturally does not include SUVs; the Cooper EV is the main model. In addition, next year will see the launch of the MINI E-Plus version targeting the lower-tier market, as well as the high-premium performance model MINI JCW E.

In addition, through in-depth cooperation, MINI will also collaborate with Weilai on a co-branded model. This model is positioned for tech-savvy early adopters, featuring an exclusive design that combines Weilai's front fascia and color scheme with the MINI body, and a deeply customized infotainment system.

It also boasts impressive technology, employing the WIL CTB battery-body integration technology, offering a pure electric range of 500 kilometers. Like the high-premium performance model, the co-branded version is also released in limited quantities.

"Thank you and your family for your support of Weilai and MINI, but the co-branded model is not expected to be delivered until the fourth quarter of next year."

"No rush, we still have a car at home."

"Okay, Mr. Qin, please make a note of this. Arrange a delivery in person when the time comes."

Qin Zhi smiled and nodded his thanks to the car owner. He had made a profit today. Originally, the delivery of MINIs was not something the boss was involved in, and they were too embarrassed to ask the boss to participate. Now, however, they could do a great marketing campaign.

However, it must be said that the owners of the Weilai L series are really rich. The L9 series is not cheap and most families cannot afford it. They just bought it without hesitation. Even though they already have a car, they still plan to buy the MINI and Weilai co-branded model.

This person, who knows Wei Lai so well that he can recognize him, must have a deep understanding of cars. He couldn't possibly be unaware that the so-called collaboration model is most likely a gimmick or a test product.

This is an experimental product designed to try out cross-brand collaborations with other brands, and since it's a limited edition, the price can't be too cheap.

However, even with this particular car model, this seemingly young owner still intends to buy one, which is quite a hobby.

Sure enough, industry insiders say that the L series is a cash cow, and it's absolutely true. Judging from these car owners, it's too easy to make money this way.

"Really? Mr. Tan, you're not kidding, are you?"

The car owner surnamed Wang was pleasantly surprised. He was also a social elite. It was obvious from Tan Jincheng's attitude that he had not arranged for MINI to participate in the delivery plan. He only agreed because of Tan Jincheng's curious question.

Tan Jincheng smiled and said, "Of course, we will do our best to provide the best service to every car owner. This has always been our goal, and fulfilling the wishes of car owners is one of them."

"Is Mr. Tan worried that I might cancel my order? After all, the collaboration hasn't even started pre-sales yet."

Time was limited, and the car owner didn't want to continue the conversation, so he quickly asked a question.

"That's not important, you're already our valued L9 user; okay, next."

(End of this chapter)