Chery: unique sales model

When Chery strongly expressed the need for Malcolm cloth Creek forest deeper understanding can eventually signed a contract, this has nearly 30 years of automotive design, manufacture, conversion and sales experience of entrepreneurs, innovator and visionary is the originator of the arm bent shirt, excitedly arms, on the meeting room of about Chery people say: "Behold! I! I!"

16 December 2004, Chery final decided to Chinese manufacturing of Chery Automobile's North American distribution rights to the Chief Creek forest dream company (Visionary Vehicles LLC). The Chief Creek forest passion play this scene was his son, 27-year-old Jonathan cloth Creek forest records in camera to carry.

Cloth Creek forest is the United States automobile industry legend, he fights in the industry for over 30 years, sold hundreds of thousands of cars of different models and different national cars, but in 1992 declaring personal bankruptcy. But he never gave up excessive ambition of the rivers and lakes. Ten years later, at the cost of a year, almost stepped all over the world every corner to find collaborators are reactive and back to back, trying to stage a comeback of cloth Creek forest is finally in China Anhui Wuhu of just 75 million of medium-sized cities found that made him incredibly "perfect match"-Chery Automobile Company. Chery have cloth Creek forest in perfect collaborator should possess all the characteristics: excellent management team, professional attitude, the tireless pursuit of success, complete product line, powerful price advantage, excellent quality, stability, productivity, foster and support, rich product export experience and a broad international perspective.

From April 2004, the Fabrique forest to Chery issued the first e-mail message, dream and Chery began eight months of each other on mapping and negotiations. While the export market for the purposes of the United States is ruiqi an ideal goal, but everything from scratch is ruiqi is wavering. In this process, the dream company showed American initiative, investigation, many times to Wuhu. Their efforts finally paid off.

Chery and dream in the signed contract, Chery will to technology, plant and equipment pricing inputs 3 billion, dream company will spend $ 200 million in cash, common research and development in the Chery to build production base. Fantastic company will own the Chery Automobile five new cars in the North American distribution rights, establish 250 sales outlets, in 2007, sales of 25 000 Chery Automobile, and in 5 years 100 million in sales.

Chinese-made cars later to enter the United States market, and China will become global car production base. This has become the most automobile industry players and the analysts ' consensus, but full of entrepreneurship cloth Creek forest became open the gates for the first person. Panoramic view of the Fabrique forest career, has both glorious success, failures of the lonely, while the Alliance of automobile manufacturers is also a flourishes, a ruined. This time, whether he can plug for Chery fantastic wings, in the United States market to win?

Unique sales model

"Rely on the strong advantage in China, high-quality automobile, as well as an unprecedented sales model, dream company will permanently overwrite the pattern of the North American automotive industry. "Dream company CEO Chief Creek forest have answers. Fantastic company will North America recruit 250 distributors. Each Distributor must provide fantastic company to invest 10 million to $ 15 million for Chery Automobile in specific areas of exclusive sales rights and dreams in company stock, and for the distribution of land purchase and Exhibition Hall.

Export of Chery Automobile will United States than in the similar European automobile pricing low 30% while the dream will provide distributors with Chery Automobile sales by 15% in return. Fantastic company estimates this proportion is sufficient for the initial distributor undertakings, particularly during the first year of providing increasing cash flow, and in 5 years time each distribution area 4000 vehicles sold an average of about Chery vehicle.

"Distributors will have enough big franchise area, which does similar other distributors — a Ford distributors at the same time with another Ford distributors as well as Toyota's reseller competition. "Chief Rick Lim said," we only dream of distributors with the competition itself, but rather the opposite corner will never be another fantastic distributors. In addition, taking into account sales, accounting for 15% of the proceeds of sales should be auto sales in the history of one of the highest rates of return. ”

Fantastic company also will invite 25 North head the most astute and most ambitious distributors to join the company's "founding 25 people group", a member of this group will be immediately involved in the company's important decision making, including selected import Chery Automobile brand name in North America; product design, engine models and product pricing; scheduled for 10 to 15 Chery Automobile import time order; determine retail procedures; improving distribution within the design of the Hall; recommended and funded an additional 225 distributors.

As part of the Distributor Agreement, dream company also encourages 250 distributors will dream company's creative marketing strategies applied to other brands in sales, this will automatically increase sales and create a friendly sales environment.

"As the 21st century in the United States established the first automobile company, we are creating a consumer demand in the first place in the new distribution network. "Chief Rick Lim said," distributors will also participate in Chery-dream operational decision making, and any one of the distributors had previously never dreamed, is involved. ”

Dreams in the company's distributor showroom will be designed by the famous great art expressiveness of the exhibition hall. The main building is a multi-tiered, e-wall with huge showroom-screen used for showcase Chery all models, IIE has 1400 square meters car booth, 800 metre long indoor locaton, even wash the car Center, and provide child care services. Distribution of exhibition halls will give consumers visit the motor show

Like a wonderful experience.

"I hate to go to outlets, I hate someone before me rush me 15 minutes to make the decision to buy a car. "Fabrique Lin said. "So I want to find a new way to sell cars. We don't need people to sell the car, we need someone to explain the car, the final decision will be determined by the customer in free will. ”

Chief Rick Lim said that dream car auto show-sales model will eliminate customer in choosing the car by means of high pressure selling, buying a car to be a pleasant process. This mode will soon let traditional automotive retail at a disadvantage.

"From the outset to seize the snowball"

Dreams in the company's new automotive distribution model is compelling, but many distributors has its reality into question: first of all, 10 million to $ 15 million investment amounts for most distributors, constitutes a significant fiscal pressures; Secondly, to obtain licenses, purchase of land and construction of the Hall, and so is can be both time consuming and wasting money.

Cloth Creek forest is on the Distributor to make concessions, the original dream company distributors require investment decreased to $ 2 million, but each Distributor would also like to dream company provides $ 2 million letter of credit. 5 April, Brian Collins added that will allow some new distributor existing model to sell Chery Automobile, without the need to immediately build his vision of the "auto show" Sales Center. But he stressed that this is only a temporary adjustment scheme, aimed at making the dream company distributors can start sales in 2007, Chery Automobile distributors will still need to fast and prudent steps to complete the construction of a dream Hall.

University of Maryland Business School Professor, famous auto analyst Peter moric (Peter Morici) on dream company car show-sales model is not good. "Consumers want to buy a car instead of buying a car experience. "He's on the global financial and economic survey, said," one day in a pleasant experience and six years of his life, the latter seems more important to consumers even more important is the quality of the product, may rely on the degrees and after-sales service. ”

Moric also indicated that the sums set up dream-sales exhibition can only serve to attract customers in the eye, and does not guarantee that customers will eventually buy, its consequences is that cost increases, the market risk increases. In fact, Toyota and Chrysler's distribution point also has a very interesting exhibition hall design, but this does not help their performance to achieve substantial increases, it is estimated that dream company commitment to distributors in return of 15% is also very hard on this basis.

As for the dream company planned number of distribution points — 250, moric considers that there is a suspicion of being too sparse. "As a consumer, I hope to be able to arrive within 30 minutes by car, a distribution centre. "Moric said:" more than this distance, to the consumers is not too easy, and this can affect the performance of the distributors. ”

But it is undeniable that dream is a distinctive car company. Traditional automobile company Chiefs often timid in the decision-making process, and the Fabrique forest is ruiqi la successfully to a boat. Those around him are eager to demonstrate to the outside world a "can do" attitude. More best of all, the Fabrique forest willing to absorb the distributors and partners and make adjustments to sales strategy, the best example is he agrees with some distributors in existing facilities sales Chery Automobile.

The Chery-dream cooperative future make accurate expected is not an easy job. To be sure, the Fabrique forest has his unique vision, there is also a huge Chery ambition. The core of the issue is whether the quality of Chery Automobile can meet the Fabrique forest to distributors as promised. Just being able to guarantee the quality of Chery, Chief Rick Lim and his distributors have capital through a Bo.

A join fantasy distributors said: "I can look at on a secondary road, top-down snowball snowballs, Rous; I can look at the snowball rolling across from the side, and then run up empty-handed. But in any case, are not as good as from the outset to seize it. ”