FAW_ZHAO_0225.docVIP免费

FAWTradingCompanyINTERVIEWDATE:Feb25th,2000INTERVIEWERNAME:PaulGao,BillHeIntervieweeNameMr.ZhaoZhongxingPositionGeneralManagerCompanyandAddressFAWTradingCompanyTelephone/Fax0431-5904135BackgroundMr.ZhaoisthegeneralmanageroftheFAWTradingCompanyandreportstoMr.An,VicePresidentofSalesofFAWGroupPreviously,theFAWTradingCompanywasresponsibleforthesalesofallbrandofFAWGroupanditsJoint-ventures.However,itisnowonlyresponsibleforthesalesofFAW’sJieFangtruck.SinceJieFangtruckistheonlybrandremainsinFAWGroup,theseniormanagementdecidestofocusonimprovingitsbrandimageandserviceefficiency.Inordertore-organisethecurrentdistributionchannelofJieFangtruck,FAWGroupdecidedtoretainA.T.Kearney’sconsultingservice.ThedistributionchannelofJieFangtruckhasbeenchangedsignificantly.Themostimportantdistributorsusedtobethestate-runmechanicandelectriccompanies.Today,allbutoneofthebiggestninedistributorsisprivatecompanyinChangchun.KeyIssuesActivitiesofdistributors/dealersarelimitedtothesalesofnewtruckonly.AccordingtoFAW’sestimate,thebusinesspotentialofsalesandservice(includepartsandusedcarbusiness)ofJieFangtruckisapproximatelyRMB50billion.However,distributors/dealershaveonlycapturedRMB10billion,20%ofthewholebusinesspotential,becausetheyhavevirtuallydonenothingotherthansellingthenewtrucks.“ThreeinOne”isatrendifFAWGroupdecidestotakethebrandmanagementapproach.However,theacceptanceofthisconceptamongdistributors/dealersislowbecause:State-rundealersdonothavetheincentivestoincreasetheirbusinessscope.Theirperformanceisnottiedtotheircompensation.MorebusinesscouldmeanmoreworkforthemtodobutnotnecessarymorerewardForprivatedealers,thesignificantupfrontinvestmentisabigconcern.TheyarenotfullyconvincedthatthereturntheycouldgetfrombeingaexclusivedealerofJieFangtruckcanjustifythemulti-millionRMBinvestmentupfront.1However,therearesuccessfulexamplesof“ThreeinOne”ChengduZhuyinandJiangxiMalingling.Bothofthemusedtobeservicestations.Theyverticallyintegratedintosalesofnewtruckandpartsandqualitytrucking.Andtheydiditsuccessfully:Zhuyinsoldmorethen600newtruckslastyearandMalinglingsoldabout500.BothofthemgotsupportfromFAWTradingCompany.Thesetwoexamplesindicatethat“Three-in-One”isafeasiblesolution,atleastinsomeareaforsomedealers.State-rundealerssuchasoldmechanicandelectriccompanieshaveanintentfornottopaythebillontime.ThishurtstheoperationofFAWTradingCompanyseverely.ThetotalamountofpatduebillwasRMB1.8billionlastyear.Beginninglastyear,FAWTradingCompanydecidednottodoanynewbusinesswithanycompanythathasnotpaidthepastdue.Thispolicywasprovedtobeasuccessfulonesincethesalesofnewtruckincreasedinsteadofdecreasedlastyear.Thedistributionofthenetworkisnotoptimal.Mostdistributioncentresareinthecapitalsofprovinces.Toomanydistributors/dealersanddealersinthetraditionallystrongsalesareaandnotenoughorvirtuallynodistributors/dealersinthetraditionallyweaksalesarea.ThisisathreattoFAW’sJieFangmarketbecauseifFAWdoesnotpenetrateintoitscompetitors’territory,itscompetitorswillinvadeitstraditionalmarketeventually.Currently,salesineighttonineprovinces(mostlyinthenorthandeastregionsofChina)isabout60%ofJieFang’stotalsales.Historically,WestandsouthregionsofChinahavebeenFAW’sweaksalesareas.Thesituationhasbeenimprovedlastyear.JieFang’smarketshareofheavytruckhasjumpedfrom28%in1998to51.8%in1999.ThemainreasonwasthatFAWhadtherightproductsf...