HebeiYiQi(FAW)TradingCompanyInterviewDate:March2nd,2000InterviewerName:JianPANIntervieweeNameMr.FengHongweiPositionManagerCompanyHebeiYiQiTradingCompanyTelephone0311-561954CompanyProfileHebeiYiQiTradingCompanyisasubsidiaryofHebeiAutomotiveTradingCompanyanditsellsfulllineproductsofFAW.HebeiAutomotiveTradingCompany,aSOE,isthelargestAutomotiveresellerinHebeiandit’scertifieddealerofFAW,Dongfeng,ShanghaiVolkswaganandsomeotherbrands.ThecompanystartedcooperationwithFAWin1992.HebeiYiQiTradingCompanyisstructuredbyproductline,MrFengisresponsibleforJiefangtrucks.ThequotaofMr.FengisprofitfromJiefangtrucksandhehavepoweronHR,financeindependently.In1999,thecompanysoldmorethan1300trucks,amongwhich1100wasboughtfromFAWtradingcompanyand200wasboughtFAWQingdaoManufacturingCompany.SalesrevenuefromJiefangtruckswasRMB175million,withnetprofitRMB1.6million.In1999thecompanyallocatedRMB10milliontotheJiefangbusinessunitasfluidcapitalandin2000thisamountwillbereducedsharplybecauseofFAWallocateitmore“ZhouZhuantrucks”UnderMr.Fengthereare12employeesincluding5inaJiefangtruckServiceStation.Thecompanyhas11branchofficesincitiesoutsideShiJiazhuang,andMr.Fengrecruited4Jiefangtruckdedicatedsaleseachinabranchoffice.These4saleshavenobasesalaryandgetRMB400/trucksold.In1999,truckssoldbybranchofficescovered40%salesrevenue.JiefangtrucksalesrevenueratioofWholesalesbusinessandRetailbusinesswas1:4in1999.Pricingstrategy:adjustaccordingsupply/demanddynamicsinthemarket,theaveragemark-upisRMB800-1000pertruck.InOct,1999,thecompanylaunchedconsumerloanbusinessandnowtheycanselloutnear20trucksinthisway.InJan,2000thecompanylaunchedtherenting(consumerloan)businessandtheperformancewas20trucksinJan.theywillpaymuchefforttothisbusinessasopportunitytodevelopbusinessthisyear.Salestoindividualcustomercovers80%ofthetotalsales.1Businessfocusin2000:1.developthecurrentlysmallservicestationintolargescalereparationcentre2.recruitmorededicatedsalesinbranchoffices3.developlargeaccountclientsalesTruckMarketTrendForecast:-Individualcustomerpercentagewillcontinuetoincrease.-Moreandmorecustomerswillbuytrucksinlocalcountymarketinsteadofinbigcitymarket.-Specialpurposetruckand“BanGuaTuoChe”willsellbetterandbetterinfuture2