ShanghaiYiqiMotorSalesCo.Ltd.INTERVIEWDATE:Feb28th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMs.QinyiPositionGeneralManagerCompanyandAddressShanghaiYiqiMotorSalesCo.Ltd,No.498OuyangRd.,ShanghaiTelephone/Fax(021)56716315BackgroundKeyProcesses/OperationsKeyIssuesConclusionBackgroundShanghaiYiqiSalesCo.wasestablishedin1989.FAWTradingCo.owns40%oftotalinvestment.CurrentlyShanghaiYiqiSalesCo.hasslightlymorethan10employees.ShanghaiYiqiSalesCo.soldaround1000trucksand300chassislastyear.AccordingtoMs.Qin,truckmarketwentdownin1995andstartedtoresumein1997.Currentmarketisincreasingsteadily.MostofShanghaiYiqiSalesCo.'scustomersareprivateusers,whousetrucksfortheircargotransportationbusinesses.Besidesendusers,another50%ofShanghaiYiqi'ssalesarewith2ndlayerdealers.ThoughMs.Qinunderstandsthatitmakesthemarketdisordered,sheclaimedtohavenowaytogetthrough2ndlayerdealers'barrier.Ms.Qindoesn'tthinkservicestationshouldbedevelopedas3in1dealers,astheylacksalesknowledgeandskills.Neitherdoesshethinkserviceasaprofitsourcefordistributors.However,shethinksthatservicefunctionsmightenhancedealer'simageandiswillingtoinvestinthat.ComparedwithSAW,FAWneedsmoretimeandeffortinpenetratingShanghaimarket.Ms.QinisconfidentinFAW'sproduct,especiallyFAW'sbighorsepowertrucksKeyProcesses/OperationsDeliveryperiodIfacustomercanfindtheproducttypehelikeinthewarehouse,hecandrivethattrucksrightawayandnolead-timeneeded;IfacustomerorderstrucksthatShanghaiYiqidoesnothave,they'llcallChangchunfordelivery.Lead-timewillbearound7days.DealCapture1Dealsandcustomerinformationarekeptonpaperregularly.Onestaffisspecificallyassignedforthefilingworksofcustomerinformation.RelationshipwithotherpartiesWhenacustomercallsinforserviceneeds,ShanghaiYiqiwillrecommendoneservicestationforcustomertocontactwith.ThereisnodirectbusinessrelationshipbetweenShanghaiYiqiSalesC.andtheservicestations.Ms.Qinclaimstohave"prettygood"personalrelationshipwiththeheadsofotherFAWdealers.DistributorsinShanghaihavesortofagreementthateachofthemwon'ttouchother'slongtermcustomers.KeyIssuesShanghaiYiqiSalesCo.isunabletostopthemarketfrompricewar.Somedealerscanevenearn5%discountthroughissuingD/AdraftsShanghaiYiqiSalesCo.needssomeadvancedtechnologymethodtopushforwardtheirinformationmanagement.The2ndlayerdealersnetworksareveryhardtobreakin.2ndlayerdealerswon'tprovideanyinformationoftheirendusers,infearingthatShanghaiYiqiwillcontactwiththoseendusersdirectly.Some2ndlayerdealersbelongtolargeSOEorBureaus,wherethe2ndlayerdealersactastheonlygatewayoftrucksalesinthoseSOE/Bureaus.In1999,therearemorethan50privatefleetownersfromothercities/provinceswhoboughttrucksfromShanghaiYiqi.MostofthosefleetownersarefromHenan.TheyregisteredtheirtransportationcompaniesinShanghaiandgettrucklicensesinShanghai.Ms.Qinexpressedsomeconcerninbuildingup3-in-1functions.Shedoesn'tthinkherinvestmentinservicestationswillbeprofitable,asShanghaiYiqiSalesCo.isnotfamiliarwithservicebusiness.ShanghaiYiqiSalesCo.wantsFAWtoprovidesometrainingfortheminProductfeaturesSpeccomparisonwithCompetitorproductsSales/persuasionskillConclusionShanghaiYiqiMotorSalesCo.isatypicalexclusiveFAWdealer.AsthelargestdealerinShanghai,YiqiisconfidentinFAWproductsandiswillingtoestablishlong-termrelationshipwithFAW.Yiqi'sbiggestconcernremainstobepricewar.2