JiangsuJidianCo.,YiqiTradingCo.LtdINTERVIEWDATE:March14th,2000INTERVIEWERNAME:AnneWangIntervieweeNameMs.ShenXiao-wei,Ms.ZhangJiePositionGeneralManager,SalesManageroftrucksCompanyandAddressJiangsuJidianCo.,YiqiTradingCo.Ltd.No.29JianningRd.,Nanjing210037Telephone/Fax(025)5626213BackgroundKeyProcessesKeyIssuesConclusionsBackground.JiangsuJidianYiqiTradingCo.LtdisthesubsidiaryofJiangsuJidianGroup.ItwasseparatedfromJidianGroupin1994asrequiredbyFAW.Currentlyit’sa100%state-ownedcompany.Therearetotally4salesmenforalltheFAWautosales,includingcars.Salesteamisnotorganisedbybrand.In1999,morethan700trucksaresoldinJiangsuJidianYiqi.Only180trucksaresoldin1998.Mostwelcomedtrucksare2TonKing.Targetsalesforthisyearis1000trucks.25%ofthesalesaredirectlytoenduserswhiletheother75%aredistributedinJiangsuJidiang'sdealernetwork.Excludingrebate,grossmarginisaround3-500RMBpertruck.Netprofitisverylowandsolelydependsonrebate.KeyProcesses/Operations3in1capabilitiesCurrentlythereisnodetailedplanof3in1capabilitiesinJiangsuJidianYiqi.DecisionsshouldbemadeinJiangsuJidianGrouplevel,asitconcernswithbiginvestment.Ms.Shenhasbought300M2land,butit'llbemainlyusedasatruckdepot.Ms.Shendoesn'tthinkthe3in1willbringheranyprofit,asthemarketsizeinNanjingislimited.Ifeverybigdealerbuildsaservicestation,ROIwillbeverylow.Whentrucksaredistributedto2ndlayerdealers,50%ofprofitisshared.JiangsuJidianYiqihasaveryloosedealernetwork.DealerscanchoosetoworkwithJiangsuJidianornot,andthereisnoevaluationmethodforthosedealers.1KeyIssuesAsJiangsuJidianYiqiisaSOEcompany,it'sdifficultandslowforthemtomakeanybigdecisionssuchasmarketstrategyorinvestment.Thus,marketopportunitieslostwhenthedecisionisstillinprocess.JiangsuJidianYiqidoesnotofferinstalmenttoend-users.Thusprofitabilityislowerthandealerswhocanprovidethisfunction.BecauseJiangsuJidianYiqilacksamethodtopredictthemarketdemandaccurately,ittendstochangetheorder/salesplanoften.InFAW,onedealercanatmostmakechangefor4timespermonth.JiangsuJidianYiqievenchangesmorethan4timesofitsplan.ConclusionsJiangsuJidianYiqiTradingcompanyisa100%subsidiaryofJiangsuJidianGroupandtheSOEmechanismsloweddownJiangsuJidianYiqi'sbusinessdevelopment.AsthesalesperformanceislessidealthanothertwoFAWdealersinNanjing,JiangsuJidianYiqiisnotwillingtoinvestin3in1capabilitiesatonce.Besides,JiangsuJidianYiqireliesheavilyonits2ndlayerdealernetworkbutitlackscontroloverthosedealers.2