XiamenFAWDealer2INTERVIEWDATE:16March2000INTERVIEWERNAME:JaneXuIntervieweeNameMr.MaZhaohangPositionSalesCompanyandAddressXiamenJiefangTruckSalesCompanyTelephone/Fax0592-6090401BackgroundXiamenJiefangTruckSalesCo.isastockcompanyformerattachedtoXiamenFAWSalesCompany,theparentcompanyowedaroundRMB40milliontoFAWandhasbeenstoppedpartofthebusinessbyFAW.Inordertoget“Anetworkprice”afterwards,XiamenJiefangsignedacontractwithXiamenJiguanandstarttoselltrucksunderthetitleofJiguanbytheendoflastSeptemberBusinessscope:1)Jiefangtrucksales(includingservicelikepatentproviding,etc.);2)ComponentsalesFAWsetitsturnoverwarehouseinXiamenJiefangTruckSales.Co.SalesTotaltrucksalesreachedto242unitslastyearAmong242trucks,90%arefromChangchun,theother10%fromQindaoChannels:60%ofthetotaltrucksalesaresoldthroughretail,majorend-useraretransportationbusinessowner40%aresoldthroughwholesale.XiamenJiefanghas112ndtierdealersspreadinFuzhou,Quanzhou,LongyanandnearbyplacesCompetitionDealersTruckpricecompetitioninFujianismainlyraisedbythreekindsofdealers:1.Dealersprovidepatent/insuranceserviceduringtheprocessofsellingtrucks—dealersreducetheunitpriceoftruckandraisetheservicecharge.Notes:End-usersarenotclearabouttheservicecharge,especiallytheservicechargetogetasmallnumberpatent,theycarelessoftheservicefeeratherthantheunitsalesprice2.Dealerswhoprovideinstallmentservice—ifcontroltheriskswell,profitpretruckcouldreachtoRMB7,000,dealerswhoprovide1installmentgettheprofitadvantageincompetingwithothernon-installmentprovidingdealersinpricecompetitionandtheyarewillingtoinvolvethemselvesin3.NewFAWdealers—Somerecentestablishedcompaniestendstograspthemarketsharethroughthelowinitialsellingprice,thishasdisturbedthemarketordertoalargeextentOthersSomeJiefangtrucktypehasbeencancelledincataloguesduetothepatentlimitation.Liuqi5Ton‘Chenglong’truckcouldstillgetpatentof1.95tonKeyprocessInXiamengJiefang,end-userscouldhardlyseetherealtruckwhenhe/shemakesthepurchasingdecision,XiamengJiefangneedtoorderthetruckfromChangchun/Qingdaoandthetotaldelivercircleisaround10days.Inordertosettheorder,XiamnJiefangasksend-usertopayRMB10Kdepositfirst,amongwhichRMB5KwillbedeliveredtoFAWFuzhouBranch.Iftheend-usersfailstopurchasethetruck,he/shecouldn’ttakeitsdepositbackbothinXiamengJiefang’ssideandFAWBanch’ssideFAWProblemsWewishFAWcouldsendusregularupdatedproduct/componentbooklet,wedon’thaveideaofhowmanynewproductsFAWhasnowandisweakinintroducingthenewproducttoend-users“3in1”CapabilitiesMr.Maisnotthepersoncouldsay‘yes’or‘no’tothequestions(Allthemanagersofthecompanyareonabusinesstripatthetime)2