JAC Motors: Brand Awareness Runs throughout the “One Belt, One Road"
When it comes to Chinese companies going out to build 'the Belt and Road', people will soon think of various infrastructure projects, from roads, ports, bridges, railways, to hydropower stations, garbage disposal projects, schools, hospitals... China’s cars are already running on 'the Belt and Road' initiative, auto companies have their own understanding of how to build 'The Belt and Road' for the next stage.
Zhang Peng, General Manager of JAC International told the Economic Information Daily that the export volumes of JAC to the 'One Belt, One Road' states have accounted for 70% of the company's exports, the proportion of which has benefited from the company's accumulation for many years. As early as 1990s, JAC began the process of 'going out'. In the first ten years of 'going out', the company relied on trade export methods to study the export strategies of different markets and gradually improve the market adaptability of export products to destinations. With the formulation of an internationalization strategy and the establishment of JAC international in 2006, the company began to use the model of product trade and technology output to study the industrial policy needs of target countries, study the comparative advantages of enterprises in different markets, and formulate different market strategies.
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In the nearly two hours of interviews, the word 'stable' was mentioned many times. This is a lesson learned from the case of JAC and its peers. In the future, the high-quality joint construction of 'the Belt and Road' is regarded as a magic weapon that needs to be firmly grasped. Xiang Xingchu, deputy secretary of the Party Committee and general manager of JAC told reporters that every step of JAC has gone steadily in from the process of 'going out' to building 'The Belt and Road' and spent a lot of time in the development of overseas markets.
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Steady, on the one hand, should have sufficient understanding of the risks that may exist in the target country. On the other hand, in the process of promoting cooperation, it is better to slow down and never cause it to be overwhelmed. In the process of promoting cooperation, JAC people pay great attention to the choice of market research, partners and cooperation methods, and fully demonstrate the sustainability of cooperative profitability.
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How to build high-quality 'The Belt and Road', from the perspective of JAC Motors, brand awareness is as important as life. Xiang Xingchu said that the evaluation of JAC in the overseas market is still relatively high, and it is positioning at least the mid-range to medium-to-high-end products, how to maintain the brand positioning of JAC in these countries and in some of the more critical countries, we need to strive for higher added value, besides, we must adhere to the positioning of high-quality development. In this respect, it is necessary to conduct research on the target market, to compete in the market with the higher technical cost performance, and to continuously support the brand upgrading. JAC is a company that attaches great importance to independent innovation, thus it now spends 4% of its annual sales on research and development and product upgrades, moreover, the patents applied for are in a leading position in the industry. JAC also pays high attention to learning the advanced experience of overseas excellent auto dealers and strives to improve its innovation capability. JAC now has the ability to export new energy vehicles and intelligent vehicles, instead of exporting low-end products to automakers such as Europe, America, Japan and South Korea, which will help establish a better brand image in the international market.
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For the high-quality co-construction of 'the Belt and Road', services, benefits and strategies are also the recommendations of JAC. Xiang Xingchu said that high-quality co-construction requires a variety of high-quality inputs, and ultimately improve the benefits of co-construction. Ignoring the market, lack of rationality, blind pursuit of scale, neglect of capital security will be the problems, and will not help the high-quality joint development of the "Belt and Road" to achieve the goal of win-win. In addition, friends in China's “The Belt and Road” circle are rapidly expanding. This aspect can provide more overseas opportunities for Chinese companies, but at the same time, different markets must have different strategies to achieve the overall goals of the company.
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