Changan PSA Chen Guozhang: left-hand coffee and right-hand e-commerce

On September 4th, Chen Guozhang, president of PSA DS brand in China and Southeast Asia and general manager of Changan PSA DS brand, accepted an exclusive interview with Automotive Industry Network. He said that the traditional sales model must be changed. In the future, the sales contact of DS will be transferred to coffee shops, because the flow of people here is greater and more convenient for consumers. For coffee shops, selling coffee, test driving, selling cars, building the DS brand, and so on, can be "caught in one net". Of course, the development of DS must rely on the Internet and e-commerce, which is very critical to DS.

The sales volume for the whole of last year was completed in the first half of the year.

Auto production Network: what are the highlights of the DS booth of this year's Chengdu Auto Show?

Chen Guozhang: we have brought the new DS5 and the 2016 DS6. The new DS5 is equipped with two very fashionable color configurations: magic placer gold and champagne gold, as well as red interiors. We have changed the front face of the new DS5 to the "DS wings" family face. At the same time, we released the 1.8THP engine, which has higher power and lower fuel consumption.

This year marks the 60th anniversary of the launch of the DS brand, so starting this month, we will conduct a 60th anniversary tour in 14 cities across the country.

Next, we will have a new cooperation with Zhangjiagang, which will import a large amount of DS3, which is another channel, so in the future DS3 will enter the Chinese market at a very reasonable price.

Auto Industry Network: what is the development strategy of DS in China?

Chen Guozhang: at the beginning of this year, our strategy was 4321.

4 is 4 times the effective dealer. At present, we have climbed from 16 effective dealers at the beginning of the year to 40, and the number of dealers has more than tripled. Now, we continue to climb in the direction of quadruple growth. Affected by the off-season, we had a slight decline in July and August, which had a small impact on our climbing, but we were not worried.

3 is three times the growth of retail sales. At present, the monthly sales of DS have risen from 1500 at the beginning of the year to more than 3000 at present. In the future, our goal is to achieve monthly sales of more than 4500.

2 is twice the performance of marketing activities. We hope to use the funds more effectively. From the beginning of the year to June, we used 18% of the marketing expenses for the first half of the year to complete the sales for the whole of last year. In the first half of this year, retail sales reached 17000 units in six months, the same as retail sales for the whole of last year. In the second half of the year, we will use the remaining 82% of the cost to open the market, so we have a lot of activities in the second half of the year. The 60th anniversary tour exhibition, Guangzhou Auto Show will have a new hatchback model like Audi A3, which is a domestic model. We have also launched many approachable activities this year, such as forming DS Virgin team with Virgin team. At the same time, we plan to start investing in December. Convert 15 DS5 cars into racing cars, let 15 stars participate in racing in Shanghai, through the star effect, make DS approachable and open the market as soon as possible.

At the same time, we will adjust e-commerce, DS has done a lot of new attempts in e-commerce, the follow-up will continue to try. In addition, we will adjust the network, and the traditional business model of 4S stores in the market is changing.

E-commerce is critical to DS.

Auto production Network: DS has made a lot of bold attempts in the sales model. What experiences does DS have to share?

Chen Guozhang: through cooperation with UBER, we have delivered 100 cars with license plates in Beijing. In September, DS's latest plan is to put 4200 cars into the rental car market and open up DS's share of the rental car market.

Rental car market is very characteristic, I want to open the market, on the one hand is to sell cars, the other is to put a large number of cars in the market to run, this is a live advertisement, so that we can experience the quality and concept of DS. Beijing and many other cities limit license plates, which requires us to use new strategies to infiltrate the market. The driver I use in Shanghai, he is my very good live advertisement. Drivers all use DS chauffeured cars, will post a lot of advertisements on the car, and will say a lot of good things about DS, because he is the beneficiary of DS.

Auto Industry Network: what experience does DS have in the cooperation with e-commerce?

Chen Guozhang: starting from September, we will continue to cooperate with e-commerce companies. We will give the cars that are high-equipped and difficult to sell, and those that need more publicity means to e-commerce, so as to better cultivate and grow the traditional dealers. In addition, we must cooperate with the Internet to give dealers more clues, at the same time let dealers more flexible input costs, store-building costs will be greatly reduced, to reduce the burden on dealers. Now in the market, too many dealers of many brands have closed down, we can't put more pressure on dealers. DS will definitely not do it at the end of the year.

DS, coffee is here.

Auto production Network: in addition to e-commerce, what does DS think about traditional channels, and what is the idea of DS coffee?

Chen Guozhang: we can not use the unique sales model of 4S stores to support the development of DS, and our sales channels will not sink to second -, third-and fourth-tier cities. Our plan is to go the opposite way and move towards the city center.

Most of the traditional 4S stores are outside the ring area, with a cost of about 20 million, but they move to Sanlitun in Beijing, the center of Shanghai and Chengdu, and build coffee shops in the city at a cost of about 60 to 300000 a month. The cost is not cheap at all, but the flow of people is much higher than building a 4S store outside the ring.

Through this reform, we plan to adjust the whole business model. The biggest problem facing the 4S store is that I spend 20 million to build the store and sell a few cars. The price goes down, and I can't make money selling the car. But I sell coffee, at least I can make money, and the Chinese coffee market is expanding, so it is very good to make a cross-border complex to break even by selling coffee and selling cars as an addition.

However, the coffee shop must be connected to the Internet, and there must be a chauffeured car service, which can be scanned by the QR code of the coffee shop and become VIP. A row of DS5 and DS6 are parked at the door of the coffee shop. They can take customers to the airport at any time to serve them. Of course, these cars can also be test-driven.

Moving back from outside to inside the city is a very big adjustment. But e-commerce is indispensable, because now it has come to the era of mobile phone and IPAD booking, and it has reached the tipping point of the Internet, so we can also do this by selling cars. Selling coffee, selling cars, test driving, DS culture and history, and brands can all be done through such interaction, so e-commerce is very critical.

Auto production Network: who should I look for after buying a car in a coffee shop?

Chen Guozhang: the investors of the coffee shop in the first stage are the investors of the 4S store. After the first batch is built, it will continue to be built, just like the secondary network. The final service docking must find the 4S store, but the contact point between sales and service will be transferred. Because traditionally you have to go far away to buy a car, I can now buy a car in the coffee shop downstairs. The test drive is parked downstairs, including financing, finance, and Alibaba Alipay. We will all get through and pay. You can basically buy a car at home.

You buy a car in a coffee shop, park your car in the coffee shop in the morning, have a waiter to park your car in the parking lot for only 40 yuan a day, and wash your car. DS is to provide such peer-to-peer, home-to-home service.