The 21st Guangzhou International Automobile Exhibition officially opened on November 17th. The development of smart cars and new energy vehicles is not only a revolution in transportation, but also a change in lifestyle and mindset. With the continuous upgrading of competition in new energy vehicles, more new products and technologies will appear in front of the world. This year’s Guangzhou Auto Show will be themed “New Technology, New Life,” showcasing the latest technological achievements brought about by the development of smart cars and the new changes they bring to consumers. In response, different executives have expressed their views. Jiang Chuan, the deputy general manager of Euler brand marketing, said that differentiation is crucial. For the entire Chinese automobile industry, if everyone insists on opening up new soil in the differentiation track, then this road will definitely become wider and the entire automobile industry will be a virtuous cycle.
Here’s the interview transcript: Sina Auto: First of all, welcome to the Sina Auto live broadcast room at this year’s Guangzhou Auto Show. There is still quite a lot of discussion and attention online for the Ora brand, so we have prepared some questions that netizens are concerned about to ask Mr. Jiang. One is that at the beginning of this year’s Ora brand conference, Ora once again emphasized the need to go all in on the women’s track. Nearly a year has passed. In view of the current market situation, what impact has it had on the brand momentum and sales of the Ora brand? Jiang Chuan: It has still been a very positive and forward-looking impact this year. As I mentioned downstairs just now, 2023 is a particularly extraordinary year for all our competitors. We have been involved in a protracted and concentrated price war, and even today, sales have not completely recovered. For Ora, in this process, we have done a lot of thinking. We also realize that in an extremely strong homogenization, all products are moving towards a trend of convergence. For example, in terms of product design, many products now have similar appearances. You can see many car models on the road that look very similar. From smart cabins to ADAS autonomous driving capabilities, the differences in these capabilities are gradually diminishing due to the continuous accumulation of big data and the continuous improvement of computing power. So whether it’s from the appearance design of the product to the intelligence of the product, the smart cabin, and the ADAS autonomous driving capabilities, the trend of homogenization is becoming more and more apparent. Therefore, the homogenization of competition is becoming more and more serious in the market competition aspect, with more and more competitors, more and more players, and similar products coming closer and closer. For users, the choices are becoming broader, and for competitors, the competition is definitely becoming more intense. Therefore, in this market, we at Ora realize that we should adhere more to the brand positioning, because when Ora chose to be “a new energy vehicle that loves women more” as a brand positioning, it actually did a lot of market analysis and thinking. We found that in the dimension of category innovation, we can continue to try innovation and be the first to try new things. This is also because we are backed by the Great Wall Group. Over the years, Great Wall Group has actually made a lot of attempts in category innovation. For example, the successful tank model Tank 300 has created a new category of its own. Similarly, Great Wall pickup trucks and cannons have transformed from purely functional vehicles to luxurious and versatile pickups, becoming a popular choice for off-road enthusiasts. These are all innovations. So, with Great Wall as our backing, Ora has also made attempts in this area, leading to the brand positioning of “new energy cars that women love.” In an extremely saturated and homogeneous market environment, this is a unique presence. Of course, many may question why we are focusing on the female market and seemingly neglecting the male market. In reality, there are not many competitors in this area, and this differentiation has become our advantage in an extremely saturated and homogeneous market environment. Although some people may have doubts, they don’t fully understand the Ora brand in these aspects. For example, many car owners are sharing real stories and experiences when purchasing a car. For instance, at our recent car show, we only showcased the Ora Ballet Cat. Today, on media day, we have 5 Ballet Cats, and starting tomorrow, on public days, we will have 8. By only showcasing one model, we want to convey the message that we are “All in” on the female market and will continue to adhere to this strategy. Why choose the Ballet Cat? Because it best represents Ora’s female positioning. It is specifically designed as a female-exclusive vehicle, with its appearance, streamlined design, and intelligent cabin features tailored for women. For example, we have specific features such as the Warm Technology designed for women, including special modes like the Windbreaking Mode, Gentleman Mode, and Child Mode, all tailored for female driving scenarios. So the ballet cat is a car exclusively for women. By fully displaying the ballet cat, we are expressing our determination as a brand to go all in for women and to serve them wholeheartedly. However, from another perspective, for example, with the ballet cat, we have seen some interesting cases among our car buyers. For instance, there is a male owner who saw the ballet cat for the first time and was so intrigued that he drove after the car until he reached our store. He ended up purchasing the car as a gift for his wife, who was seriously ill. This is just one of many examples of male owners buying the ballet cat for their wives, girlfriends, or daughters as a gift. So when we focus on the women’s market, we are also preparing a way for men to express love to their significant others, whether it’s their wives, daughters, or mothers. Our true focus on the women’s market is to use the transmission of love to penetrate into families with our brand’s unique tone. On the other hand, focusing on the female track, just like the homogeneous competition we talked about, we can expand this market through differentiated brand positioning, because many users tend to choose products that are very similar, and homogenization is very serious. Their choices are so narrow, but we are opening up a new track, which is actually an expansion for this track. If we and our competitors all approach this market with this logic, I believe that China’s automotive industry will definitely continue to grow wider, the market will continue to expand, and now many car companies are going overseas. We are very competitive in China, but there is still a huge market overseas. If Chinese car companies can work together to expand this track, when we compete overseas, it will definitely be a more favorable strategic choice for Chinese car companies. Sina Auto: You mentioned a very good point. The Chinese market looks very competitive domestically, but in the international market, going global is a new direction for Chinese companies, and the trend of going global was quite high last year. So, what are Ora’s plans for its 2024 globalization strategy? Jiang Chuan: This needs to be discussed from two dimensions. Since we are talking about 2024, the first dimension is in the domestic market, and the second dimension is in the overseas market. As mentioned earlier, this year is very competitive domestically, and it is a very good opportunity for Ora to improve its internal strength, because this year we are facing dual pressures. On one hand, the pressure comes from the internal competition in the market environment, and on the other hand, it comes from our own product competition plan. This year is actually a small year for Ora’s products. We have iterations of existing products like the Good Cat, the Lightning Cat, and the Ballet Cat, but they are all small updates to existing products. So this year is a small year for our products, and we are also facing an extremely competitive market, where everyone is working hard to launch new cars. So, this process is a very beneficial year for our team, because during this process, we have seen great improvements in our internal marketing, brand, product, channel, and user leadership capabilities. Our overall team combat effectiveness has been greatly improved in all aspects of our business. When it comes to 2024, next year will be a big year for our products. We will have three different new cars, A0, A, and C class, making their debut. Speaking of the overseas layout, this year we have taken a more beneficial step for the brand’s expansion, such as Haomao. We have won many local awards in Europe, ASEAN, Central Asia, and South America. For example, in Europe, we achieved a five-star test score in the NCAP test. On the other hand, in London, the price of Haomao reached the equivalent of 250,000 RMB, already comparable to the level of first-line luxury cars. So, from various perspectives, the competitiveness of our products overseas is continuously improving. Returning to the ASEAN market, in 2022, we won the national most anticipated new car award in Malaysia. These are all the honors that Haomao has won overseas, including the five-star healthy cabin. For example, in some crash tests in South America, we also achieved excellent results. So, first of all, we have established a good reputation through the strength of our products. On the other hand, because our product design is very unique and beautiful, specially designed for women, its curves are different. At today’s auto show, we have also done a very good design on site. We organized a “fashion week” event, starting today, a 7-day ballet fashion week. What is a ballet fashion week? We are driving users to make light modifications to their cars. When it comes to modifications, many people might think of our sister brand, Great Wall Pao. Because many of our users are women, they have a strong demand for personalization. They don’t like to wear the same clothes, and they want to drive differently from others. So, after buying our car, for example, 30% of users of our ballet cat quickly found a modification factory to make light modifications. What is a light modification? It is to adjust the color of the car body through film, do some decals, or do some color designs. Today, we are kicking off our presence at the Ballet Fashion Week. On our Ora booth, we have brought many interesting modification ideas through official and user participation. We hope to encourage more users to join in this creative gameplay. We want to drive the culture of light modification and further engage with our users. Sina Auto: I also have this feeling that among all brands, Ora is the closest to the concept of fashion single product. You mentioned many awards overseas related to safety and health, and we also have a female safety structure called “Warm Technology.” What is the core competitiveness of this? Jiang Chuan: On April 15th of this year, we upgraded our brand from 1.0 to 2.0 and released four brand pillars, one of which is Warm Technology. The core of Warm Technology is defined based on our product strength. Our brand focuses on the female track, so the needs of women in terms of technology and product strength are very different from those of men. When it comes to Warm Technology, many people will think of high-tech. In fact, our definition of Warm Technology corresponds to high-tech in a way. High-tech often corresponds to male users, who like to pursue the ultimate in technology, such as intelligent cockpit, ADS automatic driving, and other technical aspects. But female drivers often need care and warmth. For example, our Riding the Wind and Breaking Waves mode is a typical example. In extreme weather, when heavy rain suddenly comes and the road quickly forms water, male users are very proficient in turning on hazard lights, windshield wipers, defrosting functions, and so on, including turning on the ESP system for skid prevention and deciding whether to turn on fog lights. They are very skilled in step-by-step operation. Many of our female users find it difficult to operate step by step when the tires slip, unlike men who can do it calmly and systematically. That’s why we developed the “Riding the Wind and Breaking the Waves” mode for women, which completes all actions with just one button. It’s very user-friendly for women and helps avoid panic in extreme situations. Our warm technology is designed to address the pain points of female users in car scenarios, with a focus on research and development to provide care and attention to women in car scenarios. This includes safety in collisions, with our warm technology defining a 1080-degree approach consisting of basic safety, intelligent safety, and health safety. Basic safety focuses on product rigidity, chassis stability, and structural durability in the event of a rollover, while intelligent safety includes features such as automatic emergency braking in extreme situations. Health safety involves creating a cabin space free of formaldehyde and pollution, with UV sterilization, PM2.5 purification, and air purification systems to provide a healthier driving environment. Through these three dimensions, our female users will receive comprehensive care when using our products. This is the direction of our warm technology. Sina Auto: The “Riding the Wind and Breaking the Waves” mode, although designed with female users in mind, actually addresses the needs of all users, including male drivers who may not be familiar with certain operations, especially new drivers. Care for women or care for everyone is a great highlight of the product Jiang Chuan: Yes, the “breaking the wind and waves” mode is specifically developed based on real user cases. We had a female user in Shanghai who was driving on a flyover when it suddenly started pouring rain. The flyover was enclosed, and the rain combined with the high speed of the cars caused her vehicle to skid. She panicked and didn’t dare to brake because she would lose control, but she also couldn’t slow down too much because there were cars behind her. She was in a very dangerous situation. Eventually, she managed to stop the car on the side of the road, but she was terrified. Her hands were covered in sweat. Based on this scenario, we thought about developing convenient features for female users. When this situation occurs, they can easily activate the function without panicking. They can also use voice commands, such as “Xiao Ou Xiao Ou, activate the ‘breaking the wind and waves’ mode.” Sina Auto: Another question, currently the new energy market is in turmoil, both in terms of technology and costs. How does the Ora brand maintain its profits and sales in this situation? Jiang Chuan: This year has been a very intense year for price wars. From a business perspective, price wars are always harmful. The logic of business management is that a company must have positive cash flow. If it continues to lose money and bleed, it won’t be able to sustain any price war. Although I believe it’s a good opportunity to improve internal strength, this kind of price war is definitely not sustainable. Ora’s thinking process led us to focus more on women, positioning ourselves as a new energy car brand that “loves women more.” In this environment, you can only create real value for your brand by striving for differentiation, and avoid getting caught up in a brutal price war. Business is always about providing value and services to users, and in return, users pay the corresponding costs. This is the logic of business, and companies can only achieve the rewards they deserve by following this process. So I think all friendly businesses are a logic, and we must choose a direction in our own dimension that can form our own differentiated competitive advantage, and then form a virtuous financial closed loop in this dimension. On the one hand, it provides differentiated value for users, and on the other hand, users provide you with the follow-up financial power for orderly operation. So the price war has stimulated us more, and also strengthened our determination to strive forward in the female car track. Differentiation is very important, and in terms of the entire track, for the entire Chinese automobile industry, if everyone insists on opening up new soil on the differentiated track, then this road will definitely become wider and wider, and the entire automobile industry will be a virtuous cycle. Sina Auto: Thank you President Jiang for accepting our interview today.