On July 25, at the Equation Leopard brand mid-year communication meeting, General Manager Xiong Tianbo reviewed the brand’s development. He discussed future brand growth, channel building, and product planning. He engaged in deep discussions with media, including Sina Auto, on topics of great interest to users.
On the first anniversary of the brand, Fangchengbao launched its brand renewal strategy. The strategy mentions entering the 2.0 phase, focusing on “technological equality” in the second year. The brand will expand and renew products and channels. It will also adjust its pricing based on product line expansion and market trends. Significant progress exists, but there is still room for improvement. On November 16, 2022, BYD Chairman Wang Chuanfu unveiled the new personalized brand Fangchengbao at the ceremony for the rollout of BYD’s 3 millionth new energy vehicle.
Since the brand launch on August 16, 2023, Fangchengbao has achieved many breakthroughs from “0” to “1.” It has built a unique systematic capability. After nearly a year of development, Fangchengbao has delivered impressive results. It has improved brand awareness and sales. The brand also experienced explosive growth in distribution channels. Xiong Tianbo reported that after a year of product and technology launches, Fangchengbao’s “professional personalization” positioning received positive feedback from customers. Consumers have accepted Fangchengbao’s personalized brand label. Regarding brand awareness, she stated, “In less than a year, Fangchengbao’s recognition and approval within the industry met our expectations. We have also made some inroads outside the industry. Fangchengbao has high brand loyalty, which positively boosts brand awareness.” However, Xiong Tianbo pointed out some shortcomings. She noted that recognition outside the industry needs improvement. She also acknowledged that Fangchengbao “starts with off-road but is not limited to it.” In the early brand shaping, the strong association with off-road has limited the brand’s breadth. Additionally, Fangchengbao’s product launch pace has been somewhat slow. The delay in launching the Leopard 8 aims to ensure a smoother connection for consumers’ vehicle delivery and experience.
Despite some minor shortcomings, the Fangcheng Leopard brand has made significant progress in sales and channels. Xiong Tianbo reported that Fangcheng Leopard has sold about 25,000 units. In the first half of 2024, sales reached 18,000 units, averaging around 3,000 units per month. Notably, the average transaction price of the Leopard 5 hovers around 330,000 yuan (45700$), placing its sales performance above average among similar products. In terms of channels, Fangcheng Leopard established 200 direct stores in nearly a year. This number meets initial expectations for coverage and scale. However, Xiong Tianbo also pointed out room for improvement in channel performance. Fangcheng Leopard is shifting towards “mass individuality.” The brand plans to expand its product system and pricing range. With the new branding strategy, Fangcheng Leopard aims for multi-category development. As the product line expands, the brand will target a broader market strategy, moving from niche individuality to mainstream value attributes. This approach will better meet diverse user needs for personalized vehicles. Fangcheng Leopard will continue its “2+X” model. The “X” product line will extend into mainstream consumer areas. As the product line grows, the brand’s pricing range will also widen. During the interview, Xiong Tianbo emphasized that despite three product lines running concurrently, Fangcheng Leopard’s brand positioning remains unchanged. Each product will feature a unique visual identity and exclusive technology empowered by BYD. Earlier this year, before the Beijing Auto Show, Fangcheng Leopard launched the global debut of the rugged flagship Leopard 8, the Leopard 3 concept car SUPER 3, and the concept sports car SUPER 9, along with the Leopard 5. These four models showcase Fangcheng Leopard’s innovative approach to vehicle design and user lifestyle. In the “2+X” model, “2” represents the off-road and sports car lines, including rugged SUVs like the Leopard 5 and Leopard 8, and a sedan line based on the sports car. Since launching the Leopard 5, it has gained high attention across major platforms. Xiong Tianbo noted that the purchase ratio for the Leopard 5 with the Yun Nian-P option has consistently remained above 50%, even exceeding 60%. Buyers primarily choose the Navigator version and the highest configuration of the Yun Nian version.
The Leopard 5, as the first product of the Equation Leopard brand, creates a new market with “electric off-road” technology. Its unique attribute of “pleasing oneself at home” earns it widespread user acclaim. Regarding the Leopard 8, Xiong Tianbo states it features DMO technology, cloud technology, and other advanced features. The driving experience will surprise users. Pricing will remain flexible based on market needs. Looking at the Equation Leopard “X,” the brand plans to enrich the X product line. It will expand to include rugged SUVs without a frame, catering to urban and lifestyle demands. In the non-off-road segment, boxy vehicles without a frame are popular. They offer space advantages and are expected to maintain market interest. Equation Leopard will enhance the driving experience for these models to achieve technological equity. During the interview, Xiong Tianbo discussed product rhythm. Starting in the next four quarters, Equation Leopard will launch new products each quarter, providing diverse options for consumers. BYD’s Tengshi and Equation Leopard recently announced dealer recruitment. They aim to expand their dealer network to gain market share. BYD is not the first new energy vehicle company to open channels. Brands like Leap Motor, Xpeng, Zeekr, and Avita have also recruited dealers. However, BYD’s position as an industry leader makes its decision significant. More new energy vehicle companies are abandoning pure direct sales models. They are shifting to a hybrid channel model of “direct sales + dealers.”
Xiong Tianbo shared some ideas about the initial brand channel development of Fangcheng Leopard. She noted that they considered opening dealer channels from the start. However, they ultimately chose direct sales due to several variable factors. First, the market environment in 2023 showed uncertainty among dealers. Many lacked confidence and had not engaged with new energy vehicles. They still harbored doubts about the future of new energy. Second, as a new brand, Fangcheng Leopard needed to invest time in establishing service standards and customer perceptions from the beginning. After a year of exploration, Fangcheng Leopard completed the construction of Brand 1.0 and is about to enter the 2.0 era. Given their situation, they opened external recruitment for dealers. Xiong Tianbo mentioned that about 60% of the top 100 dealer groups expressed interest in joining. When asked if opening dealer channels would create competition with existing direct sales channels, Xiong Tianbo affirmed that they would maintain both channels. They will provide the best service to customers through the same management model. After adjusting their model, Fangcheng Leopard will quickly expand its channel network. Users will enjoy more convenient services. Regardless of whether they choose direct sales or dealers, customers will receive consistent pricing, service standards, and after-sales support. Fangcheng Leopard aims to deliver a unified brand experience. In addition to improving operational channels, Fangcheng Leopard has also gained a significant user base. In a third-party ranking of new energy vehicle brands’ influence for the first half of 2024, Fangcheng Leopard ranked in the top five for net recommendation value.
Summary: As competition intensifies, the significance of Fangcheng Leopard for BYD changes. The development is about to enter a new stage. Therefore, BYD will inject more technology and products into Fangcheng Leopard. They will continuously improve the new vehicle lineup and structure. Accordingly, they will open dealer memberships to narrow the gap in store numbers between Fangcheng Leopard and other brands. Additionally, Fangcheng Leopard prepares for internationalization. Its products gain popularity in Central Asia and the Middle East. The launch of new vehicles in these regions enhances brand recognition and lays a foundation for rapid expansion into overseas markets. From the newly released brand renewal strategy, Fangcheng Leopard aims to broaden its product range and pricing to tap into a larger personalized market. This aligns with the brand’s philosophy of “starting with off-road, but not limited to off-road.”