JD Power Wang Daming: Changing China's Automobile Consumption Trends

On September 7, 2011, the 5th China Auto Parts Development Summit Forum was held in the Great Hall of the People.

The following is J. D. Wang Daming, director of consulting services, Power Asia Pacific, gave a speech:

I represent J today. D. Power will share with you some of our analysis and opinions on automotive consumption trends. First of all, we thank our colleagues, leaders and the organizing committee of the General Assembly for giving us this opportunity to share our work with you. The theme of today’s speech is the changing Chinese automobile consumption trend.

As we all know, automobile consumption is basically composed of four major components. The first is the market, and the second is the purchase of customers. After deciding to buy a car, there will be a retail experience and an experience with the product. Share these four parts to share with you what we think. What changes in China today and some of our analysis.

The changes in the market should be more familiar to everyone. Although the international financial crisis has been experienced since 2008, the Chinese auto market has been developing at a rapid rate. It is also due to various measures taken by the government, and our market demand is also there. The past two years have been continuous, high-speed development.

Where does my development come from? According to our analysis data, it is mainly from the second and third tier cities. As you can see from the chart, the growth rate of the first-tier cities is basically saturated. The main share comes from the second and third tier cities, and the share of other cities also shows a downward trend. From this chart, you can see that the main models or segments of growth have come from midsize cars and SUVs. It is gratifying that the market share of self-owned brands is continuing to grow and it has now exceeded 30%.

Let's take a look at the characteristics and changes in the purchase phase. First of all, we can see that the number of models available for consumers in China has greatly surpassed that of the United States. We can see that the blue graph represents the number of American models. From 2000 to 2010, only 43 models were available in 2000 in China. For consumers to choose, it will turn into nearly 380 models last year. The United States is basically flat. It has always been around 250, 260, and it has now reached 1.5 times that of the United States. As far as the customer purchase model is concerned, after the prompt, the average number of models the customer knows is 42.3. The number of models that the customer knows without prompting is nearly 11 and the models the customer knows are still full. When purchasing, the brand the customer considers. The number is 2.4, it can be said to be a comparison of three, this is also a tradition of China. The final course is to buy a car. In China, although there are many opportunities for choice, Chinese consumers can quickly decide what they want to buy.

The characteristics of buying habits can be seen in word of mouth is very important, the left chart can be seen, 62% of Chinese customers still follow the recommendation of friends or relatives, based on this to determine his purchase. In the United States, this proportion is only 27%. Another feature is that the proportion of Chinese consumers using the Internet is very high. Searching for information on the Internet before buying a car is certainly higher in the United States, reaching 79%, but This gap is quickly narrowing. The graph on the left shows that our cultural differences in China are still relatively large and are not the same as the purchase behavior in the United States.

Let's take a look at what changes have taken place in retail and what are the differences. Retail is mainly divided into two blocks, one is retail experience and the other is after-sales service experience. This chart shows the degree of retail satisfaction. It can be seen that the gap between China and the United States in the past decade has been rapidly shrinking. Especially in the past two years, the gap is rapidly narrowing. We expect that in the next few years, Within China, customer satisfaction in sales may exceed that of the United States.

Here I would like to share with you how we think about customer expectations and what factors or factors we use to satisfy customers when we develop our products. Basically, customer expectations can be divided into three categories. One is to meet the basic requirements of customers. The other is to make customers feel that your brand is different, there are differences with other manufacturers, there is a class of things you make Everyone is happy. In the implementation process of our products, we can also do the same classification according to the impact of factors on customer satisfaction and the execution rate of factors. Some elements are the basic requirements that we must meet. If they are not satisfied, customers will easily complain. . The other category is the middle category, which makes customers feel that your brand is different. After you make it, others feel very happy. To be competitive with their own products, we must first meet the minimum requirements. If this is not met, our products will not be competitive. If we want to establish our own brand image, we must focus more on the characteristics of differentiation and the elements that delight customers.

With an example, in terms of sales satisfaction, almost 95% of consumers in the United States have full fuel tanks when they pick up the car. This requirement has become a basic requirement and it is the minimum requirement. If in the United States, he will complain immediately if he does not fill his tank with oil. In China, when 75% of customers take a car, they are still less than 1/4 of the oil. If any distributor fills customers with oil, it is a feature that will surprise him.

Let's take a look at the satisfaction of after-sales service. This chart can clearly show with everyone that compared with the mature automobile market in the United States, the gap is in the after-sales service. The gap between China and the United States is still quite large, and this still needs More time to catch up with the advanced level. The example of after-sales service is to explain what kind of elements can make the difference. In order to save time, I will not elaborate on it.

Finally, we look at the product, our experience with the product. This is the new product quality survey we are familiar with. During the ten years, we can see that it is also compared with the United States. The United States was similar to China’s current level in 2000. When China was in 2000, There are 514 questions or complaints per 100 vehicles, but the improvement is still quite fast, and this gap has again narrowed this year. By 2010, our average is 168 complaints per 100 vehicles, the United States is currently 109, there are still some gaps, but this gap is rapidly shrinking.

This is also an example and an example of differentiation. I will not elaborate on the difference in product quality.

This chart shows the reliability of the quality survey, because this research was first launched in China in 2010. The data on this chart that represents China is only one point. There are 298 complaints per 100 vehicles that are related to reliability. Longer term. The United States has only 155, which shows that in this respect, in terms of reliability, China’s products in the long-term quality aspect are still quite different from the United States. This is where we need to work hard in the future.

To sum up, our Chinese automotive market is already the world leader in terms of total sales volume and available options. We are already the world’s largest consumer of automobiles and the largest number of models available to customers. However, we have considerable gaps in terms of customer satisfaction, retail, sales, after-sales service satisfaction, new car quality and vehicle reliability quality. Therefore, in China, we should be committed to improving customer experience and improving user satisfaction. We must devote more efforts in this area to ensure sustainable development and sustainable growth in the future.

In addition, I would also like to add that in fact, the vehicle is an organic combination of various systems. We do these industry surveys, although it is done for the OEM, but for all our parts, or system suppliers, there is also With very important meaning and practical significance, I hope all suppliers will also pay attention to this quality issue. Because your quality is not good, the car made by the main engine factory is certainly also a problem. If you understand the needs of the customer, understand the voice of the customer. , It can also help the OEM to improve their quality.

thank you all!