The largest source of income for the Volvo Group in the Chinese market is construction machinery, which accounts for 70%, followed by passenger car products.
"Our long-term goal is to become China's Volvo, not Volvo (China)." On July 11th, Jiang Duru, vice president of Volvo (China) Investment Co., Ltd., said at the second stop of the Volvo Group brand road show in Chengdu.
After a major round of acquisitions in Asia since 2007, the world’s major truck supplier, Sweden’s Volvo Group, seems to be getting better with two years of “digestionâ€. In Jiang Xi’s words, Asia is no longer for the Volvo Group. It is an overseas market, but it is a true local market.
“In the future, we will see that more and more non-Volvo branded products are being sold in the Chinese market.†Jiang Xi stated that Asia has become the world’s second-largest market in addition to the Volvo Group outside Europe. The status of the Chinese market does not speak for itself. Yu, many of the new revenue brands will meet this huge market demand in the future.
Chinese force
According to a set of data provided by Jiang Yu, in 2008 Volvo Group's global sales, truck products accounted for 67% of the share, construction machinery accounted for 18%, followed by passenger cars, aerospace components and other services. This also seems to be in line with Volvo Group's position as the world's second largest and Europe's largest truck manufacturer.
However, in China, the proportion of these major businesses is different. The largest source of income for the Volvo Group in the Chinese market is construction machinery, which accounts for 70% of the total, and the second largest is passenger car products. However, the good news is that in 2008 sales revenue and staff from Asia accounted for 19% of the Volvo Group, ranking second in the world. This is the first time that the Volvo Group has occupied such an important position in the Asian market for over 80 years.
Therefore, starting from June 2009, Volvo Group officially launched the China Brand Experience Roadshow. “This is also the first time that we have faced the public all-brand roadshow. Previously, small excavator roadshows in 2004 were aimed at industry users. ."
It is conceivable to laugh at the Volvo Group, which is willing to share the brand with Volvo Cars, and also hopes that more Chinese people will understand this "Volvo" that does not create luxury cars. The five-month roadshow will span Hubei, Sichuan, Guizhou, and Yunnan provinces and will also carry out the "Volvo Blue Love" Hope Primary School Teacher Training Program.
"In the past few years in the Chinese market, we can clearly feel that high-end customers and high-end demands are constantly increasing, which further strengthens our confidence." Volvo, which has always been committed to high-end products, has been trapped in the Chinese market due to price issues, but The change seems to be visible now.
An obvious example is that in early July, Volvo Buses and its China-based joint venture company, Sunwin Buses, signed an agreement with Shanghai Bus Group, which will purchase 1,500 Volvo buses for the Expo, including new energy sources such as hybrid power and super capacitors. bus.
“In addition, the recent major overhaul project on Chang’an Avenue also uses Volvo's construction machinery. This kind of project with strict requirements on quality and time limit, Volvo is almost the only choiceâ€, Jiang Wei is obviously confident in the future of Volvo China.
The power of the brand
As a global giant of construction machinery and trucks, Volvo Group currently owns not only well-known heavy truck brands such as Volvo, Renault, and Mike, but also consolidated new companies such as Nissan Diesel, Shandong Lingong and Ingersoll Rand in Asia after 2007.
This also became Jiang Xi’s greatest expression of “Asia has become a home marketâ€. However, she also admitted that the series of acquisitions since 2007 have been somewhat breathless. Compared with the signing of the agreement, this year’s internal Integration will test the capabilities of the company.
Fortunately, under the Volvo brand, both the expansion of product range and the goal of expanding market share have been achieved with the entry of more sub-brands.
Taking Shandong Lingong as an example, after the capital increase again in October 2007, Shandong Lingong launched the “New Brand Strategy†in 2009. Its dual-brand strategy with Volvo in the group has been strengthened, and it is expected to leverage its strength to enter overseas markets. .
Just as Chiang Kai-shek has always emphasized Volvo's brand philosophy of “quality, safety, and environmental protectionâ€, through infusion of technology, management, and capital, Volvo has begun to form a joint force on the basis of digesting new sub-brands, and will eventually reach Volvo’s own definition.†The concept of a full-scale commercial transport solution provider, which clearly goes beyond the traditional commercial vehicle manufacturers, is a clear indication of the future direction of the Volvo Group.
"Actually, domestic companies are doing similar things. The building of core technologies such as Engine capacity requires greater production scale support. Therefore, the integration of similar trucks, construction machinery and other products can also be understood." Jiang Yan mentioned recently established Shandong Heavy Industry Group, this integration has clearly become a trend.
Although Chiang Kai-shek acknowledged that the heavy-duty truck business has not yet opened up in the Chinese market, Volvo, which already has a place in the Chinese construction machinery market in the face of the rapid growth of the Chinese market and the need for more high-end applications, will probably replicate this in more fields. Success.
Tiger Industrial Group Co., Ltd. , http://www.tigergeneratores.com