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For quantity or seek profit, KIA trap dilemma, whether the amount of profit equalization?

For quantity or seek profit, KIA trap dilemma, whether the amount of profit equalization? Original title: for quantity or seek profit KIA trap dilemma

Semi-annual profit fell 63.89 percent KIA trap dilemma for quantity or seek profit, KIA dilemma

Almost no difference between Kia and Hyundai visibility

According to the latest sales figures show that sales of KIA in August achieve 45 091 results, an increase of 62%. Although purely from the data, in the overall automobile market in the context of slow growth, KIA gratifying increase in performance, but in fact KIA have not fared well.

According to one of its parent company of Jiangsu Yueda Investment Co., Ltd. (hereinafter referred to as "Yueda Investment") released semi-annual report, KIA sales fell 5.82 percent in the first half, net profit was down compared to last year 63.89 %. According to sources, the face of sustained concussion Chinese market sales, Kia in China began to build regional Division, ready to enter the market first grab sales.

On a global scale, because of the high value of the Yen and decent performance, much beyond the modern Kia brand momentum, the launch of the performance of European and American products have been recognized and accepted by the mainstream market. But in the Chinese marketplace, Kia and modern brand differentiation is still not clear. After the modern brand in a growth bottleneck, sales of Kia Motors as being caught in a sustained downturn.

Some analysts commented that Kia and modern brand positioning in the Chinese market, although different, but in fact very close to the brand power in the eyes of consumers, the two brands are higher color value and the cost of the route, its brand strength and brand image to people find it difficult to distinguish the impression that this is the main reason for Kia has not lukewarm not fire.

Sales falling profits recovery

Due to reasons known Korean brand in the Chinese market, the recent pressure than the larger, and as one of the representative Korean series brand KIA, the latest sales data show that, following a substantial increase of 36.6% in July, this year 8 month sales amounted to 45,091, representing a substantial increase of 62%.

Purely from the perspective of an increase to judge, KIA does not seem to suffer the same as the year the Japanese brand of "political issues" impact, and the performance of KIA recovery in recent months, it is built on it since 2015 state of downturn.

According to official data, this year January - August DYK from total sales of 368,686 units, completed only 54.2% of the annual sales target of 680,000. Theoretically, KIA in order to reach the goal of 680,000, must be achieved on sales in the remaining four months to complete 92 154, and this current KIA, it is almost impossible task.

August 20, holds a 25% stake in Dongfeng Yueda Kia's Jiangsu Yueda Investment Co., Ltd. released a semi-annual report, which revealed that KIA sales fell 5.82 percent in the first half, net profit fell more serious than last year It fell 63.89 percent over the same period. If there is the possibility of recovery through marketing means to achieve sales continued to decline, the continued decline in net profit is the KIA must be vigilant and face up to the fundamental problem.

Because sales have fallen sharply since last year, has led to some losses occur due to the new dealer network back phenomenon. Sales performance this year, although slightly, but will inevitably lead to a significant decline in net profit of more dealers face pressure to survive.

KIA aspect of the Weekly Times correspondent said that this year's sales growth pressure, for the Chinese market's performance this year, KIA in the second half there will be the new and the new K2 KX3 market, aimed firmly traditional strengths of the small car market and attract young consumers.

Industry analysts pointed out that the KIA since the beginning of May this year, sales of gradual recovery, which is starting to focus on its internal reorganization last year, executives stationed in a large area to enter the market first grasping marketing results and performance, but into the region concentrating on sales the result is further compressed the dealer's profit margin.

Rapid growth in the aftermath of

KIA this dark horse in the last eight years of rapid development stage, to achieve as much as its brother brand of rapid growth, its annual sales volume was rushed domestic car sales before eight. However, in 2015, on the occasion, various problems have been KIA is exposed, its sales performance plummeted.

KIA brief review of the 2015 performance, the media summarized the past three years KIA blind expansion of channels, but the lack of effective management mechanism, leading to a poor decision-making and efficiency. There KIA auto executives told Die Zeit reporter said that as sales growth had a good, slow response to market OEMs, Region basically no decision-making power, what problems have to wait up to reflect response headquarters, plus the headquarters of the tripartite joint venture, joint decision-making process compared to the two parties is more complex and lengthy.

2015 KIA sales of 616,000, which is still at its headquarters in decentralization, will result in a number of senior marketing and sales part of the total work area posted supervise sales, the final completion of the annual sales barely cut through after 60 ten thousand (originally 750,000) target.

Until mid-June this year, Dongfeng Yueda Kia was formally set up a regional division, the four copies of the Minister in charge of regional marketing headquarters moved to the work of the four corners region. It is worth mentioning that, as the same group, Brothers brand of modern Beijing as early as 2007 KIA has just started at the beginning, to complete the adjustment of three divisions of work.

Beijing Hyundai's rapid growth has led the brand to increase, bottlenecks in the KIA who reflected more directly because of errors and slow decision-making framework, KIA judge the market far less modern brand, executives in the region means to urge sales growth is also relatively simple and straightforward, KIA auto sales in order to complete the task, get the rebate, can only choose the price war, sold at a loss, which makes it into a net profit of continuing vicious cycle.

The dealer network back is inevitable

Then in Beijing, Guangzhou and other large dealer groups to opt out of Dongfeng Yueda Kia's sales network is also another manifestation KIA slow response to the market.

Some analysts commented that the habit of sustained high growth of Dongfeng Yueda Kia, in the face of growth bottleneck "styled" the establishment of the target area division is not only to supervise sales of this one, only the dealer sales regardless of the attitude of life and death only Forced continuous product a substantial discount, the end result is to enhance the brand power of the greatest obstacles.

Sales slump reasons are diverse, KIA also trying to take steps to change this situation. In the first half of this year, Dongfeng Yueda Kia has introduced two new KX5 and the new K3, the second half there will be KX3, the new K2 and other new products will be available. According to its product planning 2016 - 2018 will be launched 8 new models. New energy vehicles will be the focus of development will launch K5 HEV, K5 PHEV and BDc PHEV three products.

The layout of products, KIA has clear ideas and technical reserves, but for the market to reflect the problems and solutions, KIA does not seem to see as its brother brand thoroughly.

Dongfeng Yueda Kia executives have told the media that: "Our OEMs with a month in between dealers were selling the game as the goal, royalties, subsidies, waste a lot of resources and effort." Contact Nissan several years ago to achieve good communication channels and network of distributors, and to develop a "zero inventory" strategy, the KIA in the auto business policy does not seem to design and strategic thinking, still in the "piecemeal, feet hurt the disease" · state.

Industry analysts have pointed out that evaluation, KIA dealer business policies in dealing with old rival Dongfeng Nissan still a large gap compared to the production, which is the main reason for its dealer network back a lot, need to be addressed if the Beijing Modern how to enhance the brand power is a problem, then we must first solve KIA is empathy dealer difficulties.
Opinion, quality, quality, visibility, sales also important Dongfeng Kia.        14


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