Is sales important or profitable? Different companies have different answers at different stages.
For future Dongfeng shares, is it continuing to impact the sales target to exceed Futian, Jianghuai and Jiangling for the 13th Five-Year Vision; or is the profit index as the top priority to ensure that their profit levels can be continuously improved?
At the last business meeting of Dongfeng's "Twelfth Five-Year Plan", this question has a clear answer.
The "Twelfth Five-Year Plan" won the fruit in the last year. "Dongfeng's headquarters business in 2015 achieved its first profit since 2008."
At the 2016 business conference on December 18, Dongfeng Motor Co., Ltd. announced that its headquarters business (excluding its Dongfeng Cummins and Zhengzhou Nissan) was profitable that year. This, to a large extent, benefits from the Dongfeng light truck business achieving its first turnaround in recent years.
Dongfeng Kaipute E280 light truck
Looking back at the “12th Five-Year Plan†that is about to pass, it may be a mixed five-year period for Dongfeng Shares. In the early and middle period of the Twelfth Five-Year Plan period, the light truck business of Dongfeng Co., Ltd. went straight down from the peak sales of 120,000 vehicles. By 2014, there were only 70,000 vehicles. The light truck manufacturing cost remained high, the light truck business suffered losses, and the minibus business took off. Losses, high inventory levels, poor dealer competitiveness, and other difficulties, so that the entire Dongfeng shares difficult.
The new general manager Yang Qing from Dongfeng Commercial Vehicle Company "airborne" has started a medium-term adjustment plan since 2012 and has undergone a major transformation within Dongfeng. After three years of adjustment, Dongfeng Co., Ltd. announced at the business conference at the end of 2014 that it was out of the adjustment period. The light truck product lines were streamlined from the original Freda, Dolika and Capt. to Dolika and Capt. Marketing, merchandise, and manufacturing capabilities have also been significantly improved. (For medium-term adjustments, see the author's article "How to respond to light truck light business card changes in Dongfeng light truck" (above) and "How light truck light business card changes in Dongfeng light truck" (below)).
After the first year after the mid-term adjustment, Dongfeng shares finally won the fruit of the long-lost victory - the headquarters business (excluding its Dongfeng Cummins, Zhengzhou Nissan) made its first profit since 2008; Dongfeng light truck business has achieved in recent years Turning losses into profit for the first time.
According to Gao Guangyan, assistant to the general manager of Dongfeng, the domestic light truck market remained negative in 2015, affected by adverse factors such as the slowdown of macroeconomic growth, low freight rates, and the fourth national upgrade. It is expected to decline from 1.66 million vehicles last year to 1.49 million vehicles, a decrease of about 10%. Although Dongfeng Light Trucks also declined, the National IV Upgrade was successfully completed throughout the year, focusing on the preliminary results of the mid-to-high-end strategy, and the light truck sales structure has been greatly optimized.
“In 2015, our operating quality has further improved. The unit price of light trucks has increased by 25% year-on-year, and our net sales of light trucks have increased by 9.2% year-on-year to 4.006 billion yuan; in terms of sales structure, our mid-range products accounted for 57% of our sales in 2015. Increased to 76%, low-end products from 28% to 9%. It is understood that in 2015 Dongfeng pure light truck sales fell by 10%, lower than the average decline in the industry (excluding pickups, construction vehicles, exports, etc. The pure light truck market declined by about 14%. The market share increased by 0.5% compared with the same period of last year.
Dongfeng Capt. N280
In the last year of the Twelfth Five-Year Plan, what will be the choice of Dongfeng Shares in the face of the upcoming Thirteenth Five-Year Plan and the “New Normal†of the industry that has already arrived?
Thirteenth Five-Year "Most Profitable Light Truck Company"
"During the 13th Five-Year Plan period, Dongfeng shares must be the most profitable light truck company in the industry." This is the strategic vision proposed by Yang Qing, general manager of Dongfeng Shares, at this business meeting.
The reporter learned that through adjustments and explorations in the past few years, Dongfeng has gradually formed a clear idea for development. Unlike the “Twelfth Five-Year Planâ€, which focuses on the increase in sales volume during the beginning of the “Twelfth Five-Year Planâ€, during the 13th Five-Year Plan period, Dongfeng Electric was the most profitable light truck company in the industry.
In fact, according to the relevant person in charge of Dongfeng Shares, after a mid-term adjustment in 2012-2014, Dongfeng Light Trucks' turnover rate in 2015 has surpassed that of most of its peers, and it has taken a leading position in the industry.
However, the Dongfeng Light Truck at this time still faces a series of problems. For example, the market popularity and sales volume of Dongfeng Capt.’s mid- to high-end products are still not high compared to those of Shuai Ling, Ouma, Ao Ling’s TX/CTX and other competing products. The brand strength needs to be strengthened; the individual combat capabilities of the distribution network are relatively insufficient. The network layout also needs further optimization. The inaccurate control of the marketing rhythm, as well as the in-depth management of in-sales and retail sales, is also plagued by Dongfeng Light Trucks and its distribution channels.
“In the depressed market environment, the pursuit of healthy corporate development and fine management is the magic weapon to win. Manufacturers and distributors all want to eliminate all waste, but unfortunately, waste occurs inadvertently, misjudging the seasonal index. Slow correction of errors, and the impulsiveness of customer orders, made us pay a high price; ultra-long-term inventory plagued us for one year, 25% of funds were occupied for a long time, and seriously affected the profits of manufacturers and distributors. Sales volume. If manufacturers and distributors can fully communicate and strictly follow Invoicing management, these losses can be avoided.†Yang Qing said, “Although the market is sluggish, if we can keep up with the country’s adjustment direction and rhythm, fine We still have a lot to do in managing and eliminating waste. In the cold winter, we should unite and help each other and keep warm.â€
It is understood that in order to seize the commanding height during the 13th Five-Year Plan period and create a higher yield for the company, Dongfeng will fully deploy the five markets in 2016. "Till the first half of next year, Dongfeng Capt. C Series, Dolika Series and Dongfeng Construction Vehicles will all launch the National Five. In the third quarter, the Capt. N Series and E Series and the Zhengzhou Nissan Capstone will complete the fifth. Product development." Gao Guangyan revealed. This means that by the fourth quarter of next year, all Dongfeng light trucks will have five models, which will prepare for the implementation of the five standards for diesel vehicles nationwide in early 2017.
During the "Thirteenth Five-Year Plan" period, is the sales volume important or is it profitable?
The information uploaded from the Dongfeng Shares 2016 Business Conference clearly shows that the shift from "quantity" to "quality" will be the main theme and vision for the future of Dongfeng Light Trucks. This great transformation of the corporate philosophy and the transformation of the top-level design may bring a completely different vision and world for the development of Dongfeng Light Trucks during the 13th Five-Year Plan period.
Wuxi Feiyiya Environmental Protection Technology Co., Ltd. , https://www.fefinegrille.com