{"id":1349,"date":"2023-01-05T06:30:11","date_gmt":"2023-01-05T06:30:11","guid":{"rendered":"http:\/\/wanginnovation.com\/?post_type=portfolio&p=1349"},"modified":"2023-03-14T02:39:59","modified_gmt":"2023-03-14T02:39:59","slug":"%e9%95%bf%e5%9f%8e%e6%b1%bd%e8%bd%a6","status":"publish","type":"portfolio","link":"https:\/\/wanginnovation.com\/en\/portfolio\/%e9%95%bf%e5%9f%8e%e6%b1%bd%e8%bd%a6\/","title":{"rendered":"Great Wall Motors"},"content":{"rendered":"
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One<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Seize the trend<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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Great Wall Motors<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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taking the throne of Chinese SUV by pioneering and leading \nthe trend<\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    \u201cGood decision makers know that decision making has its own process and its own \nclearly defined elements and steps. Every decision is risky: it is a commitment of \npresent resources to an uncertain and unknown future. Making good decisions is a \ncrucial skill at every level.\u201d<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\u2e3aPeter Drucker<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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The biggest challenge that company faces is how to predict the future and seize the \ntrend. The motto of Cheung Kong Graduate School of Business, founded by Sir Ka-shing Li, is \u201cseize the trend, understand the principle, and improve and practice with \nbest methodology\u201d, of which \u201cseize the trend\u201d is the first and foremost.<\/div><\/p>\n

       

Masayoshi Son of Softbank Group has a theory of time machine. He believes that the \nUnited States, Japan, China and India have different phases in terms of IT industry \ndevelopment. He thinks that we should do business in developed countries such as the \nUnited States. When those markets mature, we should do the same business in Japan, \nfollowed by China and India. It feels like sitting in a time machine.<\/div><\/p>\n

       

Applying the time machine theory \u2013 learning from the automobile industry development \nin more advanced markets \u2013 we have successfully helped Great Wall Motors in seizing \nthe trend of \u201cSUV \u2013 Compact SUV \u2013 Mid-size and full-size SUV\u201d over the past two \ndecades. Several brands, including Saifu, Haval and Tank etc., have been launched \nand reached over 10 billion yuan sales, which leads Great Wall Motors join the 100 \nbillion yuan club.<\/div><\/p>\n

       

Great Wall Motors started its business from pickup truck in 1990s. It led the category \nas No.1 in unit sales for many years. Unfortunately, in 2000, Beijing, Shanghai and \nmany other tier one cities began to restrict the usage of pickup trucks. This policy \nspread to the whole nation swiftly. Consequently, Great Wall Motors realized that its \nfuture would be massively and negatively impacted.<\/div><\/p>\n

       

In 2002, we advised Great Wall Motors to launch the brand Saifu SUV selling at 80,000 \nyuan with the communications of \u201ca pickup truck with a roof\u201d and \u201ca pickup truck \nallowed to travel in cities\u201d. Back then, the average retail price of SUV in China was \nabove 200,000 yuan, while there was a white space under 100,000 yuan. In its first \nyear, Saifu SUV was sold over 30,000 units. By the end of 2003, Great Wall Motors was \nlisted in Hong Kong Stock Exchange, the first civilian-run automobile manufacturer \nfrom mainland China.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.1 Great Wall Motors Launching China\u2019s First Economy SUV \u2013 Saifu SUV<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In 2008, Great Wall Motors\u2019 sedan business performed really poorly, which was funded \nby 10 billion yuan. The monthly total number of units sold by four brands, Jinglin, \nXuanli, Lingao and Kuxiong, was less than 1000. In 2008, SUV category only \ncontributed less than 5% of the total automobile industry in China, but it had significant \ngrowth. Based on the fact that China has vast size in geography and the insight that \nChinese customers are keen to save face and prefer bigger size car, we affirmed that \nautomobile industry in China would be in a transition from sedan to SUV, similar with \nthe market in the United States. Considering there were still transportation restrictions \nin pickup truck, we anticipated that the size of SUV market in China might be the same \nor even exceed that of the United States.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.2 The Development of SUV in the United States<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Jeep created SUV category in 1941. The off-road performance was the most important \nattribute for SUV category at its early stage. In 1989, Toyota pioneered in launching a \nSUV product called RAV4 based on sedan production platform. In the following 30 \nyears, compact SUV gradually became the mainstream segment of SUV category.<\/div>\u00a0<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.3 In 1989 Toyota Introduced its Compact SUV in the United States \u2013 \nToyota RAV4<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Based on above insights to seize the trend, we convinced Great Wall Motors in pivoting \nthe direction of research and development from sedan to SUV with the aim of \nlaunching innovative SUV products, especially in compact SUV segment, as soon as \npossible.<\/div><\/p>

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In 2009, Great Wall Motors implemented the strategy without any hesitations. They \ncancelled the investment plans in sedans and transferred all resources into SUV with \nthe focus on compact SUV. Between 2009 and 2010, Great Wall Motors introduced its \ncompact SUV range Haval M1 and M2, basing on its sedan production platform. In \n2010, Great Wall Motors sold 137,000 units of SUV with an annual growth rate 135%. \nThe company recorded revenue of 22.1 billion yuan with an annual growth 78.9%.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.4 Haval M1 launched in 2009<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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Illustration 1.5 Haval M2 launched in 2010<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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While Great Wall Motors was improving M1 and M2, it also focused on developing an \nauthentic compact SUV \u2013 the Haval H6. Launched in 2011, H6 broadened the horizon \nof compact SUV in China. H6 model won the No.1 in sales unit for consecutive 10 \nyears, and has sold 5 million units and over 500 billion yuan since its debut, becoming \nthe legendary No.1 national vehicle produced by local manufacturer.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.6 Haval H6 launched in 2011<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The mid-size and full-size SUV in the United States regained the growth from 2010 to \n2020 after the decline between 2000-2010.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.7 The evolution of mid-size and full-size SUV in the United States<\/p>

Source: Automobile Industry Analysis Report in the United States<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In 2020, Great Wall Motors seized the trend of rising mid-size and full-size SUV in \nChina, introduced the brand of Tank with an average selling price over 200,000 yuan.Within two years, Tank has achieved 200,000 units in sales and is leading the premium \nSUV segment in China.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.8 Tank launched in December 2020<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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From 2002 to 2022, Great Wall Motors succeeded in seizing the trend of SUV category \nevolution in China. The company revenue grew from around one billion to 136.4 billion \nyuan, undoubtedly becoming the king of SUV in China.<\/div><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Illustration 1.9 Category Evolution of Automobile Industry in China<\/p>

Source: China Association of Automobile Manufacturers<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Illustration 1.10 The Revenue Growth of Great Wall Motors<\/p>

Source: Annual Reports of Great Wall Motors<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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INNOVATION CASES<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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