*This article is reproduced from the official account of autocarweekly
Author: Karakush
“Let me make a conclusion first: Starting from June 15th, we will stop accepting intention deposits.”
Two full months have passed since the debut of the ZEEKR 001, and CEO An Conghui made this statement at a communication meeting two days ago, as if saying, “Hey, they gave us too much.”
A bit of Versailles.
The reason is even more Versailles. —— All deliverable orders for ZEEKR 001 in 2021 have been sold out. From now on, friends who placed orders will definitely receive delivery in 2022; even for big orders placed before June 15th, a small number of them may have to wait until January 2022 for delivery.
Due to the overwhelming number of big orders, small orders have been cancelled directly. Some friends may think that a deposit of 2,000 yuan is both refundable and not a basis for delivery priority, and therefore does not have any practical constraint for both car owners and manufacturers. If it stops, it stops—there is nothing to boast about.
But that is probably not understanding the industry very well. Usually, in the industry, the more orders the better, regardless of size. Firstly, it is easy to tell a story, and the order volume is always the most self-proving indicator, which is more useful than bragging; secondly, the deposit is also not to be underestimated cash flow, which can directly increase the safety of the balance sheet.
Many times, you might think that it is meaningless, but it is just because you don’t understand where the pain is. Nothing can indicate better than not accepting money that Jidu Auto is not only successful but also afraid of selling too much.
The number of orders far exceeds expectations, which means that the operational pressure may exceed the planned preparation. For example, their service team currently has only three digits, and the goal is to provide exclusive services to each user. The original plan was for one person to serve 5-20 users. Now, the ratio is greatly imbalanced. While quickly improving and perfecting the team, it is necessary to temporarily gather resources and concentrate on finely operating the first batch of seed users.
The expected number is actually very reasonable, at about 7,000-8,000 vehicles. The absolute value seems slightly humble at first glance, but the plan is to start delivery in October, which means that the delivery window for this year is only one quarter.
Ramping up production takes time, and Jidu Auto will not sacrifice quality just to increase output. Mature automakers all understand the dialectical relationship between trade-offs, which reflects the value sequence of a company. Jidu Auto’s own requirements are to become a “quality brand in the field of intelligent electric vehicles”.
At the same time, supply chain also limits the imagination. All new cars this year will encounter a shortage of chips, and the pressure on ZEEKR 001 may be even greater, as its intelligence level makes chip consumption high, and it also features the first-time use of the Mobileye EyeQ5H high computing power autonomous driving chip with a 7nm process in the industry, which makes it even more difficult.
# Anconghui’s Candid Reflections on the Current State of the Automotive Industry
Anconghui is currently heavily focused on production to ensure supply, particularly when it comes to chip communication. From the expected reserve amount reflected in numbers, Zeekr has already taken a big step as they face difficult times, to ensure advanced components are delivered on time and at a fair price, even with a small amount of room for maneuvering. This shows their control over the supply chain.
In the future, the Zeekr team will be working tirelessly to ensure timely delivery of the first batch. They do not want the delivery period to exceed six months as it would be too much of a pre-order, which is not in keeping with their understanding of spot trading; and it would also increase the risk of variables. For example, until next year, the new national subsidy policy will become an uncertain factor, which may affect WE models valued at less than 300,000 yuan.
There is also this consideration of meeting the delivery date by year-end.
However, the vast majority of users are not involved in this. During the communication meeting, Zeekr announced the latest big data on preorders, indicating that the average order amount was 335,000 yuan, surpassing the high-end red line of 300,000 yuan, turning cooked rice into mature rice and becoming a high-end brand in practice. Among them, the top-of-the-line YOU version with a starting price of 360,000 yuan accounts for 40% of sales, proving to be the most popular model – originally expected to only account for 10%.
What is even more surprising is that all of today’s big orders have been placed blindly, without test drives or experiences. Part of the audience had a chance to see the static display cars during the official exhibit or model launch events, but these were not driven, and most people just saw pictures or videos of the cars. This completely breaks the previous habits of bulk consumer spending, where even someone spending 30,000 yuan on a car would generally try it out first before buying. However, the ZEEKR 001, priced at over 300,000 yuan, is purchased just by preorders.
Anconghui explained that the Zeekr team has also discussed the reasons behind the blind ordering trend. It may be mainly due to two factors:
First, it is the consumers’ trust in Zeekr.
Zeekr did not appear out of nowhere. It is supported by Geely Holding Group, which entered the automotive industry in 1997 and has accumulated industrial resources and advantages. The Group’s incubation ability has also gained market recognition through the success of the Lynk & Co brand. Zeekr itself is also not a hasty decision by Geely. In the wave of traditional car transformation to intelligent electric cars, simple electrification technology is integrated. Seven years ago, when the Lynk & Co brand was basically clear, Geely was already considering what the next step should be, and began preparing for the Zeekr project five years ago, although it was not yet called “Zeekr” at that time. It became clear that related units began to take shape gradually.Starting from the development of the SEAHAWK architecture, a series of layout actions were undertaken, including the establishment of Yikatong as the vehicle computing platform and a heavy investment to set up the Hangzhou Bay Electric Vehicle Research Institute in the same year. Three years ago, the JIKEYI smart factory was built, and in the weak field of electrochemistry with no resources, active collaboration was established with Ningde City to form a joint venture power battery company. Two years ago, Xinqing Technology was established to enter the field of automotive regulatory chips.
All of these gradually formed the foundation of trust.
Secondly, consumers are becoming more and more knowledgeable about cars, understanding what makes a good car and what is great about JIKEYI.
For example, a top-of-the-line Jidong user is very representative, and he said that what attracted him most was that the ZEEKR 001 has an 800 V electric architecture – such an emotionless cold knowledge point.
This is the high-voltage fast charging plan first introduced by Porsche Taycan in the industry, which, in conjunction with high-power charging piles, can achieve 100km of driving range after 5 minutes of charging. It also has strong advantages in terms of driving performance. At present, more and more manufacturers are accelerating their layout, but the number of products available on the market is still very limited. Taycan’s price is out of reach. Therefore, when JIKEYI, priced at 380,000 RMB, came with an 800 V electrical architecture, it immediately caught his attention.
Many blind users can find similar highlights on JIKEYI, it has a lot of high-end configurations that are beyond imagination, but the pricing is far from expensive – they’re downright cheap. For example, it has a 100 kWh battery, high-performance dual motors, frameless doors, 8 million pixel high-definition cameras, and will launch urban automatic driving in 2022.
In addition to its long list of strengths, it also has almost no weaknesses, making it a traditionally sophisticated car. This is very important – from unscientific personal observations, ZEEKR 001 users are not the most radical fans of electric cars nor the stubborn fans of fuel cars, but rather people who are bouncing around in the middle with complicated needs and low tolerance.
On top of its solid product power, it also has a personalized and sporty convertible style, perfectly embodying the “Not making boring electric cars” philosophy. Especially in the 200,000 to 300,000 RMB range, which is considered the traditional fuel car market, there are not many options that have a combination of practicality, value, and some characteristics. This gives ZEEKR 001 a distinctive advantage.
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此外，还有一些让人虎躯一震的 「特别」 选装。比如非常强调质感的雅马哈环绕立体高级音响，同级唯一的智能电控高性能空气悬挂，以及智能感应自动门、智能按摩座椅等等。这些是实打实的卖点，额外付费，据统计超过82%的用户都进行了选配，平均选配金额达到1.9万元。其中80%的人选配了音响，61%选配了空气悬挂，44%选配了自动门，57%选配了按摩椅。
从产品逻辑来讲，话其实得反过来说。与其说是用户看懂极氪，不如说极氪才是懂王，每一个点都精准地锤在了用户痛点上。
极氪在做产品研发时，往往会自我要求，一是要以用户视角，二是要以用户场景，去观察表面需求背后的用意。但是他们也经常反思还是不彻底，在面对用户广谱时，会发现之前想的简单了。发布至今两个月内，极氪举办了6场用户见面会，每一场都会收到修改意见。
他们会针对其中的重要意见，进行快速迭代，所以今天的极氪和两个月前的极氪会有很多不一样，就像两个月前的极氪和最初发布的概念车也有很多不一样。
比如此次沟通会上，极氪又推出了三个新配置：钢琴漆黑色运动组件、副驾座椅通风、以及EC光感天幕，将在小程序上开放选装。这里头就有源自用户的反馈——很多用户，尤其是南方用户，强烈抗议车上没有座椅通风的问题，极氪研究了一下，发现在交付前还能改，就立刻进行修改。
这种让用户参与、用户共创的模式，是极氪的别致基因。在沟通会上，「共创」是平均能在每句话里至少出现两遍的高频词。这不只是个提法，极氪通过手段和机制将其作为产品迭代的固定流程，他们建立了一套echo的数字化工具，能快速实现对共创需求的响应。
当然不免也会碰到「翻车」的情况。比如之前就有朋友吐槽方向盘不好看，极氪就作了三个方案在网上进行三选一调研，结果分化严重，甚至有朋友蹦出来说不如原版，确实是难以照顾到所有人的需求。
但是不妨碍一个宗旨，所有的目标和结果，都要是用户要求的体现。极氪只是还需要持续摸索和用户的关系。事实上，正是这一路以来的摸索和迭代，让我们看到了今天足以打动人的订单爆款。
Not only on the product level, but also on the strategic level, “co-creation” is mentioned. For example, in the equity structure design, JIKR has reserved a user co-creation incentive part, taking out 4.9% of equity to support co-creation in the highest form of enterprise encouragement, under the premise of compliance.
“JIKR’s mission is to co-create the ultimate experience of travel life,” An Conghui set the tone.
Mission determines development. This will not only stop at changes in products, but will be a systematic change brought about by the concept of corporate governance. From benchmarking global top automotive companies to users’ expectations, JIKR believes that only in this way can it gain a pioneering advantage. They no longer just provide products and services, limited interactions within the original framework, but through the real participation of users, they find the power of continuous evolution from users’ needs and creations.
“If ordinary companies are going to meet user needs, competitive companies must create demand,” said An Conghui in summary. “For JIKR, it means co-creating demand with users.” This may herald a new business model waiting to be verified.
Placed in the context of industrial transformation, JIKR also provides us with a special portrait: what traditional enterprise transformation can be like. The industry has been looking forward to what changes the decline of traditional “giants” can bring. Unfortunately, the face presented so far is basically a burden greater than assets, and conservative to the point where breakthroughs cannot be seen.
An Conghui seems to mind the label of “traditional automotive transformation” very much, and he specifically emphasized that this is not a derogatory term. If you want to develop, you have to do it. Those who used to make fuel cars must move towards new energy, which is certain.
As for “how to compete?” This is a question that JIKR and even LYNK & CO and Geely have always been questioned. However, the answer has become unprecedentedly clear in JIKR, the key is to pursue comprehensive change, independent enterprises, brand new brands, innovative user organizations and business models.
A small reflection point in JIKR, An Conghui requires to be called “Cong Cong”. Actually, it’s still a bit difficult to say, it seems like a 70s posture that is eager to keep up with the times and stubbornly resists change. However, I have become a bit more accepting today than two months ago, and I am changing every day.
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.