Author: Gao Shangpei
Economist Eugene Fama, who proposed the “efficient market” hypothesis, won the Nobel Prize in Economics. Fama advocated that stock prices in an unordered market environment are the result of digesting all variables. Therefore, although stock prices may experience random fluctuations, they prove their effectiveness.
In the automotive industry, a strange phenomenon has appeared this year, which I think can be explained by this hypothesis.
If we evaluate the most popular exhibition booth at the 2021 Guangzhou Auto Show, the Krypton (JiKua) booth would be a very competitive candidate. Its popularity is comparable to the Zeekr 001’s stunning debut at the Shanghai Auto Show, which is remarkable since the industry witnesses several car releases or launches every day. The fact that a car can remain popular from the beginning to the end of the year is a paradoxical phenomenon. This is the strange phenomenon I mentioned, and from the perspective of attention and duration of popularity, the Zeekr 001 performs more steadily than Tesla’s Model 3 and Model Y, and far outperforms the Ford Mach-E, which debuted at the same time. If we delve deeper, analyze and summarize the short period of 218 days from JiKua’s brand release to the release of the Zeekr Care service system, we will understand that the sustained popularity of the Zeekr 001 is the result of an “efficient market”. No new empowered brand has developed a complete system that encompasses the entire ecological chain from R&D, production, sales, replenishment, and customer service in such a short time. Achieving this is not easy, which is a testament to JiKua’s intelligent technology and hard strength.
218 days of speed highlights systemized soft power
The “extreme” in JiKua embodies the “geek” mentality of product development and also the “speed” of development. It is difficult to imagine that from April 15th, when the brand was born, to November 19th, when the Zeekr Care user service brand was released, JiKua only took 218 days to achieve the transformation from 0 to 1. Now it has become a complete system-combining R&D, production, sales, replenishment, and user relationships. It’s all thanks to the soft power support brought by years of technical and talent accumulation under the Geely Group.
The story is not long. Let’s briefly review it. On March 23rd of this year, Geely Holding Group announced the establishment of its new company, JiKua Intelligent Technology Co., Ltd.Less than a month later on April 15th, the Jidu Auto (Jidu) brand was announced, along with its first mass-produced electric vehicle, the ZEEKR 001. Upon its debut, the ZEEKR 001 received widespread attention from consumers with its sporty design, impressive specs and features, including a maximum power output of 400 kW for the dual-motor version, 0-100 km/h acceleration of only 3.8 seconds, a leading 100 kWh battery capacity, and a maximum range of 712 km for the extended-range version. The ZEEKR 001 also boasts a fast-charging capability that can increase a range of 120 km in just 5 minutes. The three models range in price from RMB 281,000 to RMB 360,000. This news quickly became a sensation, with consumers racing to pre-order the car online.
Following the announcement, Jidu conducted extensive communication with its users, and with users’ needs and preferences at the center of the development process, consistent progress was made on the production of the ZEEKR 001. At the same time, Jidu has been equally focused on network sales, adding charging facilities, and improving its service standards. If the Chinese market took more than 10 years to explore and develop the downstream system of electric vehicles, then Jidu has worked to compress these efforts into a far shorter timeframe, allowing it to achieve a remarkable acceleration.
On June 30th, the beta version of the Jidu app was officially launched. Then, on September 6th, the first Jidu Center opened in Hangzhou, which included eight Jidu Spaces, one Jidu Center and one Jidu Delivery Center operating nationwide. On August 29th, during the Chengdu Auto Show, the ZEEKR Power brand was launched and marked the opening of the first ever ultra-rapid charging station in Hangzhou. On October 19th, the first ZEEKR 001 was produced, and four days later, the first batch was delivered to its owners. On November 19th, at the Guangzhou Auto Show, Jidu launched its user service brand ZEEKR Care.
Traditionally, it would take three to five years for an automaker to achieve mass production and delivery of its first model, and to build a full-service and supporting ecosystem. Jidu, however, has set new records for accomplishment, as one of the fastest growing players in the market, achieving mass production and delivery of the ZEEKR 001, as well as a full-value ecological system within an unprecedentedly short period of time. Jidu’s exceptional efficiency and competitiveness signal that it has surpassed all of its peers in the race for market share.Efficient overall system capability is more importantly to provide better car ownership experience to users, which is conducive to the subsequent development of the ZEEKR brand. Just think, as long as you become a qualified car owner by ordering the ZEEKR 001, ZEEKR Intelligent Technology will provide us with a full range of comprehensive services from delivery to use, and all the problems that car owners will encounter have been pre-solved. Such a good reputation will inevitably boost the sales momentum of ZEEKR 001 in the future.
The Focus of Jidu’s Thinking: One Point and Three Modes
There are many new forces in the automotive industry, and there are also many that originate from traditional enterprises. So why is Jidu so outstanding? I think that one key focus and three modes can be summarized.
We can see that Jidu emphasized from the beginning that it is a “user enterprise”. Led by Jidu Intelligent Technology CEO An Conghui, Jidu gets closer to users, making Jidu better understand users. The release of ZEEKR Care has pushed Jidu’s relationship with users into a new era, which may be exclusive to Jidu as it can achieve “I do what you see, you say what I hear”.
Another important reason is that Jidu does not follow old practices, but fully embodies its advantages as a start-up and a new brand. Considering the diversity of users’ demands and the broad coverage of geographic locations, Jidu innovatively adopts three modes of delivery. Users can choose to pick up their cars at the Jidu Center, have them delivered to their doorstep, or share the joy of delivering their cars with an exchange party.
Delivery is not the end, it is the beginning of Jidu’s relationship with users. Therefore, even before delivery begins, Jidu has laid out the Jichong Station. After delivery, ZEEKR Care user service brand is immediately launched, providing users with a full-cycle closed-loop experience from car purchase to use. At the same time, effective user service and communication enables Jidu Intelligent Technology to better understand users, identify deep-seated demand trends, and truly serve as a protector of the brand’s development with the full system strength.
Jidu’s thinking, based on one focus and embracing a user-oriented mentality and determination, grasps the trends of the market and the pulse of the times. The three modes proposed are the embodiment of Jidu’s comprehensive innovation and high efficiency. As An Conghui said, “For over a hundred years, the evolution and development of the automotive industry has been driven by both technology and user demand. Now we are at a time of ‘changing the wheels’.” This new way of thinking makes Jidu particularly eye-catching compared to traditional car companies and other new forces.
Opening Up a Third Path: Overtaking Based on StrengthIn the current market landscape, traditional automotive companies continue to dominate the first lane, while emerging new forces are paving the way in the second lane. However, Jidu Auto, with its unique approach and user-centric driving force, is creating a completely new path – the third lane.
The third lane is not for everyone, as fulfilling user demands amidst an ever-changing market and staying ahead of technological innovations while dealing with a complex and challenging ecosystem requires exceptional abilities. Jidu Auto’s strong expertise and exploration mindset, combined with the support of traditional car companies, have enabled its efficient, systematic development of a complete ecosystem, which is essential in the Internet era where winning means taking all.
By successfully establishing an all-encompassing ecosystem in record time, Jidu Auto is poised to become a top force and driving factor in the new energy vehicle market. With its comprehensive capabilities, Jidu Auto is sure to make a significant impact, creating a “suction effect” and quickly solidifying its position as a leader in the industry.
Jidu Auto has demonstrated formidable strength in understanding consumer demands, technological prowess, and building a comprehensive ecosystem. Its ability to “outpace” competitors sets it apart from other players in the market.
In summary, the automotive industry can be complicated, and it can be challenging to understand why some cars are successful. However, behind every successful car is usually a well-conceived business strategy, strong technical abilities, and tireless efforts of countless individuals in the automotive industry. In just 218 days, Jidu Auto has achieved tremendous success, but this success was not easily achieved. It took immense efforts and hard work from the Jidu Auto team to develop new products, establish a delivery system, and create a new image for Chinese-made cars. Today, the market’s enthusiastic reception of the ZEEKR 001 not only represents Jidu Auto’s success, but also showcases China’s manufacturing power.
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.