On August 26th at the Chengdu Auto Show, we were invited to a group interview with Ms. Zhang Mingxia, VP of Global Sales, Marketing, and After-sales at smart. We summarized and discussed relevant issues.
What preparations has smart made for delivery?
Zhang: We approach sales orders and delivery with reverence and gratitude. After undergoing a transformation in brand, product, and business model, we were quite nervous during the launch of our new vehicle as our team was quite young. However, the number of orders received exceeded our expectations, which was a pleasant surprise.
Next, we have a responsibility to quickly initiate the delivery process followed by providing good service. Product and service are two aspects we focus on. Firstly, we actively listen to the voices of our customers and make responsible improvements. Secondly, relying on our D2C direct sales agent business network, we ensure smooth delivery.
Finally, we are very grateful for the recognition of our smart assistant #1 by our dear friends. This motivates us to do better and strengthens our confidence. Under the D2C direct sales agent business model, smart can communicate directly with users, listen to different opinions, and understand their needs. Whether it’s through observations or knowing the reasons behind them, it’s all part of the learning process.
smart’s Delivery Work
Zhang: There are two layers: the brand side and the retail partner side. In the fourth quarter, we will have a series of marketing combinations, focusing on delivery through word of mouth from both the brand and retail partner side. On the brand side, we will have some representative, large-scale deliveries with brand attributes. We will cooperate with agents offline, including the 30 chosen by the end of September and 50 more by the end of the year, to carry out small-scale offline activities.
For the final delivery in the fourth quarter, smart will have a very representative gathering of car enthusiasts. We plan to show appreciation to our user fans, and even old car owners. This is the brand’s end-of-year work for the fourth quarter, but for smart, it is just the beginning.
In addition, due to the uncertainty of the pandemic, for the first batch of deliveries in September, we will hold regional seminars with agents in the four regions at the end of August and September to discuss delivery-related issues. The meetings will take place at the local delivery center, going through the entire process and service system with everyone.
Delivery is indeed the focus of our work going forward. No matter how other brands approach it, smart always upholds responsible communication mechanisms with our users. Originally planned for the fourth quarter, we will now start delivering from September. A few days ago, we made more detailed work arrangements based on the order time. Based on our responsibility to our users, smart will continue to systematically push forward our work based on the supply chain, production, logistics, and offline network.The work we need to do is to solidly deliver and ensure that the details of the brand and service are in place. Therefore, we have various training programs for agents and frontline staff in terms of business processes and systems. In addition to product training for smart elf #1 and BRABUS performance versions, there are also series of training for delivery processes. This is Smart’s responsible work deployment arrangement for users at the delivery end.
Composition of Offline Agents
Zhang: The decision for investment attraction was made by the previous colleagues, and it was a very smart investment strategy. It is a combination, including partners who have been operating in the luxury car camp for many years, such as Yongda Group, and other regional partners such as Mercedes-Benz, BMW, Audi, etc. And there are also processes brought by Geely System and an understanding of the market.
We need a combination, a balanced and reasonable combination, which will quickly achieve the sinking of the network and give full play to the advantages of agents in their strategic areas, fully mobilize their initiative and existing resources, and quickly achieve network layout and services.
Future Product Planning of Smart
Zhang: Smart is not defined. With the continuous enrichment of the travel needs of city friends, Smart will also constantly enrich its product lineup, reflected in accessories, exterior design, and models. Starting from this year, Smart will have one car entering different subdivided markets every year in the next three years, so please stay tuned.
Marketing Activities Related to Car Owners
Zhang: In addition to delivery as the focus of work in the fourth quarter, we will also publicize the product more from design language, interior and exterior, and car machine, including many small and ingenious ideas in the car machine: little foxes, continuous voice interaction, smart inspiration planet, etc.
Interactions between the car machine and users are also what we need to do next. The new Smart updates are luxurious, more technological, and more trendy, and car machine co-creation is one part of it, including To C and even To B. We have also done relevant training for agents and frontline staff.
Many media teachers who participated in the test drive in Lijiang before said that Smart can be more daring and can be publicized more. Now the timing is right, and we are confident in doing publicity.
Is Smart Elf #1 currently considered “successful”?
Zhang: I personally don’t like to use this word and think that “the revolution has not yet succeeded, comrades still need to work hard” is more appropriate.
Zhang: Let me first talk about a metaphysical matter. The biggest challenge is still the team and people. China’s sales company has five functions: network development comes first, followed by products and sales policies, and we have online public and private domains, responsible for agents, and finally delivery and after-sales service, and we put delivery in after-sales service.# Translation
Han Qing is my colleague, he is very experienced. He and his team have been working under very high pressure for the past few months, doing system testing, processes, and staff training. I am particularly grateful that this team and company have a strong sense of mission. No matter how the scenario is predicted beforehand, there are always unexpected customer demands. But at this point, it’s crucial to ensure that the team has enough energy and physical strength to quickly correct mistakes and ensure that everyone’s minds are clear, and internal communication is smooth. This involves the entire supply chain, including logistics, production, and R&D.
From the market challenges, market development still faces many economic or industry uncertainties, including the pandemic, which brings us many challenges.
Areas for smart improvement
Zhang: Let’s talk about it from the product and team perspectives: I think that cars are like works of art, there will always be some small regrets, and it will never be able to meet everyone’s needs. Moreover, it’s more of a learning process. Including the interaction with users on the APP, everyone gave us a lot of feedback on the product. Our team responded quickly to user feedback, such as users liking the glittering golden logo, and we quickly provided it as an optional feature.
Cars are still industrial products, and they cannot be mass-produced immediately. But we and R&D and design are still thinking about how to quickly improve most users’ feedback, which is representative. As a practitioner in the automotive industry for 20 years, it’s my first time working under such a business model like D2C, and I’m very excited, especially the moment when we receive direct feedback from users. After the finalization, we received more than 7,000 pieces of online feedback, and the interaction between everyone was very high. Among more than 7,000 feedback, many were very interesting and direct. This is the conversation and listening between us and users, and then continuous iteration.
In addition, our team is very young, and smart itself is a bit like a start-up. Everyone is exploring how to walk in the D2C direct sales and agency model. It’s not just about consulting companies providing a set of PPTs to get the standard answer. Among the brand, product, and business model, in the triangular relationship between agents, users, and brands, how to be more harmonious and benign, we are also exploring and moving forward.
I have many insights. When I review my work every day, I feel that the team is very energetic, and I become younger and younger not because of makeup, but because of the youthful attitude that lets me see many opportunities for growth, which is a very exciting thing.
For me, I’m now facing an interesting choice. Because the inventory of the D2C direct sales agency model is actually at the upstream level, if we make simpler product lines, simpler configurations, and produce orders, including logistics, it will simplify a lot of workload. But at the other end, customer demand is diversified. How can I find a good balance in between?
Smart consumer portraits# Zhang: Smart Elf #1 has two main target groups, fashionable families and trendy pioneers. Currently, according to the orders, female car owners accounted for 70\%. The age group is between 33 to 34, slightly older than I imagined, and there are also many people between 40 to 50 years old.
I have been discussing user portraits with media teachers, exploring what users like most about Smart Elf #1? In vulgar terms, it is the appearance, and in more detail, it is the design team of Mercedes-Benz. In fact, its ambient lighting and interior are still very sincere, and the small fox on the car entertainment system is also very attractive, and there will be different small animals in the future.
For young people, I originally thought that there would be more options for single elites, but I didn’t expect that there are more choices for families, some of which are the second car at home. This is a choice for a better lifestyle.
I am a Gemini, both emotional and rational. I don’t want to define Smart Elf #1 or the Smart brand too much towards a certain gender. The later versions, including the BRABUS performance version, are not designed specifically for men, but will incorporate more elements in terms of performance and rationality.
At the same time, there are many more ritualistic things in Smart Elf #1, including light shows and the top ten DIY scenes. At this point, I remind the team to speak human language and speak in terms that users can understand, not just engineers’ language. Another important point is to listen to the user, but listening cannot be purely sensory. This is the other side of Gemini, very rational, using data analysis to speak.
Smart Elf #1 has 11 colors, one of which is called Pop Pink, which many men around me like and they call it macho pink. As a woman, on the one hand, we must play to our strengths, but on the other hand, diversity is also very important, and we must reflect on ourselves.
Fashionable families and trendy pioneers does not mean that we cannot be trendy pioneers as we get older. In the fourth quarter, there will be Smart peripherals, not entirely young in age, but young in lifestyle and vitality, including the yellow we used in our booth. I hope it brightens everyone’s day.
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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.