Today, we had the great pleasure of interviewing Mrs. Zhang Mingxia, the Vice President of Sales, Marketing and After-sales for the global company of smart. Many people may still have an understanding of smart that is stuck in the era of fuel-powered cars. For a brand that has gone through 25 years of development and has a brand new image, everyone must be very interested in knowing the latest operational ideas of the brand. Let’s explore together:
Q: How do you view smart’s current sales volume?
A: Sales volume is one of the key performance indicators (KPIs) for measuring team performance. The industry is currently facing difficulties that are bigger than we had originally anticipated, and we have encountered many unexpected challenges.
At present, the sales volume in the Central and Western Europe markets is cautious and optimistic. We define the original target as a full-speed effort goal, and we have practical measures to support such a sales volume. This is also a confidence booster for our team and frontline partners.
First of all, the entire production capacity is gradually climbing because we see delivery numbers as a healthy and stable growth signal. Secondly, this year we have been saying that for the automotive industry, brand and product are the two key factors. The smart brand has a 25-year strong foundation and underwent a renewal last year. We still maintain that original intention, and later in China, Europe, and even globally, we cooperated with 15,998 users through joint activities, including larger smart events. We promoted the brand to make it more known and understood by more people, which is very supportive of sales volume.
Previously, research on smart showed that the first factor people choose is the brand, followed by its design language. Therefore, promoting the brand to more people is a support and confidence for sales volume. Our current main product, the Smart Fortwo Coupe, is good-looking and highly functional. Today, it welcomes a new member–Pro–which is configured after discussions with users and frontline partners. The configurations of Pro and Pro+ are basically the same, with the only difference being the use of a lithium iron phosphate battery that can provide up to 400 km in mileage, which is enough for commuting and nearby travels. The final retail price is set at 179,000 yuan. With the addition of this new family member, we leave the choice to the users–whether on the configuration, the mileage, or even the performance monster BRABUS version. This year we will continue to make sustained efforts in our products and brand.
Another supporting point is that the collaboration between us and our agents is getting better and better in the proxy mode. From last year until now, the entire network has been built from scratch; and in the process, we have gained a lot of experience. By doing well in the three dimensions mentioned above, we are confident this year, even in the face of the fluctuating market. We will continue to work towards our original goals, including new products that we will not share with you at this moment.
Q: Is smart now a Chinese brand or a global brand?
A: The answer is clear: smart is a global brand. Previously, when many media teachers communicated with me, they felt that the current smart is more like a Chinese brand. I think there is some objectivity in this sentiment because the new ForTwo Electric Drive pre-launched in Europe six months ago. Germany was the first country we entered in Europe, with sales starting in February. The first batch of deliveries began earlier this week. Following this rhythm, there will be a total of 13 countries this year where we will promote the car. The activities in the Chinese and European markets should have a solid foundation. Then, my team and I will focus on celebrating the 25th anniversary of smart this year. This celebration will be global, with smart times being an event in China and Europe as well as around the world. Since its inception, smart has been recognized as a global brand with millions of fans worldwide. We will continue to focus on this event this year.
Q: You mentioned millions of fans earlier. Can you tell us more about the proportion of fans in Europe versus China?
A: Speaking personally, I prefer that smart be loved by people all over the world. Exploring this issue, especially in the electric car industry, regional characteristics will require more differentiation in configuration, performance, and services between the Chinese and other markets. China is currently leading in the field of electric cars. Smart, as a brand of gasoline-powered cars, is transitioning to fully electric vehicles. Therefore, to answer your question, people around the world love smart, and we will have the overall tone of a global brand while also listening to the voices of our users.
Many users do not know the meaning of the smart logo, which is composed of a “c” and an arrow. The “c” represents compactness and the design concept of making big things happen in small packages. Although we have grown, our body length of 4.24 meters and wheelbase of 2.75 meters still classify us as a compact SUV. For us, width means more space inside, and the “c” represents the idea of making great things happen with small packages, which is also our management philosophy. We hope to be nimble in our actions, and to do things that are more meaningful and influential. The arrow represents moving forward, boldly exploring and thinking ahead, using inspiration to explore, and having the courage to act. This is the core of smart’s brand spirit, which should be borderless and appealing to a group of like-minded people.
Q: Continuing from the previous question, you mentioned differences in Chinese and Western cultures. So in terms of car model planning, is it led by China or Europe? Because currently, smart gives people the impression of a delicate European small car? And what are the directions for future product development?
A: Currently, the development of products is based on a unified global standard, including safety standards, although there are different regulatory requirements in China and Europe, and we require the same standard of five-star on safety. In terms of the definition of vehicle products, it is currently a global standard. Although it may seem to be for China, it is because for the first time a global brand headquarters is in China, including research and development, and marketing, etc. We have a product meeting every week, where colleagues from Europe, China, and headquarters are present. In fact, each product is decided in common, and we define global products together, encountering many conflicts along the way.
In the current Chinese electric vehicle market, if there are no configurations, it is easy to fall behind. In Europe, they do not necessarily need such high configurations, as it will only increase the cost. Therefore, the entire product needs to be discussed in this segment market. Currently, there are six configurations under the smart EQ ForTwo. The ratio distribution and the pace of launching these six cars will vary. For example, the higher configurations in China, in Europe, the proportion of BRABUS or Edition may be higher, so we will unify global standards. However, in specific allocation, we will fully respect the choices and priorities of the regions and markets.
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.