Introduction: Based on GAC’s GAC Aion, they used to feel inferior about their direct sales channels, but the opening of their first direct store is telling us that they bravely choose to say goodbye to the past between the past and the future.
When it comes to the biggest difference between new energy brands and traditional brands, offline direct sales channels are one of them. The most well-known example is NIO’s “Niu Wu (牛屋)”. Connecting brands directly with users empowers brand upgrades, and direct sales channels like “Niu Wu” play an important role.
With the awakening of traditional new energy brands, direct sales channels like “Niu Wu” are no longer exclusive to the new forces. On July 25th, the world’s first brand direct experience center of GAC Aion opened grandly in the Tianhe Zhengjia Square in Guangzhou.
For a new force like GAC Aion, who originated from a traditional enterprise, facing users is not their strong suit. Therefore, the opening of the direct experience center is a new challenge. However, facing users and integrating with them is both a step forward for the GAC Aion brand and a requirement for the next stage of competition.
So how did GAC Aion layout its first direct sales channel? What does the establishment of a direct sales channel mean for GAC Aion? Can GAC Aion establish a closer relationship with users through its direct sales channels? Can direct sales channels empower the upgrade of the GAC Aion brand?
With the opening of the first direct store, GAC Aion needs to answer a series of questions.
How about GAC Aion’s “Niu Wu”?
As early as the winter of 2017, the leader of the new energy industry, NIO, established the first “Niu Wu” in the Oriental Plaza in Beijing.
At that time, most industry insiders did not understand the purpose of the expensive “Niu Wu”. Until now, people gradually understand that “Niu Wu” is one of the strongest links between NIO brand and users, and it is also an important part of NIO’s acquisition of high-end brands.
Compared with NIO’s “Niu Wu”, the birth of GAC Aion’s direct sales store has similar meanings.
In terms of layout and operation, there are many similarities between the two, of course, there are also subtle differences.
First, the location selected is in the core area of the downtown area. Like “Niu Wu”, GAC Aion’s direct experience center also chooses to be located around the center, such as the first direct experience center located in the Zhengjia Square, the largest shopping center in Asia and a national 4A-level scenic spot.
Secondly, both are offline communities of users. It is reported that the GAC Aion brand direct experience center has created four functional experiences: “frontier technology experience”, “life aesthetics space”, “future travel services”, and “scene car exhibition”, which is a user’s leisure, gathering, value-added, and co-creation community.The difference is that due to the more solid technical background of GAC Aion, multiple technical points are available for visit and study at their directly operated stores, including the GEP pure electric exclusive platform and the cartridge battery system safety technology.
In the end, every customer can enjoy meticulous service. GAC Aion stated that customers who come here can not only experience cutting-edge technology in depth, but also taste milk tea and experience stylish products. In addition, Aion owners can also enjoy exclusive free parking, free charging and other services.
The reason why NIO’s “Niuwu” is still in operation and has even landed in Europe is that they have successfully connected with users, which involves deep-level operational logic and investment determination.
Whether GAC Aion directly operated stores have such investment determination and operational genes still needs time to prove. It is reassuring that at least GAC Aion has taken the first step and seized the opportunity ahead of other traditional automakers, which requires courage and determination.
Open the Door to Brand Upgrading
As it is well known, the brand wall of the automobile industry has been pushed down in the era of the “new four modernizations + sustainability”, as stated by Wu Yingqiu, Chairman and CEO of Global Automotive.
This huge change is undoubtedly a great boon for Chinese automobile brands that were previously unable to break into the high-end market. However, there are not many who have clarified the logic behind these changes.
In the view of “Dian Dong Shi”, the so-called brand is essentially a premium that reflects a caring service for customers in the current new energy market.
Specifically, when there is no significant difference in product performance, service naturally plays the role of this premium. Even if the product performance is lagging behind, as long as the service is full of premium, the brand premium can still be obtained, such as NIO.
And the offline direct sales channel is an important part of providing premium services. Although the direct sales channel is of great significance for brand promotion, not everyone can do it, such as traditional brands, which are bound to traditional distribution channels and encounter inherent barriers in opening up new channels like emerging retail.
Born out of GAC, GAC Aion once sighed at the direct sales channel, but the establishment of the directly operated store is telling us that they choose to bravely say goodbye to the past between the past and the future.
This kind of courage is not easy.
GAC Aion stated, “We will adhere to the development concept of openness and sharing, fully utilize social forces, adhere to the development idea of “dealership as the main channel and direct sales as the supplement” in channel layout, gradually layout directly operated experience centers in core areas, create channel models, build talent training bases, promote brand upgrading, and share development opportunities with our partners.”One thing worth noting is that, contrary to the new players’ main focus on direct sales and supplemented by dealers, Guangzhou Automobile E-An is mainly dealer-centered and supplemented by direct sales. This also shows that Guangzhou Automobile E-An’s channel reform is still in the exploratory stage, which is not a bad compromise for other traditional companies.
Regarding the opening of the first direct sales store, Gu Huinan, general manager of Guangzhou Automobile E-An, said, “The opening of the first direct experience center of Guangzhou Automobile E-An means that we have entered a new stage of ‘online + offline’ direct service to users, realizing another sublimation of user value; It is also an innovative change in the channel model. The entire system framework of ‘online + offline’, ‘car city + supermarket’, ‘direct sales + dealer’ has been established, marking the new marketing ecology of Guangzhou Automobile E-An entering the 2.0 era.”
In any case, with the landing of the first direct sales store, the brand promotion battle of Guangzhou Automobile E-An has officially begun.
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.