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autobase wash systems,
In 2009, Netease Auto Channel made exclusive interview for Autobase-International CEO, during the period of international spare parts and CIAACE. It is mainly because of the strong advantage that Autobase Car Wash maintains leading position for long time in global car wash area. The following contents are the exclusive interview for Autobase-President Xu:
Emcee is short for Netease Auto Channel Emcee while Mr. Xu is short for Autobase-President Xu.
Emcee: Please introduce the auto-relevant business at present in Autobase Company.
Mr.Xu: Autobase involves two parts in Auto Industry. One part is Auto Service Global Franchise, and the other part is R&D, Sales and Service for Automatic Vehicle Wash Systems. We mainly revolve the two businesses.
Emcee: Now is Autobase business emphasis facing domestic market or one part will face foreign market?
Mr.Xu: Autobase proprietary business includes service franchise and vehicle wash systems. Our development direction in the world is 30% in China and 70% abroad.
Emcee: What are the countries mainly in foreign market?
Mr.Xu: Covering the world. Our equipment, product and service cover 93 countries and districts since 2003 to September, 2009.
Emcee: In five continents?
Emcee: Do you focus on the exporting of vehicle wash equipment?
Mr.Xu: And also service. We have many franchise institutions and service stores abroad.
Emcee: The franchise concentrates on the car washing and car care services?
Emcee: Now financial crisis has a strong attack to European and American market. How about the operation in those districts?
Mr.Xu: It is like this. Autobase has a series of marketing models and effective promoting measures for the markets in occident and developed districts. In our company, there are three brands. One is “AUTOBASE”, the second is “TOPTECH”, and the third is “TEPO-AUTO”. We have launched two high-end and world-class brands which are also OEM brands for occident. They are the production lines in high-end markets for Europe and America. The serial products are made as OEM. Financial crisis certainly impacts high-end market, but our orders are long-term. Order period is from three to five years so there is no effect on delivery quantities.
Mr.Xu: Secondly, we have our own brands, developing models and popularities in developed areas. There is no big impact on our brand there. Instead, the demands are increasing. What are the reasons? It is because that in Middle Asian and African Regions, the economic integration is not combined with occident closely. This market is not developed mature especially in the early eighty’s and ninety’s. When our brand steps into it, it is just the time when the industry needs most. In this way causes our brand rapid cognition, acknowledge, purchase.
Emcee: Although you develop foreign markets, will you carry out a different strategy for Asia-Pacific and Chinese markets? How about in China?
Mr.Xu: Mainly serving some large auto service organizations like 3M car care franchise which is quite good and has many branches aboard. We are the appointed provider in Russia, Kazakhstan, Latin American countries and also Sinopec and PetroChina. Besides, we have our own franchise institutes run in some districts with strong regionality.
Emcee: Mainly due to different strategies for different regions?
Emcee: Just now, you mentioned you have long term order in occident but some viewpoint implies that financial crisis will past time in 2012. Will it impact on our orders?
Mr.Xu: No matter how long financial crisis will last, two or three years or even longer, will our customers are relevantly steady. But there is still impact on our industry. The impact degree depends on environment changes of overall market. Occident market takes 10% market share in the whole development strategy while the rest 90% are in developing regions. And therefore our development is standardized by popularized service like Volkswagen, Toyota development ideas. Our clients are in mass marketing not only to high-end market. High-end market has the smallest demand. Especially occident cavil at Made-In-China products even if they use the product you make OEM, any of your logo is not allowed to appear on it.
Emcee: For Chinese goods abroad, perhaps the own trademark will be impacted. How do you solve it?
Mr.Xu: In China, own brand especially in electromechanical industry starts late. Especially, auto equipment area is a new field and a high industry in washing area. It is a very long course to run into global brand. You need to cultivate own brand and improve own technology, research and development ability, service ability constantly. These aspects determine your brand popularity including its strong degree.
Emcee: Now Chinese national brand is affected by this or that obstacle. Most people say that home products should be of self-renewal. Only self-renewal should it establish itself firmly abroad. How do you think it to realize self-renewal?
Mr.Xu: All of the market operating activities develop revolving one direction which is service. Service covers pre-sales, mid-sales and after-sales. All brands cannot leave service no matter for global famous nor non-famous brands. We need to cultivate service awareness, service theory gradually to supply our customers with more, more convenient services and keep longer relationship with them. The longer relationship with your clients and the more timely service, the higher brand recognition you get.
Emcee: That is mainly in service aspect. What about products?
Mr.Xu: Autobase develop in middle and high-end fields in global vehicle washing industry. This thought will not change because we take up the same class technology platform when we make communications with Frankfurt, Las Vegas for twice, some large Group Companies every year. At the earliest, we make OEM specially for Germany and return selling to Germany. We have not any problem in quality. Now what we are lack of most is brand, not manufacturing capacity or R&D foundation. Whether home made brand can be recognized by the world rapidly, whether you can part off the cake of global market, how much can you cut, how fast can you cut are very important.
Emcee: As a manufacturer, how do you think of it to realize course in order to foster independent brand image in foreign automobile market?
Mr.Xu: Firstly, we have to cultivate brand integrity. In China, there is one old saying “First conduct a human being and then do things”. We especially think a lot of business integrity. He has to form good business integrity first in order to make own brand stand for China. It needs Enterprise Culture and National Consciousness to cultivate. This point is of particular significance. Why many businessmen always emphasize Japanese or Korean self-protection awareness? Chinese are lack of great unity in bones. It is the fact that we lost many things in the far-reaching historical cultural forms which cause us the weakness in national brand and image awareness. It is because the faster speed of commercial community development and larger business impact shock people’ ideas greatly. Many people cannot reverse this thought and eventually it cause malformation development. That is the reason why people are very irritable now.
Mr.Xu: We must reinforce Cultural Literacy of our own company, mutual trustworthy and ethical principle in relationships and Cultural Literacy cultivation. The most important is how much is the power execution of corporate culture and whether development thought and direction are according to your own opinions. It is very crucial.
Emcee: Do you think what government will do in this way?
Mr.Xu: At present, the supervision in our industry is not enough. It is an undisputable fact that there is not a formal sector to supervise this industry strictly. It causes immature and jumbled development in this filed in China. Many people are robbing this market. It is very difficult for you to see whether this company is done well or badly on line or media. You have to penetrate deeply this industry to know that whether corporate development direction, human environment suitable for developing and walk a long way. This is the most important.
Emcee: Will government have to reinforce the overall planning to this market?
Mr.Xu: Sure. At present the first requirement is a list of certificates including system authentication, CE certificate, TUA and etc when foreigners purchase Chinese goods. What is the reason? That is because China doesn’t have a real association and industry regulator with strong points to be in charge of this matter. It cannot issue national relevant certificate to prove that your products are target hitting. And therefore it brings a threshold for Chinese corporate to develop abroad.
Emcee: What about the sales of our company?
Mr.Xu: Our sales figures increase 30% in 2008 more than that of in 2007. It is due to our rapid rising orders mainly in developing regions. I was emphasizing developing countries just now. That is our main market share.
Emcee: What are the markets shall we open up next year?
Mr.Xu: Next year, the main market direction is at Latin America and North America. The most important region in North America is Canada. We have set up a independent brand office in Canada in September, 2008 but no offices in North America or Europe. It is because this market is particularly important. We will not step in quickly.
Emcee: Nowadays, many foreign countries erect many trade barriers on Chinese spare parts like Russia. Will it impact on our sales?
Mr.Xu: In Latin America, the policy and economic situation limit import and export business in many countries. But now, it will not happen in Middle Asian or African regions. In these regions, we have good sales market and high brand recognition.
Emcee: Is there any development plan in domestic market next year?
Mr.Xu: We will extend for the earliest development pattern in domestic market like cooperating with some scattered clients. The most important is to cultivate Autobase service brand and form our own customer gold share and pure golden degree. (Resource: Netease Auto Channel)