Automobile industryBoston Consulting

What did you do right? From The new force of car making insisting on the idea of “user enterprise”

The following is the What did you do right? From The new force of car making insisting on the idea of “user enterprise” recommended by And this article belongs to the classification: Automobile industry, Boston Consulting.

China’s passenger car market is facing structural changes, and the traditional distribution mode is facing challenges

After nearly 20 years of rapid growth, China’s passenger car market has entered the “stock age” from the “incremental era”, and the demand for additional replacement has gradually become the mainstream. Although the stable growth of medium and long-term market demand is still expected, the pain brought by the short-term market downturn and the switching of new and old energy forms makes the competition in the short-term market more anxious. Especially in the new energy vehicle market, the product technology difference is shrinking, and the traditional main engine plants gradually lose their historical advantages in the fields of fuel vehicle product development and supply chain, but they have not yet fully established their ability in the field of electrification and intelligence, which has become an important entry point for the new forces to break the current solidification pattern. At the same time, from the perspective of channel and user experience, the traditional “spoon fed” distribution mode is facing increasing operational challenges. The gap between car enterprises and consumers can not be quickly eliminated. The poor user experience is difficult to improve in the short term. The industrial ecology and pattern may usher in disruptive changes.

We have observed that there are three types of enterprises in the current market, which have their own distinctive characteristics and advantages

In recent years, Tesla’s sudden rise has attracted the attention of the market and become a typical representative of technological innovation enterprises. Whether it is battery technology, electric motor control technology, or driverless technology, Tesla has always been in a leading position in the industry. The business model requires enterprises to have strong R & D and commercial liquidity, and attract high-end or fan customers by continuously introducing products and technologies far beyond the average level of the industry.

Enterprises with brand and scale advantages often gain market recognition through precipitation and accumulation over a certain period of time. Therefore, this kind of brand represents the head of traditional automobile enterprises. They generally have a profound historical background, and formed a unique competitive characteristics and business model in the process of long-term service to consumers.

At the same time, we observed that although the market position of some traditional automobile enterprises is still stable in the short term, some management pain points have gradually emerged in the current market environment. Taking the Chinese market as an example, most of the traditional automobile enterprises enter the domestic market in the period of strong demand, so they pay more attention to the localization of imported vehicles and the expansion of sales share, lack of emphasis on enterprise vision and cultural values, and pay less attention to user service. The setting of the overall organizational structure is more focused on the opening and extension of the value chain of R & D, manufacturing and sales. 4S store mode and KPI culture are also the best choices in the past. However, with the change of the external environment, some traditional car companies began to be out of touch with users, unable to keep up with the pace of the market, and gradually lost.

Service winning car companies strive to create the ultimate customer experience, to provide customer satisfaction service as the starting point. Weilai, as a typical representative, shows a certain potential in sales volume and household registration. Weilai started to deliver users in 2018, with the delivery volume from 11348 units in the first year to 43728 units in 2020, increasing year by year at a compound growth rate of 96%. In January 2021, 7225 units were delivered, with a year-on-year growth of 352.1%, reaching a record high. At the same time, Weilai is outstanding in the list of automobile brand net recommendation rate, ranking the first echelon in the semi annual survey in 2020.

Weilai creates “user enterprise” through combination boxing

1. Key success factor 1: Mission vision

Since its inception, Weilai has put a clear corporate vision in the first place. When designing the business framework and logic, Weilai hopes to take “user experience” as the breakthrough of the first lane change, and take it as the underlying logic of differentiated competition.

This idea has encountered great pressure and challenge. When facing huge sales pressure in 2019, Weilai tried to give regional promotion authority to improve sales. After receiving the negative feedback from users, the management is faced with the choice of operation and management. In the end, Weilai withdrew the relevant authority to protect the interests of the car buyers, and continued to invest resources in customer service.

2. Key success factor 2: cultural values

The value indicator is the coming “value mirror”. Integrate the evaluation of all parties on the four core values of employees to help employees self-examine the degree of fit with Weilai values. In order to ensure the honesty of the evaluation, the final evaluation result is completely decoupled from the employee performance appraisal.

“Value story” and “858” broadcast are the important starting points for the daily implementation of Weilai’s cultural values; through propaganda and incentive, it positively drives all employees to identify with cultural values.

Through the enterprise wechat module, employees can post praises to colleagues for practicing the company’s values. The company’s staff can add content or express their feelings with the post, and can use Weilai points to praise and reward, so as to effectively motivate employees’ behavior and achieve the effect of internal positive publicity.

At 8:58 a.m. on Tuesdays, Thursdays and Saturdays, Weilai will push the morning meeting broadcast on time in the enterprise wechat. Through the form of audio and video, we publicize the excellent examples of employees’ values. “858 radio” helps employees to deeply understand the specific practice of Weilai’s values through high-frequency push and daily examples, so as to avoid the corporate culture becoming a “castle in the air”.

3. Key success factor 3: organization setup

From the perspective of optimizing user experience, Weilai takes fellow, car machine system and NiO app as the contact points to provide users with “one-stop” service, reversely integrates the company’s internal resources, and provides customers with simple and comfortable service experience.

Behind the “one-stop” service is the organizational structure set by Weilai based on user journey, which is in contrast with the traditional method of setting up organization around the industrial value chain

Marketing: compared with the traditional “advertised” mode, Weilai’s marketing resources focus on cultivating existing users. Therefore, the organizational form is more “light” than the marketing department of traditional automobile enterprises.

Network and sales: Weilai adopts the direct marketing mode, so it does not only set up the function of network distribution. The company directly participates in the operation and management of the store, and the sales function is responsible for product sales, but also for user maintenance and operation, focusing on improving user stickiness.

Service operation and energy supplement: Weilai sets NiO power as an independent department, which reflects its high attention to users’ demands and experience behind its efforts to help users eliminate mileage anxiety.

Digital: Weilai digital team continuously iterates and updates Weilai app in the form of Internet products, so as to ensure users’ good online experience and provide support for creating an online ecological closed loop.

Lifestyle: compared with the outsourcing management around other brands, Weilai chose a more “heavy” internalization mode. Weilai provides original design with its own team, creates Weilai style lifestyle, and creates an interactive platform with higher frequency and wider range.

In order to respond to the needs of users faster, Weilai’s organizational structure is flat, and it relies on the ability of managers and digital tools to cope with the challenges of management breadth.

Weilai’s organizational structure consists of four layers, which is relatively flat. It aims to quickly respond to market changes and user demands. But at the same time, the management breadth of some managers may be as high as 1:20, which puts forward higher requirements and challenges for management ability and energy. Under the support of the current managers’ strong personal ability and efficient digital tools, Weilai has achieved good management efficiency.

4. Key success factor 4: management by objectives

Weilai adjusted OKR to a vau system, injected agile and iterative elements into traditional industries, and promoted the undertaking, alignment and updating of internal objectives.

Vision: review every year and quarter, set the overall goals of the company, department and individual, and ensure the goals are aligned.

■ action: After reviewing the objectives, the departments and individuals will refine the specific measures, open to the whole company after discussion with the superior, and clarify the action plan to support the realization of the objectives.

■ upgrade: as the new energy vehicle market changes faster, Weilai pays more attention to the upgrading and iteration of target management, and encourages real-time update and adjustment of vau weekly and monthly to cope with market changes.

In order to avoid the high management cost and conservatism caused by the strong link between goals and performance, vau is not directly linked with employee performance.

Weilai’s performance appraisal takes the five driving forces of the company as the evaluation dimension. It not only evaluates the actual results, but also pays attention to the process and efforts.

The performance appraisal system of Weilai, which is based on driving force elements, determines employee performance by means of comprehensive self-evaluation, leadership evaluation and collective evaluation. Weilai’s performance appraisal pays equal attention to “process” and “result” to ensure that some long-term efforts made by employees will not be ignored by the organization because of short-term inefficiency, but it also puts forward higher requirements for managers’ judgment ability.

5. Key success factor 5: user community

Building a user community through “ripple mode” is an extension of Weilai’s corporate vision and values. Compared with the logic of traditional sales funnel mode, Weilai focuses on improving the reputation of existing users.

Weilai creates the concept of “user enterprise”, focuses on and implements the service. All the contacts in the customer journey are the starting points for Weilai to achieve user satisfaction. Focusing on serving the existing users is like continuously strengthening the center of “ripple”, so as to form a continuous extension and radiation and achieve the effect of “word-of-mouth marketing”.

When Weilai operates its user community, it endows users with a greater voice, which is one of the key points for the success of the “user enterprise” model. Weilai’s business model is not limited to “Baoke Jiangou”, but allows users to have a sense of participation in the enterprise – let users operate and maintain Weilai as their own company. This is also why volunteers are willing to build and maintain Weiyi’s reputation.

Weilai is willing to admit the current shortcomings to users, and has formed a closed-loop management ability of “admit mistakes”, correction and iteration. In the hearts of users to establish an “honest, honest” set of “people”, starting from empathy to provide customer service, win user support.

Facing a new brand, most people are always on guard at the beginning. We hope that Weilai’s Renshi is not smart, never deceptive, and even a little silly. We hope users can feel that Weilai is on the same side with customers, which is very important

——Qin Lihong

NiO life is an important part of “providing users with a pleasant lifestyle”, in order to maintain and enhance the stickiness and popularity of Weilai community.

Compared with the pure products around the brand, NiO life is positioned as an original design lifestyle brand to meet the multiple needs of car owners for aesthetics, design and quality. NiO life’s products are sold through NiO house and NiO app, and some of them are even sold in limited quantity, so as to shape and strengthen the owner’s exclusive feeling and brand uniqueness. In terms of operation mode, Weilai chooses the internal development, design and operation mode from the perspective of quality assurance.

6. Key success factor 6: digital tools

Weilai app emphasizes the community function, creates a car life “complex” covering content + social interaction + shopping mall + car use, and integrates Weilai app into users’ life.

Benefiting from the direct sales mode, vehicle engine system and other digital genes of new energy vehicles, Weilai can get through the data. With the help of multi-channel customer satisfaction, Weilai can evaluate the service performance of the first-line team quantitatively and transparently, find out the deficiencies in the service, and put forward targeted solutions. Car machine, app and other user behavior data can also be better applied in Weilai, which can assist service, R & D and other teams to provide customers with more customized products and experiences.

Weilai departments will also use enterprise wechat or flybook for communication, and apply multiple internal development tool modules, such as values story applet embedded in enterprise wechat.

Enlightenment to other auto companies

Internet management concept and operation mode are applied to improve the management agility of value chain, so as to realize the organic combination of Internet and traditional car manufacturing business mode.

On the premise of thinking about their own “multidimensional autonomy”, enterprises can selectively learn from their practices and practices.

In the process of rapid growth, Weilai is also facing many potential challenges. These problems are also worth thinking about in the future development of other auto companies.

1. Talent echelon construction

After the increase of business scale and complexity, the core management team (especially the N-1 Management) will take on more responsibilities. It is more and more important to improve the management ability of senior executives and build a more efficient management team.

With the continuous growth of the user base in the future, how to provide stable and high-quality service for users, and with the continuous growth of the fellow team, maintaining the stability of talent quality has become an important issue to be concerned.

2. Maintaining corporate culture and values

With the growing number of employees, maintaining the purity and undiluted of corporate culture and values has become a potential challenge.

3. Scale efficiency

At present, the company’s internal management and communication mode is more based on enterprise wechat, flybook and other instant messaging tools, so as to achieve rapid discussion, decision-making, landing tracking and even user feedback on the company’s business. With the continuous expansion of the company’s business volume in the future, whether this management mode can maintain high efficiency and protect the information security of the company and customers also needs to be considered in advance.

Flat organization brings a wide range of management. In the future, it will be more challenging to balance organizational agility and management effectiveness.

4. The future role of region and headquarters

At present, it is mainly based on the mode of “opening up territory” and regions have greater freedom and discourse power. With the gradual maturity of business layout in the future, it is the key to coordinate the work, standards and directions of multiple regions to continuously improve efficiency.

5. Global Management

With the continuous expansion of overseas business in the future, the construction of overseas team, the establishment of local government relations, and whether the existing management tools (such as enterprise wechat, flybook, etc.) can maintain high efficiency in the operation and management of overseas business also become potential challenges.

At the same time, helping the overseas staff team to understand the corporate culture and values of Wellcome and making the foreign staff have the same sense of identity will also become an important issue for wellcome to promote business globalization.

Weilai, as one of the representatives of the new car making forces, has rapidly attracted many consumers with its unique concept of “user enterprise”. Behind it, we see a series of leading management concepts and practices. After these new car building forces change lanes first, how to overcome the challenges and continue to maintain the momentum of development remains to be seen.

From: BCG Boston Consulting

More reading: China Insurance Regulatory Commission: from January to October in 2019, the amount of insurance of new forces of China’s auto industry is only 53, and the financing amount of new forces of China’s auto industry in 2020 is only 53. BCG & China Foreign Trade Trust: report of China’s trust industry in 2017 (with download) Boston Consulting: how does the auto industry deal with the risk of supply chain? Boston Consulting: how can the auto industry in COVID-19 go beyond the continuous downturn of China’s auto market in the cold winter? New ideas of digital organization transformation of automobile enterprise marketing: c-b-d organization model China Automobile Circulation Association: monthly report of China’s imported automobile market in April 2020 Beijing automobile market analysis in January 2020 China Automobile Circulation Association: sales volume of domestic narrow sense passenger car market will reach 1.045 million in March 2020 China Automobile Circulation Association: 57 new authorized 4S stores for luxury brands in the first quarter of 2020, 41 online 4S stores returned to the Ministry of Commerce: 373000 vehicles exported from January to may 2020 Boston Consulting: build health management capacity, break the health insurance challenge (with download) take data as the engine, step into the fast lane of digital transformation

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