From April 18th to 20th, 2016, the National Auto Parts Trade Fair and the National Auto Parts Sourcing Fair were grandly opened at the Chengdu New Century International Convention and Exhibition Center. Pay attention to the industry ecology, listen to the sound of the car after the market, this network sets up the news live broadcast dialogue industry elite, insight into the industry development future. The following is the text of Zhou Laichun, deputy general manager of Qingdao Jihong Auto Parts Co., Ltd.:
Zhou Laichun, deputy general manager of Qingdao Jihong Auto Parts Co., Ltd.
HC Network: Dear friends, Hello everyone, here is the site of the 2016 Chengdu National Auto Parts Association. Here is the exclusive live broadcast of the “Guangdong Sanhe Chemical Technology Co., Ltd.”, we are very honored to have the Qingdao Jihong Auto Parts. Mr. Zhou Laichun, deputy general manager of the company, please first say hello to the netizens.
Zhou Laichun: Hello! Hello everyone!
HC Network: We know that Jihong is doing brake pads. Can you tell us about the current situation of the company?
Zhou Laichun: Last year, our company's business grew rapidly, mainly targeting the domestic market and export market. The domestic market has grown by 100% and the export market has grown by around 50%. Although the overall environment was not good last year, our company's growth is still very good, so we are still very optimistic about the brake pad market.
HC Network: The company has such a high-speed growth last year, then what is the coverage of our domestic and foreign product market? Can you introduce it?
Zhou Laichun: We are doing relatively well in the northwest and southwest markets in China. Our company has always insisted on speaking with quality. Like mountain areas, and where road conditions are not good, the requirements for brake pads are relatively high. We have an advantage in terms of quality, so we are doing better in the northwest and southwest markets than in other places. In addition to the northwest and southwest, similar to the developed areas like the east, we also have continuous coverage, such as Jiangsu, Zhejiang and Shanghai as well as Guangdong and Fujian. Foreign markets are now mainly targeted at developed countries. Good quality requires good raw materials. Our company's key raw materials are mainly imported from large companies, so our cost is relatively high. So similar to Africa, we do not have many advantages in these underdeveloped countries in Southeast Asia. High-end markets such as North America, Europe, Japan and South Korea have relatively advantages. Now the development in the North American market is very strong.
HC Network: Jihong is mainly doing ceramic brake pads. For the exhibition, is there any technical upgrade on the ceramic brake pads?
Zhou Laichun: At the beginning of our establishment, we have had two products in the domestic market: one is a low metal formula and the other is a ceramic formula. The ceramic formula is mainly for ordinary cars, such as heavy cars, high-end cars, like the Audi Q5, BMW X5, SUV, etc. This piece is not very advantageous. However, in Japan, South Korea, Volkswagen and other ordinary cars, the use of feedback is very satisfactory. In response to this situation, in 15 years, the company has developed three more products. Among them, European ceramics are aimed at European and American heavy-duty SUVs, and the development is the high-end market.
HC Network: In recent years, the market competition is very fierce. Does the company have the idea of improving competitiveness and influence through the Internet?
Zhou Laichun: We have considered this. At the beginning of the 15th year, we also made plans. Because now whether it is mobile Internet or PC-side influence is very large. We also look at this market and want to promote our brands and products through the Internet.
HC Network: Now brand manufacturers, manufacturers are very focused on service, after-sales service is becoming more and more important, what kind of layout is Kehong serving?
Zhou Laichun: First of all, we are a production-oriented enterprise. In the production of this piece, we will take care of it to ensure the quality of the products and guarantee the foundation of the service. After the product is sold, if there is a problem with the quality of the company's products, we will pay unconditionally.
HC Network: As you just mentioned, Jihong's brake pads have grown faster in the past year. We also want to ask you how to do it under such a severe market situation. In addition to the good quality of the products, there are also marketing methods to achieve such a growth rate.
Zhou Laichun: I think if you want to exclude quality, blindly marketing. Then it became a thirst for drinking, just a short-lived prosperity. Because the brake pad brand is too much. Especially in the past few years, there may suddenly be a brand that is all the rage, whether it is at the trade fair or on the Internet, the propaganda is very big and the growth is very fast. But the result is often that there are no two years, and these companies have begun to decline. Although our company was not established for a long time, it will be sold in China for three or four years, but in this circle, everyone knows about us. When I went to understand our own brand as an audience, the information they gave was also said that the quality of the products of Jihong is really good. Now the state also advocates the spirit of artisans in product quality, and our company has always upheld this concept. As a manufacturing company, we make products that are specialized. For the sale of this piece, we still use our channels to promote our products. What we can do is product quality. Moreover, for the brake pads, in fact, the products that are originally installed in the car are the things that are really used, not the decorative parts placed on the car, so the quality of the products is the most important.