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Shanghai Volkswagen Uses Familial Strategy to TakeOver the Market of Third-tier Cities


After SGM brought in Cruzehatchback, SVW launched familial strategy to answer at once. With SVW Lavida Family entering into the market, there have been 6 models becoming the member of family. Mr. Jia, the general manager of SVW sales company, said to report of National Business Daily, ¡°If relying on the growth of single model, we would fall into price competition. The future ideal development direction is to create more detail market segmentation according to different demands.¡± It is said that familial strategy will be adopted in other models of SVW.

Mr. Jia also said, ¡°The market of A-level is the largest segment market, occupying 38% of total share and also the fastest growth market. We hope to provide more choices to customers and won¡¯t regard A-level market as a ¡°single market¡±. In accordance with the data of Gasgoo, the year-on-year growth of A-level is 19.3% and sales data is more than 5 million from January to September. SVW already has created market segmentation in A-level market by New Santana, Lavida etc. covering A, A-, A market.

According to the plan, the sales target of SVW this year is 1.5 million and will be 2 million in 2015.

SVW chooses to use Lavida as a point to launch its familial strategy in A-level market. The sales data of Lavida is 330 thousand in first 10 months, occupying one fourth of total sales in A-level market.

SVW also decides to apply this strategy in other markets, such as B-level and SUV. The main idea of SVW development path is how to fill up blank market. It is said SVW will release a brand new car between A and B- in next 2 years and launchpremium car plan which has been prepared for years. The reporter from National Business Daily said there will be 7 new models in next 2 years, including brand new Passat, brand new Lavida, brand new Touran, brand new Tiguan, C-level, B-level SUV and A-level.

According the plan of SVW, the sales will reach 2 million. To achieve the target, capacity bottleneck is the main problem. The factory in Ningbo has been put into production in 24th, October. And the factory in Changsha will be put into production in 2015, whose capacity will be 300 thousand per year. The other problem to reach the target is sales strategy. The third-tier, fourth-tier and fifth-tier cities have become new market for Shanghai SVW. It is said there will be 1000 4S shops totally in the next year.



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