In recent years, competition in the automotive industry has intensified, and companies are competing for market share at all costs. This fierce involution phenomenon has caused the design focus of car companies to shift from the car itself to the degree of intelligence of the car, and more and more intelligent driving functions have been applied to the car in order to attract young consumers. At the same time, with the rise of live broadcast platforms and the guidance of the publicity models of some car companies, more and more leaders and founders of car companies have gone live to attract traffic, in order to shorten the distance with consumers and enhance brand affinity. When intelligence is better than the vehicle travel tool itself, when the flow is higher than the product quality, some inevitable problems are gradually highlighted.
1. The temptation and loss of intelligence
When functions such as intelligent cockpit and advanced assisted driving are linked to vehicle performance in publicity, automotive intelligence has also become the focus and hot spot of more and more car companies' design, R&D and market promotion. From in-car navigation, voice assistant to intelligent interconnection, automatic driving, more and more intelligent functions are transplanted to the car, and as a smart cockpit function that can be actually felt and experienced by consumers, it has gradually become the focus of car companies, and more entertaining mobile phone functions are applied to the car, and smart cars also tend to be "on-board smartphones". However, does this blind pursuit of intelligence really meet the needs of consumers?
Consumer experience and confusion
For consumers, the core functions of a car are always driving and safety. However, too many intelligent features not only do not bring convenience, but can increase the complexity of use. Some consumers reflect that the intelligent system equipped with a new car has many functions, but it often feels not intuitive enough in actual use, and even easy to distract attention during driving, such as the trend of large car screens, so that many physical buttons gradually disappear, some of the functions that are highly related to driving, such as gearing, handbrake and other functions, also need to be operated on the large screen, lack of feedback from physical buttons, which greatly affects the driver's driving experience and is more likely to bring potential safety hazards. In addition, frequent system updates and maintenance also cause confusion and inconvenience for some users who are not familiar with technology.
Functional overload and quality control issues
The excessive pursuit of intelligence may also bring quality control problems. As major automakers rush to roll out more intelligent features, the time for software development and hardware integration has been greatly reduced, resulting in imperfect product testing and quality control. In recent years, there has been an increasing number of complaints about on-board intelligent systems, and according to data from the vehicle quality network, there will be 16,979 complaints related to intelligent cockpits in the industry in 2023, an increase of 41% compared with 2022. Among them, Chinese brand models have the largest number of complaints about smart cockpits, with 8,844 complaints in 2023; The joint venture brand has the largest increase, with an increase of 78% in 2023 compared with 2022; The number of complaints about luxury brand smart cockpits is relatively low. The blind pursuit of intelligent capabilities and the rapid launch of intelligent functions cannot ensure that the quality of the vehicle meets the requirements, and a large number of hardware embedded and frequent software updates also increase the vehicle failure rate and increase the cost of consumer learning. This not only damages consumer trust, but also negatively impacts brand reputation.
2. The rise and challenges of live broadcasting
With the development of the Internet and the popularization of live broadcast technology, leaders and founders of car companies have come to the front of the stage from behind the scenes to endorse the brand through live broadcast. According to the statistics of a platform, as of April 16, 2024, there have been many heads of automobile brands stationed in the automotive industry, among which Lei Jun, chairman of Xiaomi Auto, is the leader in data among many bigwigs. Live streaming has become a new marketing trend for car companies. Through live streaming, car companies try to establish more direct communication with consumers and increase brand exposure and sales. However, does this approach really bring the desired results?
Rationality and impulsiveness of consumers
The mode of live broadcast can indeed attract a lot of attention in a short period of time, allowing consumers to chat "face-to-face" with car company bosses, which can indeed stimulate consumers' recognition of the brand and increase their purchase impulse. However, as a high-value commodity, consumers' purchase decisions often need to be considered and compared over a long period of time. Although live streaming can attract attention, it may also make consumers make irrational purchase decisions on impulse, and it is easy to regret and complain afterwards. For example, the live broadcast of the Xiaomi SU7 press conference has received a lot of attention and forwarding from consumers, but after the live broadcast, the incident of locking the order and not being able to refund the deposit has also frequently appeared in the hot search, which has also affected consumers' recognition of the brand.
The dual role of the leaders of car companies
Although the leaders and founders of car companies can shorten the distance with consumers, they also face huge challenges. Leaders need to have not only professional industry knowledge, but also good communication and presentation skills. However, not all leaders are up to the task. Some examples of poor live streaming performance can have a negative impact on the brand image. For example, Huang Hongsheng, the founder of Skyworth Automobile, said in a live broadcast: "Skyworth Auto can alleviate high blood pressure, improve immunity, and eliminate habitual diarrhea." It has attracted the attention of a large number of people who eat melons, and although Skyworth Automobile issued a statement on the relevant remarks, this incident has also affected consumers' brand recognition of Skyworth Automobile.
In addition, the main job of the leaders and founders of car companies is to control the development of the enterprise and determine the future market trend of the car company, and devoting a lot of time and energy to live streaming may also distract them from their attention to corporate strategy and management, and it is more likely to affect the overall operation of the company.
Third, the vicious circle of price war
In the context of increasingly fierce market competition, car companies have adopted price reduction strategies in order to attract more consumers. From "electricity is lower than oil" to "oil is stronger than electricity", behind these remarks is price competition. In recent years, "price wars" between Chinese automakers have occurred one after another, and market competition has further intensified. Statistics show that the average market terminal transaction price of automobiles last year decreased by about 15% compared with the previous year; From January to April this year, it fell by about 10%, and the cumulative decline in two years was about 25%. At the 2024 China Automobile Chongqing Forum, the controversy between some car company executives around the price war in the auto market also attracted attention because of the "smell of gunpowder". While price wars can lead to short-term sales growth, they are more likely to cause a series of deep-seated problems.
Consumer short-sightedness and brand depreciation
Although price wars can attract consumers in a short period of time, they can also easily lead to short-sighted behavior of consumers. Some consumers may ignore the importance of brand and quality because of the price concessions, which leads to an increase in blindness in car purchase decisions. In addition, frequent price reductions and promotions may also lead to the depreciation of the brand image and the reduction of consumers' trust in the brand, which is not conducive to the sustainable development of the enterprise in the long run. Li Xueyong, deputy general manager of Chery Automobile Co., Ltd., said that it is impossible for car companies not to fight a "price war", which is a market economy behavior, but it is not advisable to sacrifice value as the premise of "price war", and it is necessary to create the best value for consumers in the corresponding price; The "price war" with serious involution has helped Chinese brands continue to rise and realized the value embodiment of Chinese brands in terms of scientific and technological progress and cost advantages; From "price war" to "value war", it reflects the understanding and persistence of long-termism, and only by continuously reflecting product value through technology is the road to the future and long-termism. Now that the "price war" has entered the second half, it is actually the beginning of the long-term pursuit of value.
Profit pressure and innovation dilemma of car companies
The ongoing price war will inevitably lead to the compression of the profit margins of car companies. In order to maintain a low price strategy, companies may have to cut costs, often at the expense of product quality and R&D investment. In the long run, this practice not only damages the competitiveness of enterprises, but also inhibits the innovation and development of the industry. Without sufficient profit support, it is difficult for car companies to invest more resources in technological innovation and product research and development, which eventually leads to a vicious circle for the entire industry. At this stage, the continuation of the price war not only affects the survival of the enterprise, but also hurts the enemy by a thousand, self-damage by 800, through the means of the price war, increase sales, but the actual profit can not be improved, which brings great pressure to the development of the enterprise, but also has an impact on the income of employees.
Fourth, the pressure and dilemma of employees
Under the fierce market competition, the profits of enterprises continue to be reduced, and the employees within the car companies are also facing huge pressure and difficulties. From R&D personnel to marketing personnel to after-sales service personnel, each position is bearing different challenges.
R&D personnel's innovation anxiety
For R&D personnel, the rapidly changing market demand and the high-pressure environment within the enterprise make them have to develop more, more complex, and cheaper intelligent functions in a limited time. In order to catch up, many times the stability and quality of the product have to be sacrificed, resulting in frequent recalls and rework. This not only consumes a lot of human and material resources, but also dampens the enthusiasm and creativity of R&D personnel.
Performance pressures for marketers
For marketers, price wars and livestreaming models mean higher sales targets and greater performance pressure. In order to achieve results, they had to invest a lot of time and effort in marketing and customer service. However, the high-intensity work environment and increasing performance requirements can easily lead to physical and mental exhaustion and even burnout among marketers.
The burden on after-sales service personnel increases
For after-sales service personnel, the increase in intelligent functions and the lack of quality control mean more customer complaints and maintenance work. Frequent software updates and system failures pose a huge challenge to after-sales service. They need to have not only a wealth of technical knowledge, but also good communication skills to effectively respond to various customer problems. However, the high-intensity work burden can easily lead to the loss of after-sales service personnel and the decline of service quality.
Fifth, the way to break the situation: reshape the industry ecology
In the face of the accelerated development of intelligent in the automotive industry, the continuous involution of publicity methods, and the continuous price war, car companies need to re-examine their development strategies, start from consumer needs, and reshape the industry ecology in order to achieve sustainable development.
Return to the essence of the product and improve the user experience
First of all, car companies should return to the essence of products and pay attention to the core needs of consumers. In the development of intelligent functions, we should pay attention to practicality and user experience, and avoid blindly piling up functions. Through in-depth market research and user feedback, we can understand the real needs of consumers and develop products that can truly improve the driving experience, so as to win the trust and recognition of consumers.
Innovate marketing models and enhance brand value
Second, car companies should innovate their marketing models to enhance their brand value. Live streaming, while a hot topic at the moment, is not the only way. Businesses can build deeper and lasting connections with consumers through more diversified marketing methods, such as content marketing, social media interactions, offline experiential activities, etc. At the same time, by strengthening brand building and enhancing the core value and market recognition of the brand, we can be invincible in the fierce market competition.
Reasonable pricing strategy to protect corporate profits
In terms of price strategy, car companies should avoid vicious price wars and adopt reasonable pricing strategies to protect their profit margins. Long-term profitability and sustainable development can only be achieved by increasing the added value of products and brand premiums and attracting consumers who value quality and service. In addition, by optimizing production processes and supply chain management, reducing costs and improving efficiency can also maintain price competitiveness without sacrificing product quality.
Employee care and motivation to improve team morale
Finally, car companies should strengthen the care and motivation of employees to improve team morale. In a high-intensity work environment, the physical and mental health and motivation of employees are of paramount importance. Enterprises should improve employees' job satisfaction and sense of belonging through reasonable work arrangements and incentive mechanisms. At the same time, by providing more training and development opportunities to improve employees' vocational skills and development prospects, we can build an efficient and professional team and promote the continuous innovation and development of the enterprise.
epilogue
The involution phenomenon of the automotive industry is the result of the dual effects of intensified market competition and technological change. However, while pursuing market share and technological innovation, car companies cannot ignore the real needs of consumers and the actual feelings of employees. Only by returning to the essence of products, innovating marketing models, reasonable pricing strategies, and strengthening employee care can we stand out in the fierce market competition and achieve sustainable development. In the face of the challenges and opportunities ahead, the automotive industry needs to rethink and position itself in order to usher in a brighter future.