Michelin takes a multi-brand strategy Expand product line and go multi-brand strategy “Social change, changes in demographic structure, industrial changes, all these factors are not Michelin can change, Michelin is to understand these, according to the guidance of some of the country's policies, changes in accordance with the changes of our customers. We can lead some Concept.†said Mr. Lu Huifeng, Vice President of Michelin (China) Investment Co., Ltd. Philosophy through the product delivery, Michelin knows its way, safe, reliable, durable and other brand image has become Michelin's label, but the high price is also a characteristic of Michelin. Although it is a penny and a piece of goods, how Michelin tires can be used by low-end and mid-level users can also be used. This is a question that Michelin has been considering and is also a customer's demand. Michelin develops different products for different users to meet their different needs. X GUARD series products are developed for low-end and mid-range users. The price is close to the people and the quality is guaranteed. Perhaps in the eyes of most people, there is a contradiction between product performance and price. How to resolve this contradiction, Michelin has already found a solution – technology. "Michelin's products are going to the lower and middle layers. How do we maintain operations? It is also a 'contradictory' for us, but we can solve this contradiction by relying on science and technology. Material technologies and other scientific and technological means are very important, just like a balancing machine. Under the premise of guaranteeing the performance and quality of our products, it is relatively easy to control the production costs.†Lu Huifeng said that the new series of X GUARD has brought together a lot of advanced technologies. Therefore, I think that it is necessary to develop and meet consumer demand. Some consumers need prices that are close to the people. Therefore, there must be a major breakthrough in science and technology. Only in this way can companies develop in a healthy manner. This is Michelin's answer. Indeed, the strategic goal of Michelin in China is not 10 years or 15 years. Therefore, the development of science and technology to meet the needs of more consumer groups is Michelin's response. In the words of Lu Huifeng, it is a multi-brand strategy. Brand strategy is no longer a secret. It is a global strategy. The development of brands in the face of low- and middle-level user groups is also a step in brand diversification strategy, but for Michelin, customers need more gold medals. The Michelin X GUARD series may be the next gold medal. Selling products is selling services Michelin is commendable in addition to products and services. Moreover, with the changes in the market, the value of services currently catch up with the product itself. Selling products is selling services. Although Michelin tire products are famous, the market prefers the customer experience brought about by the value-added services. Michelin is aware of this and is committed to integrating leading distributors, wholesalers, and retailers from selling products to service sales. This is the future trend. "The real driver of economic development is capital, but capital must first respond to the needs of customers. A strong brand is still the dominant force in the market, but branding is more service-building." Lu Huifeng said. Indeed, more and more teams need a professional partner in the development process. They can not only provide products but also provide very comprehensive services. The value of services is increasingly recognized by many people. From the perspective of the Michelin Group, strategic adjustments have also been made. The most direct response is to increase the investment in services, especially in all digital services. Michelin's worry-free travel bus club is a direct reflection of its service to customers. Michelle (China) Investment Co., Ltd. Ms. Li Wenfang, marketing director of the passenger car tire department, told reporters: “Through this platform, users can not only understand the tire knowledge, but also include related services, as well as tires as assets. When running, how to do the most suitable way, and so on, which in itself is a way to improve services." Of course, the service is not as simple as imagined. The Chinese market is complex and the digital service is also a direction and characteristic suited to the development of the market. However, in Li Wenfang's view, the professionalism of service is a common feature and an intrinsic performance of value-added services. No matter how the way of service changes, Michelin will have requirements on the process and will conduct audits on business services. Therefore, when Michelin delivered the value of the product itself, service professionalism was constantly emphasized. Only in this way can good products and good services complement each other. The developing enterprise is a market-adapted enterprise All strategic adjustments are centered on the market. Changes in regulations, industry structures, and vehicle changes will ultimately be reflected in the market. In the face of the market, Michelin needs a transformation and changes following changes in the market. X GUARD is a product specially designed and developed by Michelin for the emerging developing market. It is also designed specifically for the Chinese market. The biggest feature of China's freight market development in recent years is the increasingly obvious segmentation market. Courier, dangerous goods transport, cold chain booming, and active market segments directly affect Michelin's product mix. “We hope that with the new product X GUARD, we can really help our small and medium-sized teams in the freight market, build brand reputation in the market segments we are targeting, and make small and medium-sized teams in the market segments become Michelin loyal users.†Lu Huifeng said. In addition to the industry segmentation, geographical distinction also affects the strategic layout of Michelin. From the perspective of China’s demand, the economic and demographic priorities are still in the east, and the layout of these industries in the east will be strong. In addition to the product, changes in the consumer are also an important part. The emergence of young generation freighters has led to changes in consumption patterns. "A new generation of freighters may be able to accept new sales models and tools more easily. They have a strong ability to accept new things and become a boost to the transformation of the entire sales market," said Lu Huifeng. Indeed, China is a typical representative in this regard. With the progress of society, the younger generation values ​​the digital marketing model, product structure, and product technology. Lu Huifeng believes that this is a period of time when China has spent the industrial reform period. During this period, perhaps the population will decrease, but the quality of the population will increase. Michelin can seize this opportunity to adjust itself and achieve greater breakthroughs. Indeed, adapting to the market has never been empty talk, and Michelin is ready for whatever dimension. Because only by seeing clearly, can we go far and adapt to market changes to be invincible! 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New products! See how Michelin strides forward
As everyone knows, Michelin is the world leader in vehicle tires and has a high reputation in China. Whether it is cars, buses or trucks, Michelin has an overwhelming presence in the tire industry. According to a survey, Michelin's brand awareness reached 95% in China, far higher than other brands. However, Michelin was not complacent, and the better it was, the harder it was. On September 1, 2016, the official release of the listed X GUARD series made us once again feel its continuous progress and broad vision.