Product positioning has not kept pace with market demand

        In the golden autumn of September, dongfeng has not stopped the downward trend. At this point, from its become a wholly owned subsidiary of well-off shares, has been half a year. In September, Dongfeng Well-off Passenger Vehicle - Dongfeng Scenery fell 30%; From January to September, dongfeng scenery dropped by more than 43%. Overall, Dongfeng off the first nine months of a decline of nearly 20 percent. Since the reorganization of Xiaokang In April, Dongfeng Has become a wholly-owned subsidiary of Xiaokang, and Dongfeng has become a second shareholder of Xiaokang.

       Duan Wei, deputy general manager of Dongfeng Xiaokang, said in an interview at the Chengdu Auto Show that the restructured Dongfeng Xiaokang will benefit from overall resource planning, business direction and development space, realize resource sharing, improve efficiency and reduce costs, and will continue to expand and strengthen to enhance its core competitiveness. But from the actual situation of dongfeng well-off, its performance is not satisfactory.

As for Dongfeng Scenery, Zhang Xiang, an auto industry analyst, believes its product positioning has failed to meet market demand. In the early days of the epidemic, Dongfeng Scenery said: "The 100,000 yuan car model may grow this year, and the company is deeply engaged in the 100,000 yuan car market." Dongfeng believes that the sudden outbreak of the epidemic does exacerbate the downward trend of the car market, but there are also "huge opportunities", but the poor sales predicted the outcome. Ren Wanfu, an auto analyst, said: "The 100,000 level market is the most competitive and it is not easy to get a piece of the action."

For Mr Zhang, the car market has changed dramatically. After the market segment, with the upgrading of consumer demand, people tend to take care of one demand rather than several needs when choosing a vehicle, and dongfeng scenery is getting worse because it does not change along with it.

The main model is difficult to highlight

        Dongfeng xiaokang also had a moment of highlight. In 2016, its sales reached a peak of 280,000 vehicles, leading dongfeng's own brand, but it has since fallen all the way. For its long-term decline, in the view of Ren Wanfu, Dongfeng well-off in mixed after the reform did not rejuvenate, and investment, accumulation, reform intensity and other related, there are many problems to be solved. Another industry related personage tells China Car net, the decline of Dongfeng scenery and even the "four winds" of Dongfeng is related to the early years of Dongfeng Company to take the core resources to do joint venture, leading to the hollowing out of the group after the dissolution of the RESEARCH and development center.

For this reason, the latter autonomous strategy has not formed a very clear and unified core path, the person said. Although Dongfeng later integrated research and development centers, but in the passenger car sector has been a lack of roots. In the end, it resulted in a lack of technical accumulation. Later, sifeng's technologies were basically from the backward platform of the joint venture company.

As the main model of Dongfeng Scenery, Dongfeng 580 has reached the peak of 20,000 units per month, but now the monthly sales are only in thousands. When Dongfeng Scenery 580 was first listed in 2016, its sales soared, even surpassing Jilin Boyue which was listed at the same time. In the middle and late period of 2017, Scenic 580 started to go down, but Jilin Boyue went the other way, rising all the way and still ranking top in SUV list up to now.

         From zhang xiang's point of view, geely Boyue has been improving its own technical level, increasing r&d and technical investment according to market changes and demands, and keeping up with consumer hot spots, so the sales volume in the later period can always go up. Ren wanfu said: "there are a lot of 'flash in the pan' hot style products, the quality of product sales is the enterprise investment, accumulation and other comprehensive strength of the embodiment, research, production and sales of any link problems will lead to sales decline.