Commercial Vehicle Industry Intensifies Competition, Marketing Network Wins Future

After years of intense competition and the challenges brought by China's accession to the WTO, domestic auto companies have gradually matured. Through collaboration with foreign partners, Chinese passenger car manufacturers—especially in the car segment—have aligned their products and services with international standards. While joint-venture brands still dominate the market, autonomous brands have begun to stand out. In contrast, domestic commercial vehicle companies are still in a phase of transformation. Although product quality continues to improve, their service models and marketing strategies are slowly catching up with those of the more established automotive industry. Last year, Jianghuai Automobile introduced the concept of "car business Singapore," pioneering the S-shop model from the passenger car sector into the truck industry. This move sparked a significant shift in how commercial vehicles are marketed and sold. Commercial vehicles, particularly trucks, are often viewed as "money-making tools" rather than consumer products. For many years, the standard for trucks has been focused on performance and cost, while support services, marketing, and customer experience were often overlooked. These aspects are considered core strengths of the passenger vehicle industry but have traditionally lagged in the commercial vehicle sector. However, the competition in the commercial vehicle market is even fiercer than in the passenger vehicle segment. In the first half of this year, several major companies such as JAC, Foton, Dongfeng, Yuejin, and Liberation launched new products like the Jun Bell II, Kang Ling II, Liang Jian, Ouma, Xiao Bawang II, Shuai Hu, Aowei, King Kong, and small card models. The increasing number of new products has led to a growing issue of product homogenization, making it harder for individual brands to differentiate themselves. As a result, price reductions and promotional campaigns have become less effective. In this context, well-developed and efficient terminal networks have become increasingly attractive to consumers. Therefore, building practical and effective marketing networks has become a critical challenge for commercial vehicle companies. Currently, many companies are starting to recognize the importance of their marketing networks. In addition to JAC, Dongfeng Commercial Vehicle integrated its marketing network earlier this year, merging non-traditional service networks with its truck sales channels. This effort aims to create a unified platform for management, sales, and branding, forming a comprehensive marketing system within the broader Dongfeng Group. Industry experts believe that integrating sales networks is a proactive response to market changes and an innovative approach to marketing. While the pace of integration is still early, more companies are expected to follow suit in the near future. JAC’s model stands out as a successful example. Its marketing network is already quite advanced compared to most competitors. From the beginning, JAC built an independent marketing system. By last June, it had completed nationwide coverage, including all 31 provinces, cities, and autonomous regions, with over 170 outlets. This enabled JAC to achieve its goal of “traveling across China.” After establishing a strong network presence, JAC focused on improving the quality of its terminals. In 2003, when others were still expanding distribution points, JAC realized that truck terminals should offer more than just sales—they should provide diverse services similar to the 4S stores in the passenger car industry. This idea was initially met with skepticism, but two years of implementation proved its success. Liu Xiang, a logistics company in Beijing, noted that after implementing the 4S model, the integration of purchasing, maintenance, and after-sales services made it much easier for customers. Service quality improved significantly, and the overall customer experience was greatly enhanced. Buying a truck could now feel like a luxury car experience. JAC has since expanded its 4S store network across the country, opening over 50 locations in three years and aiming to exceed 70 by year-end. These stores not only enhance brand image but also serve as powerful marketing tools. In 2022, JAC was the only major automaker among 14 national companies to maintain profit growth. In the first half of this year, it outperformed the industry average by 5 percentage points despite slower overall growth. Experts agree that while the 4S model is well-established in the passenger car industry, it is still relatively new in the truck sector. However, JAC’s implementation shows that it can bring significant benefits, including better brand recognition and long-term corporate development. JAC’s marketing network model has introduced a fresh perspective to traditional approaches. As competition intensifies, the battle for superior marketing networks will become a central focus. Companies that find the most effective strategies will likely emerge as winners. In this evolving landscape, the competition for marketing networks is set to become even more fierce.

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