The rural market is expected to be activated or become the main force

At present, in the rural areas in the eastern coastal areas, the standard of living has already become urbanized. In the strong promotion of the "new countryside" construction, including the continuous improvement of infrastructure such as roads, the automobile's running on the country's cement roads is by no means a rare sight. At present, in the first-line market, local brands have a small living space. The second and third-tier markets (or lower-level markets) are their main battlefields. After the foreign brands’ marketing channels continue to decline, a more fierce battle is inevitable. It is unclear who the winner is.

It is in such a market competition that the introduction of stimulus policies such as "cars going to the countryside" that favors the development of the rural automobile consumption market makes domestic vehicle manufacturers' OEMs seem to see a broader market space because of the rural market. Consumer demand was effectively released after this round of policy guidance. In the next 5 to 10 years, with the sustained development of the economy and the acceleration of the pace of reforms, the rural market will most likely become a "big blue ocean" that car companies are competing to chase.

In view of this extremely likely future competition, the 21st Century Automotive Research Institute and Gasgoo.com launched a one-week industry survey focusing on the topic of "Future Competition for Local Brands and Foreign Brand Rural Markets." The main body of investigation is the narrow market for passenger cars in rural areas, including cars, SUVs, and MPVs.

As of August 20, a total of 931 people in the industry participated in this round of polls. Based on the results of the polls and interviews with some industry players, consultants, industry analysts, and other industry insiders, it was initially concluded that the rural market is bound to become a battleground for the soldiers, and the local brands have a very good chance of winning.

Neglected market

The survey results show that up to 60% of industry insiders believe that in the next 5 to 10 years, the demand for auto consumption in the rural market will explode, with only 24% of industry insiders denying this, and another 16% of insiders are Said "hard to say."

Since last year, in the face of the severe impact of sweeping the global financial crisis, the Ministry of Finance, the Ministry of Commerce, and the Ministry of Industry and Information Technology have jointly deployed nationwide home appliances to the countryside, focusing on deepening rural consumption and expanding domestic demand. According to calculations, home appliances to the countryside will be implemented in the country for four years, and home appliances can be sold to the countryside 480 million units, a total of 920 billion yuan can stimulate consumption, the rural market, the huge consumption potential is evident. Following the implementation of the “Home Appliances to the Countryside” policy, in order to revitalize the manufacturing industry and further stimulate consumer demand in rural areas, the “automobile to the countryside” policy was launched, and it is expected to drive the sales of millions of automobiles, of which the sedan and other narrow-minded passenger vehicles will occupy A certain percentage, local brands benefit a lot.

According to a survey conducted by Xinhuaxin in April 2009, nearly 60% of respondents in rural households will consider buying cars because of the launch of the “car to the countryside” policy, and the preferred model is a car.

As one of the effective ways to expand domestic demand and accelerate the transformation of development methods, the rural market will be nothing but a new driving force for China’s economic development. And when farmers’ interest in new things and “bigger” consumer goods is growing, it also opens a window for domestic automakers – a potentially inestimable market.

What are the driving factors that drive the consumption of cars in the rural market, which looks like a bright future? Poll 2 from the survey showed that “increased farmers’ income levels” were considered by the industry’s 32% drivers to be the largest driving force, and that “transport facilities” was the second most supported factor, with 21% of the votes cast. In addition, the percentages of votes for "government policy support" and "enterprise launch of appropriate products" also reached 19% and 17% respectively. "Car credit promotion" has not been widely accepted in the industry at this stage. As the main driver that can promote the development of the rural market, the proportion of voting is only 7%.

According to the survey data released by the National Bureau of Statistics, the per capita cash income of farmers in the first half of 2010 was 3,078 yuan, a year-on-year increase of 12.6%, and the growth rate increased by 4.5 percentage points. After deducting price factors, the real growth rate was 9.5%, and the increase rate increased by 1.4%, exceeding the growth rate of urban residents' income by 7.5%; the real growth of farmers' consumption expenditure was 8.5%, which also surpassed the level of 7.2% of urban residents. In some rural areas in the eastern coastal areas, the income level of farmers has increased even more rapidly. The data show that in 2009, the per capita income of farmers in Zhejiang Province exceeded RMB 10,007 in the province's provinces and districts. In the first half of this year, it continued to maintain rapid growth. Farmers’ cash income reached 7311 yuan, an increase of 13% year-on-year. The per capita cash income of Jiangsu farmers in the first half of this year also reached 5426 yuan, a year-on-year increase of 13.5%. In areas such as Guangdong and Shandong, the per capita cash income of farmers exceeded the national average in the first half of the year, and the quality of life was further improved.

The main position of own brand

It is understood that the goal of increasing farmers' income this year is more than 6%. Judging from the current completion situation, it is no longer a problem to complete this goal. Farmers' income this year will continue to grow rapidly in recent years. At the same time, the relevant state departments are still conscientiously implementing the decision-making and deployment of the central government, actively building a long-term mechanism for increasing farmers' income, and forming a good situation in which farmers' income continues to grow rapidly.

“As farmers' income levels increase, the concept of consumption will naturally change. It is common for conditional rural families to consider buying cars as a means of transport instead of causing sensation in the entire village.” A long-term concern for second- and third-tier markets An industry veteran of changes in consumer demand said in an interview with Gasgoo.com that "In the past few years, the rural changes have been really large. In 2006, when I went to a township in Jiangsu to inspect the layout of a local brand, the roads were gravel. The paved pits are very bumpy. I was invited to participate in a seminar earlier this year. I did not expect that the cement road has been fully covered by the rural traffic network. Basically, all the entrances to the farmers' gates can be accessed directly by large passenger cars."

According to the anonymous source, in areas with rapid economic development, especially in rural areas within a radius of 30 kilometers from the city, the number of cars owned by every 100 rural households is close to 10 vehicles.

According to statistics, the Ministry of Transport announced in 2008 that it will further increase road construction efforts and focus on the main skeleton of the national highway network, “broken roads”, expansion road sections and rural roads. Among them, it was explicitly mentioned in the construction of rural roads that the implementation of the “five-billion-yuan project of rural road construction” was initiated to ensure that by 2010, the country’s towns and villages will basically realize oil (cement) roads, and all conditions in the east and central regions will be established. The village is connected to oil (cement) roads, and the western region basically realizes the conditions for establishing village roads.

After continuous construction in the past two years, the task of the Ministry of Transport at this stage has basically been successfully completed. Some rural villages that meet the conditions have basically achieved the goals of “the village oil road” and “the households access the cement road”. This has laid a solid foundation for the hardware of cars and other automotive products.

It is based on the above-mentioned two factors of “increasing farmers’ income level” and “perfect transportation facilities” that nearly a year and a half after the implementation of the “automobile to the countryside” policy, the auto market has played a significant role in promoting and leading the market.

In addition, another major factor that cannot be ignored is that OEMs of OEMs, especially local brands, have tailored their models to meet the needs of farmers in rural areas and have stimulated potential farmers' consumption to a greater extent. The buying enthusiasm of the group. According to the strategic layout of some car companies, local brands including Chery, Lifan, and Great Wall have taken the rural market as an important strategic base in the future, trying to “enclose the city with the countryside”.

"According to sales data from the terminal market, car models with prices ranging from 40,000 to 50,000 yuan should now be more popular in the rural market." The head of the marketing department of a local brand pointed out to Gasgoo.com. The prices are unbearable for most foreign brands."

Then, in the rural market, who will win the domestic brands and foreign brands? According to the results of the survey 3, 78% of people in the industry think that local brands will have more opportunities, and the number of votes that support foreign brands to win is only 4% of the total votes. It can be seen that in the next 5 to 10 years, In the market competition that may be triggered in the rural market, local brands are widely viewed in the industry.