Jaguar Land Rover Panqing: Five Core Strategies For High Quality Development

"In 2020, for JLR China, there are five points: the first is the winner plan; the second is Chinese products; the third is the scenario based and user-oriented approach; the fourth is based on China and serves the world; the fifth is the organization facing the future." On September 25, the day before the opening of the Beijing auto show, Pan Qing, global director of Jaguar Land Rover, President of Jaguar Land Rover China and director of Chery Jaguar Land Rover, said in an interview with 21st century economic reporter.

In the Chinese market, from the "7 + 1" strategy in 2017, From "double engine and double innovation" in 2018 to "return to essence" last year, and then to 2020, China's upgrading strategy, which includes five basic points, proposed this year. In the face of the ever-changing market, JLR China has a clear response: after looking at the overall situation, we should seize the most critical nodes to solve the most critical problems.

This year marks the 10th anniversary of the entry of the Jaguar Land Rover brand into the Chinese market. This British luxury brand has a deeper understanding of the Chinese market. Different from many enterprises who only regard the Chinese market as a sales market, as early as 2017, Jaguar Land Rover China put forward the "7 + 1" strategy, committed to building the Chinese market into a global strategic base integrating innovation, R & D, procurement and production.

It was also in that year that Jaguar Land Rover China decided to change the practice of developing many international brands from global headquarters to the end of R & D, and began to implant in China and adjust its practice. "Since 2017, we hope to embed the real needs of the Chinese market and Chinese consumers into the early stage of R & D of each product." Pan Qing said.

The change and adjustment of JLR is still in progress. With the global industrial chain closely linked, the ups and downs of the global epidemic also make it difficult for China's market to be alone. This year, Jaguar and Land Rover will take the initiative to make great breakthroughs in the face of uncertainty, and take the initiative to make breakthroughs in the future.

Pan Qing. Information map

China's three-year war

According to public sales data, JLR achieved 621000 global sales in 2017, an increase of 6.5% over 583000 in 2016. The sales volume in China reached 146000, a year-on-year increase of 23%, surpassing the sales volume in Europe. Since then, the Chinese market has become the world's largest market for Jaguar.

That year was just the beginning of the "7 + 1" strategy put forward by JLR to build the Chinese market into a global strategic base integrating innovation, R & D, procurement, production, products, brands, customer experience and talents.

This strategy has achieved many results. According to Pan Qing, in terms of procurement, from 2017 when there was only a small team, to this year, through 158 suppliers in China, Jaguar Land Rover purchased more than 2500 kinds of parts for use in global products. Despite the impact of the epidemic, the total amount of procurement in China still exceeds 6 billion yuan. In terms of production, the Changshu plant of JLR in China is the first vehicle manufacturing plant outside the UK and one of the most advanced and efficient automobile production bases in the world. In terms of innovation and R & D, there are several organizational teams with different division of labor for the new four modernizations.

In terms of products, JLR hopes to embed the real needs of the Chinese market and Chinese consumers into the early stage of each product development. Although Pan Qing admits that it is a long and systematic process from the R & D cycle to the adjustment of the dealer network, the adjustment of partners and suppliers, and even the adjustment of shareholders, it needs enough patience and determination.

Jaguar Land Rover is laying out at its own pace. At the Beijing auto show, the first domestic new energy vehicle of Jaguar Land Rover, the new discovery sport p300e, made its debut in the Chinese market and will be officially put into production in Changshu intelligent manufacturing base. As the plug-in hybrid version of discovery sport launched at the beginning of this year, the launch of the new discovery sport p300e is also the timely response of Jaguar Land Rover in meeting the demand of Chinese consumers for new energy products.

The strategy of "dual engine and double innovation" proposed in 2018 has changed the situation that only global R & D teams were responsible for innovation in the past. The layout in China emphasizes the application of China's strengths such as human-computer interconnection, and encourages cooperation, sharing and co creation in the application of new technologies.

Last year, in the face of a year-on-year decline in sales in 2018, JLR put forward the strategy of returning to the essence, with the trilogy of stabilizing the situation, restoring confidence and gradually improving, emphasizing the basic skills of JLR.

It can be said that the strategies of the past three years have directly hit the pain points in the development of Jaguar Land Rover, which has largely escorted the development of this market segment in China.

Further deepening of cautious and optimistic strategy

Since the beginning of this year, China has taken the lead in getting out of the influence of the epidemic. The recovery of the Chinese market of Jaguar Land Rover is obvious, and it has also become the stabilizer of its global sales. According to relevant data, since July last year, the sales performance of JLR in China has achieved six consecutive months of double-digit growth. In April and may this year, its terminal retail sales in China increased by 49.5% and 18.2% month on month respectively, returning to the same level as the same period last year.

Pan Qing said that in addition to China, in March to may, the global factories of Jaguar Land Rover have a 3-5 week shutdown cycle. They will resume work in mid May and return to normal in early June. But now, because of the recurrence of the new outbreak, the rhythm can not be carried out according to the previous plan. "JLR's suppliers are mainly concentrated in Europe. In China, we have 158 suppliers to supply all over the world. Therefore, in addition to the relatively stable supply in other parts of Europe, the supply is relatively unstable. " He said.

As the epidemic continues to spread around the world, Pan Qing remains cautious when it comes to the long-term impact. He believes that China's market recovery is only part of the global market. Now, the overall supply rhythm of suppliers is not normal. As long as Xinguan epidemic situation is not over, other countries in the world will have similar production stoppage, so the quantity will not be very stable.

Under the epidemic situation, one of the characteristics of JLR's work in China is that it has been reduced and guarded. Similar to other major automobile enterprises, subtraction is to save costs, such as the cost of purchasing parts and personnel, which are all being reduced. It's what JLR thinks it should do. First, we must stick to the R & D work, because many models have a strict schedule and a large number of tests; second, the global market and customer demand, we must guarantee customer service. In addition, it provides security for all people and their safety.

Pan Qing believes that the background of his performance in China so far is that the reform is not over. JLR is still in the process of system reform and adjustment. Recovery and stability have always been the core points since 2019. And Jaguar Land Rover is basically stable now.

"The data of China's market development is getting better, and" volume "is a bright spot. However, enterprises still need to consider "quality". One of the key points that JLR should emphasize is quality development, including the improvement of sales quality. "

In fact, in the Chinese market, JLR has put forward China's Upgrading Strategy 2020, including five basic points: Winner plan; Chinese products; scene based and user oriented; based in China and serving the world; and an organization oriented to the future. In many aspects, the "1 + strategy" and "7 + strategy" can be extended.

In Pan Qing's eyes, the top priority is to do three things. To be "competitive" and "attractive" are the first two things: Jaguar Land Rover should become the most competitive enterprise in terms of products, service system and talents; it always has strong brand attraction for customers of different ages and backgrounds, including the business model, which makes JLR the most attractive employer.

Building a Chinese base is the third important thing, which is also one of the strategic objectives put forward since 2017. "China is the most qualified place to supply the world. At this stage, we are talking about supply. But in the future, China can provide science and technology, talent and export system. (Editor: He Fang)

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