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As a domestic tire enterprise that has been “going global†for a long time, Shandong Linglong Tire Co., Ltd. (hereinafter referred to as “Linglong Tireâ€) is making its own “acceleration†in the tire market.
At the end of March, Shandong Zhaoyuan was full of springtime. The exquisite tire office building came in endless streams. Foreign faces can be seen everywhere. They are loyal customers from overseas. Every year they come to exquisite and take a few trips to become a habit that they cannot be moved. In the past 2012, the Group's sales revenue reached RMB 20.1 billion, and foreign exchange earned through exports reached nearly USD 1 billion. The tire company also achieved a 19.47% year-on-year increase in output. In the just-concluded first quarterly ordering meeting, Deloitte’s overseas marketing team exceeded its target. With regard to the established sales target, for the accomplishment of the full-year target, everyone laughed and said “full of confidenceâ€.
As early as the 1990s, exquisite tires have begun to explore the market to open the door to the country, and the time for the official opening of the global business and China's accession to the WTO almost synchronized, from the first dozen countries to today's products sold in more than 180 In the countries and regions, the product line has expanded from the only biased tires at the beginning to a one-stop sourcing base with thousands of specifications and models. Since 2010, the company has passed the quality management system qualification review of many of the world's top ten automotive manufacturers, successfully entering the global supporting system of GM, Ford, India Tata, Russia Renault Nissan, Fiat, Brazil Modern and other automotive suppliers. After more than ten years of intensive cultivation, Linglong tires have a wide range of overseas markets, many exporting countries, and a full range of overseas product development characteristics. The author hopes to analyze in depth, and may be beneficial to other national autonomous enterprises in China.
Take the chess piece abroad
In the end, any national brand faces a common problem - how to realize the globalization of national brands across national borders?
More than a decade ago, Linglong Tire was only an unknown small factory in Shandong. Its semi-steel radial tires and all-steel radial tires were also just off the assembly line. The Group’s output value was just over one billion threshold, and it is a major domestic tire manufacturer. In contrast, not at all, but exquisite people at that time have been keenly aware of the importance of overseas markets. The success of overseas markets is related to the survival and development of exquisite tires in the future, and the organization of elite marketing personnel to lay the curtain for overseas scientific layout. Pull it away.
Over a period of time, especially since China’s accession to the WTO, people in the country talked about internationalization and globalization, and talked about the lack of national industry and independent brands. Some people even believe that under the weight of international brands and international capital, domestic enterprises have lost the opportunity to create national brands. Under the background of China’s accession to the WTO, the national industry’s independent brands are narrow, and under this trend of thought, many The national brand was captured by foreign brands.
Exquisite people's vision and strong national consciousness once again demonstrated their uniqueness. Under the influence of many foreign brands, the exquisite people have always been unmoved by the olive branches and inducements. They picked up the banner of Chinese national tires' own brands, set up overseas marketing departments and overseas supporting departments, and deployed talented personnel to form professional teams. Within a short period of a few years, they successfully opened up the situation according to the strategic deployment at that time, and the performance was all the rage and shocked the industry.
During the six years from 2002 to 2008, the company achieved a leap from 1 billion to 10 billion yuan in output value, and in five years from 2008 to 2013, it strove to a new level and achieved a breakthrough of 20 billion yuan in output value. When talking about exquisite speed, industry experts said that the most important reason for the success of exquisite tires lies in their adherence to an independent and independent development path, adherence to research and innovation, and science and technology.
In the tire market with strong foreign brands, Linglong Tire not only created its own brand, but also ranks among the top 20 tires in the world and the top 5 tires in China with solid strength, providing valuable experience for the national industry in how to compete with world brands. While at the same time, ZLN has accumulated valuable experience and gained more self-confidence when it comes to reaching world-class brands at zero distance. Under the trend of increasingly homogenous product quality, brand building has been promoted to a strategic height and the pace of comprehensive internationalization has been accelerated.
Internationalization speed
As the leading brand of Chinese tire exporters, in April 2011, Linglong Tire debuted at the 14th Shanghai International Auto Show. On the international stage in which the media gathered and the world’s leading automakers arrived on the scene, Delicate tires shouted “China The world's slogan, and announced to the world in 2011 as the first year of internationalization of exquisite tires. In the wake of applause, Delicate has increased the horsepower of international development. Immediately, he participated in the evaluation of the international tyre evaluation authority, the Finnish tyre world in summer, and ranked fourth with a score of 7.6 points, which was in line with the two leading brands in the world and became “the best performing Chinese tyre in previous testsâ€.
At the end of August of the same year, Linglong Tire broke the convention and moved the 2011 annual supporting work seminar to Bangkok, the capital city of Thailand. This made the Deloitte Tire related auxiliaries and middlemen realize that Linglong Tire constantly improves its self-assurance in the process of international expansion. In order to be able to provide adequate supply for a large number of supporting manufacturers, the company has already begun to "slowly attack the city." In November 2012, the groundbreaking of the high-performance radial tire project of the Thai subsidiary and the establishment of a production base in Thailand was the basic requirement for the global expansion of the exquisite tire industry, and it was also a strong support for the creation of an exquisite international brand image. Wang Feng stated that “Thailand’s project is the first overseas production base project for Linglong Tire and shoulders the arduous task of exquisite tire processing and manufacturing globally.â€
In fact, long before the internationalization strategy was officially released, Linglong Tire has been sparing no effort in the strategic layout of the brand's internationalization.
Subsidiaries have been set up in Beijing, Shandong, Dezhou, and Liuzhou, Guangxi to make full use of local resources and locational advantages to reduce logistics costs and increase distribution and supply efficiency. While optimizing product structure, they have also solved the impact of capacity constraints on company development. Bottleneck problem.
At the headquarters in Zhaoyuan, Beijing, and North America, a technology center will be set up. The European technology center will also be put into use this year to build a large R&D system that will radiate the world and form a “three-in-one†long-term development strategy based on companies, covering the whole country, and looking at the world.
Two years later, Linglong Tire's internationalization strategy has achieved remarkable results. Overseas trades spread all over the world. In 2012, overseas sales receipts increased by 13.7% over the same period of last year, and historic breakthroughs were achieved. According to the "China's 500 Most Valuable Brand Rankings" published by the World Brand Lab in 2012, Linglong's tire brand value exceeded 10 billion yuan, ranking first in the domestic tire industry.
Exquisite tire engineer Xia Xunmao revealed to the author that the secret of the success of Linglong tires' internationalization is that it has always insisted on eclectic and talented people. The quality of its R&D team is undoubtedly the No. 1 in China and world-class. Nearly 800 people in the R&D team have engineers who have more than 30 years of experience in the tire industry and foreign experts who have worked in the world's top three tire companies. It is the internationalization of talent represented by R&D personnel that has accelerated the internationalization strategy of the company.
For the future, Wang Feng, general manager of Linglong's tires, is well-versed in his plan: By the end of the “Twelfth Five-Year Planâ€, he will strive to achieve a total tire production of 50 million units, making Linglong Tire an international tire company with world-class technology and management.
Linglong tires have achieved a breakthrough in overseas markets
In March 2013, Linglong 's overseas marketing department was busy. After fully realizing the limitations of the “price war†in the domestic market, Linglong Tire has been at the forefront of the domestic industry with a more sensible strategy and a steady pace in the development of the overseas market where “militants must fightâ€. The overseas development of Linglong Tire Road, will undoubtedly become a benchmark for Chinese national independent brands.