Zhongce Rubber Ge Shengli: Globalizing Product Intelligence

- Dec 24, 2019-

At the 2019 Shanghai Auto Show, Ge Shengli, passenger car product manager of Zhongce Rubber Group, spoke with Aika. Ge Shengli said that as an old state-owned enterprise at this Shanghai Auto Show, we will intelligentize and globalize our products, embrace the Internet, and promote product quality to the world.


The following is a record of the conversation:


Question 1: As the number one Chinese tire company in 2018, Zhongce Rubber has a long history of development. Can you briefly introduce users to Zhongce Rubber Group? And introduce its products.


Ge Shengli: Zhongce Rubber's revenue last year was 26.7 billion yuan, ranking first among domestic tire companies and tenth globally. Zhongce Rubber was a state-owned enterprise established in 1958. At that time, it was called Haichao Rubber Factory. At that time, it only made rubber shoes and tires. By 1971, it had set up a branch factory in Zhejiang Jiande to specialize in truck tires. Automobile tires; By the 1980s, Zhongce Rubber started the research and development of all-steel radial truck tires and passenger car tires. It took in foreign resources relatively early in China. In 1992, Hangzhou Rubber Plant and Hong Kong Zhongce joint venture, Hangzhou plant and Hong Kong Zhongce joint venture changed to Zhongce Rubber, and two tire projects in Hangzhou Economic and Technological Development Zone resources, one is all steel, the other is a car.


The development of all-steel is faster than that of cars. The total amount of rubber used in the production of all-steel tires ranks third to fourth in the world. The tire brands of Chinese brands are not expensive and the revenue is not high, but the consumption of rubber raw materials currently ranks third. ,fourth. Last year, a total of 50.5 million tires of various types were produced. I am mainly responsible for car tires. My responsibility is sales, mainly tracking social products, patterns and patterns, and tracking how information is passed to factories to develop products;


At present, the production capacity of passenger tires of Zhongce Rubber Group has actually reached about 40.5 million, of which 8 million are produced in Thailand. Thailand also has a factory. It should have a production scale of about 32.5 million in China. Rubber comes out. After all, about 330 days, the long holiday will remove about 120,000 production a day, and it is currently sold to more than 160 countries around the world.


China ’s car tire repair market last year made 11.7 million, and this year ’s target is 13.8 million. The situation in January-March is still quite good. The automotive market is not very good, but the tires have to be replaced when the time comes. Completed sales of 3.51 million, especially the 1.50 million RE car repair market in CRRC car tire repair market. According to the information I got, the second place was 1.02 million, and Zhongce Rubber was still in the lead; 350 this year The increase of 10,000 articles compared with the same period last year is 20%, which is still optimistic about the entire market, and this is probably the case for factories.


Question 2: In people's impression, tires are difficult to link with insurance business as consumables. People who have purchased auto insurance know that there is rarely a type of tire in car insurance. As far as I know, Zhongce Rubber Group launched the first tire insurance project of the tire manufacturing enterprise of the People's Insurance Group of China as early as 2016. Can you tell us about this insurance?


Ge Shengli: There are several reasons for launching tire insurance: First, to solve the problem of consumer pain points. Now the factory does not settle claims and complaints are more, which brings anxiety to consumers. I think the factory has an obligation to help consumers solve their worries. In addition to its own design, Zhongce's products are also sufficiently confident in materials and strength. Through tracking, we found that our three guarantees for tires are still acceptable.


In 2016, we cooperated with PICC to launch version 1.0. Up to now, version 3.0 has been launched. Version 3.0 can be paid without anyone in the factory. Consumers buy tires and upload information directly to the insurance company. The tires have problems. The retail store can directly compensate the insurance company based on the picture information. Fast service from insurance companies, nationwide warranty, is responsible everywhere in the country. At the same time, 3.0 added several contents. First, there was a compensation of 100,000 yuan when a bulge occurred. If a rescue is needed after the impact, a 500 yuan trailer will be arranged.


Third, in 2019, the 3.0 version of insurance included commercial tires, that is, taxi tires were also included in the insurance coverage. Problems occurred within three months of loading the taxis and commercial tires. According to the 20% discount at the factory Tmall store, private cars are One year, the taxi was paid for three months, and he was compensated at 20% off the price of Tmall. This practice also won unanimous praise from retail stores and consumers.


Last year, the head office made 1,100. Except for small commercial vehicles, about 1.1 million were insured last year, but there were less than 2,000 accompanied, accounting for 1% of the insured amount and one thousandth of the sales. It is within the tolerance range, and the effect is to give channels, consumer brand recognition, and consumer experience is beyond doubt.


Question 3: You mentioned retail stores in the insurance category just now. What is the current status of retail store distribution? What are the future plans?


Ge Shengli: Although Zhongce Rubber is a traditional old state-owned enterprise, it was recognized earlier that embracing the Internet is very important. Relatively speaking, the channels of retail stores and factories are flattened through small programs on the Internet. Basically, factories have What information retail stores can reach directly.


At present, there are about 650 top-level image stores in the car space nationwide. The image stores have door openings, and there are not so many simple functions. The main business is fast tire repair. And the more demanding image stores should be about 5,600; users who use our APP directly communicate with the factory about 13,000, these add up to more than 14,000 relatively stable customers.


How much can these customers bring us? The benefits are many. For all the tires with explosive specifications in the tire store, online sales can basically achieve about 45% of the total sales by promoting on the APP on holidays and weekends.


Second, we care about retail stores, including tooling, management, and even monitoring to improve their management level. This is closely related to retail stores. Zhongce Rubber's agents are different from other agents. Other agents are sold directly to retail stores, and our current agent is directly transformed into a warehouse distribution center. We will sell tires to all at a uniform price. Retail stores, because the prices of online operations are the same after all, it is impossible to make them different. This channel provides us with considerable protection.


Question four: With the development of the tire industry, tire manufacturers have added some new technologies to the tires. Are there any new technologies of their own in the new technologies? What changes will these technologies bring to driving safety and texture?


Ge Shengli: Our technical investment should include equipment update and technical investment every year, and we emphasize continuous update. Currently working on several projects: management system for driving safety TBMS, tire implantation chip, tire inner layer, air pressure, and nuclear dynamic management. Some parts of the tire implantation chip are already being tested to ensure the entire process safety monitoring.


Question 5: Is this technology already formed on the tire?


Ge Shengli: Yes, there is a chip in the tire. After the chip is implanted, the chip can feedback information, air pressure, mileage and other issues, and the number of revolutions can be monitored. Last year, Zhongce Rubber won the first prize of Zhejiang Province Science and Technology Progress Double A tire, the tire's European standard AA, the wear index and friction index are AA, and it has won the first prize of Zhejiang Province Science and Technology Progress.


Question 6: Actually, I noticed that the trademark of Zhongce Rubber has a green tree. I think this represents the importance of Zhongce Rubber on green travel. What specific contributions does Zhongce Rubber make in terms of environmental protection?


Ge Shengli: Indeed, the trademark of Zhongce Rubber is a rubber tree, green and environmentally friendly. Being a responsible large enterprise must be responsible for sustainable development, of course, environmental protection is the first. Zhongce Rubber's investment in environmental protection in recent years


It is huge. The investment in environmental protection projects accounts for 25%. For example, 25 million yuan is used for environmental protection. Last year, a total of about 200 million environmental protection projects were invested.


Zhongce Rubber is a company in the urban area of Hangzhou and Hangzhou is also a new first-tier city. The surrounding residents have high environmental requirements. As a tourist city, it should be said that the government has high environmental protection requirements. Zhongce will meet Local residents live in harmony with the local society. In addition to investment, we will do a few things: first, to minimize the output of solid waste; second, we can directly produce solid waste in the factory. Dispose of it in accordance with the discharge. Do not discharge solid waste, including waste gas, outside the plant. Third, we have technology patents, such as the use of carbon black exhaust gas for power generation, and energy conservation and waste utilization to ensure green environmental protection. The factory invests about 120 million yuan each year as environmental protection technology transformation funds. In the process, benefits have also been generated, so green production is very secure.


Question 7: You just said that Zhongce Rubber's sales network is spread all over the world. Now globalization is actually the future of many large companies. Foreign companies are localized. In fact, this is not difficult to understand and will have certain benefits for consumers; but we What benefits will domestic brands bring to domestic consumers?


Ge Shengli: At present, Zhongce Rubber is a rising large-scale enterprise, and it is difficult for a single market to meet the development of the company. Currently, Zhongce Rubber has three branches overseas and employs local employees, such as Los Angeles, Germany and Brazil, and Thailand. A production plant.


We feel that globalization will bring several benefits: first, corporate products can be globally digested to maximize output; second, only the global sales of information will be the largest, different regions have different thresholds and different requirements, We can grasp the popular trends in the first time. Third, we can avoid the contradiction of switching tax barriers through globalization. For example, Southeast Asia is a free trade area. Tires in Southeast Asia, including Indian tires, are all exported from Thailand. There will be no tariffs in the process, and Thailand is the origin of rubber, and the raw materials are produced there. There is no tariff, which is very suitable. Under the US anti-dumping policy, the tax law is relatively high. However, the United States and Thailand are free trade areas. However, this relationship allows our products to pass through Thailand to supply and demand directly. In this case, it can be said that products, markets, and benefits can be harvested by many parties.