Chery enters Egypt as homemade representative
Out of the airport in Cairo, the Chinese reporters were attracted by the shuttling Chery vehicles. This sight naturally raised their sense of pride and belonging and made them excited. They never thought that Chery enjoys such a good reputation in Egypt and most vehicle owners have noble status.
Most taxis shuttling in the streets of Cairo are Chery A5. According to Chery’s market executive in Egypt, there are currently 3,600 Chery taxis in Cairo, far above those in Chinese cities. A reporter of the interview group on “Chery Journey of Global Exploration” took a photo featuring three Chery A5 vehicles waiting for traffic lights to change in parallel at a road intersection. It is said that the sight is common in Cairo.
Since changing the overseas marketing strategy from “going out” into “going in”, Chery’s first step to enter Egypt was to establish a manufacturing base in Egypt, accomplished a parts localization rate of 45%, and gained support from the Egyptian government. As Chery not only brought technologies and management to Egypt, but also local employment and taxation, it was highly recognized by the local government and entitled to taxi licensing. So far, 3,600 Chery vehicles have been licensed as taxis, ranking first among all the taxis operating in Cairo.
Chery A5 landed Egypt in the form of CKD five years ago, but found favor with local consumers soon by high-grade configuration and outstanding cost performance in only half a year. Afterwards, Chery A5 vehicles were ordered endlessly and were once out of stock for six months. In early 2010, A5 entered the Egyptian taxi market, struck deep roots in the hearts of local people due to high “safety and durability”, and got the first order of 3,500 vehicles. Currently, compared with other brands, local passengers are obviously more inclined to Chery A5.
According to the analysis of Chery’s distributors in Egypt, Chery’s outstanding sales performance in the local market is attributable to the fashionable shapes of Chery models and Chery’s insight into the market. Chery is not only familiar with the demands of local consumers, prices products moderately and configures vehicles reasonably, but also takes account of demands for such aspects as safety and performance improvement according to the driving habits and characteristics of local residents. “Besides, as roads are uneven in Egypt, local passengers are critical of shock absorbers. Aiming at the road conditions, Chery calibrated and modified the shock absorbers of all Chery models to adapt them to the local market.”
At a Chery service outlet in Cairo, the reporter randomly interviewed several Chery owners who had their vehicles maintained. One of them was the boss of a taxi company, who said, “Customers generally prefer cozy vehicles, stability is important when vehicles are driving at high speed, compared with other brands, customers agree that Chery A5 is of high stability and quality. Not only are customers satisfied with this model, but also I trust it very much. My own company has purchased 25 A5 vehicles as taxis.”
Another Tiggo owner, vice chairman of the Egyptian Electric Appliances Association, told that he drove a Korean car, but it was unstable when he drove fast, so he considered buying a second one, after comparing several brands and models, he chose Chery Tiggo, because it outshines many other models of the similar price in terms of acceleration performance and stability. “I really like my Tiggo, speeding up to overtake other cars is fantastic!” He said in excitement.
Another three-year owner of A3, a judge, sang high praise of his car, “Whether in acceleration or deceleration, A3 is comfortable to steer, it is fashionable and configured reasonably, all my family like it.”
The reporter observed that the loyal users of Chery models include middle-class consumers such as taxi drivers, judges, lawyers and private employers, many of whom have owned Benz or BMW. These consumers basically choose models according to comprehensive performance, and quite a few buy Chery A3, A5 and Tiggo as the second family cars.
Due to the great popularity of Chery vehicles, Chery’s sales in Egypt hit 14,000 this year, ranking fourth, and Chery A1 and Tiggo headed their respective segments.
According to the source, there are currently 44 Chery sales and service outlets and 12 authorized service outlets. Chery’s distributors in Egypt said that with the further launch of new models, given Chery’s strong sales momentum currently, it was expected that the number of Chery’s sales outlets would soar to about 60 to 70 by 2014. Chery will introduce more models to satisfy different consumers and will input different products into different segments to hold a certain share in every segment.
Chery not only ranks top in sales, but also has become a famous brand in Egypt. On the flourishing tourist souvenir markets in Cairo, at the sight of the reporters in clothes with Chery logo, many dealers thumbed up and praised Chery unanimously. Along the Nile, at the end of the bridge over the river, on the main road of the city center, and at the entrance to the largest and most luxurious supermarket in Cairo, Chery’s giant billboards are erected.
“Rome was not built in a day.”- Chery entered Egypt, brought sophisticated technologies, quality management as well as outstanding corporate and brand culture to time-honored Egypt through the unique business mode, and established a new brand image for Chinese products by its quality products catering to the demands of local consumers and perfect marketing network.