Wang Hao, managing director of ZF Sales & Service (China) Co., Ltd., said in an interview that ZF is constantly advancing in exploration in China, seeking innovation and breakthroughs. Taking ZF's service team as an example, it has introduced and created a variety of service models in the process of serving customers, which has played an important role in improving the timeliness of customer services and improving customer satisfaction.
Managing Director of ZF Sales & Service (China) Co., Ltd. Wang Hao
Reporter: In recent years, ZF's after-sales business unit has undergone several major integrations and formed a new organization today. What are the development strategies based on these actions?
Wang Hao: As you said, ZF's after-sales business department has carried out many business integration projects during these years, and the actions are relatively large. From the 2002 Sachs trade to the Sachs trade with the Lumford trade, the Sachs trade and ZF sales service merged into the ZF Service (ZF Service) in 2008, and ZF Service will be commercially available in 2010. The vehicle manufacturing plant service divisions of the three business divisions of vehicles, passenger vehicles, and construction machinery are integrated into this business unit. ZF Service has become a professional service department of the ZF Group in the true sense of the face of the vehicle manufacturer's service network and the independent aftermarket.
All of these integration efforts actually revolve around a theme: market-oriented and better able to meet customer needs. Through these integration efforts, ZF SERIVCES integrates the company's core product lines and brands into one system, maximizing product coverage, strengthening branding, and continuously improving its own product service capabilities to meet the diversity of the same customers. Demand, to avoid the same customer to spend a lot of time looking for different people when they encounter different ZF products, that is, we often say "one face to customer."
It is not just the after-sale division that the group's current Go4 ZF project is based on this development strategy. It will reclassify the original business division based on the production area, and the new structure will be entirely based on customer demand integration. The reintegrated ZF Group is divided into four business segments: passenger car transmission technology, passenger car chassis technology, commercial vehicle technology and industrial technology, while the steering system division with Bosch remains unchanged. ZF SERIVCES is defined as a unified service department for these four business units.
Reporter: What are the development plans for ZF SERIVCES in the next three years for the automotive aftermarket?
Wang Hao: In the next few years, ZF Service has several key development directions: first, to promote the development of after-sales services in emerging automotive markets such as China, and to provide more product and technical support; secondly, While promoting the automotive aftermarket business, we will vigorously develop service businesses for non-road products, such as maintenance of wind power transmissions and maintenance of rail transmission products. Third, we will promote the environmental protection concept of green production and vigorously develop the product remanufacturing business. Finally, advance. Product preparation for product electrification (hybrid, telemetry) prepares for the coming era of electrification.
How can we better accomplish the mission of the business department? First of all, we must be technologically advanced in order to carry out product innovation. For ZF Service, the service is not simply to sell accessories or repairs, but to provide users with a full range of value-added services, and to tailor different solutions for different customers' different needs. This is our long-term work in China and Hong Kong. How to better serve customers and specify solutions that better meet customer needs. Our service products cover passenger cars and commercial vehicles. In the case of commercial vehicles alone, the plans for passenger cars and trucks are different. Passenger cars are divided into urban transport vehicles and long-distance buses. Urban transport vehicles need frequent parking and start-up. This is different from the operation system of long-distance passenger cars. Therefore, in the future, our company will take the planning of the group as a prerequisite, further develop our network coverage, extend the after-sales service of ZF Service to a deeper and more extensive region, and allow ZF to provide after-sales services in China. The service business has achieved considerable development.
Reporter: ZF currently uses several methods in China's after-sales service model, including direct service to OEM manufacturers, setting up maintenance service points, providing end-user services, etc., and transforming single after-sales maintenance into regular maintenance of products, focusing on Customer's technical training and technical consulting and other services. Why does ZF choose to establish after-sales service in China in the form of an independent sales service company?
Wang Hao: ZF Group's product line is very wide, and there are many matching products. In terms of single transmissions, from passenger vehicles to commercial vehicles, from construction machinery to ships, they cover different fields of application. ZF has always been based on technology leadership. Its technical content is high. Many technologies are patents or proprietary technologies. With the rapid development of the domestic market, ZF and its series of products including SACHS, LEMFORDER, ZF PARTS and other brands have entered China in different forms, or imported complete vehicles, or imported or localized Components directly support the domestic OE customers, so how to provide customers with the best use experience of the full range of products on the premise of such a rich product line, to meet customer service needs, is a major issue for us in China.
Our own requirements are: First, we must have advanced service concepts; Second, we have a complete service team with professional product knowledge; At the same time, we have strong product technical support; Once again, we have a sound management system (product database system, enterprise Database system, ISO management system, etc.) Finally, there is a reasonable service network layout.
The concrete practical performance of the advanced service concept is to provide more non-maintenance services to customers, especially OE customers. That is, it is not limited to simple product after-sales maintenance, but focuses on cultivating and upgrading the customer's own maintenance and maintenance capabilities. Through its series of pre-services such as in-factory service, product training, and technical training, it has excellent product experience. At the same time, we can prevent and detect in advance and reduce the failure caused by non-quality problems. This will allow customers to have more information on ZF products and further promote product sales. To do this, service outsourcing alone may not be enough. It can be said that instead of setting up the ZF Service business unit exclusively for profit, we hope to further improve ZF's user satisfaction through the use of this business unit in the aftermarket market. Fufu's customers have established efficient and high-quality services. In light of the above actual conditions and domestic customer needs, ZF sets up a sales service company in the form of sole proprietorship. The ultimate goal is to provide customers with high quality value-added services.
Reporter: In a fully mature automobile market, the sales profit of automobiles accounts for only about 20% of the profit composition of the entire industry, the profit of parts and components accounts for about 20%, and the profit of 50% to 60% is from the automotive service industry. Produced in. As far as the proportion of car sales and aftermarket is concerned, China is still upside down. As a leading company in the automotive aftermarket, how does ZF respond to this situation in the Chinese automotive market? What is the specific approach?
Wang Hao: China has always been a developing market that ZF pays attention to. Aftermarket, China has great potential. Since ZF's after-sales business entered China in the early 1980s, it has been developing steadily, which is inseparable from the development of China's auto aftermarket.
The formation of a mature market also needs to go through a process of development. Nothing is done overnight. What we need to do is how to use the methods and accumulated experience of ZF to share with industry partners so as to help the Chinese market develop at a faster rate. For example, ZF and its subsidiaries SACHS, LEMORDER and ZF PARTS are well known in Europe, and some even exceed the quality and performance of aftermarket aftermarket accessories and their position in consumers' minds. , These are based on ZF's consistent product quality and efficient services.
In China as well, ZF has a core sales service organization centered on Shanghai, Beijing, Chongqing, Shenzhen, and Urumqi, providing customers with spare parts sales, product maintenance, technical consulting, and other services to enable Chinese customers to synchronize. Enjoy high-tech auto parts products and professional product repair services from Germany.
In addition, ZF's more than 100 authorized partners (dealers and service stations) across the country constitute ZF's sales and service network in China. They are not only an important component of ZF's global after-sales service center, but also our core strategic partner for serving customers in China. In order to enable them to provide ZF users with after-sales sales and product services in a better and more direct way, we will regularly provide them with new product introductions, maintenance training and other support, so that more users can enjoy access to Zaire. Fu's quality products and value-added services.
ZF has always used products and services to win customers and it will continue to adhere to this concept in China. In such a developing market in China, ZF must have more room for development. This not only results from the confidence of ZF’s high-tech leading products, but also from the high quality and efficient services and the strength of the ZF team. confidence.
Reporter: In the era of rapid growth in China's auto market from the previous two years, it is very likely that it will end in 2011 and there is a risk of a "hard landing." How do you view the development trend of the Chinese auto market in the second half of the year and whether it will make corresponding adjustments to its own development plan according to the development of the Chinese auto market?
Wang Hao: Macroscopically, China's auto market has entered a rapid growth channel in recent years. Even if the growth rate slows down in the second half of the year, it is also a normal stage of market development. The general trend of continued growth of the entire market will not change. . As a participant in the post-market, ZF is not really interested in short-term car sales in one year or two years, but in the overall market growth.
According to the analysis results of our market department, as of 2010, the number of passenger cars in the Chinese automobile market has reached 47 million, and the number of commercial vehicles has reached 22 million. Chinese car consumers are also gradually accepting the brand's influence, focusing on the internal quality of the product and the subsequent service guarantee, rather than simply comparing prices. Therefore, the front door of our automobile rear market has only just opened, and the opportunities in the future are far greater than the challenges.
Reporter: At present, the scope of auto parts remanufacturing in Europe and the United States has covered many parts and has formed a complete system in technical standards, production public welfare, processing equipment, supply, sales network, and after-sales service. Recycling of auto parts and components is basically over 80%. What is ZF's opinion on the remanufacturing of auto parts?
Wang Hao: The topic of remanufacturing should be a hot topic for a period of time in the future because it involves many comprehensive factors such as environmental protection, quality, certification, customer acceptance, and so on. Just now, all aspects of a developing market need to be cultivated, and the same applies to remanufacturing. European remanufacturing business has stood at a relatively high starting point since its inception. After decades of market development, it has a large number of mature engineering and technical personnel and independent maintenance service stations. The concept of consumer spending has also been reached. Stable and mature stage. Therefore, the foundation for the development of remanufacturing there is very good.
In fact, ZF has already begun to attempt to remanufacture some products from many years ago. At present, the remanufacturing business of some products has formed a certain scale. In China, we have started to carry out remanufacturing operations on ZF and some non-ZAF components. I believe that the remanufacturing business developed in a regulated market will inevitably be fully developed.
Reporter: What do you think are the difficulties and challenges in promoting auto parts remanufacturing in China?
Wang Hao: Looking back at the Chinese market, some aspects still need improvement. For example, how to regulate the reengineering process, how inspections are implemented, how the inspection standards for remanufactured finished products, sales channels and after-sales services are performed, and so on. Among our existing authorized service partners, some have become pilot companies for national remanufacturing. They are all companies that have accumulated rich experience in specific products or industries. In order to allow them to successfully carry out remanufacturing business, we provide them with comprehensive support including technical training and testing tools.
Whether or not the future of remanufacturing can be good, it is important to grasp the quality of the source, strictly manage the channels, and improve user awareness. To grasp the quality of the source is to ensure that the remanufactured products must be manufactured like new products. The safety of the products must be ensured. This is a feature of auto parts products that is different from ordinary products. There is no safe and reliable product guarantee, and remanufacturing will have no future. . Strict channel management means strict management of the distribution channels for providing remanufactured product services and sales. The success of the channel management as an intermediate link will have a major impact on the supply and demand relationship between upstream and downstream. Improving user awareness is a question of how to conduct customer guidance. Many people mistakenly think that new things must be the best, and products for recycling are always inferior. In fact, remanufactured products are often used. The latest technology to upgrade the product can be even more than the original product's performance and quality. But how to allow customers to gradually understand and accept, perhaps we still have much work to do.
Reporter: How do you understand the role of "innovation" in the development of the automotive aftermarket? What are the effects of marketing model innovation, business model innovation, and service model innovation, respectively, which will bring to the development of the automotive aftermarket? If you want to reach the aftermarket What do you think is the key to sustainable development?
Wang Hao: The goal of the ZF Group is the Innovation of great value. We translate it as “innovation and wisdomâ€. ZF spends 5% of its total revenue on technology innovation and R&D each year. R&D expenditures in 2010 were 646 million euros, and each year's patent applications are among the top 10 in Germany. Of course, the scope of innovation lies not only in the technical aspects, but also in the scope of innovation. ZF actually thinks about how to innovate every day, because only innovation can do better, better and faster than others.
No matter what kind of innovation, marketing model, business model or service model, as long as it is to improve the market's normative, liquidity and prosperity, it should be welcomed. The automotive aftermarket in Europe and America can be described as mature compared to the Chinese market, but they are still developing and innovating.
ZF is also continuously advancing in exploration in China, seeking innovation and breakthroughs. Taking ZF's service team as an example, it has introduced and created a variety of service models in the process of serving customers, which has played an important role in improving the timeliness of customer services and improving customer satisfaction. ZF organizes internal quality management competitions every year to share the successful cases and experiences of different countries and regions. It is intended to stimulate more innovative concepts through such internal communications.
Regarding the sustainable development of the aftermarket, I personally believe that it is still necessary to rely on a benign competition mechanism and a standardized management mechanism, and common development in both areas can create an increasingly mature market. We are seeing an increasingly mature Chinese auto aftermarket.
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