Chinese trucks have become popular in Africa

As the frenzy in the domestic truck market comes to an end, overseas exports are beginning to attract more attention. What is the performance of Africa as one of the main markets for China's vehicle exports among numerous export regions? Let's explore the future of Tanzania.

"Driving on the road, we often see Chinese brand trucks driving on the road, which is the most familiar and proud scene for us overseas truck sales personnel." A truck sales staff member who has been working in Tanzania for two years told us that Chinese brand trucks are gradually becoming popular in Africa, which is a visible fact to the naked eye.

It is reported that in the local new car market in Tanzania, the proportion of Chinese brand vehicles can reach 70%, and it has been relatively stable in the past two years. This market performance is closely related to Chinese brands deeply cultivating the local market and developing marketing strategies with Chinese characteristics.

Benchmarking second-hand European brands to showcase Chinese characteristics

It is reported that in the local new car market, Jiefang and Heavy Duty Truck have the highest proportion, while other Chinese brand trucks entered relatively late and have a relatively small market share. However, the second-hand car market has long been monopolized by European brands, and the biggest competitors of Chinese truck brands are also these second-hand European truck brands.

Perhaps some people may ask, the African market does not have any requirements for truck emissions, and the main export models are the two country and three pump trucks. These cars are basically priced at scrap metal in China, so why not export them at a lower price than new cars?

In fact, there have been many years of attempts to export domestic used cars to Africa, but on the one hand, due to regulatory and policy reasons, and on the other hand, due to differences in transportation costs and usage, there has been no advantage in the local used car market.

Tanzania drives right-hand drive, while Chinese trucks drive left-hand drive and require modification, which increases costs. In addition, sea freight is also a factor. The sea freight distance from China to Tanzania exceeds 10000 nautical miles, while European vehicles only need three to four thousand nautical miles to reach, and the difference in transportation costs is not just a small fraction.

On the other hand, compared to used cars, new cars do not have various complex issues such as maintenance evaluation, and can save transportation costs while enjoying tax incentives through local factory assembly.

At the same time, the new car has a complete maintenance and repair service system, and there are generally no problems during the one-year warranty period. During the next five years of use, due to the road conditions in Tanzania not being slower than in China, the average speed is relatively slow, and the annual driving range of a car is generally only 60000 to 100000 kilometers. For domestic cars, especially the two and three major pump cars in China, the operating mileage of such vehicles is still at its peak, as long as there are no accidents, Basically, it won't cost too much money.

In addition, in terms of service, Jiefang and Heavy Duty Truck are leading Chinese truck brands in the local area. After more than 20 years of market cultivation, they have established overseas branches, parts warehouses, and original factory maintenance services. Therefore, with a large number of vehicles, complete accessories, and good service convenience, they can meet the basic needs of maintenance services and have accumulated a good brand reputation.

The winning strategy for overseas marketing

Going abroad and entering a larger world stage, although the overall development trend of Chinese truck brands is improving, they still need to learn from the experience of their predecessors. The following are three key elements that overseas practitioners have learned from their own experiences, hoping to provide some reference for companies that are currently or planning to carry out overseas distribution business.

(1) Language and professional knowledge

Salespeople need to be able to communicate fluently with customers in English, clearly conveying the selling points and value of the product.

Direct dialogue demonstrates respect for customers, which is the first step in building a relationship with them. If sales personnel are not fluent in language and rely solely on low price competition without being willing or unable to explain clearly to customers, as well as shirking responsibility after encountering after-sales problems, such practices are not worth the loss.

In addition, if translation is required, it not only increases costs but also makes it difficult to accurately convey the performance of the vehicle and understand customer needs, which can affect communication sales and quality. In addition, sales personnel also need to have professional knowledge, which can be used to impress customers with professional knowledge and products. This is the first and crucial step in solid marketing.

(2) Precision pricing strategy

In overseas distribution business, pricing is also a discipline. Some companies often only consider cost and profit when determining prices, ignoring market competition and brand positioning. This pricing strategy not only makes the product lose competitiveness, but may also affect the image and value of the entire brand.

Taking trailers as an example, if we simply calculate the cost of iron, labor costs, etc., and then add a certain profit to determine the price, there is no brand premium for such transactions. Customers may purchase due to low prices, but at the same time, they may develop a sense of distrust towards the product due to the low price. Once this sense of distrust is formed, it will affect the brand image and reputation, thereby affecting the long-term development of the enterprise.

On the contrary, if we can develop a reasonable pricing strategy based on factors such as target market demand and competition, it can not only make the product competitive in the market, but also enhance brand image and value. For example, another trailer brand exported domestically directly targets high-end brands, explaining the reasons for high prices, and local users will also pay. This strategy not only allowed us to gain more market share, but also earned us the trust and respect of our customers.

(3) Emphasize local cultural concepts

In the process of overseas distribution, local cultural concepts are also an aspect that we must pay attention to. There are significant differences in cultural concepts among different regions, some of which are even completely opposite. Therefore, when conducting overseas distribution business, we must understand and respect local cultural concepts to avoid misunderstandings and conflicts caused by cultural differences.

In some places, factors such as skin color and surname are used to distinguish people's social classes, and the hierarchical concept in these areas is very serious. Even during the signing process, if the signatory's position is lower than the other party's level, it may lead to the inability to complete the signing. Therefore, it is necessary to pay attention to local hierarchical concepts, respect local culture and customs, and avoid affecting business operations due to issues with hierarchical concepts.

(4) Focus on profit and payment collection

African countries are basically in the developing stage, with small market size and difficulty in achieving rapid domestic growth. Therefore, it is impossible for overseas travelers to become wealthy overnight. They need to be patient and accumulate word-of-mouth bit by bit.

At present, there are signs of Chinese brands flocking to overseas markets, and many people rely on their domestic distribution experience to carry out business, which poses great market risks.

At present, the credit system in many regions of Africa still needs to be improved, and the situation of not receiving payment after selling cars is extremely easy to occur. If people only focus on expanding sales scale overseas when they see false prosperity, without discussing profit or payment, then blindly promoting the popularity of overseas markets is like playing hooliganism, and everyone needs to be cautious.

The rapid expansion of Chinese truck brands overseas is a result of the development of national power and the growth of the national automotive industry. With the increasing number of Chinese faces in overseas markets, it has also brought new business opportunities to local people.

"China has a world leading commercial vehicle platform, and we introduce the best commercial vehicles in China to the best local logistics enterprises. This is the persona we have created in the local area." According to the introduction, this is the positioning of the brands we interviewed in the African truck market, and they also hope that the image of Chinese brands can continue to stand like this.

It is reported that at present, some local business places in Africa need to go to the waiter's meeting for simple Chinese exchange. The restaurant provides food and snacks imported from China. A restaurant opened by Greeks has started to provide Chinese food services, and the six characters "the Belt and Road Restaurant" have been hung on the plaque at the door.

The overseas expansion of Chinese brands is not only a commercial act, but also a reflection of the country's image and influence. When foreigners start to promote our the Belt and Road, when their services turn to Chinese people, and when Chinese brands gain good market and reputation in the local market, this is a powerful illustration of our influence.