After DaMi Auto went public, the companies most directly impacted were XPeng and Tesla.

The offline channels for rice have been expanded aggressively since 2019, penetrating from first-tier cities to third-tier cities.

In terms of offline experience stores alone, rice has far more offline channels than other new energy brands.

After the July sales figures were released, everyone in the industry had only one thought: only the strongest can succeed.

As for the competitors who used to fight fiercely in the mobile phone industry, they are all getting restless.

Rice can be used to make cars, but I can't?

The most impacted domestic new energy vehicle brands are XPeng and BYD.

Because these two manufacturers are positioned as direct competitors to Dami Auto in the new energy vehicle market.

Li Auto focuses on SUVs, while NIO and HiPhi mainly produce high-end new energy vehicles. As for Wuling Hongguang and Dami Auto, their positioning is even more inconsistent.

In response to the overwhelming influx of rice, XPeng held repeated internal meetings to discuss how to deal with it.

"Let's talk about rice cars. Today, He Xiong will start by talking about rice's marketing strategy."

He Xiong is the head of XPeng Motors' marketing department and the tactical executor of this campaign.

The business world is like a battlefield, and XPeng must respond to the fierce offensive from rice.

"Hello everyone, let me briefly introduce the thinking logic and tactical arrangements of Dami Auto's marketing."

"Lei Jun is well aware that new energy vehicles are a completely new field, and it will be difficult to convert the customers and fans that Da Mi has accumulated into car consumers."

"Moreover, the reputation of rice for its cost-effectiveness and the quality control of rice phones have always been criticized by the outside world."

"Quality control issues are a fatal flaw in the automotive industry. Therefore, if rice wants to succeed, it can only rely on cost-effectiveness and tangible, visible discounts."

"However, cost-effectiveness is a double-edged sword. If you attract customers with cost-effectiveness, you will inevitably lose customers in the future because of insufficient cost-effectiveness."

"This is a label that can't be shaken off once it's attached to it. Lei Jun doesn't want to and doesn't want to be so deeply associated with cost-effectiveness anymore."

"Therefore, when we saw the pricing of Dami Auto, although there was still room for the price to drop, Dami Auto did not choose to make the price-performance ratio completely competitive."

"Instead, we choose to reserve a certain price margin for group buying."

"Group buying is a very cunning move, and only Lei Jun can promote it to these leading companies by leveraging his personal connections."

“Companies like Ali, Tencent, and Kechuang Bio have thousands of employees.”

"Many of these people have high salaries, but short working years and average savings."

"When Dami Auto was doing group buying for them, they didn't play any tricks and directly lowered the price, and the price reduction was quite significant."

"The Pro version has dropped directly to below 200,000, instantly making it extremely attractive."

"Moreover, Dami Auto's product capabilities are quite good; it has achieved all the functions and experiences that an electric vehicle should have."

"While it may not be the best, it's at least above average. The 1spro is an electric vehicle with no major weaknesses."

"Most of the people targeted by the group purchase who have test-driven the car will choose to place an order given the huge discounts."

"In this way, DaMi Auto has its first wave of customers. In reality, it's all about cost-effectiveness, but in name, it's a benefit that the company has secured for you."

"Today we see many entrepreneurs who are not part of Lei Jun's circle of friends, and they also hope to talk to Lei Jun about the rice and car group purchase."

"Then Dami Auto's external channels stuck to this price and refused to lower it, not even giving the offline channels the authority to lower the price by 5,000."

"However, a large quantity of rice cars have already been sold through corporate channels."

"This will generate buzz in the public eye, with a large number of personal experience videos of DaMi Auto attracting ordinary consumers from outside the industry."

"The space for rice cars to survive has been completely opened up."

"The product strength of Dami Auto is undeniable, but their marketing strategy is equally exceptional."

“The product’s strength, which would normally take six months or even a year to gain consumer recognition, was achieved in just one month through corporate group purchases.”

"Even if we assume a price reduction of 30,000 yuan per car, and the corporate group purchase sales account for half of that, that's 15,000 cars. This part of the cost is 450 million yuan."

"Moreover, even if the price is 200,000, Dami Auto will still make a profit."

"Dami Auto's marketing strategy has been executed perfectly."

The marketing strategy for rice is actually very simple: group buying.

What other manufacturers couldn't emulate was that when their first model was launched, they didn't have Lei Jun's extensive network of connections.

If such enterprise-level group buying is not widespread enough and cannot achieve economies of scale, it is actually not very effective.

Newly established automakers have limited bargaining power in the supply chain.

With limited bargaining power in the supply chain and unpredictable sales volume, it's impossible to reduce costs through sales volume, making it difficult to lower prices this much.

Therefore, this seemingly simple move is actually only something Lei Jun can do.

"What do you all think we should do in this situation?"

"I think XPeng could also offer corporate group purchases and lower prices accordingly."

"No, it's easy to lower prices but difficult to raise them. Besides, all raw material prices are rising now, so Xpeng's profit margin can't compare to Tesla's."

Tesla's ability to drastically lower prices stems from its 50% profit margin, while XPeng's profit margin is only 20%.

"We can talk to major internet companies like Tencent, Alibaba, and Baidu and offer them certain preferential treatment."

These markets can be seized by rice producers, and so can we.

“I think we can lower the price appropriately, just reduce the price of XPeng’s lowest-priced model so that the price difference with Dami Auto is no more than 20,000 yuan.”

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