What do the two powerful companies that have no relationship with each other foreshadowed?
On September 1st this year, Zhejiang Jiusheng Flooring Co., Ltd., based in Nanxun, hosted a national distributor meeting at a hotel in Hangzhou. This is a well-established flooring company with over 380 marketing service networks across 150 major and medium-sized cities nationwide. Its products are exported to more than a dozen countries in Europe and the Americas.
One of the key agenda items at the conference was to select top-performing distributors, with the best ones receiving a delivery van as an award. To support this, Jiusheng invited two leading domestic commercial vehicle manufacturers, Jinbei and Iveco, to participate in the evaluation process. These two companies were also tasked with supplying 100 commercial vehicles for the event.
The news quickly spread, and the next day, the manager of the Huzhou branch of Zhejiang Jiangling Automobile Sales Service Co., Ltd. learned that Jiusheng was planning to purchase 100 vehicles for its distributors. He approached Jiusheng directly. At that moment, Jiusheng had already prepared to sign an agreement with one of the auto manufacturers. However, the manager presented data from the Ministry of Public Security showing that while the company Jiusheng was considering had sold only 4,000 cars in its hometown between January and June, Jiangling had sold over 5,000 units in Taiwan and more than 8,000 in Zhejiang. In contrast, the other company had barely reached 2,000 sales in the region.
As a result, Jiusheng immediately decided to place an order for 100 Transit commercial vehicles from Jiangling.
**Niu Ren's Commentary**
Why does the service industry have specific needs for commercial vehicles?
Commercial vehicles are not just personal purchases—they are tools used to meet industrial or commercial demands, often with unique requirements. For example, construction trucks, transport vans, cement mixers, and refrigerated trucks all serve specialized purposes. However, the service sector’s needs are sometimes overlooked.
Take Haier’s after-sales service vehicles, for instance. They used mini-vans with a unified logo, making them easily recognizable. From this, we can see the core needs of commercial vehicles in the service industry: First, they don’t need large vehicles because their task is to carry spare parts and tools. Sometimes, they even need to deliver directly to customers. Second, these vehicles must be reliable due to the high workload, and maintenance services must be efficient. Any delay could mean delayed customer service, which affects both the auto and appliance companies’ reputations. Third, large enterprises with many service outlets place bulk orders, which can be both an advantage and a challenge. While it brings big deals, it also leads to higher demands and price pressures. Still, for auto companies looking to expand the market, it’s worth pursuing. Fourth, these vehicles are usually painted with a uniform logo, making them highly visible and effective mobile advertisements on the road.
So why aren’t high-end commercial vehicles widely used for service-related tasks?
Looking at the "floor incident," there are numerous industries that require such vehicles—like home delivery, appliance repair, small shops that handle both transportation and purchasing, and even restaurants. Van-type utility vehicles are essential. For example, in Beijing and Hangzhou, trucks are restricted from entering the city, yet logistics is still essential. Many people use vans as trucks, like Jinbei in Beijing, which is mostly used for carrying goods or mixing people and cargo.
Initially, Jinbei didn’t understand this market, so it didn’t invest much. Later, some companies imitated the Gold Cup model, but with simpler interiors, adjustable seats, and lower prices around 60,000 yuan. This significantly impacted the Gold Cup’s market share.
This incident serves as a lesson for many companies, especially large ones that may be slow to respond to market changes.
Zhejiang’s "floor incident" also highlights the importance of brand image. Jiusheng is a well-known brand, and the service vehicles they choose should also reflect quality and help enhance their brand reputation. This is known as a strong alliance. However, many large car brands focus too much on comfort and luxury, neglecting the practical needs of the service industry. As a result, high-end commercial vehicles for service use remain rare.
**Cowman Reminds**
Commercial vehicles should be specially designed. They should differ from passenger vehicles. For example, the seating should be removable and flexible, and the interior space should be larger. A hatchback door would make loading easier. If users have special requirements, custom designs are necessary. This market is still underdeveloped, especially without dedicated vehicles. For instance, there is no specific funeral car in the funeral industry.
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