What do the two powerful companies that have no relationship with each other foreshadowed?
In September this year, a notable event took place in Nanxun, Zhejiang — Zhejiang Jiusheng Flooring Co., Ltd. hosted a national distributor meeting at a hotel in Hangzhou. This company is well-established in the flooring industry, with over 380 marketing service networks spread across 150 major and medium-sized cities nationwide. Its products have also been exported to more than a dozen countries in Europe and America.
One of the key agendas of the meeting was to identify top distributors and reward them with delivery vans. To support this initiative, Jiusheng invited two leading domestic commercial vehicle manufacturers, Jinbei and Iveco, to participate in the selection process. These companies were also tasked with providing 100 commercial vehicles for the event.
The news quickly spread, and the next day, the manager of Huzhou Branch of Zhejiang Jiangling Automobile Sales Service Co., Ltd. learned about Jiusheng’s plan 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 units.
As a result, Jiusheng decided on the spot to place an order for 100 Transit commercial vehicles from Jiangling.
**Niu Ren's Commentary**
Why do service industries have specific needs for commercial vehicles?
Commercial vehicles are not for personal use; they serve industrial or commercial activities, often with unique requirements. For example, construction vehicles, transport trucks, cement mixers, and refrigerated trucks are all essential, but many overlook the specific needs of the service sector.
Take Haier, for instance. Their after-sales service vehicles used to be mini-vans with a unified logo. From this, we can see the demand for commercial vehicles in the service industry: first, they don’t need large vehicles because their main task is to carry spare parts and tools. Sometimes, they even need to deliver directly to customers’ homes. Second, these vehicles must be reliable, as any delay could mean delayed service, which affects both the auto and home appliance companies' reputations. Third, due to the large scale of such enterprises and numerous service points, their orders are typically large. While this brings opportunities, it also means customers may push for lower prices. Still, for car manufacturers aiming to expand their market, this is worth pursuing. Fourth, these vehicles are often painted with a uniform logo, making them eye-catching and serving as mobile advertisements on the streets.
Why aren't high-end commercial vehicles commonly used in service sectors?
From the "floor incident," we see that many industries require such vehicles — from home deliveries, appliance repairs, small shops, to restaurant logistics. Vans are essential. However, in cities like Beijing and Hangzhou, trucks are restricted, creating challenges for logistics. Many people use vans as makeshift trucks. For example, Jinbei is popular in Beijing for transporting goods or mixing passengers and cargo. Initially, Jinbei didn’t understand this market, but later, others followed, offering simpler interiors and lower prices, which hit the Gold Cup’s market hard.
This story serves as an inspiration for many companies, especially large ones, that often fail to respond to market changes.
Zhejiang’s "floor incident" also highlights the importance of branding. Jiusheng is a well-known brand, and the service vehicles they choose help reinforce their image. This is known as a strong alliance. However, some high-end car brands focus too much on comfort and luxury, neglecting the practical needs of the service industry. As a result, there are still few high-end commercial vehicles tailored for such services.
**Cowman Reminds**
Commercial vehicles should have specialized designs. They should differ from passenger vehicles, with features like removable seats, larger interior spaces, and hatchback doors for easier loading. If users have special needs, custom designs are necessary. This market remains underdeveloped, especially without dedicated vehicles. For example, there is no specific funeral car in the funeral industry.
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