Research On Marketing Network System For China Faw Group's Southeast Asia Market

Southeast Asia auto industry stands out for its especial market characteristic, while the Framework Agreement on Comprehensive Economic Co-operation ("the Framework Agreement") between the People's Republic of China and Association of Southeast Asian nations ("ASEAN") lays a solid foundation in the sector of auto cooperation for China and Southeast Asian Nations, which creates one favorable exterior environment. It is high time the China auto enterprises sought for appropriate cooperators to open Southeast Asia market.The automobile industry in Southeast Asia was heavily attached by the Financial Crisis in 1997. But in recent years, it has been developed very quickly. At present the automobile industry in Southeast Asia has some characteristics as follows: (1) the production is highly concentrated in some countries, and the concentration has been increasing. (2) The production of commercial vehicles is especially important. (3) The production network is controlled by Japanese MNCs.The paper analyzed the motivation that shaped the automobile production in Southeast Asia, found that the expanding of domestic market, integration of regional economy, and the internal industry policy are the most important factors.China's auto enterprises can make the best of development harvest in CAFTA. The Framework Agreement collectively signed by the Heads of Government/State of China and ASEAN Member States in Phnom Penh, Cambodia on the 4th day of November 2002. The framework agreement on trade in goods is the landmark, which leads the trade cooperation of China and ASEAN into one new history stage. The purposes of framework agreement are to form comprehensive economic cooperation trade partner and its core target is to make the object, scope, measure and time certain in the China-ASEAN Free Trade Area (CAFTA). further to the Framework Agreement, which reflect the Parties'commitment to establish the China-ASEAN Free Trade Area (ACFTA) covering trade in goods by 2010 for ASEAN 6 (the Kingdom of Thailand, Malaysia, the Republic of Indonesia, the Republic of the Philippines, the Republic of Singapore and Brunei Darussalam ) and China and allowing flexibility by 2015 for four newer ASEAN Member States (the Socialist Republic of Viet Nam, the Union of Myanmar, the Lao People's Democratic Republic and the Kingdom of Cambodia).The Framework Agreement on the all round economic cooperation between China and the East Asia Federation has laid a legal foundation for China and the East Asia Federal Free Trade Area("CAFTA"). Once the free trade area has established, it will cover 17 hundred million of consumers, GDP with U.S. Dollar 1.8 trillion and trade total amount U.S. Dollar 1.23 trillion, thereby becomes the free trade area with the most population in the world. Meanwhile automotive companies in this area can turn competition into cooperation. Under such a concerted system, they can create good coordination and work division relationship with each other, take advantages of their strong aspects, realize orderly competition, boost production capability, product level and sharpen their international competition edges. It will also promote the exploitation of the international market for the auto sectors of both sides.One of the purposes of the Framework Agreement is to create one opening, competitive investment system with advantage, which make the investment in CAFTA more convenient, then to improve positive investment and to strengthen the economic cooperation ties for both parties. The ASEAN is not the Foreign Direct Investment ("FDI") for China. One hundred million U.S. Dollar is invested on ASEAN by China every year, but most funds is thrown to four new ASEAN members, namely the Socialist Republic of Viet Nam, the Union of Myanmar, the Lao People's Democratic Republic and the Kingdom of Cambodia. With economic strength stepping up and industry structure adjustment improving, linking to go-abroad export strategy, China can not but increase external investment. It is the ASEAN that we regard as the top prior market. The ASEAN neighbors to China; its culture is similar to China, while many auto technicians with high skill are available in Thailand, Malaysia etc...Furthermore, the investment co-operation can be gotten breakthrough on treatment principal of national civics and transparency of investment regulation and investment protection in CAFTA, meanwhile the existing limit can be relaxed, such as local proprietary right limit, localizing rate, export achievement, profit remittance etc...The investment on ASEAN should be more advantageous to China than other else upon these favorable investment policies. In addition, the investment on ASEAN actually covers two auto markets. One market, of course, is the ASEAN market. As a result of free trade area itself, according to original country principal, the favorable tariff and duty in CAFTA can be available for auto products if the localization rate reaches 40%, which means we own five hundred million consumers market in the ASEAN actually. The second is the other markets. We can make the most of this advantage to export our vehicles to these markets, which we perhaps face many blocks when exporting to directly. There are some under developing countries in the ASEAN, such as the Socialist Republic of Viet Nam, the Union of Myanmar and the Lao People's Democratic Republic, one special export policy has been issued to these poor countries by some developed countries. This policy can be exactly utilized to create best export environment.The developing automobile industry of China is also stepping into mature stage gradually from distinct stage of development. Toyota, Honda, Mitsubishi etc…Automobile Corporation from Japan entered into Thailand and Indonesia for over 10 years and succeed in occupying big market share now,which is worthy in study.While some well-known Chinese auto suppliers reputed national brand products such as Cherry, Jili and Great Wall Automobile Corporation also have been trying to step into Southeast Asia market recently, but some failed to open door of this developing market. China FAW Group Corporation should take use of the successful reference of Japanese Auto Giant in Southeast Asia market; meanwhile summarize the failure lesson of Chinese manufacturers when she is trying to enter into Southeast Asia market characterized with competition.Opening Southeast Asia automobile market is just our objectivel in first stage, whileas Consolidating this market and continuate developing in this market is our further purpose. While it is one effective Auto Marketing Network System that can supplys strong support for us to reach this target,meanwhile we can get more profit in hot competition. The writer emphasize that it is nessary to distinguish the Automobile Oversea Marketing from auto sale defined commonly as personal understanding upon many years'experience in automobile over sale. At present China's enterprises are concerned with global competition by four modes. The analysis and comparation among different marketing modes are presented in this article, from which the writer puts forward the framework of marketing network system for FAW's Southeast Aasia market. Furthermore, one modern automobile oversea marketing network system is presented, which goes through complete marketing chain based on the automobile marketability and factual situation of the Southeast Asia states, then summarize the model of marketing network system for China FAW Group's Southeast Asia Market. The subjects of this article study is from the understanding of international trade knowledge, combined with working experiences. Under the investigation and analysis of Southeast Asia automobile market, linking to FAW product features, comparing with competitors, absorbing successful experiences and failure lesson, I present one draft of oversea marketing net system and sales tactics on Southeast Asia market. In the meantime, FAW agent or distributors on Southeast Asia deputizing carefully, marketing system establishment, high-level marketing staff for oversea market training, opportunity catching timely, and the aim to occupy market continuously are highly emphasized.