Li Xiang Issues Company-wide Memo: Reviewing Ideals MEGA's Pacing Issues

Pulsestacks reported on March 21st that an internal memo from Li Xiang, CEO of Ideals Automotive, has leaked. In the memo, Li Xiang reviews the problems and solutions encountered since the launch of MEGA on March 1st. He identifies two main issues and adjustment directions. Firstly, the pacing issue of Ideals MEGA, where mistakenly treating the 0-to-1 phase (the business validation period) of MEGA as the 1-to-10 phase (the period of rapid growth). The next step will be to operate according to the pace from 0 to 1, focusing on the core user group and targeting high-end cities with strong consumer purchasing power for pure electric vehicles, abandoning the strategy of widespread sales. The second issue is excessive focus on sales volume, where there's been too much emphasis on sales and competition from top to bottom, allowing desire to surpass value. Li Xiang candidly admits, "In the pursuit of desire, we have become people we dislike." Subsequently, the focus will return to enhancing user value, adhering strictly to the three major behavioral guidelines.

The full text of the internal memo is as follows:

Addressing Current Challenges at Ideal Automobile

Revisiting March Issues: Root Causes and Solutions

1. Rhythm Issue with Ideal MEGA:

• Root Cause: We mistakenly treated the initial phase of Ideal MEGA (the phase of business validation) as a period of rapid expansion (from 1 to 10). Just like Ideal ONE and plug-in hybrids, Ideal MEGA must undergo a similar 0 to 1 phase, unlike the immediate success seen with the Ideal L series. This misjudgment of the rhythm in our electric vehicle strategy led to confusion regarding Ideal MEGA's pace.
• Solution: We will patiently manage Ideal MEGA according to the 0 to 1 rhythm, focusing on core user groups and affluent electric vehicle consumers in key cities. We'll abandon the strategy of widespread sales and concentrate on product experiences and test drives in major retail centers in these cities. Additionally, we'll expedite the construction of supercharging stations. Once the 0 to 1 phase is effectively completed, we'll expand promotion to more cities and a broader user base.

2. Excessive Focus on Sales Volume:

• Root Cause: We excessively prioritized sales volume and competition from top to bottom, allowing desire to overshadow value. This shift resulted in a significant decline in our expertise in user value and operational efficiency.
• Solution: Lower sales volume expectations and desires, returning to healthy growth. We'll focus on users rather than competition and value rather than desire. We'll revert to enhancing our expertise in improving user value and operational efficiency, which are our core strengths.

Adhering to Our Three Behavioral Guidelines:

• Prioritize User Value
• Achieve Consensus Through Co-creation
• Be Truthful and Willing to Correct Mistakes

The issues in March 2024 represent an intensified version of those from 2022. By being truthful and willing to correct mistakes, we are confident that with collective effort, focusing on user value and operational efficiency, and patiently controlling our pace, we can effectively address problems and provide long-term, quality service to our users.

Regards,
Li Xiang Ideal Car's "Cool Thinking": From Sales Competition to Customer-Centricity

CEO Li Xiang's recent company-wide memo is undoubtedly a turning point. The mention of "lowering sales expectations and desires" doesn't reflect pessimism about the market, as seen from March's data. Ideal still holds its position in the top three on the "Differentiated Adjective" leaderboard, engaging in a back-and-forth with Wekai, Tesla, and BYD. It's evident that Ideal Car is stepping away from the past sales competition and instead focusing more on the quality of its products and services, as well as long-term customer satisfaction. Perhaps this shift will start to show in next Tuesday's Ideal sales announcement.

Ideal Car's "Customer-First" Strategy

CEO Li Xiang's emphasis on "enhancing user value" in the memo is central to Ideal Car's future development. Listening to user feedback is Ideal's strength. While the L-series plug-in hybrid mode practically eliminates range anxiety for users, the shift to pure electric vehicles presents greater range anxiety concerns. Li Xiang's reflection also acknowledges the current limited scale of the charging network, insufficient to fully address MEGA users' range anxiety. Therefore, the expansion of the charging network will accelerate. According to previously released information, urban superchargers will reach 600 by the second quarter, 2000 by the end of 2024, and highways plus urban areas will have 2700 by year-end.

"Precision" Management for Operational Efficiency

From the launch of the first L9 model to L8, L7, and MEGA, Ideal Car has been exemplary in controlling store efficiency in the industry. New cars can be seen in most stores and test drives can be scheduled on the second day of listing. Sales (product experts) are well-trained in professionalism and dialogue. However, excessive pursuit of sales has also led to rough expansion of storefronts, resulting in decreased efficiency per store. The reputation of the L-series largely stems from its superior product experience.

Ideal Car's "Rhythm Maestro" Strategy

In adjusting the pace of new model launches, Ideal Car has demonstrated precise control over market rhythms. It's even textbook-worthy. Taking MEGA's initial promotion as an example, every step of the pre-launch promotion was closely coordinated before the official launch. The initial successful marketing hype and the post-launch media frenzy have turned MEGA into a massive traffic pool. However, the release of the 24 models of the L series has received minimal attention. A visit to various stores reveals that most customers are drawn by MEGA, with many being mere bystanders. Some customers browsing cars in the stores are even unaware of the 24 models of the L series, let alone the upgrades they bring. With both the brand flagship and the main sales force being launched simultaneously, the company's communication end and frontline sales cannot be managed concurrently, resulting in neglect in one area while focusing on the other. At this stage, it's crucial to readjust the communication pace to give the 24 models of the L series more exposure, stabilize the ideal sales volume, and allow frontline sales personnel ample time to communicate and digest the product strengths with customers in-store. Some stores could even consider "hiding" the MEGA display cars, allocating more prominent positions to the L series.