Geely May Cancel Three Sub-brands, and Integrated Back to Geely

Last Monday, Geely Automobile (hereinafter referred to as Geely) offers 45 Emgrand and Englon barrier-free taxis for “2014 APEC Senior Officials First Round Conference”. Some attendance points out that it could be the last show for Emgrand and Englon. According to arrangement, Geely plans for new brand strategy, which will cancelexisted Emgrand, Englon and Gleagle, and integrates them with Geely brand.

After three sub-brands fade away, Geely will build “Geely” as its partner brand, and adopts total new brand logo. Meanwhile, Emgrand, Englon and Gleagle will totallydisappear or turn to product series. It means Geely will reorganize its brand strategy.

Some media leaks that Geely father LI Shufu and sales VP SUN Xiaodong have considered about Geely future as early as last year, and finally decide the next 5 years Geely brand build plan, which will come back to “One Geely” goal.

In fact, Geely has researched for strategy transition for a long time. As early as two years ago, some senior manager of Geely leaks that the company has made it’s decide for products layout already. But it does not finally have agreement with brand name and logo. “It mainly because of Emgrand location disagreement.”Some insider introduce, as the most famous brand among Geely brands, even prominent among Chinese owned upper medium brands, some people afraid integration will influence Emgrand development. “Emgrand series is star product after Geely strategy transition since year 2007. It is sold more than 500 thousands since it launching market in 2009.”

However, with 5 year sub-brand independence, 3 sub-brands development does not balance. Particularly Gleagle and Englon compete within the same segment and sub-brand synergistic effect does not efficiency which finallycauses Geely making decision to integration. “Because Emgrand, Englon and Gleagle sub-brandcanceling, Geely will get rid of brands fight alone. It will benefit Geely resource integration, and fight out with Geely brand with upper brand reputation.”An analyst says, because of domestic brand research level is kind similar, which cause brands difference does not obvious. Too many sub-brands dazzled customers and will not benefit brand reputation build. However, sub-brand strategy successfully makes Geely get rid of its low end and cheap brand image since 6 years ago.

According to new plan, Geely will integrate its resource starting from dealer’s network and research platform. Geely European research center officially get into operation, totally new module platform research is initialed.


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