Our Corporate Communications staff spend time getting to know Sumitomo Corporation's different business sites around the world, reporting on how the people at those sites work. We will keep you up to date with the world of Sumitomo Corporation, which extends to every corner of the globe.
Kenichi Hirao,
External Affairs and Strategic Planning Team, Corporate Communications Department
After experiencing in marketing at the Automotive Division and Network Division, He was assigned to the Corporate Communications Department in April 2007. Currently, He is in charge of the formulation of mid- to long-term corporate communications strategies, group and global communications, etc. He sometimes enjoy playing golf, while he is also into audio equipment.
Shanghai Baosteel Summit Auto Trading Co., Ltd.
The company conducts auto dealer business in Shanghai, China. It handles several brands, including Toyota and Audi, and currently owns a total of nine dealerships in the Baoshan region, Shanghai (six dealerships), Jiaxing (Zhejiang Province), Wuxi and Zhenjiang (Jiangsu Province). It is a joint venture of Sumitomo Corporation, Sumitomo Corporation (China) Holding Ltd. (our locally incorporated company), and Baosteel Group Corporation, a leading Chinese state-owned iron and steel company. We took a stake in the company in 2007 and now hold a 49% stake.
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Inside the Audi dealership. The lineup of luxury cars in the large store is a sight to behold.
Therefore, the company only handles auto brands that match its customers' needs and attempts to reinforce contact points by narrowing down areas. The brands that the company handles include Toyota, Nissan, Mazda, Audi, Volkswagen, and MG, which target medium- to high-class customers. Customers in these classes have a high rate of using after-sales services repeatedly. So, I thought that this narrowing-down strategy was the surest strategy in the medium- to long-term, although it may sacrifice a rapid increase in the sales aspect.
The front desk of the Volkswagen dealership. The hotel-style front desk exudes luxury. The interior of the store, which was recently renovated, has premium accents.
It seems that these strategies have steadily provided successful results in recent sales performance. Mr. Minoguchi himself also sensed a good response. In the meantime, he says that the foundation of the auto dealer business is the management of inventory and debtors and it is important these ideas are grasped companywide. Him saying this made me realize the sheer depth of his experience.
Mr. Minoguchi and Sales Manager Ms. Yang at the Mazda dealership. From the look of Mr. Minoguchi who talks with store managers and staff in Chinese in a friendly manner at the stores I was taken to, I realized the importance of communication.
But such ideas cannot be expected to become successful unless they are shared by business partners. So I asked Mr. Minoguchi about the Baosteel Group as a partner. "It has a long history, and its corporate culture takes root in it. And above all, it has a solid stance of observing the rules. Its corporate culture is similar to ours, and we have established solid relationship to operate the joint venture as partners."
Sumitomo Corporation has various dealings with Baosteel Group in our coil center business in Changchun and Nanjing as well as Baosteel's iron and steel business, and Baosteel Group is a partner with which we have strong relations of trust.
The two companies, which respectively have firm corporate history and culture, are attempting to breathe new life into the rapidly-developing Chinese auto market, through sharing of business know-how accumulated through vast experience. On this visit, I had a hunch that business would steadily take root in Chinese soil and begin to grow. My visit happened to be during winter. When spring arrives, the business will no doubt produce bright and lively flowers.
In China, the expression of "XX 4S store" is often used for sales outlets. "4S store" means an authorized sales agency. 4S means Sales, Service, Spare parts, and System. It was originally used for car dealers, and has since penetrated other businesses.
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