2 1 Shi Ji Jing Ji Bao Dao·2025-10-17 15:35Core Insights - Great Wall Motors is transitioning to a fully direct sales model for its Wei brand, phasing out the existing dealer network and rebranding "长城智选" stores to "魏牌新能源" [2][3] - The shift aims to enhance brand identity and streamline operations, positioning Wei as the closest brand to new energy vehicle startups within Great Wall's ecosystem [2][8] - The company plans to expand its direct sales presence significantly, targeting second and third-tier cities to capture new market segments [9] Group 1: Direct Sales Model Transition - Great Wall Motors will completely adopt a direct sales model for the Wei brand by the end of October, ending the dealer model [2] - The transition is part of a broader strategy initiated in April last year, which aimed to reduce inventory pressure on dealers by shifting high-end models to direct sales [4][6] - The direct sales model is expected to improve customer experience and brand image, as articulated by company executives [8] Group 2: Market Expansion and Performance - As of May, Great Wall has established over 430 user centers across 110 cities for Wei brand sales and services, with plans to expand to 500 stores covering over 300 cities [9] - Wei brand's sales performance has been strong, with a 63% year-on-year increase in September, delivering 11,000 vehicles [9] - The direct sales model has led to a significant rise in sales expenses, with a 63.31% increase to 5.036 billion yuan in the first half of 2025, while net profit decreased by 36.39% [9] Group 3: Challenges and Strategic Implications - The dual sales model previously employed posed challenges in price control between direct sales and dealer networks, leading to potential internal competition [5][6] - The transition to a fully direct sales model aims to eliminate pricing conflicts and enhance market penetration [7] - The shift to a direct-to-consumer (DTC) approach requires a fundamental transformation in organizational processes and corporate culture, which is more complex than merely establishing direct sales outlets [10]