Author | Chai Xuchen

Editor | Zhou Zhiyu

From “elves” to “tough guys,” after switching to electrification, smart seems to have begun to “let go” to disrupt the impression of the outside world, but this is also an active transformation from niche to mainstream.

At the 2024 Guangzhou Auto Show, three models from the smart family joined forces, and the outdoor camping theme became the biggest feature of the booth: the projection in front of the car, the tent on the roof of the car, and cooking utensils under the canopy on the side of the car. As can be seen, in the “hardcover” market dominated by “refrigerators, color TVs, and large sofas,” smart wants to convey some comfort outside the city.

Among these, the one in C position is the new Smart Genie #5，这是梅赛德斯 - the third car after the collaboration between Mercedes-Benz and Geely, which was unveiled three months ago. Its appearance shattered the image that was once smart, petite, and refined, and turned into the main sports hardcore “Mercedes-Benz Little G”. It is the largest product in smart's history in size and space, even larger than the Mercedes-Benz GLC standard axis.

As a new luxury brand under Mercedes-Benz, smart initially focused on boutique cars to adapt to the narrow streets and parking environments of Europe. Before the advent of the electric era, customisable two-door or four-door mini cars (smart fortwo, forfour) were representative of urban romanticism.

However, Smart, which has been working hard in the field of boutique mini cars, is unable to open up a larger situation in terms of sales, and annual sales have not exceeded 0.15 million units. With the changing times and the development of technology, smart under Geely has a bigger vision to ride the new energy wave.

In an interview with Yi Han, CEO of Smart China Marketing Company, he stressed to Wall Street News, “Don't think SMART is small. Starting with the 1998 Mercedes-Benz system, SMART has never defined itself as just a mini car.”

This is not difficult to understand. For any brand that pursues long-term development, the wider mid-size SUV market has always been a must for military families.

Yi Han revealed that Genie #5所在的国内中型SUV市场，年均规模600多万台，是精灵 #1、 #3所在市场规模的四倍。 He said he wants a brand new elf #5打造成走量的车型， “smart elf #1和 #3的体量，决定了这台车不能成为家庭的唯一，但精灵 #5的尺寸和体量，以及该车的适应性，决定它可以成为部分两口、三口之家的主流用车。”

In the eyes of the outside world, this will be an important step in achieving a smart revival. However, it must be avoided that on mid-size SUV tracks, BBA fuel trucks are still the main force in the race, followed by strong back waves such as Ideal L6 and NIO ES6. Elves as latecomers #5如何能在此占据一席之地？ The answer comes from Smart's DNA.

“Smart's brand proposition is Open Your Mind.” Yi Han said that during research and development, the company was always thinking about how to walk from inside to outside the car, how to get from the city to the outdoors, how to expand the scope of consumer activities, how to bring rideable driving pleasure, and how to achieve personalization.

Thus, Genie #5有了主流市场高端车标配的800V纯电高压平台、空气悬架等。 In addition to this, smart has also added some innovations to the car, such as the industry-first full-color laser projector, portable HiFi speakers, and zero-gravity front seats. This kind of model positioning and design makes the new smart elf #5成为smart品牌中表现最全能的一款车型。

Yi Han revealed, elf #5的设计师们，就是20多年前参与fortwo、forfour设计的同一团队。 Yi Han said that when many people switch cars, they definitely tend to follow not just a means of transportation, but also their personality, style, and brand.

This means, sprite #5依旧在传承着smart的情感价值，同时与时俱进地挖掘新时代的潜力。 More importantly, under the current trend of consumption downgrading, Smart Choice is still “bucking the trend” and betting heavily on brands.

“Building a brand is like planting a tree. Some people say the best time to grow a tree was ten years ago, or now. Yi Han believes that smart is doing difficult and correct things, and gradually accumulates core competitiveness for SMART to reach the end of the industry.

The following is a transcript of a conversation between Wall Street News and Yi Han, CEO of Smart China Marketing Company (edited):

Q: NEW SMART SPIRIT #5推出后，品牌形象转变的核心是什么？

Yi Han: I think a brand, whether it's a car brand or a durable consumer brand, especially a brand with vitality, is definitely not stuck in a certain field. Since 1998, when SMART built cars under the Mercedes-Benz system, we have never defined ourselves as only mini cars. We have an internal saying called “Don't think smart is small”.

In the past, in the Fortwo and Forfour eras, it was because urban traffic conditions at the time required such cars. Back then, smart wasn't mainly used as a tram because the technology, battery, and body layout did not reach the current level. Even so, almost every smart fuel car had a corresponding electric version. Smart already had a concept car in 1972, and its sense of innovation is very strong.

In 2019, Geely and Mercedes-Benz began joint venture negotiations, and Smart fully electrified. smart elf #1、 #3外部做得非常的紧凑，但内部空间和尺度非常大。 I think, the new smart elf #5是有史以来最大、最方正，也最野的一款smart，它的用户群会更广。

So let's make a brand new smart elf this big #5，目的也是为了让用户可以带上更多的人来体验这种灵动，带上更多的装备去到更远的地方，而不是只是在城市穿行。 So today this car is also our first model that can go from the city to the outdoors in the wilderness.

Q: Has there been any change in the smart brand core, and how does it affect product design and marketing strategy?

Yi Han: I think the core is divided into two levels. One is the rational value of the product power itself, and the other is the emotional value. If a brand wants to continue to develop, in addition to inheriting classics, it must have something that keeps pace with the times, sees future potential, and seizes opportunities.

Inheriting this thing, we can actually take a look at smart products. From a design perspective, smart design has three core keywords called “pure, love, and beyond expectations”. These three keywords are fully reflected in the new smart elf #5上。

Spoiler alert, our new smart elf #5的设计师们，就是20多年前参与fortwo、forfour设计的同一团队。 Their understanding of smart is engraved in their bones; smart cars have always focused on being dexterous and lightweight, and the new smart elf #5转弯半径只有五米六，双车道掉头一把过。

In terms of emotional value satisfaction, our car still implements the definition of a new luxury product in terms of styling elements and style, including the texture of materials used. It is very difficult to satisfy users' emotional value and balance cost performance. We have opened up car body and interior options, so that users can feel intelligent technology while meeting individual needs. This is what smart should do.

Q: NEW SMART SPIRIT #5订单情况如何？

Yi Han: Delivery has not started yet (November 15), and orders have continued to grow steadily during this period. Our orders are very concentrated, and first-tier cities account for the majority. After subsequent delivery, the continuous fermentation of more user reviews and experience content will bring us more new customers.

smart elf #1、 #3和全新smart精灵 #5它们生命周期、所负担的责任是不一样的。

Currently 80% of our marketing activities revolve around the new smart elf #5展开，smart elf #1和 #3是销量的基盘，如果全新smart elf #5卖得好，会给smart elf #1和 #3很多带动效应。 Smart Genie #1和 #3所在细分市场的容量，在中国一年不过1 .6 million units or so, while the new Smart Genie #5这个中型SUV的市场是他们的四倍。

In fact, in this market of more than 6 million, oil trucks still account for a large proportion. This market will present a watershed moment. There will be anything over 10,000 or over 5,000. The new smart elf #5是稳中求进，对量的预期比较理性。

Q: What is the smart brand's strategy to sink the market in third- and fourth-tier cities?

Yi Han: Our current network layout has 190 stores in 88 cities, but by the end of this year, we probably expect to reach 110 cities, or more than 200 stores.

The difficulty in promoting third- and fourth-tier cities is that it requires education costs and time. Third- and fourth-tier users are more concerned about brand influence, and it still takes time to establish brand awareness. Unlike first-tier cities, due to the ease of obtaining product information, many sales outlets, and a wide range of choices.

So sinking down is a matter of rhythm; you need to consider when to use what kind of rhythm and what kind of speed.

Q: Why does smart continue to be a brand?

Yi Han: Being a brand is a lot like planting a tree. Nowadays, many marketers are talking about growing grass, hoping to harvest the market quickly and easily. There is nothing wrong with planting a tree, but planting a tree requires a certain proportion. Without this tree, you can't build a solid foundation, and it won't grow well. Smart has 26 years of experience with brands, 31 global markets, and millions of users. It is more influential than many new forces. This is the foundation for us to plant trees.

However, if trees are to become forests, services, user experience, etc. must be built to become a part of consumers' perception of brands, luxury brands must have corresponding abilities and experiences.

But at the same time, planting grass between trees places more emphasis on efficiency and focuses on users. Traditional luxury brands are slow to develop new energy sources, in fact, they are unable to balance the relationship between planting trees and planting grass. This tests the ability of the marketing team. They must neither be too ambitious nor arrogant; they need to have a positive rhythm.

Q: How to balance the layout and marketing resource allocation of smart brands in domestic and overseas markets?

Yi Han: Domestically, smart uses a new direct sales agent sales model: D2C, or “direct-to-customer”. Our sales, service, and business network are authorized agents and cooperation with powerful local dealer groups, and adopt the principles of fewer businesses and multiple stores, regional coordination, integrated sales and service, and separation of facilities. This is the biggest difference between us and the traditional distribution model.

The overseas model is simpler. It is sold as a “store-in-store” in Mercedes-Benz stores. Overseas expansion is convenient but the expansion is relatively slow. Currently, the European market layout has 300+ sales points and 400+ service points in 17 countries.

Q: Will the Smart product line break out of the SUV market in the future and what are the expansion plans?

Yi Han: When we discuss future product planning and considerations, we have a few reference points.

The Chinese and German groups will have several reference points at the product discussion meeting. We want to make a global product, not for a single market. Therefore, we can't just look at which market segment in China is booming; Europe won't consider it if we don't need it; we won't set our own limits on product development. It's not that we can only make cars, only SUVs, but we make products that enable users to open up their imagination and surpass expectations, and make interesting and personalized products.

Q: Will the smart series consider launching other power versions in the future?

Easy to get cold:Geely's R&D still fully supports smart technology, and we will launch corresponding new products in real time according to market needs.