Geely to consolidate its brand offering

The Zhejiang based automaker may streamline its diverse product offering

In 2009, Zhejiang Geely Holding Corp announced it would divide its Geely brand of automobiles into three separate makes: Gleagle, Englon and Emgrand.

Company Chairman Li Shufu believed a wider range would help it capture more market share, but instead the three brands have impacted on each others sales, leading to longer inventory periods.

In a recent news leak to the Chinese media, Geely's management has hinted strongly that it would phase out the Englon brand in an attempt to consolidate their product offering and build the Geely brand back up.

The three brands were intended to appeal to different target markets: Emgrand was designed for business owners, Gleagle was intended for young consumers and Englon was target for family use.

Geely's January sales plunged 47% in January, compared to 7% growth in passenger car sales in the same period. The company's return to a "One Geely" goal may help strengthen its brand image and focus its marketing spend.

Geely is not the only company to make this mistake, however. Both Great Wall Motors and Chery have streamlined once chaotic offerings in favour of a more focused approach.

For lubes producers, a trend toward consolidation could also mean streamlining lubes offerings. Designing lubricants with a wider range of applications would also ensure producers could capture a larger market share.