2015 is being great news for the German trio of high end cars, Audi, Mercedes and BMW. Indeed, their sales in China are constantly increasing and they are dominating the Chinese luxury cars market. They definitely worth their positions in the Top 10 luxury car brands in China.
Mercedes is trying to narrow the gap
China became one of Mercedes’ main markets with United States and Europe. Mercedes has a much weaker position than Audi and BMW on the Chinese market, due to a failing distribution strategy when they entered the market. However, acknowledging (the World largest car market), Mercedes decided to set up offices locally in Beijing, and projects to invest on its local R&D process (More than 130 thousand dollars).
The German brand is planning on operating a new strategy which will consist in launching their new models in China first and then distribute them to America or Europe. Integrate China to the first rollout phase would be a huge innovation as explains Thomas Weber, Mercedes Development Chief. The brand now seems willing to focus more on the Chinese Market, Weber even said “China plays a major role for our global product development process.” Mercedes is aiming to become by 2020 the world’s largest luxury cars maker.
BMW sales are slowing down
BMW operated a real breakthrough in the Chinese market, but despite being the global leader, the brand has seen its sales slowing down. Even if, the number of cars sold is still rising (+8,1 for January 2015), this growth rate is not as many as it used to. BMW Chinese car dealers even asked for compensations for the sales loss they suffered, because of the car maker’s too high sales demand. Indeed, car dealers accused BMW of being too optimistic, and making unrealistic sales demands without taking in account the state of the actual market.
The brand adopted an effective local strategy though, with an adaptation of its product. They managed to open a plant on the Chinese territory to create China only models. With this interesting strategy they succeeded in meeting the real customers’ needs and expectations.
Audi, the Challenger
The premium German brand has been having a successful run for 25 years now. China now represents for The Volkswagen Group, its first market. Despite operating a powerful strategy by making only Chinese models, the brand is keeping the 2nd position besides BMW. With its extra-long black cars driven by chauffeurs, Audi had a bureaucratic image. They choose to revamp their image to target a younger audience. Audi is now willing to focus on the electric cars market in China, counting on their “better strategic nose” and the fact that they “saw the trends earlier” said Dietmar Voggenreiter, president of Audi China.
The race continues between these 3 dominating brands that competes for the 1st place, will BMW stay Number 1 or will they lose their crown?
Now what you have to do is use the trend to promote your brand while the market blooms. With 634 million netizen and 67% Chinese netizen trusting the review left by their peers as well as online reviews, China is an ideal market.
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