Luxury brands thrive on their own brands

BMW's factory in Tiexi, Shenyang, was completed and put into production, doubling its production capacity in China. At the same time, Infiniti finally announced that it would be made in China. As time goes by, Cadillac has announced that it will establish a new factory in China; rumors claim that Ford will introduce its luxury brand, Lincoln, into China; Lexus plans to increase its sales in China by more than 50% this year.

In the global economic downturn environment, luxury brands in China have been really bad! In the first quarter of this year, sales of Audi brand in China increased by nearly 40% year-on-year, achieving a record sales volume of the brand in China; the BMW brand in the same period also created the best single-quarter sales in history, and the year-on-year increase was close to 40. %.

Let us look at another set of figures. According to data released by the China Association of Automobile Manufacturers, in the first quarter, the sales volume of China's passenger vehicle market fell by 1.25% year-on-year. Among them, the decline in self-owned brand cars was higher than the overall decline in cars, and the occupancy rate decreased by 4.1% year-on-year.

This is not the first time that the market share of self-owned brands has dropped. It is shocking to see two different data sets.

The huge growth of luxury brands certainly benefits from the strength of their brands and continuous price reduction strategies. However, the two camps that do not seem to have a competitive relationship are struggling with the former's “casual movement”.

The depreciation of luxury cars directly affects the high-end vehicles of joint venture brands, but indirectly, affected by this, the prices of models of all types of joint venture brands continue to be tested. Although consumers have received benefits, they have no way to establish their own brands with small living space. .

From the perspective of economics and the current reality of the Chinese auto industry, the price of luxury cars has not fallen to the limit. With more and more luxury cars domestically competing, the price of luxury brands in China will only become lower and lower. , But how about the days of self-owned brands?

We cannot blame consumers for not supporting domestic brands because of poor development of their own brands. In the case that most car buyers are buying cars for the first time, I am afraid that no one is unwilling to pay for stronger brands and higher quality.

It is often seen on the Internet that some people say that the rise of Korean cars is because South Koreans support their own brands. However, some friends who came back from studying in Korea reminded me that Koreans did not initially support Hyundai, Kia, and other domestic brands, but later the quality of their products was getting better and better, and the price was low, coupled with the policy tilt, no one was unwilling to choose a domestic car . In all fairness, after these years of development, the quality of the products of independent brands has changed by leaps and bounds, but there are not many products that are as good as foreign brands. In addition to the product itself, its own brand has not yet had a stronger brand as a support. What consumers sometimes buy is not the product itself, but also the more connotations that the brand has purchased.

On the other hand, with the help of policies such as the stimulation of small-displacement cars in 2009, independent brands have ushered in an unprecedentedly favorable development environment. However, with the cancellation of a series of encouraging policies, some of the self-owned brand cars that have been sold well have been pushed into the “cold house”. It can be seen that the policy is crucial to the development of independent brands. Some people say that when China joins the WTO, it cannot favor its own brand in policy. I am afraid the fact is not only that. The tax and GDP generated by a BMW Tiexi plant is probably far greater than that of Geely's factory.

In any case, the future of independent brands in China depends on the efforts of the self-owned brand companies and the government's help. After the joint efforts of the enterprises and the government, we can expect the support of consumers.

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