And you would anyway need a very close link to the dealer for insurance and maintenance. Despite the slowdown and the clampdown on luxury purchases?
Aspects like after sales [service] are much more important now. Read the Knowledge Magazine. The car industry is probably one of the most competitive industries worldwide. These are China-specific projects which are developed here.
Do you see a lot of competition within this segment? With this strategy we think we are well suited for all the challenges [of] the future. Here in Beijing we have nowcar licenses [a year].
In some ways China was also a risky bet back then: The growth in China of the overall market will come more from the western regions and from the smaller cities, and we were the first to concentrate on building dealerships there.
The concept of premium has not been fully developed as in other mature countries, so the best way to make people feel the innovation and the class of BMW is to let them drive.
The growth of the overall car market in China is similar to the GDP growth of the country, but the premium car market is always growing stronger, faster than the normal passenger vehicle market.
So it was not a delayed start, it was perfect timing to coincide with the emergence of the premium market. Ten years later it sold 20, And we can build our brand.
We had a good understanding, and this also helped us to find the most suitable partner for production. We have several [tie-ups with] all these verticals—Autohome, Tmall is the latest one…. These are potential customers. And only if your landlord permits you to install a wall box or a socket or whatever, will we sell you the cars.
The numbers we are selling are still very small—the main reason is the lack of recharging infrastructure, but this will come, and the government programs are very extensive here.
Penetration rates are 16 percent on average in Germany, and 14 percent in the United States. The government is steering it actively in that direction.
What are you doing to tap smaller cities and also the western region in China which are obviously very different from Beijing and Shanghai? Can you explain the thinking behind it?
The overall expansion rate of the premium car market in China reached roughly 20 percent this year, and its penetration rate touched a historic high in Beijing, Shanghai, Guangzhou and Shenzhen.
You can target much better your target customers than in the past. The actual sale is in the dealership, and afterwards the dealing [with the customer] is between the dealer and the consumer directly in the dealership.
Nobody has done this before. The accumulated sales volume in the first three quarters also surged by First of all, individual mobility seems to be a desire of the people—they want to have a car.BMW China: Foot to the Floor July 1, By Neelima Mahajan BMW China President and CEO Karsten Engel on how China became the company’s largest market globally, and how things are shaping up in the ‘New Normal’.
BMW Strategy Analysis in China. Apr 11, | branding in China. BMW in China- The luxury ride for people who want to stand out from the rest. Bayerische Motoren Werke AG English for Bavarian Motor Works more famously known as BMW is a German automobile firm that has made its presence felt across the world and China is no.
Bayerische Motoren Werke (BMW) defines China as its mature market segment doesn’t mean it neglects China as one of its important markets. Bayerische Motoren Werke AG, best known as BMW, is a German automobile, motorcyle and engine manufacturing company founded in Inthe BMW group produced 1, automobiles.
BMW Enters China BMW- Company at glance Founded in in Bavaria as an airplane fabric First automobile was the BMW in BMW Group - wide product portfolio. Transcript of BMW's Marketing Strategy in China.
Richard Liu Alex Wang BMW in China From Entry to Dominance Tsinghua IMBA -2, Group I /05/23 Background BMW's Marketing Initiatives in China Competition BMW's Road in China Marketing Strategy The Three Levels of a Product Distribution Channels Positioning Map Product.
BMW in China: From Entry to Dominance Introduction "In the next five to 10 years, China will be the biggest market for all brands and become a big area.Download