Behind the differentiation of the auto market

In June, the underline of the auto market continues.

Apart from luxury cars, the sales of ordinary models have shown signs of decline in addition to the North and South. The days of self-owned brands are the most difficult, the consumer environment is weak, and the space for price exploration is limited.

There are two blind spots in the joint venture brand: First, the Japanese brand is plagued by Japan’s earthquake and many years of conservative strategies, and the overall market share declines. Second, the mid-to-high-end market that has always served as the “automobile weather vane” has become a hard-hit area, and many new models have been added. The overall market share did not rise, but the terminal price of the old model was almost at the bottom. The new model's marketing offensive was radical, but heavy punches seemed to have hit the cotton pile. The target was far from reality.

There are indeed many external causes that encourage consumer policies to collectively withdraw from the market, financial policies continue to tighten, oil prices and parking fees have risen sharply, coupled with Beijing limit licensing, high CPI, and so on. In the past two years, the growth of China's auto market has stopped abruptly. In a slightly heavier consumer environment, the so-called "quality customers" who are not bad are eager to win luxury brands. The "steel wires" among ordinary consumers are also tightening their belts and buying cars are even more selective.

The ups and downs of the market are normal. Even the "good days" of the past few years have a "negligence," but the stagnation of the auto market has clearly differentiated in 2011. The brands with more market appeal have demonstrated superpowers. The effectiveness of the immune system, low-cost strategies, and the increase in brand premiums are increasing. Consumers become more assertive and more patient in their choices.

Autonomous cars showed unprecedented enthusiasm for the joint foreign-funded brands. The obsessions of third-generation Subaru, last-generation Saab, Chery, Great Wall, Jianghuai, and Huatai, and in the almost farce-based cooperative games, the difficulties and aspirations of independent auto brands Obvious. Under the pressure of joint venture brand prices continuing to fall, price-cutting promotions have become a blunt instrument.

Hyundai Sonata and Kia K5 are strategic models for the rebranding of Korean brands. Originally, they thought that the mid-to-high end of the Japanese system would be affected by earthquakes, new generations, and other factors that would give Korean brands space. But the fact is not the case. Sonata and K5's unsatisfactory sales will give the opportunity to Volkswagen Passat and Magotan.

Brand power is not enough to be a shield for losers. This is indeed a good reason. So, what is the brand? Some people say that brands need time to settle, brands need systems to protect, brands need accurate marketing and invisible soft power to support...

These views are all correct, but none of them are effective. In my opinion, when many companies talked about brand bottlenecks, they still did not jump out of the category of promotions. They did not even have basic brand awareness.

If the brand must be guaranteed by the system, Shanghai GM and Dongfeng Nissan are two companies with strong industry recognition, but the system of Dongfeng Nissan is built on the basis of marketing, while the system of Shanghai GM is based on the brand. Starting from the origin. Therefore, we see that Dongfeng Nissan is good at importing new products. However, for mid-to-high end models such as Tendai, the weapon of the warfare market is still dominated by prices.

In the author's opinion, the system advantage of Dongfeng Nissan can well solve the product's popularity, but it is not good enough to convey the good reputation. The reason for retrospection is that marketing power is strong and brand awareness is weak. As a latecomer to the auto market, Chevrolet's not-so-professional resume in China is undergoing qualitative changes. Many people attributed this to the product advantages of cutting-edge models such as Cruze, ignoring the Shanghai Superbrand's ability to operate.

The brand advantage presented by Volkswagen comes from the intensive cultivation of more than 20 years. However, Shanghai Volkswagen and FAW-Volkswagen are all enjoying brand bonuses. What is not optimistic is that the two companies have not yet established a complete system support for how to build a brand, and even the brand awareness is harder to say than other companies.

Behind the differentiation of the auto market in 2011 is the arrival of a new era. This will be a time when a large scale is not as distinctive as it is brighter than a big one. It is also an era in which price-led products and market competition are changing to brand-led ideas and wisdom.

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