Do consumers care about money when luxury cars are on sale? Its a sense of identity

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 Do consumers care about money when luxury cars are on sale? Its a sense of identity


The return of golden nine and silver ten are in sight. Luxury cars still lead the passenger car market, and maintain the market share at a historical high of 15%. Behind the red sales is the implementation of the price for quantity.

The top three German companies (Mercedes Benz, BMW and Audi) are now defending their position through the price war.

Later, the reporter came to a BMW 4S store. When the reporter asked for a sales person to introduce the car, he was told that all the sales personnel in the store are currently receiving customers and need to wait in line. It is expected that the sales staff will receive the reporter 20 minutes later.

Finance and economics reporter learned that among BMWs main sales models, the preferential range of 3-series, 5-series, X3 and other models are all around 30000 yuan.

There is also a kind of competition called you drop, I also drop. In the face of the fierce price war between Mercedes Benz and BMW, Audis discount rate is enough to make the former two blush.

Domestic models, including Audi A4L, A6L and q5l, enjoy a 20% discount for all models, while the discount margin for imported models is basically around 9.5%. At present, the daily sales of an Audi 4S store in Beijing are on average more than a dozen cars, and the average monthly sales volume is about 120 vehicles. Among them, A6L and q5l account for one third of the overall sales volume in the store respectively.

At the same time, the sales staff told reporters: this year affected by the epidemic, price war is inevitable, if not reduce the price, the car will not sell out.

Although Audis preferential power is currently the largest among the top three German brands, the reporter found that some consumers still showed some helplessness when purchasing Audi brand models.

More than 480000 Benz e300l has been completed, and the price of 2020 a6l45tfsi is more than 410000. If I have sufficient budget, I still prefer to buy Benz e300l. Mr. Li, who watched the car in the above-mentioned Audi 4S shop, said: from entering the car, we can intuitively feel that Audi A6L is far inferior to Mercedes Benz E-class in terms of luxury sense. Whether in terms of interior design, material selection or riding comfort, the Mercedes E-class can make people feel that this is the luxury car in their hearts.

In the view of Gu Huanyu, a brand expert from the Ministry of Commerce, the promotion of product strength is the first priority for an enterprise to enhance its brand strength, and then the establishment and influence of the brand. With the growing maturity of Chinese consumers, price reduction has become a double-edged sword. With large discount, it will not only attract consumers, but also cause great harm to brand value and brand image.

For luxury brands, discount is a taboo. For example, Jaguar Land Rover has a relatively large discount margin for a long time, and it is even nicknamed by consumers as 20% off leopard and 20% tiger . Once a similar rumor or or trend is formed, it will not only have an impact on the brand image, but also on the consumers purchase confidence. Gu Huanyu said in an interview with Caijing.

Xue Xu, associate professor of School of economics of Peking University, believes that if there is an objective gap between experience and feeling, timely price adjustment is the most basic work that the enterprise marketing department should undertake. However, it is not a serious problem to explore the price of luxury brands. After the price reduction, whether the enterprise can improve the value of products and brands is the key.

If consumers buy a car, it is not because of the limited budget that they can only afford the car, but because of the attraction of its brand and culture, and think that it is a wise choice to buy the model of this brand, then the creation of this luxury brand is successful. Xue Xu told Caijing.

Behind the crazy price reduction is the return of brand value?

According to the official data of FAW Volkswagen Audi, in the first nine months of this year, the Audi brand delivered about 512100 new cars in China, up 4.5% year on year, and achieved its best performance since it entered China 32 years ago. Nevertheless, the reporter from Caijing found that while the price of its products has dropped sharply, Audi has been out of touch with the monthly sales volume champion of Chinas luxury car market for several months in a row, which has gradually widened the gap between Audi and Mercedes Benz and BMW.

According to the sales situation of the third quarter of 2020 announced by BMW Group, the quarterly sales of BMW and mini brands in China increased by 31.1% year-on-year to 230600 vehicles, and the cumulative sales volume since this year has increased by 6.4% to 559700 vehicles.

In addition, according to the official data of Mercedes Benz, Mercedes Benz delivered 223600 new cars to Chinese customers in the third quarter, up 23.4% year-on-year; in the first nine months of this year, it delivered 569700 new cars to Chinese customers, an increase of 8.3% year-on-year.

It is not difficult to see that in the first three quarters, there was a difference of 10000 new cars between Mercedes Benz, which ranked first in the luxury car segment, and BMW, which ranked second. The cumulative sales difference between Audi and BMW, which ranked third, was 47600 units, and that between Audi and Mercedes Benz was 57600 units.

Price war is undoubtedly a necessary means for automobile enterprises to seize market share, but in the case of bad automobile market environment, the price reduction range can also reflect the brand power of enterprises from the side. Gu Huanyu said: the party with relatively weak brand power will naturally make greater concessions in the terminal market.

In fact, for Mercedes Benz, BMW and Audi in the first camp of luxury brands, there is no big technical gap among the three. The creation of luxury sense is first reflected in the application of interior design and materials. However, for luxury brands, it is already very mature. Therefore, it is undoubtedly the result of strategic choice for enterprises to increase sales by substantially reducing product prices.

In Xue Xus opinion, the failure of some luxury brands to trade in price for quantity shows the return of brand value to a certain extent.

Take Audi as an example. As a luxury brand, after it launched its A6L model in the Chinese market, it showed itself as an official car. In this case, even if there is a gap between its product strength and the benchmarking models of the same level, consumers will still accept it to a large extent. After all, leaders take it. Xue Xu believes that the former official car status has greatly improved the brand value of Audi. With the transformation of Audi brand, its brand value has returned to its own proper state, and this state is bound to make it further away from Mercedes Benz and BMW.

It is understood that the cumulative sales volume of Audi brand in China exceeded 6 million in the first half of this year, which is the first and only luxury car brand in China to reach this milestone.

However, after consulting the relevant sales data, the reporter of Caijing found that in the first three quarters of this year, although the ranking of the top three luxury car sales in Europe was different from that in China, Audis sales volume was still at the bottom.

According to the data released by the European Automobile Manufacturers Association (ACEA), the cumulative sales volume of Mercedes Benz, BMW and Audi in the European Union, the United Kingdom and the European Free Trade Association (EFTA) countries in the first three quarters of this year were 536900 units, 602300 units and 431200 units respectively; the market shares were 6.3%, 7.0% and 5.0% respectively.

At the same time, Xue Xu pointed out that todays Audi brand is not completely free from the Volkswagen Groups overall value of meeting everyones needs. Therefore, Audis performance in the Chinese market shows that it has returned to the European market brand positioning and status.

Luxury brand should make sense of class value

It is reported that on October 13, China First Automobile Co., Ltd. and Audi Motor Co., Ltd. announced that they would jointly establish a joint venture to produce pure electric vehicles on PPE platform, and the first model will be put into production in 2024.

And 2020 will also be BMWs new energy year in China. It is expected that by the end of 2023, the BMW Group will provide 25 new energy vehicles in the global market, more than half of which are pure electric vehicles. By 2030, BMW Group aims to deliver 7 million electric vehicles worldwide.

Almost at the same time, Mercedes Benz recently announced the eqxx vision technology project, and announced that four new pure electric products will be derived from the upcoming large-scale pure electric vehicle architecture (EVA) platform.

In addition, to digital transformation, how to keep the brand young forever has become an important issue faced by luxury brands at this stage.

For example, in the Chinese market, Mercedes Benz has launched a new one touch tire service. Customers can select tires, check inventory, place an order online, and then go to the dealer for replacement. This will shorten the service time to two hours.

FAW Volkswagen Audi launched a new CI / VI visual system on the eve of the Beijing auto show, which is more in line with the aesthetic trend of the digital era; at the just concluded Beijing auto show, FAW Volkswagen Audi introduced the fourth generation of IMC new exhibition equipment and the concept of creating window display; and in terms of brand rejuvenation, FAW Volkswagen Audi made efforts to create the originality that the new generation of users pay attention to In the fields of domestic animation and e-sports, the emotional link with the new generation of users has been strengthened by implanting the original domestic animation masterpiece cage and sponsoring E-sports clubs to fight for the S10 global finals.

However, in Xue Xus view, Audi brand has not found a correct direction after withdrawing from the status of official car.

The biggest concept of luxury brand is to sell feeling, sell experience, and sell to consumers sense of belonging in society. However, Audi has a big shortcoming over the years, that is, it has not really made the sense of class value of the brand. Xue Xu said: in the past, Audi mostly used to show people as official cars and the product quality was pretty good. But the main reason why people chose it was that the price was more appropriate. Now that government leaders are taking Red Flag cars, Audis image has become a business car, which makes it a gap with Mercedes Benz and BMW in brand strategy. In fact, luxury itself is a symbol of class belonging, Mercedes Benz is traditional luxury, BMW is youth luxury, but Audi has not found the characteristics of class belonging.

Xue Xu further pointed out that luxury car brands follow the opportunistic market route, that is, after the brand introduces a model, it is difficult to grab customers in the existing market segments, because these customers have a strong sense of brand ownership. Therefore, the brand can only take the route of medium and low price to attract those consumers who are not willing to buy high-priced cars. With the economic development and the promotion of brand popularity rate, the brand can only attract consumers who are not willing to buy high-priced cars. Finally, the brand gradually increases the product price, so as to shorten the price gap between the newly rising luxury brand and the leading luxury brand, and finally endow the target consumer group of the new rising luxury brand with a new sense of social belonging value. Only in this way can a new luxury brand be created.

Gu Huanyu believes that the price reduction of luxury brands itself is a way to win over young consumers. As for how to achieve the goal of taking all the old and young, the key lies in how enterprises create brand culture.

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }The characteristics of Chinas auto market itself are the younger consumers. Regardless of the price factor, consumers make a purchase decision. One is to trust the product and the other is to appreciate the culture of the brand. If we do this, we can achieve the goal of taking all the old and young. For example, I like BMWs sense of control, but its not just young people who are passionate about it. Therefore, the infusion of brand culture for the potential consumer attraction, its itself is worth studying. Gu Huanyu said. In fact, the price war between luxury brands can be divided into tactical and strategic. Tactical price reduction means that an enterprise is forced to reduce its price in order to survive, while strategic price reduction means that the enterprise consciously chooses a specific market segment and balances its strategic position in the industry by owning the market segment. Strictly speaking, the tactical price reduction of an enterprise belongs to retreat, but the retreat is not necessarily a failure. The key lies in whether the enterprise has strategic reserves. If the enterprises price reduction in the short term is for the purpose of returning to the market in the future, it will be considered as a strategic price reduction, and the follow-up action of the enterprise is particularly important. Source of this article: Qin bailing, editor in charge of financial magazine_ NB17208

Chinas auto market is characterized by the younger consumers. Regardless of the price factor, consumers make a purchase decision. First, they trust in the products and the second is to appreciate the culture of the brand. If we do this, we can achieve all ages . For example, I like BMWs sense of control, but its not just young people who are passionate about it. Therefore, the infusion of brand culture for the potential consumer attraction, its itself is worth studying. Gu Huanyu said.

Strictly speaking, the tactical price reduction of an enterprise belongs to retreat, but the retreat is not necessarily a failure. The key lies in whether the enterprise has strategic reserves. If the enterprises price reduction in the short term is for the purpose of returning to the market in the future, it will be considered as a strategic price reduction, and the follow-up action of the enterprise is particularly important.