Remodeling the Image of BMW's Deep Localization

“Let BMW become a respectable company” is the “soft target” put forward by Shi Dengke, president and CEO of BMW Group Greater China, several years ago in order to change the image of the BMW brand in China.

A few days ago, this "proposition" was revisited on the "BMW Third Love Anniversary Night" held in Chongqing. However, the localized operation method of “BMW cannot choose customers, but can shape customers” has apparently achieved preliminary results. The BMW brand's localization strategy is also constantly winning a higher level.

The latest report shows that BMW's sales in China in the first three quarters have surpassed last year's total sales. Next, BMW will also brewing its own joint venture brand, which is also the “ultimate strategy” for multinational car companies to localize in China.

"Shaping" the customer "This is a strategy," said Lu Yi, vice president of sales for BMW (China) Automobile Trading Co., Ltd. Before he said this, BMW's fifth hometown of the “Children’s Home” was formally established in Chongqing. "Toy Yue's home" was officially launched in June this year, and its funds are all from the BMW Love Fund. According to BMW's "love" strategy, BMW will build a total of 20 "children's homes" in China before the end of this year. By the end of next year, this number will be expanded to 40.

Obviously, this long-term charity project, which is jointly developed by distributors and car owners, will rapidly expand as BMW's sales network in China. "BMW does not need this in foreign countries. In fact, only in China will BMW have such deep participation in social responsibility and cultural promotion," said a person close to the BMW Love Fund Planning Team.

Due to the short time to enter China, the explosive growth of car owners and the lack of initial positioning of the brand, BMW had to face up to the challenge of reshaping its brand image when it first tasted market results.

Since 2005, "love expression" has become a demand for BMW to land in China.

In Lu Yi’s words, “the owner cannot choose but it can affect”. Therefore, in this grand strategy, highlighting the elite status and social responsibility of car owners has become the main purpose of BMW's various fund activities.

In 2010, BMW launched the “Yue” brand expression, which successfully reversed the predicament of brand building.

“BMW is trying to tell Chinese consumers what BMW really is through the most Chinese way.” Shi Dengke said that “Yue” can not only fully and accurately explain BMW's brand connotation and concept, but also psychologically. Affected BMW owners, and let them follow the direction of the BMW brand.

In-depth localization BMW has evaded the link between charity and marketing. However, on the day when the charity party was held, BMW announced that its sales in China had exceeded the level of last year for the first 9 months of this year. As of the end of September, BMW Group's sales in the Chinese market reached 177,522 units, an increase of 45.7% year-on-year.

The excellent performance of the Chinese market also helped BMW climb the throne of the global luxury car sales championship in the first three quarters. From January to September, BMW's global sales volume has reached 1,326,000 units, an increase of 16% year-on-year.

However, after three quarters of singing, facing the tightening of China’s macroeconomic policies, price reductions and slower growth appear to be the new trend of the three major luxury cars in China. In response, Lu Yi's response is that BMW's development will maintain the same trend as the Chinese economy, and this trend will not change in the next five to six years.

As for the phenomenon of price reduction by luxury cars, Lu Yi said frankly that price fluctuations are normal market behavior.

Even if this does not affect BMW's overall profitability in China, BMW Global CFOF Friedrich Eichiner stated that the Chinese market still maintains a high level of profitability. He believes that China's incentive policies for automakers have resulted in "our average cost of sales in China is lower than other markets in the world", and even after the double-digit growth of the overall auto market in recent years has ended, it is still expected that the Chinese luxury auto market will remain upward. .

A few days ago, Stangenko “disclosured” the news that BMW will build its own brand in China. Lu Yi called BMW's next strategy in China and “is a very big strategy”.

It is reported that BMW will follow the example of the public and take the road of own-brand and new-energy vehicles as a "combination of two", using BMW's existing new energy technology, and teaming up with Brilliance to create a brand new brand in the joint venture BMW Brilliance, and the new The brand is expected to be officially launched with the completion of the BMW Brilliance II plant. “A brand new brand means new technologies, new product platforms, new supplier channels, management and distribution. All systems will be built from scratch, but in Lu Yi’s eyes, it’s like Like the brand remodeling that BMW experienced in China, the shaping of self-owned brands will be a long process, but the earlier the process starts, the better.