Mercedes-Benz' China strategy paying dividends
Updated: 2014-04-20 07:59
By Li Fangfang(China Daily)
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In the first quarter of 2014, Mercedes-Benz sold 64,115 units, increasing its passenger car sales in China by 47 percent compared to the same period last year, a growth rate that ranks highest among the German premium brands in China.
This recent positive shift in momentum for Mercedes-Benz is the result of a direct and concerted effort on the part of the brand to further optimize its business strategy to the specific demands of the China market.
In March of last year, Daimler AG, Mercedes' parent company and BAIC formed joint-venture Beijing Mercedes-Benz Sales Service Company Ltd to combine Mercedes-Benz' previous dual sales channels and streamline business operations.
BMBS, boasting an integrated team comprised of top-tier international and local talents, has increased Mercedes-Benz' efficiency, transparency and responsiveness, resulting in 12 consecutive months of sales growth since its establishment.
"I was very excited about the progress made by BMBS in its inaugural year, which saw the validation of our enhanced customer orientation strategy in meeting the discerning needs and preferences of our Chinese customers," remarked Nicholas Speeks, president and CEO of BMBS.
"Our strategic restructuring and clearer business goals helped lay down a solid foundation for Mercedes-Benz' growth in 2014 and beyond; this foundation needs now to be built upon," said Speeks.
Sustained product offensive
Mercedes-Benz' localization strategy is also manifested directly in its products: the brand's flagship all-new S-Class launched last September and equipped with features developed specifically for China, is being met enthusiastically by Chinese customers who hailed its arrival as pinnacle of automobile industry.
The model has been particularly successfully with a 26 percent increase in sales in Q1 2014.
Looking forward, Mercedes-Benz looks to ride its fast growing momentum through 2014 with continued adaptation to Chinese market demands.
Among the eight fascinating products launched today at the Beijing Auto Show, two stand-out new models look especially capable of captivating the Chinese public.
The all-new CLA sport sedan is the highly anticipated third member from Mercedes-Benz' compact car family. The model's intensely dynamic design language coupled with impressive performance capabilities will appeal greatly to China's modern trendsetters:
"The concept for the CLA is perfect. Bold and passionate, the CLA is the best companion for China's modern trendsetters," said Speeks, "The sleek, avant-garde, and emotional design opens up an all-new segment in the industry. The stylish sport sedan stands on its own, with no real competitor."
The all-new C-Class Long Wheelbase also made its debut today at Auto Beijing. Following in the footsteps of last year's S-Class, the C-Class Long Wheelbase was tailored to the specific preferences of Chinese customers.
As the longest car in the segment, this model boasts an extended wheelbase of 2,920 mm, and a touchpad that allows the input of Chinese characters.
This, in addition to the intensely stylish and up-market interior and exterior design of the new C-Class and together with the model's advanced technologies will allow the new C-Class to contend for the top of its segment according to Duan Jianjun, executive vice president of Sales and Marketing at BMBS: "Building on the success of its predecessor, the all-new C-Class Long Wheelbase is setting the bar for the segment. Made for China, in China, the C-Class redefines all expectations of what a mid-sized sedan can be".
With nearly a dozen new models to be introduced through 2015, a strong product offensive will continue to play a key role in Mercedes-Benz' goals for continued and sustainable growth in China.
Beyond products however, Mercedes-Benz is also investing substantial efforts toward making itself more accessible to more customers: the automaker plans this year to add 100 new outlets and expand its presence to 40 new cities with special attention on fast growing lower-tiered cities.
"Mercedes-Benz' planned network expansion this year is the most ambitious and rapid in the entire history of the brand globally. It demonstrates both the potential there is for further growth for Mercedes-Benz, and our confidence about the increasing demand in China for our world-class products and services" remarked Li Hongpeng, Senior Executive Vice President of Network Development at BMBS.
The best customer experience
A new leasing product called Agility being launched today at Auto Beijing aims to attract new Mercedes-Benz customers by providing affordable and flexible monthly payments, and three flexible options, either purchase, trade or return, at contract's end.
"With the launch of Agility, Chinese consumers will be able to enjoy more financial freedom with transparent and affordable costs. Our goal has always been to continually develop new ways to better serve our customers," said Speeks.
Increased outreach for the automaker will also come in form of innovative new initiatives and collaborations. Mercedes-Benz is expanding its brand dimensions in order to reach more Chinese customers as Speeks believes that "there should be more and diversified connection points between Mercedes-Benz brand and its customers, going beyond the automobile products itself".
The recent establishment of Mercedes-Benz Travel in partnership with HH Travel, the high-end travel brand under Ctrip Group, which offers premium outbound travel solutions, is just one example of these efforts. Mercedes-Benz is the first automaker to expand into the rapidly growing travel industry, recognizing the platform as an opportunity to engage more Chinese customers who value unique and premium experiences.
In addition to the new business initiatives, Mercedes-Benz never stops improving its after-sales services. This year the brand is planning to launch new menu pricing for routine vehicle servicing that promises to be attractive, transparent and flexible.
"I am fully confident that Mercedes-Benz will continue the momentum we gathered last year," said Speeks. "But it also remains a year of transition as we continue to strengthen our appeal to Chinese customers with new cars, new services and new technologies".
Judging by the adjustments Mercedes-Benz has made to its business operations and strategy in China so far, it seems that the automaker is on the right track in the biggest automotive market in the world.
(China Daily 04/20/2014 page15)