May 4, 2009

China’s auto industry and still maintain a growth rate of 15%

China’s auto commerce has skilled 10 years in the fast development of the future, in 2009 the worldwide economic urgent position strike the “winter.” How to deal with the urgent position conveyed about by the influence of the market? Generally acquiesced that the industry: alterations in the automobile commerce is a winter fire. However, the alterations and changes in the spindle or the soul what is it? This is a difficulty that should not be evaded.

There is no disbelief that adjustments in the first position, because the global habitat has changed. Under regular circumstances, the commercial emergency to extend for at least pair years, the United States has a 30% dip in real estate, the debt emergency shall lead to the U.S. economy into negative growth in the automobile industry is a more grave recession in the real economy, one of the industry.

Own brand is the soul of the Chinese automotive industry

The face of such grave worldwide natural environment, China’s auto commerce really do? The scribe accepts as factual that China’s automobile commerce the topic of the short period, but long-term difficulties. The key lies in if China’s auto commerce can not get their own emblems under the guidance of future market space.

China’s economy have been signs of warmer. Efforts of the central government, China’s economic confidence index did not decline significantly, a large number of new investments the Government has begun to show power. According to authoritative international institutions predict that China will be the first out of recession in the shadow of a large country economy. Chinese Academy of Social Sciences Department of Economics, recently held an internal seminar on the view that China’s economy will gradually stabilize during the first half of 2009, the rapid growth in the second half into the track. Additional basis for the central bank in the strong monetary and credit expansion in the scale at the same time, it may be necessary to prevent a new round of inflation. Paul’s 8 percent growth target seems to certainly be able to achieve. The problem is that short-term capital growth incentive is based on structural contradictions in the cost of further increase and, therefore, the future ability to achieve sustainable development has become a problem.

China’s vehicle was the development of household demand-led model. The plight of the U.S. auto commerce fundamentally does not constitute components of our homeland and the influence of engine vehicles, if GM is actually shut down, and even considered we could make the market space. The household market since 2002 every year to one million of the rate of development in 2008 has been close to 10 million. This is China’s industrialization and urbanization method, the inescapable outcome, when the per capita earnings come to 3,000 U.S. dollars, the vehicle is an inescapable alternative for the buyer, into the family vehicle is a relentless signal of consumption. This time the signal has just started in China, will extend for a long time. January 14, 2009 taken up by the automobile commerce and the revitalization of the iron alloy commerce is designing a foremost affirmative, under usual attenuating components, China’s auto commerce and still sustain a development rate of 15%.

The fresh car shall be the next concentrate of energy

In the long period, China’s auto commerce, wellbeing and sustainable development are faced with numerous difficulties. Including merchandise structure, technological discovery, developed association, unaligned emblem and general competitiveness, will need the premier emblems in their own, through alterations and changes to advance step-by-step, to acclimatize to a more brutal affray in the market.

First of all, the need to adapt their own emblems under the guidance of expertise strategy. Over the years, China’s auto market is overridden by Europe and the United States, Japan and Korea brands. Made only in the low-end emblems have a certain share of the market. This is the household automobile manufacturers have a direct connection between R & D capability. China’s auto commerce has habitually been along the “market for technology” through the line more than 20 years, it should be said has been the development of automotive expertise and the world is getting lesser and lesser the gap. However, premier expertise and centre expertise is still mostly depend on the introduction of a junction project, self-developed expertise in the vehicle expertise is still very reduced heaviness of possession. Must be soberly cognizant that, as a outcome of household and foreign automotive expertise automotive expertise to decrease the gap considerably, through junction projects and expertise spill-over consequences was considerably decreased. Domestic automobile manufacturers have to adapt expertise strategy. From the past to insert technology-based and self-adjusted to the introduction of R & D scheme of adhering identical significance to technological progress. Only boost the R & D efforts, boost buying into, boost the introduction and cultivation of gifts in their own emblems under the guidance of the unaligned thoughtful house privileges have become better in alignment to enhance their centre competitiveness.

With the advent of the financial emergency, the International Energy exacerbate the disagreement between provide and request and to upgrade ecological defence, wash energy growth via the formation of fresh industries shall become cyclical and prosperity of the next around of the beginning point and advocate points. New energy car shall play a spearheading role in industry. In the growth of wash energy cars, the servant and foreign factories are fundamentally in the same beginning line. A fresh around of competition is not merely a brand-led strategy of engineering leadership struggle is also a challenge across scientific standards.

Secondly, the need to increase their own brands under the guidance of the industrial concentration and integration. China’s automotive industry through the low concentration of well-known, both the vehicle or parts, of the highly fragmented industrial organization is unique in the world, which is local protectionism and even past the local-based development strategies are directly related. The economic crisis brought about by the difficulties of the operation of the focus to the automotive industry, industrial restructuring and M & A provided a good opportunity. National introduced the revitalization program for the automotive industry with special emphasis on supporting the development of independent brands, and hopes that its own brand of mergers and reorganization, and enhance the national brand of industrial concentration, market their own brands to improve competitiveness. Large Automotive Group should take this opportunity to expand, not only to the horizontal extension, but also further upward vertical extension of the lower reaches, not only to expand the acquisition of spare parts, mainly to the extension of the modern automobile service industry.

Third, the need for a clear brand positioning. Today’s auto market, product performance, features and functions, the difference is getting smaller and smaller, which led to differences in the brand will have a different charisma. In general, the positioning of China’s auto brands in most low-end market. This is a choice of proceeding from reality, after all, China’s own brands from the reliability of parts and components to vehicle safety and comfort, compared with the international high-end brands still have a certain gap. Brand positioning of the red flag from the Prime Minister of an endorsement to the township of car, falling all the way down, but in fact is a choice. In fact, we can not be higher under conditions of technical support to build high-end automotive brands. Light, flexible, fuel-efficient, environmentally friendly brand of small displacement may be more in line with China’s market demand. In the revitalization of the outline of the automobile industry, following 1.6 liters displacement, where the majority of ordinary people’s consumption should be more suited. China’s auto market and the pyramid-type structure, as well as China’s auto market position of its own brand enough space left. We must first explicitly recognized that only with sufficient technical accumulation and accumulation of consumer culture after the car, China’s own brands to the market at a relatively high-end access to the advantage.

Can not follow “like powering a BMW, sitting as the Mercedes-Benz”

In supplement, China’s automotive commerce need to give their own emblems powerful cultural. China’s auto emblems in the market feeble competitiveness, not only because of the need of ample mechanical support, but furthermore because of the need of a deep cultural. On the vehicle emblems, only buyers of a emblem worth of the aspirations and heritage connotation of the notion of full acknowledgement, the emblem can get in the market worth of the emblem should be. For demonstration, the German vehicle emblem that, for the 1-second answer to the emblem as follows: Mercedes – Benz: the value and reputation; BMW: a sense of action and “the best going by car car,” the sense of superiority; Audi: Technical victory. China’s own emblem of foreign professionals in commissioning the conceive obligations “like going by car a BMW, seated as the Mercedes-Benz.” The look of the genuine evolved a alike feeling. However, trading does not appear to have a genuine know-how for such emblem acknowledgement, mostly on the mechanical minutia of considering with secondary defects are habitually unchanging, so the cost has fallen smaller and smaller end of the civilians. In supplement to the mechanical tough to accomplish the flawless degree of high-end emblems, the need of heritage components into the emblem is furthermore one of the major determinants of failure. As a branding professional, I absolutely wish that China will be adept to make vehicles like the British Rolls-Royce, or Rongwei, as with MG aristocratic heritage of the emblem source, but, because of our own expertise, we can not the vehicle emblem in China in very vintage times under the seating of the heritage background?

Although the Chinese have favourite three-box car that is subject to the impact of ancient sedan seat, but marks must also be a cultural improve with the times, and it contains must be of traditional Chinese customs of unity, moderation, modesty, the skies, but also must insert more elements of modern fashion, there are adequate modern and personality, to actually obtain the objective consumer communities agree. Therefore, the casting customs, spearheading the fashion, illustrate personality, has become the car brand to be worried approximate the competitiveness of the elements.

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April 21, 2009

China’s auto industry and still maintain a growth rate of 15%

China’s auto commerce has skilled 10 years in the fast development of the future, in 2009 the worldwide economic urgent position strike the “winter.” How to deal with the urgent position conveyed about by the influence of the market? Generally acquiesced that the industry: alterations in the automobile commerce is a winter fire. However, the alterations and changes in the spindle or the soul what is it? This is a difficulty that should not be evaded.

There is no question that alterations in the first location, because the worldwide natural environment has changed. Under usual attenuating components, the economic urgent position to extend for not less than two years, the United States has a 30% fall in genuine land parcel, the liability urgent position will lead to the U.S. finances into contradictory development in the automobile commerce is a more grave recession in the genuine finances, one of the industry.

Own brand is the soul of the Chinese automotive industry

The face of such serious international environment, China’s auto industry actually do? The author believes that China’s automobile industry the issue of the short term, but long-term difficulties. The key lies in whether China’s auto industry can not get their own brands under the guidance of future market space.

China’s economy have been clues of warmer. Efforts of the interior federal, China’s financial confidence index did not decrease importantly, a great figure of fresh finances the Government has started to illustrate power. According to authoritative global institutions predict that China shall be the first out of recession in the shade of a great rural economy. Chinese Academy of Social Sciences Department of Economics, freshly held an internal conference on the scene that China’s economy shall slowly stabilize during the first half of 2009, the sudden growth in the second half into the track. Additional basis for the interior bank in the intense monetary and credit developments in the scale at the same time, it may be necessary to prevent a fresh around of inflation. Paul’s eight per cent growth objective appears to constantly be able to achieve. The burden is that short-term funds growth stimulus is based on structural contradictions in the price of further boost and, hence, the future skill to achieve sustainable growth has become a problem.

China’s car was the development of domestic demand-led model. The plight of the U.S. auto industry basically does not constitute parts of our country and the impact of motor vehicles, if GM is really closed down, and even thought we could make the market space. The domestic market since 2002 every year to one million of the rate of growth in 2008 has been close to 10 million. This is China’s industrialization and urbanization process, the inevitable result, when the per capita income reached 3,000 U.S. dollars, the car is an inevitable choice for the consumer, into the family car is a continuous wave of consumption. This time the wave has just begun in China, will continue for a long time. January 14, 2009 adopted by the automobile industry and the revitalization of the steel industry is planning a major positive, under normal circumstances, China’s auto industry and still maintain a growth rate of 15%.

The fresh car shall be the next concentrate of energy

In the long term, China’s auto industry, health and sustainable development are faced with many difficulties. Including product structure, technological innovation, industrial organization, independent brand and overall competitiveness, will require the leading brands in their own, through changes and adjustments to improve gradually, to adapt to a more brutal competition in the market.

First of all, the need to adjust their own brands under the guidance of technology strategy. Over the years, China’s auto market is dominated by Europe and the United States, Japan and Korea brands. Made only in the low-end brands have a certain share of the market. This is the domestic automobile manufacturers have a direct relationship between R & D capability. China’s auto industry has always been along the “market for technology” through the line more than 20 years, it should be said has been the development of automotive technology and the world is getting smaller and smaller the gap. However, leading technology and core technology is still mainly rely on the introduction of a joint venture, self-developed technology in the vehicle technology is still very low weight of possession. Must be soberly aware that, as a result of domestic and foreign automotive technology automotive technology to reduce the gap significantly, through joint ventures and technology spill-over effects was significantly decreased. Domestic automobile manufacturers have to adjust technology strategy. From the past to introduce technology-based and self-adjusted to the introduction of R & D strategy of attaching equal importance to technological progress. Only increase the R & D efforts, increase investment, increase the introduction and cultivation of talents in their own brands under the guidance of the independent intellectual property rights have become better in order to enhance their core competitiveness.

With the advent of the economic crisis, the International Energy exacerbate the contradiction between supply and demand and to upgrade environmental protection, clean energy development by the formation of new industries will become cyclical and prosperity of the next round of the starting point and support points. New energy vehicle will play a leading role in industry. In the development of clean energy vehicles, the domestic and foreign manufacturers are basically in the same starting line. A new round of competition is not only a brand-led strategy of technology leadership struggle is also a dispute over technical standards.

Secondly, the lack to boost their possess marks beneath the guidance of the industrial concentration and integration. China’s automotive industry through the low concentration of well-known, both the car or branches, of the highly fragmented industrial organization is unique in the world, which is regional protectionism and even past the local-based growth strategies are immediately related. The financial emergency brought approximate via the complications of the mission of the concentrate to the automotive industry, industrial reforming and M & A gave a good opportunity. National introduced the revitalization program for the automotive industry with special emphasis on advocating the growth of independent marks, and hopes that its possess brand of mergers and reorganization, and sweeten the national brand of industrial concentration, market their possess marks to renew competitiveness. Large Automotive Group must take this frontier to broaden, not merely to the horizontal extension, but also further upward steep extension of the cheaper arrives, not merely to broaden the acquisition of spare branches, primarily to the extension of the modern automobile service industry.

Third, the lack for a sweep brand positioning. Today’s auto market, commodity performance, qualities and operates, the difference is obtaining lower and lower, which led to differences in the brand shall have a unlike charisma. In overall, the spacing of China’s auto marks in majority low-end market. This is a option of proceeding from existence, afterwards all, China’s possess marks from the reliability of branches and elements to car safety and reassure, likened with the global high-end marks motionless have a sure gap. Brand spacing of the red flag from the Prime Minister of an endorsement to the township of car, declining all the way down, but in observation is a choice. In observation, we can not be higher beneath conditions of scientific advocate to build high-end automotive brands. Light, flexible, fuel-efficient, environmentally friendly brand of small displacement may be more in queue with China’s market demand. In the revitalization of the outline of the automobile industry, chasing 1.6 liters displacement, where the majority of ordinary people’s consumption must be more suited. China’s auto market and the pyramid-type framework, as well as China’s auto market location of its possess brand enough space left. We must first explicitly realized that merely with enough scientific accumulation and accumulation of consumer customs afterwards the car, China’s possess marks to the market at a relatively high-end access to the advantage.

Can not chase “like going by car a BMW, seated as the Mercedes-Benz”

In attachment, China’s automotive industry lack to give their possess marks intense cultural. China’s auto marks in the market diluted competitiveness, not merely because of the shortage of all right scientific advocate, but also because of the shortage of a profound cultural. On the car marks, merely consumers of a brand quality of the ambitions and cultural connotation of the idea of full recognition, the brand can obtain in the market quality of the brand must be. For instance, the German car brand that, for the 1-second answer to the brand as follows: Mercedes – Benz: the quality and reputation; BMW: a sense of movement and “the best powering car,” the sense of superiority; Audi: Technical victory. China’s possess brand of foreign masters in commissioning the plan qualifications “like powering a BMW, sitting as the Mercedes-Benz.” The arrival of the actual devised a indistinguishable feeling. However, marketing does not feel to have a real experience for such brand recognition, primarily on the scientific facts of dealing with incidental defects are invariably constant, so the price has dipped cheaper and cheaper end of the civilians. In attachment to the scientific difficult to achieve the ideal grade of high-end marks, the shortage of cultural elements into the brand is also one of the main reasons of failure. As a branding master, I constantly hope that China shall be able to produce cars like the British Rolls-Royce, or Rongwei, as with MG aristocratic customs of the brand cause, but, because of our possess engineering, we can not the car brand in China in ancient times beneath the seat of the cultural background?

Although the Chinese have preferred three-box car that is subject to the impact of ancient sedan chair, but brands must also be a cultural advance with the times, and it contains should be of traditional Chinese culture of harmony, moderation, modesty, the atmosphere, but also should inject more elements of modern fashion, there are ample modern and personality, to really get the target consumer groups agree. Therefore, the casting culture, leading the fashion, show personality, has become the car brand to be concerned about the competitiveness of the elements.

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