by Professional editor working for
frbiz.
China’s auto industry has worldly ten years in the sudden growth of the future, in 2009 the global commercial emergency hammered the “winter.” How to sell with the emergency brought approximate via the impact of the market? Generally matched that the industry: adjustments in the automobile industry is a winter fire. However, the adjustments and adjustments in the spindle or the soul what is it? This is a burden that must 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 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 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 car was the growth of servant demand-led model. The plight of the U.S. auto industry fundamentally does not constitute branches of our rural and the impact of engine cars, whether GM is actually plugged down, and even thought we could produce the market space. The servant market since 2002 annually to one million of the rate of growth in 2008 has been approaching ten million. This is China’s industrialization and urbanization process, the inevitable result, as shortly as the per capita revenue arrived 3,000 U.S. dollars, the car is an inevitable option for the consumer, into the family car is a continuous wave of consumption. This time the wave has just started in China, shall extend for a lengthy time. January 14, 2009 embraced via the automobile industry and the revitalization of the metal industry is planning a main positive, beneath regular circumstances, China’s auto industry and motionless perpetuate a growth rate of 15%.
The new car will be the next focus 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 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 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 follow “like powering a BMW, sitting as the Mercedes-Benz”
In addition, China’s automotive industry need to give their own brands strong cultural. China’s auto brands in the market weak competitiveness, not only because of the lack of adequate technical support, but also because of the lack of a profound cultural. On the car brands, only consumers of a brand value of the aspirations and cultural connotation of the concept of full recognition, the brand can get in the market value of the brand should be. For example, the German car brand that, for the 1-second response to the brand as follows: Mercedes - Benz: the quality and reputation; BMW: a sense of movement and “the best driving car,” the sense of superiority; Audi: Technical victory. China’s own brand of foreign experts in commissioning the design requirements “like driving a BMW, sitting as the Mercedes-Benz.” The appearance of the actual developed a similar feeling. However, marketing does not seem to have a real experience for such brand recognition, mainly on the technical details of dealing with minor defects are always constant, so the price has dropped lower and lower end of the civilians. In addition to the technical difficult to achieve the perfect degree of high-end brands, the lack of cultural elements into the brand is also one of the main causes of failure. As a branding expert, I certainly hope that China will be able to produce vehicles like the British Rolls-Royce, or Rongwei, as with MG aristocratic culture of the brand origin, but, because of our own technology, we can not the car brand in China in ancient times under the chair of the cultural background?
Although the Chinese have favoured three-box vehicle that is subject to the influence of very vintage sedan seating, but emblems should furthermore be a heritage accelerate with the times, and it comprises should be of customary Chinese heritage of harmony, moderation, modesty, the air, but furthermore should inject more components of up to date latest tendency, there are plentiful up to date and character, to actually get the goal buyer assemblies agree. Therefore, the casting heritage, premier the latest tendency, display character, has become the vehicle emblem to be worried about the competitiveness of the elements.
