Korean cars sales decline "pain point" what exactly?

Posted on 8/19/2016 11:08:49 AM

Recent topics related to Korean cars at home and abroad more. Let me talk about China, South Korea-based media bad-mouthing If the owner in 2015, Hyundai, Kia sales fell for the first time in China for seven-year high after an increase of 4.9% (1.67 million); the first half of this year, Beijing Hyundai increased by 6%, but its masters models Yuet, Elantra deep down -64% and -52.2%. Kia lackluster, the main selling models mostly negative growth. June and July data show that Beijing Hyundai decline has reversed, the growth impetus came mainly from the new Tucson, FIG name and collar move.
Diagnostic media given are: multi-generation models Korean cars under one roof and sharing platform brand sales down; rheological models interrupted failed to catch the fast-paced Chinese market; in German, Japanese, American car price pressure, own brand significantly improved quality, Korean cars market space is continually squeezed.
Korean cars "pain point" what exactly? Above diagnostic certainly true, but from the perspective of the brand, the decline of Korean cars there may be a deeper reason.
For a long time, Korean cars in the Chinese market has recognized three traditional selling points: low-cost, practical, "kitsch" design. Correspondingly, the Korean system owners ridiculed sharp netizens as "the money would also like to support face" family, and everyone knows, in China, with the characteristic symbol of the large number of consumer groups, which is key to the success of Korean cars in China lies. He said more bluntly: Korean system owners do not like German, Japanese or American car, just "empty pockets" but despise their own brands.
Perhaps this is sad reminder of Korean cars is located. Even in such a latecomer China's auto market, after 20 years of rapid growth, brand loyalty is also becoming a joint venture brand competition ground. Reality shows that Chinese consumers are mostly first-time car prices decided to choose, everyone knows that the best German cars, the budget is not enough only trade down. This will inevitably lead after the second car brand distinction - in accordance with the non-luxury car brand value sort, the first own brand car owners, there must be a considerable number turned to change when the joint venture brand; first-time car owners to Korean cars, I am afraid that when the transfer considerable quantity to the Japanese, American and German cars; first-time buyers of Japanese, American, Ashkenazi car owners, when the redemption of the original brand to upgrade or replace each number will certainly be higher than Korean cars, among them, the German car brand appeal of the strongest, highest brand loyalty.
This is not guesswork, a joint venture brand sales and market share are public data. More importantly, car sales in large part not by the manufacturers but consumer word of mouth advertising. Although Korean cars in the Chinese market can continue to expand with its traditional selling a huge number of first time car buyers, but its market position brand loyalty will always be subject to short board drag and weaken.
Say abroad. Just recently, Hyundai Motor America disclose significant stage of development plan aims to enhance its engine performance. The program, called "controlledaggression" (to the effect that "controlled explosive"), the future of modern car engines are designed and tuned in accordance with this new concept, by increasing throttle response speed and performance in a complex road conditions for provide consumers with a new modern car driving experience. Although the plan was disclosed by Hyundai Motor America, but it certainly is the group behind the decision.
Coincidentally, the British AutoExpress website recently published one pair of the end of 2014 as vice president of Hyundai-Kia Group from BMW M series power sector overall laborer jobs AlbertBiermann interview, detailed disclosure of Hyundai and Kia brand for the European market "engine performance upgrade "program. BMW M series power before this large coffee famous opinion, Hyundai, Kia has been selling in Europe is cost-effective, long warranty and good color values, but in order to further strengthen its market position, it must cater to boost European markets performance and handling of the vehicle. In fact, under the Hyundai-Kia Group's power sector is in full swing to build leadership Biermann is considered "BMW implanted gene" new engine and chassis (including both matching and tuning), the first of the high standard Golf GTI performance models i30N has been pretty clear.
These are two very important trends, no doubt, the Hyundai-Kia Group in the US and European markets focused on improving engine performance and vehicle handling rebranding, it will be related to its future in the Chinese market.
Fair speaking, as second-line joint venture brands, Hyundai and Kia is no obvious short-board products, quality and reliability are plausible (calendar complaint rate is relatively low), but compared to the first-line joint venture brands always feel there is a certain difference. This gap may be in its mediocre driving experience - on the performance and handling is less than German cars, on the stability and NHV less than Japanese cars, explosive power and comfort on less than US cars. The key is that Chinese consumers now have seen what the car, the car a more comprehensive understanding, but also more difficult to meet the demands of automobile manufacturers competitive difference is mainly reflected in the core values of the brand. From this perspective, the Korean cars brand core values rather vague, in other words, Korean cars in China and the US and European markets substantially the same selling point is not enough to constitute the core of its brand value. You know, the price war is to have the core values of the brand as a support, or only the brand bigger and lower.
Based on the above analysis, it can be concluded: brand loyalty is less than competitors, the core values of the brand is not obvious, it should be Korean cars in the Chinese market, the real "pain point" lies. Korean cars of the two short board and their problems in the development of the new car is undoubtedly the opportunity to go beyond its own brand, but we can not underestimate the enemy: First, in June this year JDPower released annual US automobile quality survey rankings, Kia brand topped the list, nearly 30 years to become the authoritative rating agency won the first non-luxury car brand. Second, according to authoritative brand agency BrandFinance 2015 global automotive brand value and parts Top 100, ranked No. 9 and No. 14 Hyundai and Kia, the brand value was $ 8.5 billion and $ 5.2 billion. China's SAIC brand ranking highest ranked 34, brand value of $ 3.1 billion.

Post a comment

Hello guest, care to post a comment?