From threat to opportunity
Last week, we shared the insights of our CEO Patrick Vanbrabandt about his latest innovation expedition to China. One of those was about seeing China less as a threat than an opportunity and, always the optimists, we wanted to dig a little deeper into that specific subject.
Last week, we shared the insights of our CEO Patrick Vanbrabandt about his latest innovation expedition to China. One of those was about seeing China less as a threat than an opportunity and, always the optimists, we wanted to dig a little deeper into that specific subject.
Many of us are afraid of China. The media prefers the polarizing stories, Biden is clearly not a fan and many brands feel threatened by the affordability of their Chinese competitors. So our relationship with them is pretty much based on fear. That is why we wanted to offer a little nuance about China’s relationship with the automotive market, based on Patrick’s expertise:
1. CHINESE BRANDS WRESTLE WITH CHALLENGES TOO: A. They still have branding and image problems. Most consumers don’t know about BYD, let alone NIO, Geely, Xpeng and lesser known brands. B. They are struggling with the delivery to Europe: they transport the cars in generic containers (not custom made for car transportation), which leaves them with humidity, mould and moss problems and the need to dry and re-treat the cars. This delays the delivery time and causes additional costs for the car brands. C. Although EVs need less maintenance than classic cars, they still do and Chinese brands are a lot less effective in the after-sales track. So yes, they do offer pretty impressive products, but marketing and service wise, they still have a long way to go.
2. BECAUSE OF THESE CHALLENGES, LOCAL BRANDS STILL HAVE A LOT OF ADVANTAGES OVER THEM: Local brands are still a lot more visible and popular. Delivery is a lot smoother. They have closer contacts with customers and are often a lot better at after-sales.
3. THREATS ARE OPPORTUNITIES: But just because a lot of local automotive players are still at an advantage, they should not rest on their laurels, either. This is the prefect trigger to reinvent themselves like phoenixes from the ashes. It’s perhaps not a coincidence that the Chinese word for "crisis" combines characters that separately would mean "danger" and "opportunity." According to Patrick, the biggest opportunity lies in enhancing the customer journey and augmenting customer contacts (in volume and quality). To give a deceivingly simple example: in the ski season, send messages to your customers about the changing laws about snow chains, so they don’t purchase them if these are no longer required. Or send them an explanatory clip about hi-tech features in cars that most consumers tend to under-use (like self-parking). Become a trusted advisor to your customers and engage in a more personal relationship with them. And be sure to find out how their mobility needs are evolving.In fact, that’s not just an advantage over Chinese brands, that’s a general advantage overall.
Want CARYA to help you find opportunities for your customers? Check our website to see if we can help you with your CRM, DMS, IT or marketing!
Many of us are afraid of China. The media prefers the polarizing stories, Biden is clearly not a fan and many brands feel threatened by the affordability of their Chinese competitors. So our relationship with them is pretty much based on fear. That is why we wanted to offer a little nuance about China’s relationship with the automotive market, based on Patrick’s expertise:
1. CHINESE BRANDS WRESTLE WITH CHALLENGES TOO: A. They still have branding and image problems. Most consumers don’t know about BYD, let alone NIO, Geely, Xpeng and lesser known brands. B. They are struggling with the delivery to Europe: they transport the cars in generic containers (not custom made for car transportation), which leaves them with humidity, mould and moss problems and the need to dry and re-treat the cars. This delays the delivery time and causes additional costs for the car brands. C. Although EVs need less maintenance than classic cars, they still do and Chinese brands are a lot less effective in the after-sales track. So yes, they do offer pretty impressive products, but marketing and service wise, they still have a long way to go.
2. BECAUSE OF THESE CHALLENGES, LOCAL BRANDS STILL HAVE A LOT OF ADVANTAGES OVER THEM: Local brands are still a lot more visible and popular. Delivery is a lot smoother. They have closer contacts with customers and are often a lot better at after-sales.
3. THREATS ARE OPPORTUNITIES: But just because a lot of local automotive players are still at an advantage, they should not rest on their laurels, either. This is the prefect trigger to reinvent themselves like phoenixes from the ashes. It’s perhaps not a coincidence that the Chinese word for "crisis" combines characters that separately would mean "danger" and "opportunity." According to Patrick, the biggest opportunity lies in enhancing the customer journey and augmenting customer contacts (in volume and quality). To give a deceivingly simple example: in the ski season, send messages to your customers about the changing laws about snow chains, so they don’t purchase them if these are no longer required. Or send them an explanatory clip about hi-tech features in cars that most consumers tend to under-use (like self-parking). Become a trusted advisor to your customers and engage in a more personal relationship with them. And be sure to find out how their mobility needs are evolving.In fact, that’s not just an advantage over Chinese brands, that’s a general advantage overall.
Want CARYA to help you find opportunities for your customers? Check our website to see if we can help you with your CRM, DMS, IT or marketing!
