Comment: Do the Chinese know nothing about marketing?

Former BMW and VW boss Bernd Pischetsrieder is credited with saying: "We admire Toyota for its ability to produce high-quality cars at a reasonable price. Thank God they don't understand anything about marketing." This statement comes from a time when Toyota had just replaced the Corolla model name with Auris and the company was simply unable to capitalize on its technological leadership in hybrid drives as an ideal diesel alternative. That has now changed: Even Toyota now knows how to market itself well, as its recent sales success proves. Many Chinese brands have yet to prove this. They can build good electric drives at a reasonable price. But their marketing is - fortunately for their domestic competitors - a disaster.

Now, there are always cultural differences between countries and regions. Japanese and South Korean manufacturers also had to learn this first. But it doesn't happen overnight, it can take years.

The Chinese industry leader BYD has landed a real marketing coup with its sponsorship of Euro 2024, even if some details of the accompanying campaign, such as the advertising slogan "No. 1 of NEV", make you smile. This refers to the fact that BYD is the largest manufacturer of "New Energy Vehicles", a term for electric cars and hybrids that nobody outside of China knows. But the visibility and awareness of the brand has increased significantly. Goal achieved. And what is BYD doing? Announcing that it will bring the next brand to Europe with Yangwang. Initially, a luxury off-road vehicle, the U8, is to be sold under the new name. Instead of first building on BYD's success, pushing the next brand onto the market? That is unlikely to work.

Other Chinese manufacturers are in a similar mood: Nio and MG are also planning to introduce additional names. It is no coincidence that MG is currently the most successful of the new players from China, alongside Volvo and Smart. These brands have a long tradition and a high profile in Europe. Geely, the Chinese parent company, was nevertheless unable to refrain from introducing further new brands with Polestar and Lynk & Co. Polestar was at least an initial success under the leadership of Thomas Ingenlath. However, the brand is now struggling: Sales are faltering. the share price has plummeted, the future is uncertain. Lynk & Co, which started out as a pure subscription provider, was a flop right from the start: this year (up to June), only 46 cars were registered in Germany. Polestar has at least managed 2000 new registrations, even though the figure was 3000 a year ago.

Nio is also experiencing a disaster with just 266 vehicles sold by June 2024, even though the Chinese start-up builds impressive, technically high-quality models. Unfortunately, the brand has decided not to work with dealers but to sell the vehicles directly online and via a few branches. That can hardly work: There is a reason why Mercedes is getting rid of its branches right now. This sales channel is expensive and not very promising. Corporate employees are usually not good salespeople. And Tesla, also without dealerships, is only seemingly proof to the contrary: the company started with a unique selling point, the electric drive.

People buy cars according to four criteria: Brand, design, price, technology. It is therefore no coincidence that Volvo (37,000 cars) and MG (15,000 vehicles) achieve significant unit sales in Germany. Their brands are well-known. You don't need to know much about marketing. (aum)