It is chilling to own brand

In the middle of the year, the auto market curve did not unexpectedly rise in the mid-table. This year's auto market transition from fast forward to smooth transition is not unexpected, but there are two luxury cars continue to intensify and cold down the low-end products of their own brands. Extremes, but different from previous years.

China is entering the historical stage of mass consumption of luxury goods, and the entry of high-end luxury imported cars into the Chinese market is natural. Because the competition in the high-end car market itself is not fierce, multinational companies with stronger premium ability can easily control the Chinese market.

However, the decline of self-owned brands is chilling.

The withdrawal of policies such as purchasing tax concessions at the beginning of the year directly affected the sales of cross-type passenger vehicles, while crossover passenger vehicles mostly consisted of self-owned brand models, plus the effects of national macro-controls and the implementation of some city-restricted purchase policies, independent brands. Auto manufacturers have faced double tests of policy and market this year.

The current Chinese auto market, on the one hand, continues to increase the prices of high-end luxury cars, and it cannot stop the endless stream of consumers. On the other hand, the self-owned brand models with the sound of smash prices still do not sell well.

In the joint investigation of this newspaper and Sina Auto, for the above-mentioned reasons, 40% of the respondents believe that “if the mid- to low-end models lose their price advantage, there will be no other advantages, and luxury brands will have higher brand premiums”. There are also close to 40% of people who believe that "brand quality is relatively poor, consumers will buy a joint venture brand more points." It shows that the brand's position in the consumer's mind is not solid.

The joint venture brand is increasingly strong, and the weak position of independent brands needs to be changed. Changes in the market structure further prove that when more and more powerful brands further push down the prices of products through the effect of scale, independent brands need to find competitiveness beyond price advantage.

While supporting national brands to become bigger and stronger, the national policy still cares more about success or failure in terms of the number of production and sales. The market share of the self-owned brand has been written into the automotive industry development plan. In fact, it is not difficult to achieve this target. The market share of self-owned brand passenger cars has exceeded 44% for half a year. Coupled with the immediate mass production of joint-venture branded auto models, breakthrough in quantity is not a problem. The key is how much the core competitiveness of technology and brands can be improved. This is often more easily concealed by imaginary figures.