Special supplement: Benz bucks trend amid global financial slowdown

(China Daily)
Updated: 2009-01-22 07:58

Although the Chinese auto market is suffering from the negative impact of the global financial turmoil, Mercedes-Benz achieved a proud market performance in 2008 with a record sales growth of 45 percent compared to the previous year - much higher than the average growth of 17 percent in the Chinese luxury auto segment, comparing to a 6.7 percent slight increase in the overall auto market.

For Klaus Maier, president and CEO of Mercedes-Benz (China) Ltd, it's the best response to his painstaking efforts in promoting the sales figures since he took the position in November 2006. With nearly 20 years working experiences at Daimler AG, Maier increased Mercedes-Benz vehicles sales in China by nearly 50 percent in 2007, the first year of his tenure. As a result he was awarded CEO of The Year 2007, and was named Outstanding Corporate Leader 2008 by leading media and authoritative agencies in recognition of his contributions to Mercedes-Benz's accomplishments.

In light of the remarkable achievements in the areas of business development and customer service, Maier shared his experience and views with China Daily reporter Li Fangfang recently in Beijing.

Q: 2008 was a tough year for the auto industry. However, Mercedes-Benz still maintained robust growth amid a stagnant industry plagued by the financial crisis. What are the secrets behind the success?

A: Firstly, Mercedes-Benz's success is always derived from its charming brand. Over the past 120 years, the brand has been the epitome of honor, luxury, safety and comfort. The brand heritage, cultural connotations and add-on value are appealing to customers. All of these core values have always been represented as part of our commitment to China.

Secondly, the leading sales performance is a result of a successful series of product and sales strategy. We strive to understand the different needs of Chinese customers by conducting large amounts of market analyses and client surveys. Consequently, we are able to grasp the market trend and act promptly according to customer demands. We have always committed ourselves to the introduction of latest and most favorable car models into China and meanwhile ensure that Chinese customers can enjoy Mercedes-Benz's premium quality and brand heritage as do the customers in the rest of the world.

Thirdly, our range of top-class services deepens Chinese customers' affection for Mercedes-Benz. Our star-rated service has won the recognition of the JD Power China Customer Satisfaction Index this year - where Mercedes-Benz was ranked first among all automakers, demonstrating our leadership in sales and after-sales service.

Moving forward, we will continue to bring high-quality products and service standards to satisfy the needs of Chinese customers and maintain our leading position in the market.

Q: What factors do you put into consideration when launching new models?

A: In order to keep our leadership position, we understand that it is crucial for our part to meet the demands and be diligent in understanding the customer needs in fast-changing marketplace. Mercedes-Benz has always upheld the philosophy of being consumer-oriented.

With the booming economic growth in China, more and more successful elites have generated diversified demands for Mercedes-Benz cars. To meet the different customer's demands, we are introducing more and more products to enrich our line-up in China.

Q: How do you value the brand of Mercedes-Benz? And what is your branding strategy in the China market?

A: Focusing more on the broader value, a growing number of auto buyers are basing their purchasing decisions on brand recognition to reflect their unique tastes and personalities, especially in China. Moreover, Chinese customers, more than ever, are expecting the auto culture and the car to mirror their lifestyles.

With its over hundred years of brand heritage, Mercedes-Benz is a leader and a purist of elegance. The Mercedes-Benz brand has also been unceasingly enriched with time. In the China market, we also make efforts on diversifying brand connotations.

Additionally, Mercedes-Benz persists to infuse its core brand value with artistic elements, such as music, sports and fine arts.

Q: What's China market's significance for your company? And what is your plan for launching new models in 2009?

A: With the fast growth, the Chinese auto market plays a crucial part in our global strategy. The great achievements in the past have helped to strengthen our confidence and determination for the further development and investment in China. Despite the global economic difficulties, we will ensure to maintain our leading position and consolidate Mercedes-Benz's advantages in each market segment.

We will definitely bring lots of new models in 2009. We have launched the GLK and I am very glad that the luxury tourer B-Class has also come to China. Don't forget Smart Fortwo, which will appear in the showrooms in this April. All the models aim to add more new elements to Mercedes-Benz brand and meet the changing need of Chinese customers.

Q: What is your perspective on the auto industry and market in 2009?

A: The global economic turmoil has inevitably affected the development of the auto industry and the performance of the auto market. The Chinese government has facilitated a series of measures to ensure economic growth, such as the 4 trillion yuan package to stimulate market confidence and the automobile industry revitalization programs. Therefore, we should be fully confident on the future of China economy as well as the Chinese auto market.

Q: In such a difficult time, how will you sustain your leading position in the luxury segment of the China market?

A: To further sustain our leading position, we have plans in four respects.

Firstly as the automobile inventor and industry thought-leader, we have been advocating sustainable mobility. So we will insist on the investment to technological innovation and always bring the latest green technologies to Chinese market. As an example, our S400 BlueHYBRID, the world's most economical luxury saloon with a combination of a modified V6 petrol engine and a compact hybrid module, will come to China in near future.

Secondly, compared with competitors, Mercedes-Benz owns the richest product line for Chinese customers. And we are sure to bring more new products in the near future to fulfill the demands of Chinese customers.

Thirdly we will continue to delight Chinese customers with our extensive dealership network and service centers and maintain the expansion speed at 20 to 25 dealerships per year in China.

Lastly, as a global industry leader, we have always been able to shoulder the responsibilities as an excellent corporate citizen. Therefore, we will further concentrate our efforts on four aspects: nature and environment protection; cultural and arts promotion; sports sponsorship; traffic safety education.

(China Daily 01/22/2009 page13)

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