Auto Special: BMW redefines China strategy with new innovative thrust

BMW launched its latest strategy for the Chinese market on Friday that prioritizes innovation as its core concept.

The strategy, called "Innovation-Powered by Joy", aims more directly toward innovation while holding to the principles of "future, young and China".

"Innovation is the core strength of our company to build up a story of success lasting for nearly 100 years," said Karsten Engel, president and CEO of BMW Group Region China.

"In a broad sense, innovation is to take new perspectives, do things differently and move ahead of others before any trend becomes reality. At BMW, we always believe the best way to predict the future is to create it."

Engel led a specialized team of experts over the past two years to conduct research that examined the BMW brand and how it should develop over the future.

The team of experts queried more than 3,000 BMW car users, industry specialists and experts. The 15-month-long research found changes in how high-end consumers thought, which helped the team redefine the new brand image with a more appealing personality.

Engel said the younger generations of the 1980s and '90s are becoming the nation's mainstream consumers and that BMW is expanding to cover these younger segments.

In the future, consumers are going to be more self-confident, be full of personality and do what they are happy doing. They enjoy the creative process and believe innovation is essential.

The research showed that young Chinese consumers are focusing away from public recognition to a fulfillment of individual needs and are looking for innovation, personality and an emotional connection in their purchases. They are more interested in brands with a low profile but are still highly innovative.

Through its research, the team molded a brand strategy that pinned "joy" as the source of innovation and creativity.

The revolutionary BMW i3 is a perfect example, Engel said.

BMW's revolutionary eDrive electric powertrain and carbon fiber composite material body applied in the i3 and the upcoming i8 are breakthroughs in the car manufacturing industry, he explained, adding that BMW has been expanding the frontiers of "high-power-efficiency" and "connected mobility".

In 2012, the company introduces its "BMW-connected driving" to the Chinese market in 2012 that currently provides up to 23 apps, including the popular Real Time Traffic Information and Trip Consultant.

Its latest touch screen, gesture control and more intelligent driving assistant technologies will equip the all-new BMW 7 series when the flagship line launches new products in the Chinese market later this year.

In the near future, three new products will be locally manufactured in China, and a new engine manufacturing plant in Tiexi, Liaoning province, will go into production next year.

"The brand image and communication strategies are very critical for a premium car brand. Contrary to the short-term orientation thinking in sales management, the brand management requires long-term orientation."

"Looking into China, we believe the Chinese market is at a crossroads for fundamental changes. BMW aims not just to manage short-term changes, but also pave the way for long-term success. For this, we have set a comprehensive strategy focusing on localization, sustainability, leadership on innovation and building the most emotional brand."

He stressed that BMW's efforts to localize its research and development efforts to China is important because of the nation's new focus on innovation.

"Innovations start with visions - the ability to foresee the future, to pinpoint the changes in consumer demands, technological trends and overall market environment," he said.

Market shifts

The world's automotive industry is moving toward electrification and digitalization, he added.

"The customers expect our vehicles to be cleaner, safer, more comfortable and more intelligent to provide them with full access to the digital world around them."

He said sustainability and connectivity is becoming the main driving force, particularly for premium brands.

"BMW is very proud of the leading role we play in innovation, thanks to our long-implemented strategies of BMW EfficientDynamics and BMW ConnectedDrive."

As the Chinese market matures, the new generations are emerging as the main consumers of premium brands who will demand BMW products to be more innovating and appealing.

"But, it won't be enough for a leading brand just to offer state-of-the-art products. It must understand the social changes, the evolution of values and the emotional demands of the consumers," he noted.

"It is our principle that our brand must keep pace with the momentum of the Chinese society and be linked to the most pertinent values of the country. For this, we have consistently reviewed our brand value proposition on "joy" in the past two years, doing extensive cultural and consumer studies, to be able to share with you today our new brand strategy."

haoyan@chinadaily.com.cn

(China Daily 08/03/2015 page19)