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Business / Auto China

Innovation to keep carmakers ticking

By Li Fangfang (China Daily) Updated: 2014-07-14 07:03

The study said four out of 10 consumers would consider buying cars online.

"Obviously, the penetration of smartphones has had an impact on consumer behavior. It has become a channel of information and a tool for online payment," said Yu.

But manufacturer websites remain the most trusted channel for information, followed by professional automotive sites, dealer websites and e-commerce sites, said the study.

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"One-stop services" remain the most expected services among Chinese consumers for an online car purchase, but "compared with the e-commerce business model for ordinary fast consumer products, automobile products involve a more complicated process with a hybrid of different stakeholders within the market", said Yu.

"It brings challenges but also opportunities for automobile companies to take a more innovative strategy by leveraging the advantages of third parties."

Brand reputation

According to the study, German brands were preferred by 48 percent of respondents, followed by American and Japanese brands. The preference for Chinese brands increased 2 percentage points from 11 percent in 2013 to 13 percent this year.

"Consumer attitudes toward the country origin indicate a growing challenge worth the attention of Chinese homegrown brands," said Yu.

The gap between Chinese and foreign brands is also reflected among respondents' opinions on dealer services, marketing communication, competitive position and image.

"The building of a successful brand relies on different factors, not only about product quality, safety and advanced technology, but also other touch points for a brand.

To innovate, Chinese brands need to improve the consumer experience at each touch point from product development to dealer showrooms and advertising effectiveness," said Dong.

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