Mercedes-Benz set to maintain competitiveness to sustain healthy growth

Mercedes-Benz leadership is cautiously optimistic about its continuous growth in China this year, thanks to a further enriched lineup of stellar models and the German premium carmaker's long-term dedication to providing innovative services together with an enhanced customer experience.

"We know that 2019 will bring its challenges, but we still remain cautiously optimistic about our continued growth in China," Nicholas Speeks, president and CEO of Beijing Mercedes-Benz Sales Service Co Ltd, or BMBS, told China Daily on Tuesday.

Speeks talked with China Daily at Mercedes me Sanlitun, where he called the "base camp" of the brand in Beijing.

The event, held in China, the largest car market for Mercedes-Benz, widely regarded as the inventor of the car, corresponded with the 133rd birthday of the automobile industry.

Mercedes me Sanlitun is a well-known exemplary of their latest pattern of touchpoints for customers and brand enthusiasts, and the company will unveil another two in Chengdu and Shenzhen, in addition to the pairs in Beijing and Shanghai.

Speeks conceded that China's automotive growth rate may no longer stay at the same high level as it did in the past years, and agreed there are uncertainties in the macroeconomy.

But because of those uncertainties, he said, "Even more so than before, we need to stay focused and work hard to maintain our competitiveness in the market."

In the meantime, Zhang Yan, senior executive vice-president of BMBS, expressed gratitude to the dealerships who have been working closely to the company to ensure the joint development and to reach a win-win situation.

"In 2018, we have worked together with our dealer partners to maintain a steady business growth in the changing market," Zhang said.

The company's efforts to that effect were well rewarded in 2018; for the first time since 1990, China's overall vehicle market saw a dip of 2.76 percent from the previous year, affecting most brands in the country to varying degrees.

But Mercedes-Benz stood almost unscathed, taking home its best ever year in the country, with more than 674,000 vehicles sold, up 10.3 percent from the previous year.

"This is thanks to the recognition from our customers for our products and services, and to the joint efforts from our dealer partners and us in trying to meet or even exceed customers' expectations," Speeks said.

"China's significance for us goes far beyond simply growing revenues from car sales," he added.

Mercedes-Benz, for example, is one of the fastest premium brands to adapt to rapidly evolving trends and demands in China, where its customers' average age is 36, its youngest worldwide.

Proof can be seen in the diversified product portfolio the company has been bringing to the market. In 2019, Mercedes-Benz is to launch more than 15 new models in China, which now accounts for a quarter of the brand's global sales.

Duan Jianjun, chief operating officer of sales and marketing at BMBS, said this year will mark another year of emphasis on new SUVs, including the brand's much anticipated new GLE, new GLS and other fresh models.

He said the long-awaited electric vehicle EQC will join the company's lineup in China, as well, taking the three-pointed Mercedes star into a new epoch of electric mobility.

"Customer demands are ever changing in China," Duan said. "So we offer these models to meet expectations of customers in different segments and allow them to find the one they love most."

Last year, the company launched a range of exciting models, some of which were trailblazing in their respective segments, ranging from the A-Class L sedan, with more legroom and connectivity features, to the new GLC L SUV.

Those models are also expected to be among the company's major growth drivers in 2019, according to the company.

In addition to its competitive products, the company has also provided services and experiences tailored to the diverse needs of its customers.

"With customer satisfaction remaining to this day at the core of our business, we ensure that our products and services are competitive in the market and good value for money," said Andreas Kleinkauf, executive vice-president.

The company has been optimizing the total cost of ownership. Since 2014, it has continually lowered the price of spare parts, now covering around 60,000 parts.

Besides cars and services, Mercedes-Benz has never ceased to also launch innovative initiatives.

As the company's founding father once said, "The passion for innovation never dies." The company boasts a brand platform dedicated to female customers, called "She's Mercedes".

It now provides a tailor-made community that has registered more than 150,000 female customers and fans.

Mercedes-Benz said it will combine She's Mercedes with its corporate social responsibility platforms to reach out to more women in less fortunate situations, empowering and supporting them to achieve their dreams.

The company's corporate social responsibility programs in China started in 2007, covering such aspects as environmental protection, post-disaster relief and education.

Zhang said the total amount of investment on the programs is expected to reach nearly accumulated 200 million yuan ($29.7 million) by the end of this year.

Speaking of the outlook in 2019, which many analysts believe will stay flat, Speeks said the company will continue to do what it believes is right - for the customers, partners, shareholders and the brand.

"We have made preparations for what is to come and look forward to moving into the new year," he said.

lifusheng@chinadaily.com.cn

(China Daily 01/30/2019 page15)