Identification of the Chinese market
Targeted audience: Since reform and opening-up, benefit from high speed development of Chinese economy, there are now 1.5 million rich people in China and the number of the rich increases at an annual rate of 15% year by year. The rich, accounting for 10 percent of the country's population, owned 45 percent of the wealth in cities, and they include senior leadership, all kinds of stars, businessman, etc. From the current situation, consumers of luxury cars can be divided into three kinds of people. Firstly, business elite who make great progress in business; secondly, the rich whose fame is well known to public; thirdly, second generation who enjoy their rich life. They are all potential consumers of luxury car. For second generation, the number of them grows very fast and their consumption behavior of luxury cars is very eye-catching.
1.Competitor: Now, global auto makers are seeing the old vigor returning, albeit gradually, to China's premium market thanks to the economic recovery. They are positive to pay their attentions to Chinese auto market again, and promote their new style luxury cars in Chinese auto market. • GM's Cadillac brand and Toyota's Lexus chose this year's Guangzhou auto show for a world premier of one key model each. The Lexus GX460 is the latest version of the brand's GX series sport-utility vehicle. • Toyota says the redesigned SUV offers 'a unique combination of off-road performance and driving comfort.' In short, it is a rugged luxury SUV. Toyota plans to launch the vehicle in China and globally in January. • Cadillac has stretched the China-market version of its redesigned SLS sedan to give backseat passengers more room -- a key concern in China, where many wealthy owners have chauffeurs. It also is the first GM car in China to offer OnStar navigation and roadside assistance service. • An array of other brands, from Nissan Motor Co.'s Infiniti to Daimler AG's Mercedes-Benz, said they are also adding more models to their increasingly fuller product lines for China. 2.Main parts of auto market: Chinese economy is concentrated in coastal areas, and the most of the rich are also concentrated in these areas, over 40% of luxury cars are sold there. Particularly in Beijing, Shanghai, Guangzhou. Therefore, rapid economic development of cities can promote consumption in luxury car market so that most of luxury car makers focus their eyes on these coastal areas.
A profile of the market and audience:
China’s white hot auto market has become a prime focus of global auto executives, and with good reason. It’s the world’s second biggest, and growing at about a 15% clip. China is expected to surpass the U.S. as the largest car market by 2020 or so. Yet it’s a brutal place to do business: average vehicle prices fell about 7% last year, and that trend continues. But that’s not the case in the high-end segment, which is growing about twice as fast as the overall car market. So global auto makers are now rushing to build or import their luxury lineups at a frenetic pace. Otherwise, Chinese consumers like the luxury cars which can not only embody their wealthy, but also can reflect their taste and quality of life. For second generation, they like the cars can reflect their personal characteristics.
Intercultural communication perspectives:
Chinese rapid economic development creates a great number of plutocrats, because of the great success in business, they prefer spend their money to enjoy superior quality life, such as play golf, collect antique, buy luxury product, etc. On the one hand, they do not only want to show their wealthy, but also want to improve their high status which can distinguish them from others. On the other hand, Chinese consumers prefer comparing with others to reflect they have more money or they own higher taste, and they flaunt themselves or their wealthy. This consumption psychology exists in most of Chinese...