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"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

In 2019, Lexus was ruthlessly punished by market supervision for its arrogant price increase, but unfortunately, because of the strength of the brand and products, Lexus did not restrain the price increase.

Since the external forces cannot destroy the arrogance of Lexus, they can only let the opponent disintegrate.

In 2022, Lexus's growth rate will come to an abrupt halt, and the company's dream of stabilizing 200,000 annual sales will be shattered, and in 2023, a number of main models will be launched "lagging behind", and the once hot-selling models ES, RX, and NX terminals will be discounted greatly.

"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

Once the brand is unable to provide the impetus and the high-end market of luxury cars is piled up, Lexus's product competitiveness is very weak.

On the one hand, Lexus's handling, performance, acceleration, and safety attributes are not obvious enough, and it is not cost-effective, and it resists more user groups than buying user groups, on the other hand, the competition in the high-end car market is quite fierce, and European cars are better at creating high-end attributes, and the brand value and product power are better.

The electrification market has directly pushed Lexus to the margins, especially in the era of such a high penetration rate of electrification and intelligence.

"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

This shows that users recognize electric and intelligent products, abandon traditional engines and gearboxes, and usher in a more energy-saving, faster, smarter and safer car life, so that users can directly start to abandon blue brand cars.

The market share of blue brand cars will be reduced to about 40% around 2025, and the market share of foreign brands will be reduced to about 30%, which means that Lexus, a foreign brand dominated by fuel vehicles, still has some room for decline.

"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

In fact, Lexus has begun to remedy, on the basis of the new product can not be promoted soon, the most direct way is to sacrifice brand value in exchange for sales, the way of price reduction is effective, but the price reduction stimulus will raise the threshold, the market needs a higher price reduction to be willing to choose Lexus with backward product strength, which is not good for it.

From Lexus's point of view, it will not be able to put a product suitable for China on the market in the short term.

It is a global brand, it is impossible to design independent products for China, and it needs to reconcile the consumer needs of the European, North American and Japanese markets, and its own technical route is mainly based on the Japanese "fuel hybrid", and there is not much sense of technology implantation, for the post-00s who have entered the consumer market, Lexus's competitiveness is insufficient.

"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

In fact, it is not that users have abandoned Lexus, but that the passenger car market has turned too fast, Lexus as a traditional corporate brand, the old concept is still very obvious, in the context of China's rapid transformation, can not keep up with the development of the times, and Lexus is just a microcosm of the luxury foreign capital camp.

The entire luxury camp has encountered tremendous pressure, BBA, Volvo, Jaguar Land Rover and Cadillac brands are under significant pressure, the price of the BMW 3 Series entry model has dropped to about 240,000, and the price of the Cadillac CT5 has also dropped to about 210,000.

The prices of these products are even lower than those of the new forces, and the current sales volume is the result of the company's squeezing of profit margins, but there is always a moment when the profit margins are squeezed, so in any case, these luxury brands need to show great sincerity to be able to gain a foothold in the Chinese market.

"The king of markups" Lexus folded in the Chinese market, how can the Japanese myth collapse?

After all, the leading players in electrification and intelligence have long since changed from foreign brands to Chinese brands, and it is only a matter of time before Lexus, a brand that used to ignore the Chinese market, collapses.

In my opinion, this rate of collapse was brought about by previous arrogance.

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