On May 8, BMW Group Chairman Zipzer said in the first-quarter earnings call that the first-quarter data showed that the BMW Group's long-term earnings growth strategy is strong and effective, especially in the dynamic environment in which it operates. He further explained that there are currently three different types of automakers in the face of the same environmental conditions, and each class is following its own unique path, which can be broadly divided into emerging up-and-comers, established players who follow the example of those who come after them, and manufacturers who are struggling to adapt but are stuck in tradition. Which brands should they order? So which category does BMW fall into?
What are the three paths for automakers today?
Zipzer sharply criticized the new forces
Specifically, Zipzer described the automaker's three different paths, and here are his public remarks on the earnings call:
Category 1: "Emerging up-and-comers that generate a lot of hype through a single product." They usually have only a few technical highlights, such as the highest performance, the longest battery life, or the largest screen. It remains to be seen whether the overall approach will meet the high expectations of its customers throughout its entire life cycle, especially for the high-end market. In addition, as they scaled, they faced the challenge of managing complexity. It also opens the market through aggressive price positioning. ”
Second category: "Then, there are the established manufacturers who try to copy the practices of these new players, but at the risk of losing their identity. ”
Category 3: "Finally, there are many manufacturers who are struggling to keep up with the pace of change and are therefore still stuck in their traditional business models. ”
Obviously, Zipzer emphasizes the first category the most, and from the description, we can naturally think of major domestic new power brands such as Ideal, NIO, Wenjie and Xiaomi Auto, as well as Tesla, which is strong in the field of new energy. Because when it comes to these brands, it is easy to think of these phenomena: the "nesting doll feeling" brought about by the single product sequence, the "far ahead" advertised by the best in the same class through several configurations, the rollercoaster fluctuations and lack of stamina in the delivery of explosive products, the decline of consumer rights and interests that are difficult to maintain, the "boomerang" slap in the face and negative public opinion of the inconsistencies in the public statements of senior managers, and the "killing madness" of the heavy decline in the price of new cars.
Facing the attack of new forces
Should traditional brands learn from each other, or stay untouched?
Relatively speaking, the second type of old manufacturers mentioned by Zipzer who try to copy the practices of the new forces are obviously "passively beaten", because the traditional customer groups of some old manufacturers are rapidly flowing to the new forces, especially the second-tier luxury brands below the BBA.
At the end of March, Cadillac's official poster satirized Xiaomi SU7 caused heated discussions, and the unconventional eyeball behavior lowered itself to the level of a rising star to compare, as a luxury brand's tonality and confidence are gone, and it also makes many car owners speechless, which may be what Zipzer said "risking losing his identity".
Cadillac's official poster satirizes the Xiaomi SU7
As for the third type of automakers that struggle to cope but can only stick to the tradition, in the editor's opinion, it is the most extensive, and it can be found in the traditional understanding of economical and practical Japanese brands. On the one hand, its product strength has been hit by the new forces, and the price is not competitive, and the former cost performance is a thing of the past. The so-called stuck traditional business model is largely due to the fact that it is difficult to be cheaper and better than the new forces, so it can only lie flat, so it has slowly entered the marginal area of domestic consumer choice.
BMW has its own balanced route
Electrification is on the right track
The question is, which path is BMW taking? After enumerating the above three categories of peers, Zipzer said that in this highly competitive field, the BMW Group will continue to chart its own balanced course – "We remain true to ourselves. What kind of independent path is this? Zipzer's exact words are as follows.
"We analyze and predict current and future trends without prejudging the results. From this, we developed our strategic approach. The ability to respond to market developments, customer needs, and new technological approaches is crucial. This has earned us a leading position in the field of electric vehicles, while allowing us to maintain consistently high profitability even in a volatile environment.
Our development efforts are focused on technologies that provide real added value to our customers. Decades of experience in the market tell us what our customers want throughout their journey. We use this knowledge and technical expertise to create the perfect overall concept. ”
From this, we can see that BMW is able to adapt to the market trend of new energy, unswervingly go all out to electrification, and create a real luxury experience based on the sense of gain of consumers and users...... Is this the adaptation path that has made BMW remarkable and not afraid of the challenges of new forces? What do you think?
Write at the end:
Zipzer concluded the day: "We are in a strong position globally and maintain our leading position in the global premium market. We recognise that there are a lot of new players looking to gain a foothold in this highly attractive market segment – and of course, we are taking this very seriously. But it's not a one-way street. One thing is certain: every player in this industry, whether an ambitious newcomer or an established manufacturer, is keeping a close eye on the BMW Group. "So, do you have confidence in BMW's momentum and path that is still strong today? What kind of path do you think BMW should take?
Please leave a comment