On February 27th, the "big thing" that was rumored for a long time inside BMW finally came to the ground. BMW China announced that from April 1st, Dr. Liu Zhi will succeed Mr. Xu Zhijun as President of BMW (China) Automobile Trading Co., Ltd. Liu Zhi is also the first Chinese sales president of BMW China since its inception. It is reported that Xu Zhijun will transfer to the BMW Group Asia Pacific for senior management positions and return to Singapore after completing the work handover.
It should be said that this adjustment is expected. Xu Zhijun has been the president of the company since the establishment of BMW (China) Automobile Trading Co., Ltd. in 2005, and has almost witnessed the development history of BMW imported cars in China. In 1958, Xu Zhijun graduated from Durham University in the United Kingdom. As a foreign Chinese (Singapore), Xu Zhijun, who joined BMW in 1997, was the type of talent that foreign companies preferred in the early years of development in China.
Judging from the multinational car companies in China, most of the senior management talents in enterprises come from Singapore and Taiwan, and there are very few localized talents from the mainland. Of course, Xu Zhijun has contributed to the development of BMW in the past 10 years. Kang Siyuan, President and CEO of BMW Group Greater China, used a simple statement to explain - "With its rich experience, the BMW Group's imported car business in China has advanced to an unprecedented height."
The successor, Liu Zhi, is also an old BMW employee in China. He has started from BMW's internal step-by-step, has moved to multiple positions, and is experienced in marketing. He believes that he can bring new ideas to BMW's future. Liu Zhi has set a precedent for the appointment of multinational auto companies in China, but this will inevitably become the new normal. What needs to be seen is that not only BMW, luxury brands in China are also seeking to establish new development models through the collective changes, to adapt to the Chinese auto market and consumption under the new normal.
In the future, the continuous improvement of the marketing system, the intensive layout of the product market, the opportunity to launch products that meet the needs of consumers, and the strengthening of localization measures such as communication with consumers will be crucial factors in determining the success of car companies.
Why do you adjust frequently?
BMW's changes have some deep industry and background. Last year, BMW had some “new conditions†in China: First, despite the positive growth last year, BMW had its first monthly negative growth in the past decade in 2015; secondly, BMW appeared as the former president of BMW Greater China. The second major personnel change after Shi Dengke's departure, including the resignation of the senior president of the Greater China region, Ange, and the senior vice president of sales, Wang Hong, etc. Third, BMW's domestic car sales accounted for a large proportion More than imported cars, domestic cars accounted for 65%, and in the past three years, the number has increased rapidly by 5 percentage points per year. Fourth, the overall growth rate of China's luxury car market has decreased from 2014 to 23.1%. 5.3% in 2015.
These four points together illustrate a problem: BMW's slowdown in growth last year indicates that BMW's "localization progress" after the start of localized production in 2004 is no longer sufficient to support BMW's further "release of force", BMW needs to further deepen China, understanding China, gained new momentum after its founding 100 years ago. There are still many things that BMW can sit on in localization. Take Audi as an example. The proportion of domestically produced cars is over 90%. The top level is almost all Chinese faces. In the layout of channels, Audi can go deep into the complete and efficient channels of the 3rd and 4th lines and compare any competitors. In the past decade, BMW has experienced 15 times growth, and now it is looking for a more effective and deeper localization system.
This is not only a temporary solution to the current development pressure, but also a requirement for sustainable growth in the future. Looking at the long-term line, "sustainability" is the core word that runs through BMW's 100-year history, and now in the Chinese market, this term is also being mentioned more and more. But on the market side, this word is really valued, and it may still be a matter of the past two years. Under high-speed growth, problems are often covered up by achievements, which is also the "halo effect" of development. Especially in the rapid changes in the market, the luxury car market as a whole has fallen into the era of “relatively low speed†– no matter which company, adjustment is imperative.
Liu Zhi’s promotion was interpreted by the media as “opening the localization 2.0 eraâ€. Although this is a landmark event, it should be noted that the so-called "localization" is a change and upgrade of a huge system, from talent to procurement, research and development to brand and other changes. And Liu Zhi’s promotion is also a “homeopathic†in the process. In fact, from last year's position as the president of the new BMW Greater China region, Kangsi has seen that the management philosophy of the BMW Group has changed in China – this may be the experience gained by BMW's German headquarters after the airborne Ange.
New stage challenges
But for BMW, there is reason to believe that the pressure on it is not small. If we pay more attention to it, BMW China has a lot of news about the "promoting promotion" of the generals in recent years. BMW once appointed five vice presidents in one breath, and after a lapse of less than a year, the fire line promoted three vice presidents and made major adjustments this year. This situation is worthy of BMW's vigilance.
At one time, as a Chinese localization leader, BMW has gathered a large number of outstanding local senior management talents in China, or at least people who are familiar with the Chinese market. Although the personnel changes in the enterprise are inevitable, the frequency of such personnel changes in BMW in the past two years is significantly higher than in the past. The reason for this is that the luxury car brands that have entered the post have already lost a lot of talents to the former Audi, BMW and Mercedes-Benz through a lot of digging.
At this time, BMW just announced that Yue strategy has entered the "2.0" stage. The flagship model new 7 series has just been introduced into China's key period. BMW obviously needs to set up a new "League of Legends" as soon as possible to complete the opening of the land. From the current point of view, BMW's adjustment will obviously continue. For example, Liu Zhi's successor has not yet announced - there is news that BMW North District Vice President Reiner Braun succeeds the former.
In addition, it is reported that BMW China and BMW Brilliance will make further adjustments after the personnel adjustment, aiming to improve the internal talent pool, promote the youthfulness and localization of the management, and strengthen the two companies. Inter-collaboration, these adjustments may involve several departments - this change in personnel is likely to be just the beginning of BMW's adjustment. However, the Economic Observer reporter asked BMW to verify the matter and did not receive official confirmation.
However, in any case, on the realistic level, this adjustment is more like the transitional stage of BMW's transition to the more critical consumers, the more difficult growth and the team cohesion after entering the “Kangsiyuan eraâ€. . China's luxury car market has entered a period of low-speed development from high-speed growth. The future competition will be the real strength. To continue the prospect in such a market environment, BMW or other brands will undoubtedly need more action and sincerity. .
Collective reform
Of course, this is also a common problem faced by other luxury car brands. The BMW, Audi and Mercedes-Benz in the front have already started reforms. Audi, for example, has announced that it will relocate its headquarters to Beijing this year, and its newly chosen office is within easy reach of BMW's Beijing headquarters. As the first "big brother" to open local production in China, Audi also encountered development problems last year, and internal adjustments were also carried out in an orderly manner. FAW-Volkswagen set the key for this year as "fighting," meaning to break the difficulties and start again. It means that it is self-evident.
In the product innovation, the contradictions on the channel also broke out early in the morning, although the last year embarked on the fast track of development, but it is also seeking stable performance, its in the Chinese market is trying to pass smart cars, new energy vehicles Wait for multiple directions to break through the opponent. In addition to these three, Jaguar Land Rover, Cadillac, Volvo, Lexus, Infiniti and other strong competitors are also catching up with the horsepower, and use all possible means to promote internal and external adjustments, grab the market.
Among them, Jaguar Land Rover has started localized production for two years. After the integration turmoil last year, it gradually settled down. However, how to make the Joint Marketing Management Organization (IMSS) more effective and the shareholders are more harmonious has always been a problem. The performance of its Jaguar brand has also been further boosted, and it is also a problem faced by the management team. As for the three competitors of Lexus, Cadillac and Volvo, they also face their own challenges. For example, Volvo's high-end products cannot achieve breakthroughs, and their brand image needs to be further rejuvenated. It also has the potential for high-level personnel changes.
Infiniti, who had just experienced high-level changes in the past year, is worthy of attention in the future. Although the new management has made it clear that it will not make major changes, it is only a big strategic direction. In terms of specific implementation strategies, it is not impossible for Infiniti to have some changes - in a way, this It is also a necessary change. As far as BMW is concerned, it has arranged a large number of products in 2016. It is reported that more than 10 new products have been put into the Chinese market. In addition to today's adjustments, it has boldly promoted the promotion of the Chinese market to defend the status of the world's largest luxury car.
In short, in the last two years, luxury brands will make new adjustments, which are determined by the market environment and determined by their development stage in China.
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