An interesting fact is that a great majority of international firms have effectively defended their market positions against local brands. Compared with five years ago, international brands have lost about 5% share of the rapidly expanding passenger car market. Through July, they are still comfortably leading the Chinese market with a total share of 70%. Year-to-date sales growth for most multi-national corporations (MNCs) is up 20% from last year. While some of this success is a result of an expanded product portfolio, it appears that MNCs have maintained their sales success without a dramatic increase in new product launches. One of the most innovative approaches we have discovered is what we would call “adaptive brand innovation”. This approach involves delivering market-specific adaptations and modifications, extending the range of segment participation to new price-points and product categories, and creation of new brands and products. Many of these approaches are often taken together with local Chinese partners.
Dec. 13 , 2010Attracted by the tremendous growth of these segments, many multi-national brands are expanding their product portfolio into smaller segments. Examples include the Ford Focus Hatchback, Chevrolet Cruze, PSA 207 Hatchback, Hyundai i30, VW Polo Sport, Toyota Yaris, smart Fortwo, and Kia Soul. Attracted by the desire to raise their brand image, and achieve higher margins, the Chinese carmakers are also expanding their product portfolio – into larger segments. Examples include Chery’s Rely V5, Riich G6, Dongfeng’s S30, BYD’s S8 and M6, Geely’s Dihao and Yinglun and the Brilliance Zunchi.
Dec. 3 , 2010Interview of Earll Murman, Professor, Aeronautics and Astronautics & Engineering Systems Division, MIT(Massachusetts Institute of Technology)，Director of Lean Advancement Initiative (LAI)
Nov. 30 , 2010Interview With Robert B. Weiss, Co-Chair of International Automotive Legal Team and Chair of Commercial Law, Bankruptcy and Reorganization Department of Honigman Miller Schwartz and Cohn LLP
Nov. 16 , 2010Multi National Coproprations (MNCs) are gaining competitive advantage by leveraging core strengths across both geographies and partners. From a geographic standpoint, this could be termed “horizontal capability building” where capabilities resident in China, India or other markets are leveraged in the other respective markets and beyond. For example, across the China-India geography, there is a full value chain of low-cost capabilities with the opportunity to achieve scale within those two markets. These scaled-up capabilities can then provide the foundation for successful global market expansion. For foreign MNCs, local partners in the Chinese and Indian markets can evolve from “market access partners” to “low-cost-structure-providing go global partners”. In the case of Chinese and Indian companies looking to go global, foreign MNC partners can evolve from “technology and know-how partners” providing competitive advantage in the local market to “brand-and-distribution-providing go global partners.” From either perspective, partnering provides an opportunity to accomplish far more than either party could accomplish alone.
Nov. 16 , 2010