Gasgoo.com (Shanghai July 24) - Commenting on Jaguar Land Rover's startling performance in the Chinese market as well as Volvo's increasing sales in the country, Lexus China Executive Vice President Jiang Jizhe stated that he was "extremely regretful", the National Business Daily reported today.
Lexus' Chinese sales performance has been slumping since 2011 now. In 2012, it saw its traditional fourth place in the Chinese luxury segment swiped by Jaguar Land Rover. Lexus fell even further behind the British marquee this year. At the same time, Swedish manufacturer Volvo has managed to make impressive strides, forcing Lexus further onto the sidelines.
The stark contrast in Lexus' performance compared to its rivals has once again brought attention to the issue of domestic production. Commenting on the topic, Mr. Jiang stated that "domestic production is an important issue of concern", adding that before actual manufacturing is localized, brand localization needs to be done.
Earlier this month, Lexus opened a brand experience center in Beijing's Sanlitun Area. The center was designed to perfectly mimic the Lexus brand experience center in Tokyo, with its design all overseen by Lexus' Japanese team. Lexus has already opened similar centers in Dubai and New York City.
Analysts point out that brand work has helped originally cement Lexus' position in the American market. As a result, 273,800 Lexus vehicles were sold in the US in 2013, accounting for over half of its total global sales. Similar strategies for the brand were then done in Japan, and are now being attempted in China.
However, it is also important to mention that Lexus has been losing ground to other luxury manufacturers even in North America. The manufacturer lost its coveted position as top performing luxury automobile manufacturer in the US in 2011, and has been contending with its rivals for that position for the last few years.
Therefore, it should come as no surprise that Lexus is reevaluating its position in other markets. The importance of the Chinese market in particular is alluring to the manufacturer. According to various sources, Lexus is planning to announce its ten year plan for the Chinese market within the next two months.
Former Mini Brand Managing Director, Zhu Jiang (pictured), is set to play an important role in transforming Lexus for the Chinese market in his new role of Vice President of Lexus China. Mr. Zhu is credited with helping build up Mini's brand image in the country. In his new role, Mr. Zhu will oversee product planning and marketing for Lexus in China. Analysts point out that Mr. Zhu's appointment represents a major change for the often conservative Japanese brand, and may help usher in direct Chinese production of Lexus vehicles.
However, Mr. Jiang made sure to emphasize the importance of first building a strong brand image for Lexus. He points out that over 50 percent of Lexus owners in the US choose to buy other Lexus vehicles. Mr. Jiang added that now is the perfect time for the manufacturer to build brand loyalty in China.
Lexus is preparing to bring the NX SUV to the Chinese market very soon. Mr. Jiang emphasized this is a very important vehicle for the brand. He confidently stated that the NX "will help consumers notice the transformation of the Lexus brand".
