There is a luxury surge in entry level products to lower the price threshold, under the quality of their own brand premium brand up, sandwicked in the middle of the joint venture brand market share has been squeezed.Is the price going down?Or up?In a period of temporarily low sales, it is an opportunity to reorganize the brand, and which company can clear the fog and move forward?

    In the second quarter of 2020, the auto market is beginning to show signs of recovery.

    According to the latest statistics released by the federation of automobile manufacturers, although the volume of production and sales in March fell by 51% and 40% compared with the same period last year, the recovery of luxury brands can be seen. The retail volume of luxury brands only dropped by 20% compared with the same period last year.

    After entering the "post-epidemic period", consumers' demand for cars presents two major rigid characteristics: rigid purchase in first-tier and second-tier cities, and recovery in demand for luxury and high-end products;Third, fourth and below the city rigid new purchase, the demand for cost-effective products increased.

    There is a luxury surge in entry level products to lower the price threshold, under the quality of their own brand premium brand up, sandwicked in the middle of the joint venture brand market share has been squeezed.

    Is the price going down?Or up?In a period of temporarily low sales, it is an opportunity to reorganize the brand, and which company can clear the fog and move forward?

Joint venture brand pressure, buick up through the ceiling

    There is no doubt that the buick brand is the cornerstone of gm.After the joint venture between gm and saic motor co., LTD., buick brand was also the first to enter the Chinese market. From the new century to the excelle, lacrosse to GL8, generations of classic models were launched.

    However, when the market changes, buick brand is facing the pressure of luxury brands and self-owned brands up and down, sales decline, profit shrinkage is the joint venture brand in this competition has to face the reality.

    Reduce the price of products, improve the cost of the car market is a fight in the price war, but this is no different from poison to quench thirst.Saic gm vice general manager ShiHong had earlier told the media say: "from all the experience of the industry, joint venture, the foreign capital enterprise can't completely conquer the independent brand, (prices) go down forever face high pressure independent brand competition, even to go on, it is hard to realize the reasonable profit, it is a lose-lose results."

    From the existing product structure of buick, the products on sale include cars, suvs, MPV, the price range from 80,000 to 450,000 full coverage, entry level products threshold is not high, but there is a lot of space up, most of the products are priced below 300,000.The product does have differentiation with luxurious brand already, reflect competitive advantage in price of 300 thousand above again, become the way that buick alone makes.

    Planning to shape, from the drawings to the market, from buick GL8 Avenir aville began.

Buick to ivia, harvesting luxury orders

    As early as September 2016, general motors launched buick Avenir, a brand new buick sub-brand, globally, and began to explore the way to the brand.In November of the same year, buick Avenir landed in China and GL8 Avenir sold for 450,000 yuan, which was like a stone falling from a calm sea to the mainstream MPV market at that time.

    The analysis of China's MPV market shows that the luxury MPV is mainly imported products. Lexus LM and Toyota elfa are sold at a price of more than 800,000 yuan and are often sold at a markup.The mid-to-high end MPV is dominated by buick GL8, while the mid-range MPV is dominated by Honda Odyssey and ellison.Low-end MPV is mainly self-owned brands.

    In the whole MPV market, buick GL8 products have the largest price range and the widest audience. According to the public data, the cumulative sales of buick GL8 in China has exceeded 1.23 million.

    Buick found an opportunity in the fault line of the MPV market, with the emergence of the GL8 Avenir aviva, which directly entered the imported luxury MPV market -- the products are high-end and the prices are reasonable.

    In the overall downward trend of the domestic auto market in 2019, buick GL8's annual sales volume reached 148,121 units, achieving a negative growth rate of 3%.Moreover, GL8 firmly occupies half of the MPV market of more than 300,000.

    On March 23, buick announced the pre-sale of a new generation of buick GL8 Avenir aville family. Orders for four new flagship models accounted for more than half of the total, followed by pre-orders for six models. Most of the pre-orders were from existing GL8 owners who bought in and bought in, as well as a large number of BBA luxury car users.

    Last night (12 April) buick brand announced the sale price of GL8 Avenir evia family for rmb459,900 to rmb529,900. Wang yongqing, general manager of saic general motors, said, "the new car inherits buick's unique accumulation in MPV product development and will create a brand new pattern in the domestic luxury MPV market."

    While Avenir ivia has landed in the MPV, sedan, SUV series flagship models, buick is expected to reap more orders from the luxury market, the brand's path to the road ahead.