Chevy's China Strategy: Do It In The Sticks
Pop quiz time: Which country is GM’s largest market? Easy. China. By a wide margin. Buick is kept alive because China is Buick country, and for raw numbers, there are the gadzillions of cheap Wuling vans, bought and reviled by farmers and small businesses.
Now for the tougher question: Name the three largest markets of Chevrolet, worldwide.
If the Chinese press is to be believed, the top three markets for Chevrolet at #1 U.S., #2 Brazil, and #3 – China. Now isn’t that surprising?
GM China sold 218,951 Chevys to the Chinese in the first half of this year, more than 10 percent of Chevrolet’s global sales, says Gasgoo. That’s not a lot by Chinese standards. All of GM China sold 1,209,138 units in the same period.
After five years in the Chinese market, Chevrolet finally gets a little traction. Little is the operative word. Their best selling models are the Lova and the Spark.
Chevrolet main markets in China are the third- and fourth-tier cities. This explains my surprise (I rarely go there) and it’s a smart move. This is where the growth and future is. And this is where brand recognition means little. They barely have car dealers there. Something Chevy China is about to change. 200 of Chevrolet China’s 375 dealers are in the third- and fourth-tier cities, in places you’ve never heard about, and which had been ignored by other brands.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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In the end GM isn't that fool eh? Interesting strategy
Wow that is an interesting strategy. Go where the dealers AREN'T.
I said it before and I'll say it again... GM considers the US market as good as dead. Why else pedal crappy little cars in places that barely have roads?