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What would it take to persuade American drivers to buy a Chinese car brand carmakers in China have tried and failed to answer this question for at least another decade wants to try this week, on the eve of the Detroit Auto Show, Guangzhou automobile Group Co announced that it will begin to export cars and sport utility vehicles next year in the United States.
Although the GAC brand signature can be an evocative for Americans - it's called Trumpchi - don t bet on hits instead, GAC is likely to weaken because of a familiar combination of impatience, lack experience in marketing for the Americans and an unshakable belief that can quickly translate globally its national success.
If history is a guide, the struggles of GAC will begin with the brand, which has proven notoriously difficult for Chinese companies expanding overseas Interbrand 2016 list of the 100 Best Global Brands, which classifies them by value and their influence on consumer choice, included only two of the 72 China's Huawei and Lenovo at No. 99 of 2015, only 22 percent of consumers outside China could name a single Chinese brand.
Worse, Made in China still evokes mistrust in many parts of the world, a perception stoked by a Chinese food scares regular parade and product safety scandals in the ranking of the most recent reputation of Institute of businesses most reputable, not a Chinese company made the top 100 auto manufacturers in China are no exception While they come a long way since the fifth time they failed safety tests regularly, they're still plagued by defects manufacture and often seen as unreliable.
Another challenge is that many Chinese enterprises have the habit of imitating foreign brands to the detriment of their own products and car manufacturers are among the culprits most famously, the Chery QQ was accused of being a blatant knockoff Chevrolet Spark in a lawsuit in 2004 finally settled more recently, Jaguar Land Rover continued China Motors Co Jiangling of striking similarities between its Landwind X7 and Rover Evoque Land If GAC wants critics and American consumers happy, he'll have to find something really original.
This applies to its marketing efforts, too many brands in China has emerged manufacturers who faced little competition as the economy booming As a result, Chinese companies are rarely prepared to engage in campaigns difficult marketing needed to make their world unknown brands instead, they tend to rely on a stop promotional campaigns Think WeChat spending 200 million to hire Lionel Messi as GAC global pitchman has its own history of costly promotions with tracking through, including an inexplicable product placement in 2014 Transformers limited Age Extermination it will need to think more ambitiously if it wants to break into a new competitive market.
Beyond all this, GAC will face unique challenges in the US for one, its top echoes the brand name of an elected president polarize s also enter the US market at a time when the automotive brands all kinds can be autonomous technology terminal decline erases the distinctions between Lastly, his car will be redesigned to meet the United States of more stringent safety and emissions standards, and it will need a dealer network for sell, all that will make competition tougher cost.
GAC, who aspired to export cars for years said he is aware of these obstacles In 2015, the CEO of the company told Automotive News he did not compete on the quality or service, but by charging 30 percent less than its competitors in the same vehicle categories even if it's financially feasible - a big if - it is unlikely to reassure consumers concerned about the safety and reliability of Chinese brand unknown.
There might be a better approach rather than push forward with a brand that is unlikely to resonate with Americans, GAC could seek partners with distribution networks in the United States and benefit from their knowledge local and GM and Volvo connections sell cars made in China to the United States under their own brands, including Buick Envision SUV established so doing, they're combining prowess of Chinese and American manufacturing salesmanship, with some success.
GAC should try something similar - and empty the Trumpchi.
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
To contact the writer of this story of Adam Minter at.
To contact the editor responsible for this story to Timothy Lavin.
Why Won t Americans buy Chinese cars Bloomberg, American, Chinese, cars, Bloomberg.