The automotive industry in China is the largest in the world and is still expanding. The country has a large population and it accounts for the success of the industry. China has implemented a new tax scheme which allows more percentage of the sales to grow. It also follows that China has the largest market for automobiles.
Furthermore, the country houses a wide variety of brands of cars, to be specific, there are 130 brands to choose from and more are still introducing themselves to the market. The brands consist of foreign, local and sub-brands acquired through partnerships. Chinese cars differ of up to more than 500 carrying imported and self-manufactured units. In Mainland China, the cars could reach a million dollars and many could actually afford this. The success of automobile sales also results to more tax being imposed on car ownership.
However, this is not the case for the Chinese cars in the US. Different car retailers in the US have shown their interest in importing cars from China. Yet, other cars that have been imported in the past still haven’t earned the success in the market. Perhaps American cannot convince themselves to own Chinese branded cars. Also, failure of marketing strategies and inexperience stay as a reason for not being considered to be a preferred purchase among Americans. This goes to show that Americans still hold on to choosing their homegrown brands that result in domestic success with the possibility of reaching global markets.
The negative appearance of Chinese brands in the US is not limited to cars; products such as mobile phones rank low in global brands. China has been always marked with low reputation due to the food scares and product quality issues in the past. Although these have been long resolved, these are factors that people still consider, thus the performance of their product in the US. Furthermore, imitation is rampant in Chinese companies following the specifications of other products.
This is clearly not favorable in the American market considering that their own brands have been created to a similar structure by Chinese brands. Aside from that, China’s brands are not keen on marketing to put their products out on the market. China has a one-time hit for campaigns and after which, the actions miss all the opportunities for greater sales. Additionally, certain standards have been implemented in the US for safety and emission which also requires enforcement even to imported products.
The US and China have been involved in business relationships long in history. Even in the 1940s, American companies have stayed in China to perform their processes however; this was affected by the Sino-Japanese war when American civilians were affected with the Nanjing Massacre. A number of Westerners became victims and even though this could cause a great fight between China and the US, they remained civil about it. The two nations have agreed to a bilateral trade relationship which is applicable until today.
It will be a great challenge for the Chinese cars to be able to export to the US and actually sell their cars. The success in the automotive industry in China is quite a long shot to actually happen in the US as well. There is a lot to work on to achieve even the attention of the American consumers most especially when Chinese products don’t hold a good record when it comes to quality.
A possible effective way to market this would need American aid in selling while maintaining the manufacturing side to China. Being rivals with a lot of brands who have delivered good service and excellent quality calls for greater pressure to meet the standards of the people.