Written by Mark Tanner*
China currently has more cars than the population of every other country except India, at a whopping 430 million. More than 1 million cars in 90 cities. Although China’s ownership rate has not yet reached that of developed countries, the dream of owning a car is definitely becoming a reality for China’s middle-class masses.
The Chinese government is continuously introducing new policies and support for both the supply and demand sides of the industry.this has Encouraged consumers to buy more cars while supporting the local auto industrycreating the world’s largest and fastest growing automobile exporter. 50% more Chinese-made vehicles shipped overseas in September than a year ago.
To continue to stimulate demand, Beijing’s auto efforts are spreading wider and more comprehensively in a local industry that still has room to mature. Its latest efforts include: Seven policy measures to support the automotive “aftermarket”. This includes increased support in areas such as the auto parts ecosystem, car purchase financing, campground cars, car museums, and even drive-in movies. Classic car enthusiasts should expect global prices to rise as the Chinese government plans to improve import policy and support.
The impact of the Chinese government’s support for cars and Chinese consumers’ enthusiasm for cars extends far beyond car companies, panel beaters and F1 accessories. This impact also presents opportunities for retailers and brands across many industries. This is particularly relevant for foreign brands whose target market generally corresponds to those wealthy enough to afford cars.
For retailers, customers’ increased access to cars means families are likely to be more open to big-box retailers that sell larger products in some categories. To do. This trend is reinforced by the fact that many car owners live less centrally and in larger homes with more space to store things.
In addition to product size, food and beverage products do well by providing a car-optimized format, allowing people to consume and dispose of the product in a way that works while in the car. Become. Similarly, beauty brand, more customers may want to apply makeup in their cars. Every niche from luxury accessories to shoe brands will grow to serve consumers who are increasingly behind the wheel.
of Return of Chinese tourists More travelers will be looking for self drive vacationcommunications and operators must respond to them.
Unlike Western consumers who have owned cars for generations, car ownership is relatively new for many Chinese, so it can be more meaningful. For marketers, automotive-related ads and collaborations have the potential to connect with Chinese consumers on topics that are important to them. And for more sophisticated brands, integrating the brand into car-friendly apps and services can make the customer journey smoother, especially for consumers. Chinese cars will be fully integrated with smartphones.
*mark tanner CEO of China Skinny, a marketing consultancy in Shanghai.This article was first published on hererepublished with permission.