Luxury brands are not divided into one or two tiers, and the so-called second-tier luxury brands just can't exchange brand value for profits.
If you have to follow the traditional definition, BBA is the first echelon, 100,000-200,000 Lexus, Cadillac, and Volvo belong to the second echelon, and the third echelon of luxury brands has been seriously marginalized.
Acura, Infiniti, Jaguar, and DS belong to the typical third-tier products, because the price reduction cannot be exchanged for sales, and it has also lost the core competitiveness of luxury brands: premium ability.
The essence of a luxury brand is not the product power, but the "circle-layering" experience that the brand brings to users, and the BBA user group already feels very good the moment they get the car keys.
But in fact, in essence, A4L, 3 series, and C-class models do not have real product power at all, and the brand is the core support force for their sales.
Since the second half of this year, China's electrification has been ferocious, constantly impacting the market segment of more than 200,000, and launching a fierce attack on the 200,000-350,000 market with several core key points such as high-level autonomous driving assistance, 800V, fast charging, intelligent cockpit, and luxury atmosphere.
For example, the AITO M7, which has already highlighted its sales performance, has sold more than 10,000 units for several months, becoming a popular fried chicken in the SUV market of more than 250,000 units, relying on its excellent product strength and brand value.
What brand value can a Chinese brand have?This is a rhetorical question that many people dismiss.
But in fact, there are indeed many people who support their own brands, including but not limited to Denza, Tank, Ideal, and NIO products, and the sales proportion of more than 200,000 Chinese brands has risen rapidly, indicating that Chinese brands are constantly improving their sense of value in the eyes of high-end user groups.
The main reason for the obvious increase in sales is that it has shown stronger competitiveness in terms of products.
For example, several models that have recently debuted, such as Star Era ES, Zeekrypton 007, Zhijie S7 and other models, are more powerful than BBA at the same price in terms of intelligent cockpit, performance and basic performance.
The first-line luxury brands alone in terms of product power can no longer directly compete with their own brands in the market within 300,000 yuan, because electrified products are really irresistible in the face of fuel vehicles, and the first-line brands with strong brand appeal are still so, and the second-tier luxury brands that cannot make a good profit through brand value are even more bleak.
The size is close to the full size of the Infiniti QX60, the terminal ** has dropped to about 300,000, and the sales performance is still poor, the terminal ** of the Cadillac CT5 has dropped to about 200,000, and the terminal ** of the so-called god car Lexus ES has fallen to about 230,000.
The core reason for the decline is that the product is not recognized by users, which is first reflected in the sales volume, and the first decision made by the terminal is to exchange the sales volume with the first.
To put it bluntly, the second-tier luxury brands have neither brands nor product power, so according to the current counterattack speed of Chinese brands, there is still a lot of room for the second-tier luxury brands to be lowered.
After all, in the final analysis, all luxury brands are built on ordinary brands, and the production cost is not high, such as Infiniti and Nissan, Cadillac and General Motors, Lexus and Toyota, and the production cost of luxury models is not high.
So we talk about second-tier luxury brands, if we want to survive, we still have to take the low route, after all, for more user groups, the future market competition is fierce, and second-tier luxury brands will continue to be replaced by China's intelligent products, and the only way to survive is to reduce prices.