Price increases that only protect profits will not last long. Improving product quality is the foundation for luxury brands.

A week ago, BMW announced its withdrawal from the price war and began to raise the prices of its models. Mercedes-Benz and Audi followed suit. A withdraw from the price war" quickly became a hot search.

Now a week has passed, how is the result?

There is a saying that BB A's weekly sales after the price increase showed a month-on-month increase, with BMW recording an 11.67%, Mercedes-Benz increasing by 18.26%, and Audi's highest increase of 23.76%.

But there is another completely opposite view: after BMW announced the price increase, the first-line data dropped by 20%-25%, while the new energy luxury brand as a whole saw a slight increase of about 10% in store visits and orders. This view comes from the big V "Sun Shaojun 09", who was the first to break the news that "BMW withdrew from the price war".

These are two completely different views and they represent two extremes.

Battle reports may lie, but battle lines will not.

In fact, as long as we use normal logic to think, we can know that the news of withdrawal from the price war has just passed a week. In such a short period of time, the rise and fall of data will not have much significance. Whether consumers buy when prices rise and sell when prices fall, or consumers accelerate their embrace of domestic brands, it is impossible for it to be reflected in terminal sales so quickly.

Therefore, 91che will not make too many comments on these data for now, but just explore from an objective perspective what results the strategy of not following the price war may bring to the brand after a long period of time.

Buy when prices are high and don’t buy when prices are low. The reason for “buying when prices are high” is that it is profitable and you will not be the last one to take over. However, this mentality may not be applicable to the automotive industry. Cars are consumer goods, so there is no room for appreciation. If a car is sold second-hand, a Rolls-Royce will have to be stripped of its original price, unless it is Zhou Hongyi’s Maybach.

In the past two years, the sales of international luxury brands have continued to decline, mainly because the high-end market of more than 300,000 yuan has been replaced by domestic brands such as Wenjie, Ideal, and Weilai. In fact, they raised prices because price cuts could not stop the decline in sales, so they simply adopted another idea: raising prices may not necessarily stop the decline in sales, but at least it can increase the profit level and prevent dealers from withdrawing from the network due to huge losses.

This can be said to be a helpless move under heavy pressure, although it has also objectively delayed the unlimited price war in the Chinese auto market.

Is the delay effective? A's strategy of not following is generally to take an indifferent attitude - everyone blows his own horn and sings his own tune.

There are many domestic new energy brands, and they can really There are not many brands that can grab the market share from A, and Wenjie, Ideal and NIO are among the few brands.

The brand of the Ideal brand was truly established after the launch of the new Ideal M7 in the second half of last year, and then the Ideal M9 added fuel to the fire. The Ideal brand is what it is today, first because of its precise positioning as a super dad car, and second because of its unique extended-range electric system. In other words, they can only make "single-point breakthroughs" at this stage, grabbing users in a limited market segment, and are still a long way from the deep accumulation of luxury brands.

BB A's advantages are comprehensive. They have been deeply involved in the Chinese market for many years, their products cover various segmented scenarios, and they have strong brand appeal among consumers. This also constitutes the basis for them to dare to raise prices against the trend.

China's new energy market started very early, but it has only been three years since it really formed its advantage. Currently, Chinese manufacturers account for more than 80% of the domestic new energy market share, but this advantage is not solid. It is also taken for granted that once A increases its price, users will quickly switch to domestic brands.

What kind of impact the price increase will have will depend on how the industry develops in the future.

The key is to look at BB Only if A can come up with truly competitive new energy vehicle models and make use of this trend can it achieve the desired effect.

BB A dares to raise prices because they believe in their brand influence, but this needs to be consolidated with excellent products. Compared with domestic new energy models, the low level of vehicle intelligence needs to be solved as soon as possible.

Consumers can accept price increases; while increasing prices, improving product strength can form a virtuous circle and reshape the brand image.

In fact, BMW has raised prices in the past two years, but because it did not gain market recognition, it had to return to the quagmire of price wars. Tesla, which first provoked the new energy price war, also raised prices several times, but later had to start a price war.

Compared with ordinary brands, BB A has a much stronger ability to resist risks. Even if they only rely on the high-end fuel vehicle market, they can still maintain a strong brand influence. How to accelerate the transformation during this period and keep up with the pace of China's new energy market, I believe they have their own judgment. They are all old players in the Chinese auto market. A must understand the truth behind this. Brands are earned by the products themselves.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.