Chinese Car Makers Should Aim for Loyalty Not Monopoly

21 June 2004

The take-home message from a recent A C Nielsen survey is that Chinese car manufacturers should aim to boost customer loyalty to make the most of the nation's buoyant market.

Philippe Coquelle, head of Nielsen's automotive department cited the lack of contact between car makers and customers as the reason behind low brand competition. Only deluxe car models fared well in this respect.

The survey was conducted in three major Chinese automobile markets: Beijing, Shanghai and Guangzhou, where the respective vehicle ownership of 11%, 4% and 5% is largely determined by price --average vehicles cost 139,000 yuan ($16,794; €13,896; £9,138) in Beijing compared with 220,000 yuan in Shanghai.

Coquelle also invoked car dealers to improve their service system and sweet-talk customers to promote brand loyalty.

Data sourced from: People’s Daily Online; additional content by WARC staff