Core Insights - The luxury car market is witnessing a brand crisis, with BMW facing challenges similar to those that led to Audi's decline [1][2] - BMW's sales strategy has shifted, leading to a significant drop in customer loyalty and brand value [4][14] - The rise of domestic brands like AITO and Li Auto is capturing market share from BMW, particularly in the SUV segment [2][3] Sales and Market Dynamics - BMW's X5, once a profitable model, has seen its price drop to 540,000 RMB, yet it struggles to sell [2][3] - The company exited the price war last year, which further alienated potential customers who perceived BMW as becoming more expensive [3][4] - The rapid expansion of BMW's dealership network from 460 to over 600 between 2014 and 2017 was initially successful but has led to internal competition among dealers [5][6][9] Dealer and Pricing Strategy - BMW's dealer model, which offers 90% of the MSRP as wholesale price, has created a competitive environment where dealers undercut each other [7][9] - The introduction of the new 5 Series has resulted in disappointing sales, with only 4,000 units sold monthly, leading to inventory pressure on dealers [10][11] - The price cuts initiated by dealers to move inventory have eroded BMW's pricing integrity, making it difficult to maintain higher price points [11][12] Brand Perception and Product Development - BMW's brand value and premium pricing ability are declining, with consumers now expecting lower prices [14][20] - The company is struggling to adapt to market changes, with its new models failing to resonate with consumers compared to competitors like Mercedes-Benz [16][20] - BMW's slow response to the electric vehicle market and reliance on traditional performance metrics have left it vulnerable to newer brands [18][19] R&D and Market Strategy - BMW's development teams in Germany are disconnected from the preferences of Chinese consumers, leading to products that do not meet local market demands [21][22] - The company is facing internal challenges regarding decision-making and product development, which are hampering its ability to compete effectively [25][26] - Competitors like Mercedes-Benz and Audi are actively adapting their strategies to better align with Chinese consumer preferences, while BMW remains stagnant [24][26]
宝马中国，踩上悬崖｜深氪lite