AutoBeta(AutoBeta.net)04/22 Report--

Hyundai Motor, as the largest automobile manufacturing group in South Korea, its products have always been economical and cost-effective. On the other hand, there are a large number of product lines of car models, which once surpassed American and Japanese brands in some sales. But recently, Korea Economic Daily quoted Hyundai Motor as saying that Beijing Hyundai's first-quarter car sales fell 18.4% year-on-year to 13,678, the lowest since 2009.

Industry insiders expect Hyundai to further restructure its China operations. Some sources believe that Korean cars have been taking a cost-effective route, but due to the lack of certain high-end models. Therefore, at the recent Shanghai Auto Show, Hyundai Group announced that it would introduce its high-end brand Gaines models, hoping to reshape its image by introducing its high-end models.

But Hyundai has not been able to officially separate Gaines as an independent brand, and its main market has always been South Korea and North America. At present, the largest overseas market of Gaines is the United States, with sales of 6948 vehicles in 2016 and 25,594 in 2017.

Models worth about $30,000 in the United States belong to local ordinary car brands or mid-range models from Japan and South Korea. Luxury models cost more than $60,000. Those over $100,000 are ultra-luxury models. Of course, these are Bentley and Rolls-Royce models that Gaines can't reach.

First, product line lineup

The lineup of models has always been the reason why Gaines can't match brands that are already entrenched in the United States, such as German BBA or Lexus. BMW spans from subcompact to luxury executive models from the 1 series to the 7 series, while the SUV model is also from X1 to X7.

Second, the sign of the product

German BBA series has its own brand in luxury cars, it is said that the configuration of technology will look at Audi, the driver's car is BMW, comfort and aura is Mercedes-Benz. Lexus also has its own leading industry-leading hybrid technology and luxury interior design that surpasses the same level of models. Well, Gaines doesn't seem to be able to come up with anything.

The image of the brand

Not to mention the brand history and reputation of Gaines, not to mention that compared with BBA, even Infiniti is unable to achieve as a Korean brother who finally landed in the United States, all aspects look very glamorous and well-priced, but the historical connotation is his greatest weakness. If Gaines wants to have a place in the market, it also needs to accurately locate the user base. The current practice of Gaines is to adopt a "high premium" strategy. To put it simply, what he brings to consumers is the feeling of quality and low price.

But looking at the Chinese market of luxury brands in the forefront is still BBA, then to Cadillac and Lexus, while the end is arranged by Volvo and Jaguar Land Rover, the first three are unshakable, the back already belongs to the old Youtiao, you have to think twice if you want to wrestle, and we mentioned earlier that since Hyundai already has a certain market in China, it is only a matter of time for Gaines to come in and establish its image. However, Hyundai should consider whether Gaines can use the ratio of performance to price as a killer mace after entering China.

Brand premium is important, but Gaines wants to be a "cost-effective" or "shiny" luxury brand, which is not an easy way for modern times.

Here is a joke: when a senior official from the United Arab Emirates visited South Korea, he refused to take the high-end Hyundai model Yakos and asked to take the Mercedes-Benz S-Class. Yakos is a higher-level model than Gaines in South Korea.

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