AutoBeta(AutoBeta.net)08/16 Report--

Three years later, Gaines will return to the Chinese market. A few days ago, the words of Wen Chengkun, deputy general manager of Beijing Hyundai and head of the sales Department, confirmed the rumors of Gaines's entry into China. "Korean Hyundai has a Jaines luxury brand, and it will be considered to introduce it in the future, so that Beijing Hyundai can enjoy the halo effect and enhance the Beijing Hyundai brand." This time has become a hot topic in the industry.

In fact, Hyundai established a new luxury brand Gaines in 2015 and sold it in South Korea, Europe, the United States and China one after another. However, due to various reasons, Gaines officially withdrew from the Chinese market in 2016.

However, on October 25, 2018, Hyundai established Genisys Automotive sales (Shanghai) Co., Ltd. in Shanghai, which is wholly owned by Hyundai Motor Company (Hyundai Motor Company) with a registered capital of US $50 million. In addition, Zirong, the special director of Hyundai Motor's global PR group, also revealed in an interview with foreign media that the time for the Gaines brand to enter the Chinese market will be at the end of this year or early next year (2020).

It is understood that the Gaines model in China by 2020 has been expanded to six models, including 3 cars, 2 SUV and 1 coupe. It is understood that the G90 G90 in the domestic road test "spy photo" has been exposed, which means that as a high-end Hyundai car brand, Gaines is speeding up its entry into China.

Gaines is an independent high-end brand under Hyundai Motor. It has become the car of two generations of South Korean presidents, and it is synonymous with safety and high-end in the eyes of South Korean consumers.

In addition, in the North American market, the G80 and G90 models of Gaines are already at the forefront of second-tier luxury brands in the North American luxury medium and large car segment and flagship sedan segment.

In the 2018 US Consumer report, its overall consumer satisfaction and brand feedback are ahead of luxury brands such as Audi, BMW and Lexus, and Gaines has been at the top of the list of J.D. Power's most attractive car brands for several years in a row.

So since it has such a good reputation, why did the first visit to China end up with "dismal" sales? In fact, the global luxury brand market has basically been segmented before Gaines' luxury brand was born in 2015. Among them are not only Mercedes-Benz, BMW, these century-old car brands, but also emerging pure electric car brands such as Tesla. As a luxury brand under Hyundai, compared with Mercedes-Benz and BMW, it has no sense of historical weight. Compared with Tesla, the products are lack of novel highlights and attraction.

Hyundai sold 4.59 million vehicles worldwide last year, up 1.8 per cent from a year earlier, according to Hyundai Group's 2018 results. Revenue was 97.3 trillion won (366.517 billion yuan), up 0.9% from a year earlier, while net profit was 1.6 trillion won (6.027 billion yuan), down 63.8% from a year earlier.

In Hyundai's turnaround plan around the world, one is to increase the investment in SUV models, and the other is to pin its hopes on the success of Gaines.

The development of the Gaines brand has been following the example of Lexus. The current successful experience of Lexus is the way for the future development of Gaines. In the view of Cui Dongshu, secretary-general of the Federation of passengers, Gaines, as a high-end Korean brand, takes North America as the starting point and has won the widespread attention of consumers, which has something in common with the Japanese high-end brand Lexus. Nowadays, although the overall market situation is not optimistic, with the continuous improvement of consumption level and the continuous release of luxury car market dividends, it is not too late for Gaines to enter China at this time.

However, for Gaines to successfully enter the Chinese market, I am afraid he can only take the route of high performance-to-price ratio. Of course, almost all second-tier luxury brands also use this routine. For example, Cadillac CT6, compared with the same class of A6L, BMW 5-Series models, the starting price is lower, the discount range is also very large.

Although China is currently the largest auto market in the world, the position of BBA is still difficult to shake in the luxury car field. Therefore, it can be foreseen that after Gaines enters the Chinese market in the future, even with substantial concessions in the later stage, its overall sales can barely be compared with second-tier luxury brands. Therefore, whether it can develop or not depends on the creation of Gaines.

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