BMW bike division blazes mainland market trail
( 2003-11-14 10:09) (Business Weekly)
BMW AG's motorcycle division (BMW Motorcycle) is working towards selling 50 high-end bikes on the Chinese mainland this year.
"That is a big number, since we have just launched our motorcycle business in China," Herbert Pferinger, motorcycle area manager of BMW AG's Beijing representative office, told China Business Weekly in the lead up to the opening of Thursday's Motorcycle Expo 2003 in Beijing.
With China's economy powering ahead at astonishing speed and Chinese people becoming richer, BMW Motorcycle foreshadowed that after buying cars and houses, city residents will consider purchasing quality motor vehicles for sports, entertainment and leisure.
"Our experience in other countries tells us that a similar consumption and living style will occur here very soon. That is why we are acting so swiftly to enter the market and to get involved in so many business promotions," Pferinger said.
To tap the Chinese market, BMW Motorcycle is sparing no efforts in its brand marketing.
It is busy holding various promotional campaigns to "stir high-end consumers' desire to lead to consumption."
Ivan Lee, sales department assistant manager at Beijing Yan Bao Auto, said: "BMW motorcycles are luxury products, not life necessities. Therefore, we must create an ideal sales environment to stimulate consumers' potential desire."
Beijing Yan Bao Auto is one of BMW Motorcycle's sales agents in Beijing.
BMW Motorcycle's participation in the expo, to run from Thursday to Sunday, is one of a series of the firm's marketing campaigns.
The firm's attendance is regarded by the expo host, China Automotive Industry International Corp, as the show's biggest selling point.
BMW started its official motorcycle business in the Chinese mainland in April.
Before then, its motorcycles had long been used by police in major Chinese cities such as Beijing, Dalian and Nanjing. In the nation's capital alone there are 70 such bikes.
"Although there are already many BMW motor vehicles here in many local cities, our official launch came in April and we are targetting the civilian market," Pferinger said.
By stressing "official business launch," Pferinger meant that BMW Motorcycle has obtained all the necessary documents and certificates to sell its products in China.
Lee added: "BMW has passed the emissions test and meets China's environmental protection standards. We can even help buyers get a licence if they buy our motorcycles."
When asked whether BMW Motorcycle would consider forming joint ventures with local groups, Pferinger said the time was not right.
"Now is not the time for joint ventures. China tops the world's motorcycle production in terms of quantity, but the local market is not developed as far as technology and quality are concerned," he said.
BMW Motorcycle has 10 dealers in Taiwan Province, one in Hong Kong, one in Shanghai and two in Beijing.
It is ready to open a dealership in Guangzhou, in South China's Guangdong Province and may establish one in Chongqing, in Southwest China next year, in addition to opening several outlets in Xi'an, in Northwest China's Shaanxi Province.
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