From top: A poster for Infiniti's sponsorship of the A bite of China II documentary series, an episode of the Where Are We Going, Dad? reality show and a poster for a Valentine's Day celebration. Provided to China Daily

Luxury latecomer looks to China for international boost

China is the most important market globally for Infiniti's future development, Daniel Kirchert, managing director of Infiniti China told China Daily in early April.

"We are building Infiniti as a truly global premium auto brand. To realize this we must do well in China. We need localization and bring tailor-made products for the market," said Kirchert.

Born in the US, Infiniti has a history of 25 years, but has been in China for only six.

Kirchert said Infiniti has an 8 percent share of the US luxury vehicle market, while in China it is just a little more than 1 percent.

Infiniti sold 17,108 vehicles in China in 2013, an increase of 54 percent from the previous year, a growth rate outperforming most brands, said Kirchert.

He said sales of 6,158 units in the first quarter of this year showed an even stronger growth rate of some 153 percent. In March it sold 2,187 vehicles, up 114 percent.

"We are very satisfied with the first quarter performance. We have surpassed our target and the average growth of China's luxury market," Kirchert said.

"I hope we can become fully integrated into the local market and achieve long-term success here. We hope China will become our second hometown," he said.

He noted construction on Infiniti's first plant in China - in Xiangyang, Hubei province - is well underway.

By the end of 2014, production of two models will start at the Xiangyang factory, Kirchert said.

One will be the long-wheelbase Q50 designed to cater to Chinese customers who prefer spacious legroom. The imported standard-wheelbase version just went on sale in China from mid-April.

Kirchert said Q50 has appealing design as well as good driving and handling performance, carrying several world's first technologies, such as the Direct Adaptive Steering and Predictive Forward Collision Warning.

Moreover, it offers a competitive price compared with its German counterparts, indicating Infiniti's ambition to stand out in the entry-level luxury sports sedan segment.

The other locally made model will be the QX50 SUV, also specifically designed with a longer wheelbase for Chinese customers.

The segments to which Q50 and QX50 belong take 40 percent of the country's entire luxury market. They are also the fastest growing segments in recent years, Kirchert said.

Infiniti is on an aggressive product offensive and will bring a total of 7 new models to the Chinese market this year, which include the QX60 HEV hybrid, the sporty QX70 Limited, the all-new QX80 and a compact crossover.

Kirchert predicted that China is likely to replace the US to become the world's largest luxury auto market in the foreseeable future.

He said changing purchasing habits are also a bonus.

"We find that young Chinese customers choose a brand that can express their lifestyle and values," Kirchert explained.

To ride the trend, Infiniti vows to become "the most emotional premium auto brand" to differentiate itself from traditional luxury vehicles, Kirchert said in an interview in January.

Its most recent branding effort is the "Gan Ai" campaign announced at the grand gala night - Infiniti China Festival - at the Beijing National Stadium on Jan 11, which proposes an emotional, passionate and provocative life attitude.

According to Kirchert, Infiniti's current priority is to build the brand that resonates with Chinese consumers emotionally. A series of emotional marketing campaigns will roll out after the grand gala night to further communicate the Gan Ai concept.

Besides locally made products and localized branding campaigns, Kirchert believes that good service is crucial to localization.

He said Infiniti had more than 60 service outlets in China by the end of 2013 and will add around 20 outlets each year.

"In nearly all markets, we have very good hospitality and very good customer service. This is definitely one of our strengths and we need to keep it up in the future," he said.

"We may be different from traditional luxury brands. They were already successful luxury nameplates when they entered the Chinese market. For them, China is perhaps one of the markets," Kirchert said.

"Things are different for us. China is very important for us to become a global luxury brand," he said.

"After 10 years we will see if we have achieved this goal. If realized, we can say that Infiniti's global success has a special Chinese element, " he added.

xuxiao@chinadaily.com.cn

(China Daily 04/20/2014 page38)