Academic Master

Human Resource And Management, Marketing

Marketing strategy used by Chinese in order to attract major brands to promote their industry


Chinese attracted the multinational companies to promote their industry by adopting multi-factors strategies. Chinese made refined policies and gave investors enough space to invest in China’s market. Chinese made innovations like electric cars etc. to catch the attention of companies like Ford, BMW etc. Chinese promoted the luxury cars in public as well by proper marketing to take the sales high. Luxury cars were promoted using marketing, refined prices etc. Investors were given a lot of benefits and lower taxes with a competition that was acceptable for luxury car brands to come and invest in China. Nowadays all the luxury cars are being made in China which is a result of the strategies adopted by the Chinese.


China is in the 3rd position at luxury car marketing is making its routes to get its market on 1st rank in the world. For this, there are many policies made by its government to get the best import and export business and luxury car marketing in China. There are many factors along with the policies by the government by which the competition between luxury car marketing in increasing at higher speed.

Likewise in other countries China women also have greater percentage who are willing to buy the branded things and according to Maserati’s managing director of Greater China, Bo Yaming that Chinese women account for 40% of its buyers in the Chinese market, which is in stark contrast to the rest of the world, where women account for less than 5% of buyers (Zheng, 2017).

Things like the needs of people are increasing now a ‘days. Here actually needs points out the factor of balancing the status in the society, so the way of living and obviously everyone wants to drive a luxury car. We can also take this point as a factor too yet it is a general one. Above all are the things which are responsible for the rise in the luxury car marketing in China but we will also see that what strategies are adopted by the companies to fight back and get 1st rank level in luxury car marketing.

To do this these companies are trying to put some new technological innovation in their new car models. In which they are having an electric car and mainly the solar energy working cars which are not that much effect, but many companies are trying their best. Tesla is a great company has introduced its electric car which is fully auto drive and works better than a human and can drive at 160km/hour speed in auto drive mode. To do that Mercedes-Benz also launched its car which is also auto drive car in 2016


Looking at the luxury car market competition right now in China we cannot say that all this came to a sudden and competition got higher. Simply no, because this starts from the time when China was dealing with passenger automobiles, not the luxury one yet. Let’s have a look at the two companies Chery and Dongfeng. Chery and Dongfeng are both government companies, and both of these companies had a hard time developing themselves but Chery got its power soon and how that’s the beauty. Chery first made its new car models without any foreign company help and came on front line; this step became a downfall of Dongfeng because engineers of Dongfeng Company had a vision that if this company got down so will their future so they joined Chery Co. and this gives a new way to a different journey. A group of 20 engineers who joined Chery Co. made a new company named “Jia Jing Technology Company.” Which was specialised automotive design company and being with Chery this gave a great start for more Chery development. (Luo, 2005)

Let’s have a look at the competition between luxury car market journey that how it started or even what were the causes for the competition between the companies at such a high level.

  1. Government Policies:

Government policies have a big role in any industry of a country but as we are considering luxury car market so let’s be on that. Now we can see that there are policies from 2000 till now Chinese government is trying to encourage the car companies to work in China and beauty of this encouragement is that companies are getting the prices or profits what they want from the selling of luxury cars. Now, what are the encouragements by the government?

A simple answer can be that lower the taxes, so this is true. They did, in 2004 China was the 3rd largest car marketer in the world, and this was because of the reason for government policy of a fixed permit fee on all the imported cars. This encouraged the companies to work in China because they can have their profit and as we know that 1st goal of a company is always to have the profit because it’s the first rule to live in the market or else you are dead. This had a very large impact overall because this made many companies to increase their working platform in China, companies like Volkswagen, Toyota, Ford, and Mercedes-Benz and many other higher rank companies especially Maserati and Ferrari as the names are very loved, expanded their market in China.

And again in 2004 when the government lowered the permit fee on imported cars this was a huge benefit to the car companies, and there was also increase in the quota of imported cars (T Phani Madhav; M Dakshi, 2004).

  1. A large number of car companies:

As we know that where ever there are a small number of competitors there is small competition between them mostly because if 5-6 companies are working in China so obviously, they won’t compete because it would be difficult for them too to give efficient and effective marketing. But in our case it’s not the case there is a large number of companies which are working in China so they would have a good competition between them because when there are for example 20 companies and all of them are selling a 4 seater luxury car, then only the company whose car would have better mileage, beautiful and other things higher than other companies will win the race in market for that car. Likewise more are the applicants for a job manager more will be the competition.

  1. People interest in luxury cars:

Now having a look at the interests of people, according to many case studies and articles on websites Chinese women tends to spend more money on luxury goods and mainly on luxury cars. “In China, women are more ambitious… so they will buy more ‘high powered’ products than women in US or Europe,” Tom Doctoroff, a senior partner at brand and marketing consultancy Prophet, told this to Forbes, addressing the difference between women in China and the west

(Zheng, 2017).

This thing shows the interest of people that they need more luxury car than their neighbour, etc.

Now, talking about the ‘global comparison revenue’ China had US$469,088.0m revenue from car market. And that’s the highest revenue. (Statista, 2018)

Appendix A:

This shows that how much China is thinking about the car market and from this one can acknowledge that what kind of competitions is there in China in luxury car marketing. The other reason for the luxury car companies to have big competition in China is also considered the interest of China in the car market, which causes the worldwide companies to have large-scale work in China because if they have good market value in China, obviously they would have a good name in the world.

Now let’s have a look at the percentage of production of large cars by some different companies in China. Taking first the Chery Co. which will have amount to 455 t. Pcs. In 2021. (Statista, 2018)

Appendix B:

And going more forward to other company like ford which will have amount to 784 t. Pcs. In 2021. (Statista, 2018)

Appendix C:

And the Geely oldest company of China making large cars or can be said luxury cars will produce amount to 1,102 t. Pcs. In 2021. (Statista, 2018)

Now from these tables, we can come to the point that amount of luxury cars production by different companies in China shows the past competition between companies, current competition and future competition which can be there in China. The scales of large cars in all three graphs show the amount of actually luxury cars in China which is increasing highly in between years 2013 to 2019. (Statista, 2018)

This is almost same for many companies working in China and production rate is almost increasing to manage and get a place in the luxury car market.

All above we were seeing the factors which are increasing the competition in luxury car market in China. Now let’s discuss the strategies made by these companies to hold their position in luxury car market in China.

Different companies have different strategies to maintain their place in the luxury car market of China. But all of the companies are somehow doing the similar ways too because like efficiency and effectivity of product is the main goal of almost every organization or company. These strategies in general and company wise will be our subject now.

In this diagram, we can see the way a brand in general what does to maintain its place in the market. Let’s stick our self just to two points for a while brand awareness and brand attitude. These are the two factors which are to associates because of which a company gets its value raised mainly. The more awareness will a brand have in the area more is its number of customers and talking about brand attitude itself which plays a big role in maintaining the status of its customers in the society that’s the most beautiful thing and is the best way to get your company on scales.

We are going to discuss the major luxury car companies’ strategies here. Now the thing is that taking the example of Mercedes-Benz which has a big name, have big strategies as well to maintain its place in a market like. Strengthening core business, leading in technology, pushing digitisation and growing itself globally.

A big step during advertisement is taken by the actual company to convince the supermodels of movies, and other characters which are very famous among the people in their advertisement so they will have more trust on their liked models and so obviously trust will also be made on the car company. So this is how the luxury car companies are trying to make their rank 1st in the luxury car market in China.

Now considering another thing which companies do to come on front line is making themselves global means to say that they are trying export their goods out of China too so making a view in people minds that this company have something great in it that’s why its products are accepted globally. Lifetime guarantee and ten years guarantee etc. Such terms and policies are being used by companies to overcome the problems.



Research Methodology is a rule to choose the fitting exploration theory which will be more reasonable for your report. This caused us to choose the best way of research approach for accomplishing the exploration destinations; all the while this likewise encouraged us to finish the report work inside the time zone given for fruition.


The researcher should be realistic. His research should be based on facts of the current era. His narrative should be realistic and clear.

Research Approach

There are two types of research approach after deciding the paradigm of the report. As we have selected the Realism as our strategy. Following are the types of approach that we can use for this purpose.

  • Inductive Approach
  • Deductive Approach

Research Strategy: Selected for this Research

Based on the current topic we have chosen an inductive approach, and we remained subjective and factual. Realism was approached, and the real facts which are the results of general public thoughts were considered. Many of the facts were by public views. Biased information was avoided and the research conducted is based on the statistics of the leading bureaus. We followed the top leading sites when we needed stats.

Data Collection and Analysis Methods for this research

Facts were taken from different websites where polling is done by people. The root of the problem was targeted, and many of the facts were taken in view which was in favour or against it.


China being the highest revenue holder in car marketing has a high rise in the luxury car competition in it. And reasons of this competition is the high demand of luxury cars in China and the best policies of the government in which they have lowered the import taxes and increase the import quota of luxury cars because of which every car company is trying to increase its production rate and import in China and giving the best and new of its best car models so people can have the good cars and companies obviously can get profit. Many strategies are being adopted by the companies in which their advertisement, awareness and innovative technologies are playing main roles. Chinese markets are a bird’s eye view for the investors, and they are the most suitable ones to invest.

After all of this, we can say that the China luxury car market has good management and its results can be seen in the Global Comparison Revenue, which shows the 1st rank of China and one cannot say that there are any major management issues in this sector of China trade.


China’s is the world’s leading economy, and if China’s continues to improve its auto policy, it will become the world’s larget automobile exporter. Moreover, China’s needs to look at the quality product for exports. Developing countries should adopt the same strategies China adopted to promote their automobile industry.


Multinational: A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country.

Paradigm: Pattern or model

Digitization: Used as a metaphor for describing the growth of the economy.

Strategy: a plan of action designed to achieve a long-term or overall aim

Innovation: a new method, idea, product, etc.

Polling: record the opinion or vote of.

Biased: unfairly prejudiced for or against someone or something

Realism: the attitude or practice of accepting a situation as it is and being prepared to deal with it accordingly


Appendix A: Global comparison revenue’ China had US$469,088.0m revenue from car market. And that’s the highest revenue.

Appendix B: Percentage of production of large cars by some different companies in China.

Appendix C: Geely oldest company of China making large cars or can be said luxury cars will produce amount to 1,102 t. Pcs. In 2021.


WANG Yupeng. Analyses of Independent Brand Auto Industry in Our Country. Journal of North Central University (SOCIAL SCIENCE EDITION). 2009, 25Luxury

LI Gang. Marketing Strategy Research of the Independent Brand Automobile in China. Shanghai Automotive. 2009 (6)

LUO Qiang, GUAN Yanling. “Brand Strategy” of Chinese Independent Automobile. China’s Collective Economy · Strategy Research. 2010 (2)

CHENG Xin. “Marketing” Automobile Enterprise Independent Brand. The Northern Economy and Trade. 2010 (2)

LU Jianhui, CHEN Jiacai. The Independent Brand Growth Path—Chery 10 Years of Independent Innovation Process, Automotive Engineering. 2009, 31 (5)



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