Editor’s Note: Infiniti is going to be made in China following BMW, Mercedes-Benz, with Lexus still resistent, luxury car market in China is supposed to experience lots of uncertainties. Given competition increasing fierce, who will be winner?
Sohu Auto Ge Bangning Chen Yifan
On July 1, Infiniti China Business Unit ushered in its 2th anniversary of foundation. Within the new few days, the 44-year-old Lv Zhengyu will go to Infiniti’s new global headquarter in Hong Kong to report development of Infiniti in China and priorities in the future.
Market leader is the one taking action fast and effectively. In the past 2 years, Lv Zhengyu led his team gained ground in luxury car market again and again though there were leaders and pursuers. As a result, Infiniti’s momentum and pace even overtook its competitors.
In the past 2 years, Lv Zhengyu basically completed Infiniti’s strategic layout in China through specific matters such as pushing Headquarter Nissan in Japan to upgrade the class of Infiniti China Business Unit, developing enlarged products for the Chinese market, expanding channels and accelerating localization pace. These are stories so far Infinite can share with us, but what will happen in the future?
Infiniti and Lexus are two entirely different stories. Surrounded by corporate culture atmosphere combining Europe and Japan, Infiniti therefore acts more radical and decisive. Lexus is still a fully-fledged Japanese company, which has always been experienced and prudent. We can understand their difference by looking at Ghosn and Toyoda’s management style.
Nevertheless, Infiniti and Lexus are not isolated stories. When asked by Sohu Auto whether Infiniti's plan of localization is a rare opportunity for transcendence or an adventure, Lv Zhengyu said, “The so-called risk is that whether we can offer Chinese consumers the most suitable product, the best service and best price to win. If not, it is certainly an adventure, and we will certainly fail. On the contrary, the risk is worth taking. "
In some observers’ eyes, a key question Infiniti also need to answer is: Who is responsible for the operation after localization? If this problem is well tackled, then everyone will be happy. On the contrary, it may bring fatal consequences.
This problem can be seen from contrary aspect. To put the Infiniti into the Dongfeng Nissan production can solve the issue concerning place of production. However, how to solve marketing problems? Relatively, marketing is more difficult and tangled.
To combine imported cars' marketing channels and domestic marketing channels, and then merge them into the management under "a brand, a channel” of Infinite’s long consistent strategy, or take special methods, such as the formation of a new sales company with Dongfeng Motor together? Or just like Audi’s marketing model after localization, to establish Infiniti Sales Division in the Dongfeng Nissan Sales Department?
But at least for now, the latter two conclusions can not be set up - the Infiniti brand is not an independent legal entity, which means it could not form a joint sales company with other companies.
If it possible to change? Lv Zhengy denied this possibility. According to him, as an independent operating unit, Infiniti China Business Unit is not affected though it is under the framework of Nissan China,
"My post is equal to Nissan China president, so there is no relationship of mutual leadership. In China, we have the same framework, and there is no need to go to apply for another business license."
Following BMW and Mercedes, Infiniti will be made in China, with Lexus and Land Rover still resistant, luxury car market in China is supposed to experience lots of uncertainties. With arrow on the string, how will Infiniti break up?