Relocation Helps China Buses Compete in Europe
2012-10-29 Source：www.chinabuses.org
Summarize：Europe, the market China bus manufacturers have ever dreamed of, is changing, and how will China enterprises face the opportunities and challenges? After 10 years' endeavor in European market, China bus manufacturers must rethink their locations to change the "low-price-and-low-quality" impression of "Made in China".
www.chinabuses.org: Europe, the market China bus manufacturers have ever dreamed of, is changing, and how will China enterprises face the opportunities and challenges? After 10 years' endeavor in European market, China bus manufacturers must rethink their locations to change the "low-price-and-low-quality" impression of "Made in China".
In the 1990s, some European bus manufacturers such as Benz, MAN and Neoplan, etc. seek strategic partners in China due to cost burden, which improved China bus industry. King Long obtained the first European order from Malta in 2003 and there are over 2500 King Long buses used in Europe nowadays.
However, most China bus manufacturers focus on developing countries, where price instead of brand is the key element, while in Europe, the direct competitors are local brands, such as Benz, Volvo and Scania, etc. and the customers concern about the quality and brand image.
After years' development, China buses are narrowing down the gap with overseas buses and the main disadvantages are core technologies like engines. King Long CSO Xie, Weiguo said: "We must establish the professional team to meet overseas requirements, which would be a long way to go."
In marketing, different market systems and certificate systems are challenges for China buses. Taking WVTA for example, over 40 testing indexes, especially safety and environmental tests are major obstacles for China buses.
Besides, sales persons experienced in international market are indispensable. As for after-sale service, China enterprises must establish excellent system in local market. King Long is working on the foundation of parts and service center in Europe, which might not be suitable for the other bus manufacturers.
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