Why China Loves Buick

Summary

Buick, traditionally seen as an old-fashioned brand in the U.S., has become a major success in China. Its long history in China, along with strategic partnerships and a focus on high-quality, culturally relevant vehicles, has helped Buick thrive in the world's largest auto market. Despite struggling in the U.S. with declining sales and brand identity issues, Buick has learned from its success in China. Its efforts to adapt and modernize, such as importing the Envision model, show the brand's ongoing attempts to revive its presence in America, though its future in both markets remains uncertain.

Takeaways

• 😀 Buick is considered an old-fashioned brand in the U.S., often associated with older generations, but enjoys significant success in China.
• 😀 Buick's success in China is largely due to its long history in the country, dating back to the early 20th century, and its ties to prominent political figures.
• 😀 Over 80% of Buick's global sales in 2018 were from China, where the brand outsells its U.S. counterpart by nearly five times.
• 😀 In China, Buick has successfully positioned itself as a luxury brand, competing with high-end automakers like Audi, BMW, and Mercedes-Benz.
• 😀 GM's partnership with Shanghai Automotive Industry Corporation (SAIC) has been crucial to Buick's success in China, helping maintain high quality and product innovation.
• 😀 Buick has tailored its products for the Chinese market, such as producing upscale minivans that cater to the preferences of high-powered Chinese executives.
• 😀 The average Buick buyer in China is much younger (under 35) compared to the U.S., where the brand's consumer base is older.
• 😀 Buick’s Chinese advertising often showcases futuristic, high-tech depictions of young urban professionals, reflecting its appeal to a younger demographic.
• 😀 In the U.S., Buick faces challenges such as a decline in quality and a blurred brand identity due to overlapping GM models.
• 😀 GM is trying to reinvigorate Buick in the U.S. by leveraging lessons learned in China, such as importing the Buick Envision from China, despite challenges like tariffs.
• 😀 Buick’s future in China is uncertain, as its reputation could change quickly, much like the fates of other foreign automakers in the region.

Q & A

Why is Buick considered an old-fashioned brand in America?

In America, Buick is often seen as an old-fashioned car brand, largely associated with being the favorite of older generations, particularly grandparents.

What factors contributed to Buick's success in China?

Buick's success in China is attributed to its long history in the country, starting in the early 20th century, as well as its reputation among key political figures. The partnership with Shanghai Automotive Industry Corporation (SAIC) helped maintain high product quality and innovation, catering to the tastes of Chinese consumers, including a preference for upscale minivans.

How did Buick manage to stay relevant in China during the 1990s?

During the 1990s, Buick capitalized on its already established reputation by partnering with a local manufacturer to create new vehicles tailored to the Chinese market, distinguishing itself from competitors.

What role does Shanghai Automotive Industry Corporation (SAIC) play in Buick's success?

SAIC has been a crucial partner for GM in China, pushing for high-quality production and ensuring Buick's product offerings remain fresh and competitive in the market.

What is unique about Buick's approach to catering to Chinese consumers?

Buick has tailored its vehicles to fit Chinese tastes, including producing upscale minivans, which are considered a luxury choice for high-powered executives in China. Additionally, Buick's marketing targets younger, wealthier consumers, with futuristic depictions in their ads.

How does Buick's customer base differ between China and the U.S.?

In China, the average Buick buyer is much younger (under 35 years old), whereas, in the U.S., Buick buyers tend to be older, reflecting the brand's old-fashioned image in its home market.

What challenges has Buick faced in the U.S. market?

Buick has struggled in the U.S. due to a decline in quality over the years, a diluted brand identity from GM's practice of using multiple brand names for similar vehicles, and a general loss of its appeal to younger consumers.

How has Buick attempted to improve its image in the U.S.?

Buick has worked to improve its image in the U.S. by focusing on quality, earning competitive scores in industry metrics, and launching ad campaigns that aim to surprise consumers with stylish designs, challenging their perceptions of the brand.

What is the significance of Buick's global sales distribution?

Buick's sales in China account for over 80% of its global sales, making China a critical market for the brand. Buick sells more vehicles in China than in the U.S., with the Chinese market being approximately five times larger.

Why did GM manufacture the Buick Envision in China and import it to the U.S.?

GM manufactured the Buick Envision in China and imported it to the U.S. as part of an effort to tap into the Chinese production advantages, despite concerns over U.S. tariffs on imported cars, as well as to meet the growing demand for high-quality vehicles.

What are the potential risks to Buick's continued success in China?

Buick's success in China is not guaranteed and could change quickly, as a brand's reputation can shift in the Chinese market for reasons unrelated to the brand itself. Other foreign automakers have experienced sudden declines in China, and Buick competes with a range of domestic and foreign brands.