Why did BMW and Audi suddenly “break the defense”? How severe is this wave of price cuts? Why are domestic products so tough on foreign brands? What big things have you done in secret over
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Recently, a phenomenon has completely confused people!Those foreign brands that used to be superior and never discounted are now begging you to buy them. The BMW 3 Series offers discounts of up to 100,000 yuan, the Audi
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Recently, a phenomenon has completely confused people!
Those foreign brands that used to be superior and never discounted are now begging you to buy them. The BMW 3 Series offers discounts of up to 100,000 yuan, the Audi A4L is priced at rock-bottom prices in some places, and the salespeople at Mercedes-Benz 4S stores stuff coupons with everyone they see.
What’s outrageous is that Starbucks has started selling coffee packages for 9.9 yuan, McDonald’s and KFC are giving out coupons every day, and Uniqlo and Muji have discounts as deep as clearance sales.
What happened to these "foreign adults" who used to put on airs and raise prices at every turn?
Netizens exploded: "Is this Double Eleven for foreign brands, or is it inheritance settlement?" "I used to be indifferent, but now why are you so humble?"
What's a slap in the face is that just when these foreign brands are collectively "breaking their defenses", the domestic brands are in a different situation. After B
Recently, a phenomenon has completely confused people!
Those foreign brands that used to be superior and never discounted are now begging you to buy them. The BMW 3 Series offers discounts of up to 100,000 yuan, the Audi A4L is priced at rock-bottom prices in some places, and the salespeople at Mercedes-Benz 4S stores stuff coupons with everyone they see.
What’s outrageous is that Starbucks has started selling coffee packages for 9.9 yuan, McDonald’s and KFC are giving out coupons every day, and Uniqlo and Muji have discounts as deep as clearance sales.
What happened to these "foreign adults" who used to put on airs and raise prices at every turn?
Netizens exploded: "Is this Double Eleven for foreign brands, or is it inheritance settlement?" "I used to be indifferent, but now why are you so humble?"
What's a slap in the face is that just when these foreign brands are collectively "breaking their defenses", the domestic brands are in a different situation. After BYD's orders were placed for several months, queues formed at Huawei stores every day, and sales of brands such as Hongxing Erke and Fenghua soared.
The data for 2024 is ruthless. China's new energy vehicle export volume is already the first in the world. The number of Luckin Coffee stores has surpassed Starbucks by a few blocks. The combined market value of Li Ning Anta has almost caught up with Nike.
How did this drama of "advancing the country and retreating abroad" turn into what it is today?
Are foreign brands really giving up, or are they holding back some big moves? Let’s talk about this matter today!
Why did BMW and Audi suddenly "break the defense"? How severe is this wave of price cuts?
A video went viral on the Internet some time ago. A salesman from a BMW 4S store in Shanghai was so anxious in front of the camera that he shouted at the end of his voice: "Please, we can't survive if we don't buy it anymore! The 3 Series is now priced at over 200,000 yuan. What do you still want?"
This is not a joke, this is what actually happened.
When you walk into any luxury brand 4S store, you will be surprised by the enthusiasm of the sales. It is completely different from the cold and aloof attitude of the past, where people like to buy but not buy.
Let’s first take a look at how outrageous this price reduction is. The official guide price of the BMW 3 Series used to start at more than 290,000 yuan, but now the actual transaction price in many places can be reduced to about 230,000 yuan, with a discount of more than 60,000 yuan. The Audi A4L is a ruthless model with an original price of more than 320,000 yuan. Now some dealers can drive it away at a package price of just over 220,000 yuan, which is equivalent to a 30% discount.
Mercedes-Benz is not much better either. The E-Class models are discounted by hundreds of thousands and come with several years of maintenance. The salesperson is eager to deliver the car to your doorstep.
What is exaggerated are all kinds of fancy promotions.
In the past, the maximum "trade-in" subsidy for luxury brands was 81,000 yuan, but now it has reached 30,000 yuan. Zero down payment, zero interest, and no handling fees for a three-year loan, this was something I had never dared to think about before. There are also optional packages, such as sunroof, leather seats, and high-end audio. Configurations that used to cost tens of thousands more are now given to you.
There are even 4S stores that offer "get a mobile phone when you buy a car" and promise to give away the latest iPhone when you buy a car.
This posture doesn't look like a luxury brand at all. It looks like a wet market sale.
Why are you working so hard?
To put it bluntly, the inventory is overwhelming. There is news from within the BMW dealer group that their inventory turnover days have exceeded 120 days.
What concept?
Under normal circumstances, inventory turnover should be between 45 and 60 days. If it exceeds 90 days, it will be considered a serious inventory shortage. Now the car has been piled in the warehouse for more than four months and cannot be sold. Every extra day it is kept is depreciating the value of the wasted money, and storage fees have to be paid. Can the dealer not be impatient?
What's terrible is that domestically produced cars are watching closely.
The Han DM-i Champion Edition launched by BYD starts at more than 180,000 yuan. It is also a mid-size sedan, and the configuration BYD gives you can grind the BMW 3 Series to the ground. It accelerates from 0 to 100 kilometers faster than BMW, consumes just over 1 liter per 100 kilometers, has a battery life of 1,300 kilometers, and the intelligence of the car-machine system is far beyond that of BBA.
Consumers are not fools, so why should they spend hundreds of thousands more to buy a gas-powered car that is still as smart as it was ten years ago?
Luxury brands are really panicking now. If they don't lower prices, they will die. But after lowering prices, they find that they are still not as competitive as domestic products.
The sales figures are appalling.
The sales of luxury brands fell by more than 30% year-on-year. Among them, the single-month sales of BMW 3 Series were only a fraction of the same period last year. The inventory depth of Audi A4L reached more than four months. Hundreds of Mercedes-Benz 4S stores across the country were selling show cars at a loss. These brands that used to make money in the Chinese market have finally experienced what it means to be "beaten by the market."
Why are domestic products so "strong" as foreign brands? What big things have you done in secret over the years?
Speaking of the rise of domestic products, many people's first reaction is the words "patriotic feelings" and "wild consumption".
But the truth is far from that simple. The ability of domestic products to fight depends on the hard power of real swords and guns. Over the years, domestic brands have been secretly making many big moves, and now it’s finally time to explode.
Let’s talk about cars first.
Ten years ago, when talking about domestically produced cars, the labels “cheap,” “poor quality,” and “unsafe” came to everyone’s mind. At that time, BYD, Geely, and Great Wall were regarded by ordinary people as "helpless choices that could not afford joint venture cars." But this decade has seen a sea change.
BYD mastered the third-generation DM hybrid technology in 2016 and achieved deep integration of engines, motors, and gearboxes. This technology allows hybrid cars to be both fuel-efficient and fast. At that time, Toyota and Honda's hybrids were still using the older generation architecture, and BYD was one generation ahead.
The blade battery released by BYD in 2019 is a killer.
Traditional ternary lithium batteries catch fire and explode when pierced with a needle. Blade batteries do not emit smoke even if they are pierced. They also have high energy density and long battery life. This suddenly solves the two biggest pain points of electric vehicles, safety and battery life.
By 2022, BYD announced that it would stop producing fuel vehicles and fully shift to new energy sources.
At that time, only Tesla in the world dared to do this, and BYD was the first traditional car company to "cut off its own path." As a result, BYD's new energy sales exceeded 3 million vehicles in 2023, surpassing Tesla to become the world's number one.
The data in 2024 exploded, and China's automobile export volume reached a record high, surpassing Japan to become the world's largest automobile exporter.
This is not about selling low-end cars to Africa, but actually entering the European market. BYD has opened dozens of directly-operated stores in Germany, France, and Spain, MG's sales in the UK have entered the top ten, and NIO's sales are better than BMW's in Norway and the Netherlands. Who would have believed these data ten years ago?
Looking at consumer goods, domestic products are making a huge counterattack.
Why does Starbucks launch a 9.9 yuan set meal?
Because the number of Luckin stores has exceeded 20,000, which is several times the number of Starbucks stores in China. Moreover, Luckin’s approach is completely different. It operates digitally throughout the entire process, with APP ordering, unattended delivery, and smart delivery. The cost is 40% lower than that of Starbucks.
Locally developed raw coconut latte and soy sauce latte are popular products that Starbucks cannot imitate even if it wants to.
The price is killer, you can drink it at 9 yuan 9 or 12 yuan 9. A cup of Starbucks can easily cost 30 or 40 yuan, which is impossible to beat.
The same goes for sports brands.
After the Xinjiang cotton incident in 2020, Nike and Adidas collectively "sought death". As a result, Li Ning's revenue exceeded 38 billion in 2024, a year-on-year increase of more than 20%. Anta Group's revenue exceeded 60 billion, and its subsidiaries FILA and Arc'teryx were in full bloom. After Hongxing Erke was "wildly consumed" due to donations, its revenue increased several times.
Not only are these brands cheap, their quality and design are also really good.
Li-Ning's shock-absorbing technology has been tested by professional institutions and its cushioning performance is not inferior to Nike's Zoom Air. Anta's hydrogen running shoes weigh only 190 grams, which is lighter than Adidas' Boost. Xtep's carbon plate running shoes have been worn by many professional marathon runners and have broken their personal best results.
The mentality has changed.
In the past, domestic products always wanted to "match the international big brands", but now it is "I am the standard". Li Ning dares to catwalk in Paris Fashion Week, and Anta dares to acquire top international outdoor brands. This confidence is gained through ten years of technology accumulation and market verification.
Consumers have also really felt the change. In the past, they bought domestic products because they were "just for use", but now they buy domestic products because they are "very useful."
What are the underlying reasons behind the “dive” of foreign brands?
Many people think that foreign brands are failing because domestic products have taken over the market.
But the truth is not that simple. Over the years, foreign brands have been trying to kill themselves step by step.
The first cut was arrogance, and he died in the dream of "brand premium".
Take Mercedes-Benz and BMW as an example. From 2015 to 2020, they lived too comfortably in the Chinese market. The same BMW 3 Series sells for about 270,000 yuan in Germany and starts at 350,000 yuan in China. Chinese consumers have to pay an extra 80,000 yuan in "belief tax."
What's too much is that the configurations are treated differently. The head-up display and seat ventilation that are standard in the overseas version have become "optional packages" in China, and additional installations will cost another 20,000 to 30,000 yuan.
At that time, Chinese consumers had no choice but to swallow their anger. But the situation has changed after 2020. Brands such as BYD, NIO, and Ideal have emerged, providing you with configurations and good services at the same price. Consumers discovered that they had been taken advantage of over the years.
The second step is to be slow and miss the golden period of new energy transformation.
In 2015, China began to vigorously promote new energy, providing comprehensive support with subsidies and licenses. But the BBAs didn’t take it seriously at all, thinking that electric cars were just large toy cars. When BYD launched the Tang DM in 2018, Mercedes-Benz was still resting on its laurels on the GLC fuel version. In 2020, Tesla Model 3 was produced in China, and BMW hurriedly came up with iX3 to cope with it.
When they wake up in 2024, they find that Chinese consumers have been "educated". Everyone knows that electric trains accelerate quickly, have low usage costs, and are highly intelligent.
At this time, the electric vehicles launched by BBA were two generations behind domestically produced vehicles in terms of battery life, intelligent driving, and vehicle-machine systems.
The third sword is stubbornness, clinging to the "mechanical quality" and refusing to let go of the body.
What BBA loves to talk about most is the metaphysical concepts of "chassis texture" and "driving pleasure". But the problem is that 90% of today's young consumers have never touched a manual transmission. What's the use of telling them about "the integration of man and car"? Nowadays, when people buy a car, they look first at the smart cockpit, second at assisted driving, and mechanical quality ranks fifth.
The "big screen" that Mercedes-Benz is proud of uses an old chip from several years ago, which is as smooth as a PPT. BYD uses the latest Qualcomm chip, and its smoothness is second to none.
The fatal thing is that the intelligence of foreign brands is "bought." BMW outsources its car and machine systems to Tencent, and buys other companies' solutions for autonomous driving. BYD and Huawei are full-stack self-developed, and the iteration speed is so fast that you can't imagine. They are upgraded once a month, with new functions every time.
The fourth stab was to seek death, and a series of "insulting" operations completely chilled people's hearts.
Mercedes-Benz quoted a quotation from the Dalai Lama and was scolded and apologized. An Audi advertisement suggested that Chinese women were "second-hand cars" and triggered a boycott across the Internet. A BMW executive said that "the Chinese market is used to digest inventory." These operations consume brand trust time and time again. In the past, Chinese consumers might have tolerated it and let it go, but now that domestic products have really become stronger, why should everyone still be angry about it?
Taken together, foreign brands are not "defeated" by domestic products, but "stabbed to death" by their own arrogance, slowness, and stubbornness.
The laws of the market are so cruel. If you don't respect consumers, consumers will use their wallets to educate you. In the new energy vehicle market with more than 300,000 yuan, domestic brands account for more than 60%, while BBA combined only accounts for less than 20%. This is the result of voting with your feet.
What are netizens so noisy about? How should we view this wave of “national advancement and foreign retreat”?
Ever since the news of the collective "diving" of foreign brands spread, online discussions have not stopped.
Opinions can be said to be diverse, and each faction has its own reasons.
There is a group of netizens who are so excited that they think this is a "victory for domestic products."
These sounds are particularly common on short video platforms, and they easily receive hundreds of thousands of likes. They think it should have been like this a long time ago. These foreign brands have sucked so much of our blood, and now the retribution has finally come. A BMW or a Mercedes-Benz is worse than a BYD taillight. Some people even suggested banning foreign brands and asking them to get out of China.
Indeed, many people feel happy when they see the once-high-ranking foreign brands falling from the altar.
But if you think about it calmly, this kind of extreme emotion is actually quite dangerous. The essence of a market economy is competition, not isolation.
There is also a group of people who are more rational. They admit that domestic products have indeed made great progress, but they should not be too arrogant.
We have not yet fully mastered many core technologies, such as automotive chips, high-end bearings, and precision processing equipment. The price reduction of foreign brands is a good thing for consumers. Isn’t it nice to be able to buy cheap products? Competition can promote progress, but a dominant company will easily suffer.
This view hits home. Domestic products still have shortcomings in some areas. Toyota and Honda are still ahead in thermal efficiency of automobile engines. Intel and AMD still dominate in high-end chip design. The brand accumulation of luxury goods cannot be caught up overnight.
But some people pointed out that shortcomings are a fact, but the speed of progress is also a fact. Ten years ago, we could not create anything, but now at least 70% of the fields can be equal. Give it another ten years, it is not certain who will have the last laugh.
There are also people who are very imaginative and worry that this is a "conspiracy."
Could this wave of price cuts by foreign brands be intentional, to kill domestic brands with low prices first, and then raise them back when they monopolize the market? Could it be an "economic war" by European and American countries to destroy China's manufacturing industry through dumping?
This worry is not unreasonable. There have indeed been similar cases in history.
But the problem is that today’s domestic brands are no longer the weaklings they used to be. They have technology, capital, and market. The Chinese market is big enough to support the coexistence of multiple brands, and the support is also strong. They will not just watch local brands being killed.
There is also a group of people who focus on practical matters, regardless of whether they are domestic or foreign products, and whoever is cheap and easy to use will buy them.
In the past, I bought BBA because I had no choice. Now that there are more choices, of course I have to shop around. To be honest, lowering the prices of foreign brands is a good thing for us, but it will force domestic products not to be too flashy.
This may be the healthiest mentality. The core of the market economy is to vote with your wallet. If you are good, I will buy from you. If you are not good, I will buy from someone else. Regardless of domestic products or foreign products, consumers should win in the end.
There are also some people who are nostalgic. Although domestic products are very good now, they always feel that something is missing.
In the past, it was more prestigious to drive a BMW when going out. The logo of a Mercedes-Benz car looked high-end, and the logo of a domestic car always felt a bit boring. This reflects a deep-seated problem, and changes in brand perception take time. Many older generations grew up with the concept that "foreign brands equal high-end". This psychological imprint cannot be changed in a year or two.
But the younger generation has watched the rise of domestic products since childhood, and in their minds, "domestic products equal pride" is the mainstream perception.
Taken together, this wave of "domestic advancement and foreign retreat" is neither a "complete victory" for domestic products nor a "doomsday" for foreign brands. It is like a normal reshuffle of the market.
The strong survive and the weak are eliminated. This is what a market economy should be like.
Conclusion
This drama of "domestic products rising" versus "foreign brands diving" is, in the final analysis, a belated market correction.
In the past few decades, foreign brands have relied on their technological advantages and brand premiums to make money in the Chinese market. Chinese consumers have spent countless wasted money and bought countless products with "low configuration and high price". This is not to be blamed on consumers, because there was really no choice at that time. Domestic products were either of poor quality or designed to stretch the hips, so they had to hold their noses and buy foreign products.
But in the past ten years, especially in the past five years, domestic products have made a leap from "quantitative change" to "qualitative change".
Technically, we have gone from "imitation" to "self-research", from "following" to "running parallel" or even "leading". In terms of quality, it ranges from "usable" to "easy to use" and from "make-do" to "high-quality". The mentality has changed from "benchmarking the international" to "I am the standard".
This transformation is not based on the impulse of "wild consumption", but on the accumulation of technology and market verification over the past ten years.
BYD has invested more than 20 billion in battery technology, and Huawei has spent hundreds of billions on chip research and development. This money is not wasted, but has actually produced today's results.
Foreign brands are not without merit. They still have a lot to learn from domestic products in terms of brand accumulation, global operations, and refined management.
But the problem is that too many foreign brands rest on their laurels and think, "I am a big international brand, so you have to buy it." This kind of arrogance is vulnerable to the market.
Looking forward, this competition will continue.
It is still unknown whether foreign brands will counterattack and whether domestic products can hold their ground. But one thing is certain, consumers are the biggest winners. Because the fiercer the competition, the better the product and the more affordable the price.
For domestic brands, now is not the time to be proud.
Technological progress is never-ending, and consumer demands are constantly escalating. You can win today because you work harder than your opponents and understand the market. If you relax tomorrow, you will still be slapped to death on the beach by latecomers.
For foreign brands, this “dive” is not necessarily a bad thing.
The market has given you a loud slap in the face. It hurts a little, but it can be regarded as a timely warning. There is still a chance for us to put aside our arrogance, pay attention to the Chinese market, and provide sincere products and services. After all, what Chinese consumers want is not "foreign brands get out", but "respect and fairness."
The last thing I want to say is that the rise of domestic products is not to "defeat" anyone, but to "prove" themselves.
It proves that the Chinese can also create world-class products and that Chinese brands are worthy of the respect of global consumers. The road is still long, but at least we have taken a solid step.
The waves wash away the sand, but true gold is not afraid of fire.
Regardless of whether they are domestic products or foreign products, what will remain in the end must be those brands that truly respect the market, respect consumers, and respect technology.
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