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Jiangnan Times Commentary | BMW's "ugly eating habits" reveal its arrogance towards consumers

2024-07-23

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Recently, rumors such as "BMW China withdraws from price war", "BMW increases prices for all models" and "being asked to pay extra when picking up a car" have aroused strong reactions among consumers. In particular, the incident of "BMW 4S stores in many places refuse to deliver cars" has pushed the controversy to a climax.
According to reports, BMW 4S stores in Chongqing, Zhengzhou and other places charged consumers extra fees when delivering new cars, with the amount reaching 30,000 yuan, and refused to deliver cars according to the contract on the grounds of "no cars due to production reduction" or "no tickets due to price increase", mainly involving popular models such as i3, ix3 and 3 series. The public accused BMW of "being greedy" and demanded that it increase prices when prices rise and reduce prices accordingly when prices fall. BMW's actions, to a certain extent, showed arrogance towards consumers, and its "ugly behavior" showed contempt for market rules and disregard for consumer emotions.
Facing public pressure, BMW’s customer service center responded on July 21 that dealers have been authorized to handle pre-sales and after-sales issues. If consumers are dissatisfied with the results, the headquarters will assist in reporting the problem to the store. At the same time, it emphasized that although the official vehicle guide price is provided, the specific selling price is determined by the dealer. Although this response shows the division of responsibilities, it fails to directly solve the dilemma faced by consumers.
Looking back at BMW's recent strategic adjustments, it has adopted a radical pricing strategy under market pressure to cope with the competition from emerging electric vehicle brands, and provided dealers with a number of subsidy reduction policies at the end of May to stimulate sales. However, since the end of June, BMW has announced a change in strategy, focusing more on sales quality rather than market share, resulting in a weakening of terminal promotions and price increases for some models. Along with the strategic adjustment, BMW's production capacity planning has changed accordingly, and the supply of vehicles is tight. Against this background, some dealers have adopted a price increase sales strategy to make up for their losses. This behavior is obviously contrary to the rights and obligations of both parties clearly stipulated in the car purchase contract. The refusal of BMW 4S stores to deliver cars and temporary price increases violate the relevant provisions of the Consumer Protection Law, the Price Law, and the Civil Code of the People's Republic of China, and constitute a serious infringement of consumer rights. At the same time, it also blatantly violates the brand's contractual spirit and should bear the corresponding liability for breach of contract in accordance with the law.
In response to this incident, BMW China responded quickly on July 22, saying that it had conducted a preliminary investigation, pointing out that the cases involved were all individual cases, and promised to actively communicate with dealers, urging them to comply with relevant laws and regulations and contractual agreements to safeguard consumer rights. However, attributing the problem to individual cases will not calm consumers' anger and doubts, and this series of events has already damaged the image of BMW's luxury brand.
For BMW, this incident is not only a touchstone for adjusting its market strategy, but also a test of its brand value and its relationship with consumers. BMW should reflect deeply on how to ensure that consumers' legitimate rights and interests are effectively protected while pursuing business quality. This not only requires BMW headquarters to strengthen management and supervision of dealers to ensure that they comply with laws and regulations in their market activities, but also requires BMW to fundamentally change its attitude towards consumers, open up communication channels with consumers, solve problems in a timely manner, and win consumers' trust and favor with a more humble and sincere attitude.
As one of the most dynamic automobile markets in the world, the Chinese market has seen a profound change in consumers' understanding of luxury brands. They no longer rely solely on brand premiums, but pay more attention to service quality and actual product performance and technological innovation. BMW should take this opportunity to optimize its brand positioning and market strategy and respond to consumer expectations with high-quality products and services. Only in this way can BMW truly maintain and increase the value of its luxury brands in the Chinese market and win a broader market space.

Song Haiqin, all-media commentator of this newspaper

Editor on duty: Fan Jing

Duty Director: Zhou Yanhua

Editorial Board Member on Duty: Yang Jin