China becomes wealthier, luxury brands boom

The Chinese economy has been developing rapidly during the past years. The financial means of the Chinese people have increased, and by consequence the demand for luxury goods has grown noticeably. Sales of luxury vehicles have increased fourfold between 2005 and 2009, despite the financial crisis.

While luxury carmakers are putting more resources in the Chinese market, they have to take one thing into account: the unique psychology of Chinese people. Their pragmatism is one of the characteristics they have to deal with. Luxury car manufacturers use several marketing strategies to excite the Chinese buyers.

To make luxury cars more affordable for the Chinese population, they introduced entry-level luxury models and they offer cheap credit options. To lower the price even further, Mercedes launched the environment-friendly 1.6-liter C-Class, which qualifies for a sales tax cut and a subsidy, allowing young people to buy their dream car too.

Nick Z.
Source: People's Daily Online