You’re better than you think
Car companies can spend as much as they want on brand building but public perception will always decide where a brand stands in the hierarchy of desirability
At some point during a new car launch you will hear the words ‘with this new model we’re targeting a sales volume of XXX (insert number here) units per month’ and it’s usually followed by ‘the car will attract a new class of customer who will appreciate our premium features’.
Unfailingly the attending media leave such comments where they belong, on the speech handout, but you have to wonder how much of this corporate PR spin is actually believed by the people who read out the speeches. Do they even know where their brands stand in the eye of the car buying public?
Here’s a fact everybody who sells cars in Malaysia should know. Because new cars are so expensive, Malaysians mentally sell their cars before they even buy them. Sure, we look at all the usual things car buyers look at but one of our determining factors is how much the car will be worth when we eventually get rid of it.
There is nothing to stop you from choosing an esoteric, hip or new brand to mark yourself out as someone cool and ‘chillin’ but the fact remains you will lose less money by buying a car from a brand associated with your grand dad instead of one that uses a K-Pop band as its ambassador. So, safe bets are Toyota, Mercedes-Benz and Honda with a smattering of Nissan and Mini thrown in.
A recent newcomer to this group is Volkswagen. Though their history in Malaysia is short, the Germans have created massive amounts of publicity by hosting technology showcases like Das Auto and launching new models as frequently as Samsung updates its phones. By sheer volume of advertising spend and nearly doubling up on sales for the last three years, you can’t miss their presence or their message of premium for the masses.
Make no mistake though, even with their technological portfolio of DSG, TSI and seemingly a different expensive DRL design for every new car they launch, the Volkswagen range is aimed at the mass-market instead of the premium sector. Their buyers are more Levi’s instead of Armani Jeans and probably choose Mid Valley Megamall over Pavilion.
Despite this, many Malaysians perceive they belong in the same group as BMW, Mercedes-Benz and Audi (which ironically is part of the VW Group). A recent Facebook conversation thread rammed home this fact for me.
A Japanese brand had recently launched it’s latest D-segment saloon and it not only looked good but it was also great to drive and came loaded with more bits than an Astro value pack. As per usual, someone posted pictures and a price list on Facebook and as the conversation developed until somebody mentioned the price of the top-spec variant is equivalent to a Volkswagen Passat SE.
Almost immediately there were literal nods of knowing heads and there were then posts on why Volkswagen’s saloon is the better car. Don’t get me wrong; the Passat SE is brilliant at what it does but I this case it’s trumped on multiple fronts. Yet, if you choose Germany over Japan, chances are you’ll end up with a 15-20 per cent better resale price in five years. Why? Because of public perception about where Volkswagen belongs.
At the other end of the spectrum is a brand like Volvo. The Chinese owned Swedish carmaker really does take on the German luxury triumvirate (BMW, Merc, Audi) head on but to a lot of car buyers they’re not even in the same class as Volkswagen. Don’t believe me? Buy a copy of Motor Trader and compare the used values for cars from both brands. It’s great news for used car buyers but if you’re a Volvo fan who buys new cars, then you have to accept the reality of harsh depreciation.
Therefore the lesson here is, just because car brands think their latest offering vaults them up the value perception scale it doesn’t mean it’s true. After the patina of newness has worn off every car finds a natural level to settle at, which will be decided by market forces and the whims of what you and I think. Gives you a touch of megalomania doesn’t it?
