How Lexus Interprets Alternative Localization Philosophy

Foreword

When the "localization of the Chinese market" was repeatedly understood by car companies around the world as one-sided construction of joint ventures in China, Lexus has a different view. “By thinking more through more angles, localization is not limited to building a factory that can produce products.” When the horizons are different, what you see will certainly be different from others. For Lexus, perhaps, The "localization" of production cannot be realized in the short term.

However, all people have to admit that the high sales volume of Lexus in recent years is still rooted in localization. It is only these details that few people can pay attention to and excavate.

1. When the slogan is not limited to the slogan Vision wants to become a reality

If three months have passed and Lexus’ new global slogan “Experience Amazing” does not yet have a proper official Chinese name, most of the Chinese auto media people have already had their own translation in mind: witnessing miracles.

With an annual sales of 100,000 units, and entering China for 10 years, the company insists on pure import. These three keywords should sum up Lexus 2016 from an angle. If only the first list is listed, it is not valid. The current Chinese market is not an admirable figure. But adding the last two keywords, combining these three words into phrases, is now so shocking.

Keep the pace is a very important point in the long-distance running competition. You can keep your own rhythm, and you can't be laughed by the runners who can't be beaten by the temporary leader. Lexus also has the same characteristics: 25.6% is the year-on-year growth rate of Lexus sales in 2016, and 25.4% is the year-on-year growth rate of Lexus sales in the first quarter of 2017. However, compared to 100,000 units in 2016, Lexus set itself a goal of 110,000 units in 2017. Should this be said to be self-inflicted, or is it not confident enough? In fact, none of them are. According to Lexus, "the enemy is siege to tens of thousands, and I don't want to move," and no one else moves. Sticking to my own heart and ingenuity, this is where the brand lives.

Some people say that Lexus’ appearance changes in these years are not forced by competitors? But think about it, how can a mature car company design a new car in the same way as the Internet? Before the appearance of the new spindle-type air intake grille in 2012, this design proposal has been repeatedly confirmed and evaluated many times in-house. How could it change because of the new designs of "Angel Eye" or "Samsung Emblem"? This is also closely linked to Lexus's research and understanding of the market: With new customer needs, new designs are needed.

In Lexus's current car ownership age structure, each age range from the 60th to the 90th is covered, and this also gives birth to Lexus's different designs that are constantly created for the new consumer aesthetic concept: Chinese consumers are Progress, from the “polished luxury” pursued 20 years ago, to the “stylish taste” pursued 10 years ago, to the current “minimalist personality”, Lexus has always sought to discover the needs of new consumer groups, and thus formed its own classics. The exterior design of the model LS: Step by step from the luxury of the Founder to the appearance change of the avant-garde sci-fi. But this is not forced to change, but the basic ideas and needs of the development pattern of the year round.

From "craftsmanship" to "annual development," Lexus is using its own unique approach to promote its own brand concept to Chinese consumers. Through continuous communication activities and marketing, Lexus conveys the term "Takumi (heart)" to China. Consumers, as of today, have become a new trend of cultural connotation. In a quiet and uninterrupted way, let the brand concept fall to China and take root in the minds of consumers. This unique and unique “brand localization” is the pioneering localization that Lexus really hopes. “First brand, then sales”, many luxury car companies understand this point, but it is really rare to really implement it.

Interestingly, this magical Japanese luxury brand likes to give you the most unexpected things. The "spindle-shaped" super sci-fi front face design was introduced earlier, and setting the 2017 target to 110,000 units is one. Another is that when you think that Lexus brand marketing has been done well enough, it suddenly gave you this "Experience Amazing" new brand slogan, and it will send you a big surprise before you think of it. .

Yes, other people's homes are "poor and change their minds," but this family is "prepared for a rainy day." When making a fortune, they still think of annual rings, and this self-control power is also no one. What is "Experience Amazing"?

The answer, also in Lexus's pursuit of the brand. When a car brand no longer represents only a cold four-wheel machine, but a way of life that can be felt and felt, this moment of discovering the New World is not every day. What Lexus wants to do is to let people mention this brand, not only think it is a luxury travel tool, but also want to think about the exploration, development, experience and feelings behind this brand, so that the Lexus car owners are no longer just those Successful people who need a luxury travel tool are even more "exploring homes" who want to discover new things and enjoy new technologies. Do you think that this car owner portrait is "Experience Amazing"?

So when the new slogan is no longer just a slogan, but a way of life that hopes to spread to all consumers, would you expect it? How exactly can "Experience Amazing" be "indigenized" in China and once again replicate the success of "Ingenuity" in China? The Shanghai Auto Show is well-known.

2. When talents can keep inventory in the long term, they no longer become

You said that localization must be produced locally. Lexus must tell you that localization really does not have to be produced locally, because the power of technology is enough to change everything.

Let's take an exaggerated analogy. Even if you send a happy New Year to your Japanese friends in China's most remote Tibet area, your Japanese friends thousands of miles away can receive your online greetings within seconds. In the era of global networking, this matter is no longer a secret, but many car companies are reluctant to let go and let technology eliminate all barriers and distances between customers and businesses.

In China, all joint-venture car companies have more or less inventory coefficients with the ups and downs of the auto market. In March, the average inventory coefficient of Chinese dealers has remained at a super high of 2.25, which is the highest level since February 2014. In some brand dealers, this coefficient may even be as high as 3 or more. The ultra-high inventory coefficient makes it difficult for distributors to transfer funds. It also has greater pressure on sales, and makes profits and stocks become a daily headache. With less profits and lower revenues, the brain drain at the dealership side is inevitable.

However, thanks to Lexus SLIM (Sales Logistics Integrated Management, which is in fact a slender English translation) lean management tool development, Just in Time (lean production) production and sales process concept can be ideally executed. What are the specific effects? From the customer's request, to production, transportation, and then to the car, the entire "front-end sales" process has a detailed progress record. Track the situation of each car in this way to ensure that each car can reach the consumers on time. The most crucial point is that when on-demand production becomes the norm, and the sales cycle continues to shorten, manufacturers can achieve less waste of resources, and can also drastically reduce the inventory of dealers and increase the amount of liquidity. According to statistics, Lexus dealer inventory coefficient is only 0.3, far below the industry average.

The real-time manufacturing and sales process is on the one hand, and localized talent training and customer training are also crucial parts. In Lexus's sales system, the delivery of the car to the customer is the beginning of a phase. After sales and replacement, it is the part that needs more business. In terms of warranty, whether it is 100,000 kilometers in 4 years or 150,000 kilometers in 6 years, all its excellent services and customer experience need to be completed with the key element of "person". Continuously upgrading the skills of local employees, leaving excellent talents and training new talents is the second localization of Lexus.

“All jobs are ultimately achieved by front-line staff. Therefore, in the Lexus system, front-line employees are the most important asset, talent, and Lexus’ wealth.” To build a training system that can retain talented people is an important task that all manufacturers must do. The ability of Lexus to retain talents is also rare in the industry through the rank system of dealer employees and the talent retention system. The front-line employees interpret the spirit of “ingenuity” to the extreme, and convey the spirit to customers. Customers purchase vehicles for distribution. The healthy operation of the company, thus retaining the front-line staff, is a virtuous cycle that can be sustained in the local community and is also the first dimension of talent localization.

The second dimension is that Lexus continues to use professional managers in China. Both Mr. Zhu Jiang, who has contributed to the two years of growth in Lexus, Mr. Lang Lixin, the current Deputy General Manager of China, and Mr. Chen Xi, the Minister of Marketing of China, are all local talents promoted or excavated in China by Lexus. It has played a great role in guiding and promoting Lexus’ promotion and sales in China. In the coming time, I believe that this process of localization will only become faster and faster. There is no doubt about this.

postscript

“If the brand is not praised by consumers, it will not be able to sell even if there is more production. Therefore, localization of production is not the reason for the promotion of brand value. It should be the result of the latter.” This was Mr. Jiang Jizhe’s previous days. The original words at the media communication conference are also the core concepts of Lexus’ insistence on the unique localization of this “first brand and then talent”. Such ruthless but rational analysis, how many joint venture brands hit the big face. This magical Japanese car company is just like this. It slowly walks step by step. It never crosses the border or speeds, but unknowingly, you realize that it has come to your side and you say hello. Run away.

Then you came to rest here: Lexus didn't really do anything domestically.

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