Both sides will leverage their own resources, and carry out comprehensive cooperation in branding, marketing, channels, end-to-end operations, services, information technology, etc., aiming to implement the digitalization strategy into BMW’s full business process, and enable dealers to provide an end-to-end and online-to-offline digital experience for customers.

Jochen Goller, President and CEO of BMW Group Region China said,

Cross industry collaboration and open innovation exchange are indispensable in accelerating the ongoing digital transformation of our company. As one of China’s leading tech enterprises, Alibaba has unique competencies in terms of digital technologies, large scale customer platforms and channels as well as targeted consumers operations. We are delighted to join hands to create holistic online-to-offline digital brand experiences for our Chinese consumers, and at the same time increase our portfolio of digital products and services.

Jet Jing, Vice President of Alibaba Group and Secretary General of Enterprise Service for Alibaba Digital Economy, said,

As one of the most innovative international premium automakers, BMW is an industry leader with outstanding products and services. Now BMW is once again at the forefront of digital transformation, becoming the first auto manufacturer to leverage Alibaba Business Operating System (ABOS). This system will help accelerate the digital operations across BMW’s business segments, aiming to provide end-to-end customer-centric services throughout the product lifecycle and high-quality growth by expanding, connecting and serving customers in a more efficient way.”

Support dealers with digital technologies and accelerate business growth

According to the MoU, BMW and Alibaba will jointly launch the first online sales and services businesses engaging dealers among premium auto brands, to create a seamless end-to-end online-to-offline digital experience.

In the future, online traffic will be directed to BMW dealers to create more business opportunities for them.

In addition, with the assistance of Alibaba’s membership system, BMW and MINI will launch brands’ membership services and marketing campaigns on Alibaba’s various online platforms, to enhance customer loyalty, increase their level of activity, and drive business growth.

Creating cross-business and multi-scenario consumer experience

With the support of ABOS, BMW and its dealerships will accelerate the digital transformation of dealer networks in China, with the aim of providing Chinese customers with more premium, convenient and personalized services and experiences in digitalization.

In the future, customers can purchase BMW and MINI vehicles online, sign up as the brands’ community members with one click to obtain exclusive benefits, as well as make an online reservation for services including the test drive, repair, maintenance, etc. with the support of dealers.

In the decision-making of car purchasing, online financial services will guide customers to the most suitable financial packages and convenient financial plans to meet the diverse financial needs of customers.

In the future, BMW and Alibaba will work together with dealers to build BMW’s end-to-end operating system, aiming to provide customers with full-link service which integrates “car-viewing, car purchasing, and car maintenance” on the multiple platforms of Alibaba’s ecosystem, such as Taobao, Tmall, Alipay and Amap.

It aims to reshape the customer-centric, cross-business, and multi-scenario service experiences.

Win-win cooperation to lead digital upgrades in the industry

Nowadays, the digital economy and digital trade are thriving and changing consumers’ expectations and consumption behavior. As an innovative international auto manufacturer, BMW is accelerating the digital transformation.

In 2019, the BMW Group established Lingyue Digital Information Technology Co., Ltd to implement its digital strategy and promote BMW’s omnichannel marketing, sales management, and customer lifecycle management in China.

Lingyue supports BMW’s customer-centric operation transformation, creates a more premium experience for customers as well as creating value for the continuous growth of dealers and BMW.

In the digital era, business operations are undergoing a transformation. Efficient digitalization represents a holistic and systematic upgrading process.

Alibaba has drawn on its experience, capabilities, and successfully integrating its diversified business using cloud computing and big data technologies to create ABOS, a unique service designed to support businesses with digitalization.

ABOS helps companies by focusing on 11 major business elements: branding, products, sales, marketing, channels, manufacturing, services, finance, logistics and supply chain, organization, and information technology, which will enable end-to-end digital operation in the new era.

The partnership between BMW and Alibaba in digitalization is another proof point that BMW moves digital transformation into the fast lane. BMW becomes the first automaker to leverage ABOS. BMW and Alibaba set a new benchmark for the digitalization upgrades in the auto industry.

In the future, the two sides will work together to support dealers in pursuing business growth opportunities, drive digitalization in the auto industry and auto life, and bring further benefits to customers and dealers.

China’s automobile sales up 13% in Sep 2020; NEV up 68%, Tesla among top 3

New energy vehicle is the hottest theme of this year’s Beijing Auto Show. Kantar TNS Auto expert summarizes major trends in this sector.

China is the world’s largest auto market. Its annual auto show, which is held in Shanghai and Beijing in turns, has become one of the most important events for the world’s auto industry. This year’s show is being held in Beijing’s China International Exhibition Centre, New Venue from April 25 till May 4.

Given that new energy vehicle is increasingly becoming mainstream in China, I noticed some major trends in this sector during my trip to the mega exhibition.

Many traditional automakers launched new plug-in hybrid electric vehicle (PHEV) models for today’s China market. Apparently, PHEV has become the main route towards the next phase of the new energy revolution in China.

Ford, for example, launched its first new energy vehicle for the Chinese market: Plug-in hybrid version New Mondeo. Chinese car maker Geely also unveiled plug-in hybrid sedan Borui GE, which is due to hit the market within this year. Compared with previous hybrid cars using gasoline engines to recharge batteries or to power the electric drive motors, plug-in hybrid vehicle represents a step towards a pure electricity driven car era.

Compared with plug-in hybrid electric vehicles, pure electric vehicles have made more noteworthy progress in designing. Previously, automakers have kept the external designs of new energy vehicles similar to gasoline versions – in some cases even exactly the same.

Now, pure electric vehicles, regardless from traditional car makers or disruptive newcomers, have more distinct exterior designs compared with fossil fuel-based vehicles.

The body design and interior styling of electric cars distinctively emphasize on simplicity, streamlining and futuristic design, as well as fully loaded technology features, such as intelligent user-interface, connectivity, and self-driving features. Car makers wish to impress car buyers to provide them with easier, simpler, smarter but at the same time more customized services.

BYTON, one of the high-profile disruptive car makers and founded by a team led by former BMW senior executives, unveiled its CONCEPT car and became one of the most attractive new launches during the show.

In fact, traditional car makers are also rolling out sexy concept cars, such as ICON from Geely:

Pure electric vehicles have become more personalized: automakers are not rolling out just one or two models, but various models designed for very specific car buyer segments. BAIC, for example, displayed its two-seat pure electric LITE in 12 colors for 12 zodiac signs. It will also roll out models with different driving ranges to cater for the needs of different buyers, such as single buyers, the family of two or family with a small child.

Many businesses in China are expanding outside of their “native” industry, automakers are no exception. I have seen many automakers promoting their vehicles’ connectivity with “smart home” devices, as showcasing the benefits of automobiles connected with Internet of Things.

Dongfeng Motor displayed their vehicles’ ability to turn on air conditioners and water heaters at home within a certain pre-set distance. Geely displayed apps that could be installed on their in-car operating system and control devices at home and other locations. The examples demonstrated these automakers’ vision as how a connected car-home ecosystem can enhance life quality.

Many companies also displayed their solutions to tackle the biggest bottleneck preventing electric cars from taking off in China: power charging.

BAIC displayed a model “battery station” solution which can swap a used battery pack for a fully charged one within 2’30”. This echoes the direction of start-up Chinese pure electric maker NIO is taking. According to this model, electric car buyers won’t be buying battery packs. Instead, they pay for the usage of these batteries or rent it. It is possible that people will be charged at “battery stations” based on how much power they’ve used or distance they’ve driven on the battery packs being taken down.

For the pure electric vehicle, the latest models now can be charged up to 80% within 30 to 40 minutes in quick charging mode and fully charged to 100% within 6 – 8 hours in slow charging mode. Both modes are considerably shorter, especially quick charging mode, which used to take 1 to 2 hours. At the same time, most newly launched pure electric vehicles will have at least 500 kilometers of driving range.

At every major auto show in China, we can see many cool and sexy concept cars. But after quite a few “PPT auto start-up” busts here, which refers to start-ups trying to win investment and early buyers with nothing other than a nice presentation deck, we need to be more cautious. Let’s take a step back and think twice before being carried away.

It is true that China has gone a long way in new energy vehicle development, with traditional and disruptive automakers launching new concepts, new ecosystems or new theories one after another. But we also need to check how many of these fancy models eventually hit the streets.

A newcomer announced a pure electric SUV for 300,000 yuan. Another one promises to start to sell a pure electric racing car at 600,000 yuan to 1 million yuan range this June. We have to be patient and scrutinize which ones of these big promises are in the end delivered.

It doesn’t matter whether this automaker is new or long-existing, what matters is if this company can produce safe and efficient new energy cars that brings value to Chinese consumers. They are the true “new energy” to bring Chinese auto market forward.

This post was originally published on Kantar.com.

During 14 days’ promotion on Weibo, a total number of over 60 thousand cars were ordered with a total worth of over RMB9.2 billion (US$1.5 billion).

Over 30 brands, including Benz and BMW, of about 100 models were available for order on Weibo, all of which were below market price. Weibo deployed three main promotion tactics, limited time offer, cash rebate and lucky draw.

From end August to early September, it’s considered cold season for automobil industry in China. The corresponding Weibo promotion page had over 16.97 million visitors and the topic on Weibo had over 1.24 billion views.

Chinese users displayed the highest level of engagement and interactions with brands on social media, according to PwC research. And, A McKinsey survey pointed out that social media has a greater influence on purchasing decisions for consumers in China.

Weibo monthly active users (“MAUs”) were 156.5 million as of June 30, 2014, an increase of 30% year over year according to its official quarterly financial results.

Also read: #IceBucketChallenge Went Viral on Weibo in China