CAR MAGAZINE - Audi's numbers game

[Merc1]

Last week I wrote the best part of a thousand words outlining Audi’s never-ending barrage of key new models up to 2010. From A1 to A7 and everything in between, it reflects Audi’s plans to become the world’s biggest premium motoring brand by 2015. But how on earth is Audi going to balance ubiquity and exclusivity?

Tell me if I’m wrong, but I believe that although the position of a premium product – be it a watch, suit or car – is determined by its image, price and exclusivity, it’s the exclusivity factor that’s most central to its appeal. People don't want what other people have. Invariably, the fewer the people that possess an object, the more desirable it becomes. Shouldn't rarity determine value, and not the other way around?

Audi plans to offer models in almost every mainstream and niche sector - and is in danger of diluting its premium appeal with this sheer volume. Even if each product sits at the top of its sector. How soon until drivers, flushed with new-car pride, say 'I’ve just got a new Audi' only to hear, 'Yeah, you and the rest of the world!'

Audi isn't alone. BMW wants to boost sales from its current 1.4 million cars to two million by 2020, helped by the ever-growing 1-series family, a stream of Mini variants and more X-models. And Mercedes is fast running out of letters of the alphabet for its expanding line-up of crossovers, four-door coupes and off-roaders.

Of course, emerging markets like India and China will swallow much of the increases, but it will still mean more models on the road, be that road in Shanghai, New Delhi or Milton Keynes. Which begs the question how long will it be before people stop paying for the privilege of driving the same car as everyone else?

Audi's numbers game - Blog - Carmagazine.co.uk

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[Yperion]

The article is right in many ways. Soon there will be nothing premium about MB, BMW and Audi. Everyone and his dog will drive one.

In my country 3 series sells more than Toyota Corolla or Huyndai Accent and if we count the imported second hand models from Germany , Mercedes has a higher market share than Peugeot or Citroen!

 

[EnI]

Like I said earlier: even today all 3 brands are not really exclusive. BMW & MB sell around a bit over million cars per yer, Audi a bit less than a million (but tah will change in a year or two as well).

So, I do not think exclusivity is possible when selling 1 million unit per year. That's definitely not exclusive.

And it all depends on the market: eg. in Europe (eg Germany & UK) everyone and his dog already drive a BMW, MB or Audi. While in some other these cars are still highly exclusive.

But mind that the premium of BMW / Audi / MB brands has nothing to do with exclusivity. Neither do these brand claim they are highly exclusive.

I see no harm done.

If you want a highly exclusive car in Europe or US - buy something that is coach built, or a Chinese car.

 

[CorpusCallosum]

You can still have exclusive models but which is what I think they are all going for... obviously

The old snatch them while there young and let them work up the model range

eg. from 1 to 3 to a 5 and finally a 7 series

 

[coolraoul]

You also can take a Renault Avantime. This is highly exclusive.

http://imageshack.us

 

[CorpusCallosum]

Who needs a 5er... i want one of those

 

[bmer]

Tell me if I’m wrong, but I believe that although the position of a premium product – be it a watch, suit or car – is determined by its image, price and exclusivity, it’s the exclusivity factor that’s most central to its appeal. People don't want what other people have. Invariably, the fewer the people that possess an object, the more desirable it becomes. Shouldn't rarity determine value, and not the other way around?

I wonder how the writer explains the success of S-Class, Ipod or Rolex? They are all expensive premium products (Ipod in the category of MP3 players), they have the image and almost everybody who can afford them also has them. Still people want them badly. This makes me think the image is far more important than the exclusivity factor. The exclusivity may have more importance in certain cases but generally I think the image is what sells the product in the premium product sector.

 

[klier]

The article is right in many ways. Soon there will be nothing premium about MB, BMW and Audi. Everyone and his dog will drive one.

In my country 3 series sells more than Toyota Corolla or Huyndai Accent and if we count the imported second hand models from Germany , Mercedes has a higher market share than Peugeot or Citroen!

Meh, I don't know about Audi, but I know for a fact that BMW will always remain premium (as will MB), no matter how many cars they sell.
Selling more than the Corolla doesn't mean the car is less premium. It only says you guys have enough money and are more willing to buy a premium car than a Toyota.

And when everyone and his dog drive a BMW, Audi or MB, we will live in a rich world without poverty or war.

 

[Audi69]

I wonder how the writer explains the success of S-Class, Ipod or Rolex? They are all expensive premium products (Ipod in the category of MP3 players), they have the image and almost everybody who can afford them also has them. Still people want them badly. This makes me think the image is far more important than the exclusivity factor. The exclusivity may have more importance in certain cases but generally I think the image is what sells the product in the premium product sector.

I AGREE! WELL PUT!