What Drives Success in China Automotive Marketing
- On April 28, 2024
- automotive marketing, china automotive marketing
The Chinese automobile industry continues to generate buzz.
Ever since Xiaomi announced its foray into the automotive sector, triggering a wave of attention, numerous brands have spared no effort in boosting their exposure. Recently, Huawei unveiled its Qinxun intelligent automotive solutions, tagging the official accounts of partners like Changan Automobile, Avita, Shenlan Automobile, and Lantu Automobile in its Weibo announcement on April 22nd. Coincidentally, on the same day, Li Auto officially announced price cuts across its entire lineup, sparking heated discussions.
However, the highlight was the Beijing International Automotive Exhibition, which took place after a four-year hiatus. Xiaomi and Huawei made their debut at the event, garnering significant attention. At the exhibition, Xiaomi’s CEO, Lei Jun, announced that as of April 24th, the pre-order volume for the Xiaomi SU7 reached 75,000 units, with 5,781 units successfully delivered.
Xiaomi’s sales figures align with the industry’s overall trend. According to data from the National Bureau of Statistics, in March 2024, the total retail sales of automobiles in China accounted for 11.3% of the total retail sales of consumer goods, reaching 426.5 billion yuan, an increase of 11.5% year-on-year. Data from the China Passenger Car Association (CPCA) shows that in March 2024, the retail sales of passenger vehicles in China reached 1.69 million units, a 6.2% increase compared to the same period last year.
This trend also underscores the importance of online marketing—in an intensely competitive industry, companies must increase their exposure to expand their market and enhance their influence. The new automotive forces, endowed with an innate internet gene, have always prioritized this aspect, with Xiaomi emerging as a prime example. Many automakers’ executives have also opened Weibo accounts and voiced their opinions across various platforms.
It’s evident that platforms like Douyin, Kuaishou, Bilibili, and Weibo each play a distinct role in this marketing domain, with an increasing number of automakers deeply embracing these platforms. Whether traditional or not, the key to victory lies in the new marketing paradigm.
1, Seeking Novelty in Brand Promotion
Due to the high unit price and low transaction frequency in the automotive industry, sustained brand exposure is crucial, in simpler terms, to “maintain a presence.”
Xiaomi’s marketing cadence is noteworthy. After announcing its entry into the automotive industry in March 2021, Xiaomi revealed the core team members within six months and began disclosing various patent applications towards the end of the year. Before unveiling the vehicle’s exterior design, Lei Jun frequently shared various car model images on Weibo, sparking users’ speculation about Xiaomi’s car design.
Long-term promotional planning and strategic timing of events can pique users’ interest without causing them to lose patience due to prolonged waiting. This marketing approach accelerated visibly from late 2023: On December 24, 2023, Xiaomi Automobile’s official Weibo account made its debut, and the following day, a launch event was announced for December 28th. This event focused on technology showcases while leaving an air of mystery around pricing. After the event, information about road tests and ecosystem updates were gradually revealed, and on March 28, 2024, a dedicated launch event with detailed pricing finally introduced the Xiaomi SU7 to the market.
Social media platforms facilitate two-way communication with users, unlike traditional advertising or top-down material dissemination. Once a topic gains traction and spreads, users can spontaneously respond and further disseminate it. According to statistics from Haikeji, from Xiaomi’s first technology launch event to the present, there have been over 40 Xiaomi-related hot searches on Weibo within four months, with several related hot searches on platforms like Douyin, Kuaishou, and Baidu, covering topics such as Xiaomi’s car prices, configurations, and market reactions.
Consequently, company executives with distinct personalities and personas, capable of representing the brand’s official voice, have become communication hubs between automotive brands and users.
When a fan mentioned Xiaomi’s car in the comments of actor Zhang Songwen’s Weibo post, Lei Jun personally replied, stating that a car had been prepared for Zhang Songwen. When a user suggested adding a physical button for the electric rear wing, Lei Jun promptly responded on Weibo, and the phrase “Xiaomi listens to advice” became a hot search trend. Additionally, during an April 18th Douyin live stream, Lei Jun candidly admitted that he was not a high school top scorer or a billionaire with 4 billion yuan in savings, as rumored. Within just 20 minutes of this live stream, the number of likes exceeded 44 million. Two hours after the live stream ended, Lei Jun’s Douyin follower count rose from 17.37 million to 18.26 million and currently stands at 18.78 million.
By leveraging his personal image, Lei Jun has bridged the gap between the brand and consumers, cultivating a sincere and down-to-earth tone that other manufacturers have emulated. Great Wall Motor’s Chairman, Wei Jianjun, registered a Weibo account in 2011 but only posted his first Weibo in March 2024. Subsequently, on April 15th, he hosted a live stream and opened a Douyin account, even connecting with Lei Jun via live stream. Chery Automobile’s Chairman, Yin Tongyue, also started live streaming and expressed a desire to learn from Lei Jun and Richard Yu (CEO of HONOR).
Traditional automotive marketing primarily relied on advertisements, celebrity endorsements, and dealerships, with online investments focused on vertical platforms like Autohome, PCauto, and Yiche. The Xiaomi case thoroughly illustrates that contemporary brand building employs increasingly diverse methods, and a combination of different platforms and content is necessary to create greater brand awareness.
2, Emphasizing Differentiation in Content
In the mobile internet era, multi-platform automotive marketing has expanded the reach to a broader user base.
Weibo content is primarily text-based, allowing for official announcements as well as a more casual display of “human touch,” providing ample room for automakers, especially their executives, to express themselves.
Lei Jun, with 23.73 million Weibo followers, has posted over 17,000 Weibo updates over the course of 14 years, averaging more than three posts per day. In his book “Reflections on Xiaomi’s Entrepreneurial Journey,” Lei Jun stated that if he didn’t post on Weibo personally, it would be difficult to truly achieve the goal of listening to users’ voices and making friends with them.
Apart from Lei Jun, Wei Jianjun, Yin Tongyue, Li Xiang (CEO of Li Auto), William Li (CEO of Nio), He Xiaopeng (Chairman of Xpeng Motors), and Zhu Huarong (Chairman of Changan Automobile) have all joined Weibo. According to Weibo’s official “Vertical Industry Ecosystem White Paper,” as of March 2024, 194 automotive executives have joined the platform, with their original Weibo posts increasing by 120% year-on-year.
Video platforms, on the other hand, require content that aligns with traits like entertainment value and visual impact. For instance, the Bilibili gaming influencer “Strawberry Flavor Meow Meow” published a video of herself taking delivery of the Xiaomi SU7, capturing the moment when Lei Jun opened the car door for her. The video has garnered over 1.075 million views. The automotive influencer “Speed Shooters” promoted the Li Auto L9 by embarking on an overseas self-driving tour in Africa with the vehicle, and the series of videos has accumulated over 6 million views.
Many automotive brands also showcase their products’ performance through live streams. During a live stream in December 2023, where William Li tested the 1,000 km range of Nio’s battery pack, he suggested that all important tests should be conducted by CEOs in live broadcasts, even connecting with He Xiaopeng for an interactive session. The aforementioned live streams by Wei Jianjun and Yin Tongyue were also primarily focused on product showcases.
Short videos also have the potential for viral spread, without requiring unique or in-depth content, but rather relying on a specific element that resonates with and inspires imitation from netizens. The previous “Great Wall Cannon” short video trend was an example of this. The “Great Wall Cannon” is a pickup truck model from Great Wall Motors. In March 2024, the blogger “Da Li Lun” exaggeratedly yelled “Great Wall—Cannon” at one of these vehicles parked on the street, causing the model to go viral. This video garnered 3.35 million views, and countless netizens soon followed suit, mimicking the exaggerated pronunciation.
In today’s diversified content landscape, there are no set rules for marketing across different platforms. Automakers are adapting to the unique characteristics of each platform, improving their responsiveness and marketing efficiency in an effort to reach an even larger user base.
3, The Evolving Landscape
In reality, the content marketing matrix for automotive brands has already seen substantial development. Data from research firm QuestMobile shows that in 2023, automotive brands’ advertising expenditure reached 14.878 billion yuan, a 12% year-on-year increase. Additionally, the volume of automotive-related content on platforms like Douyin, Kuaishou, Bilibili, and Weibo grew by 256.7% year-on-year in December 2023.
The growth in marketing scale stems from the flourishing development of the automotive industry itself. According to data from the National Bureau of Statistics, the revenue of the automotive manufacturing industry exceeded 10 trillion yuan in 2023, an 11.9% year-on-year increase.
The government has also been continuously introducing new policies and measures. The recently released “Action Plan for Promoting Consumer Goods Trade-in” specifically addressed the issue of automotive trade-ins, aiming to promote trade-in activities across the entire automotive chain, including new vehicles, used vehicles, scrapped vehicles, and the automotive aftermarket, while pushing for the development of new energy vehicles to optimize and upgrade the automotive energy structure. New energy vehicles have indeed become a focal point for market development. Data from the China Passenger Car Association shows that in March 2024, sales of new energy vehicles reached 714,000 units, a 30.5% year-on-year increase, with a penetration rate of 42.3%.
It’s important to note that the main driving force in the new energy vehicle market is young users. QuestMobile data shows that in February 2024, the user profile for the new energy vehicle market had 46.3% of users aged 35 or below, and 21.2% aged between 36 and 40. This means that automakers need to accurately grasp the demands and preferences of the younger demographic and develop targeted communication strategies.
This is also the reason why many executives from new automotive forces frequently voice their opinions on Weibo. The propagation chain for many “circle-breaking” topics often starts on Weibo, where executives can communicate and discuss directly with users, potentially triggering secondary dissemination of the topics. After Xiaomi’s product launch events, related terms first appear as hot searches on Weibo, then video platforms further propagate and facilitate in-depth discussions, such as product comparisons and real-world tests.
Weibo can easily amplify the public attention on these executive statements, enabling relevant brands and vehicle models to leverage this momentum to enhance brand awareness and influence. When Li Auto launched the L9 model in June 2022, Li Xiang posted on Weibo claiming it was the best SUV under 500,000 yuan for family use, and the related terms quickly became hot searches, with numerous automotive bloggers subsequently participating in discussions and reviews. Regardless of whether consumers agreed with this assertion, the promotional goal had been achieved.
It’s foreseeable that in the future, competition among automotive brands will no longer be a mere contest of product strength; the key to long-term growth lies in understanding user preferences. Whether it’s hot searches on Weibo or content sharing on long and short video platforms, automotive marketing must leverage these content platforms to sense, reach, and respond to the traffic driven by user preferences, while the potential and possibilities of content platforms can bring a broader horizon to automotive brand marketing and communication.