In China, the average age of car owners of Bentley, Ferrari, Maserati, Lamborghini, Porsche and other ultra luxury brands is less than 40 years old, far below the global average; Moreover, the proportion of female car owners is the highest in the world.
"Chinese customers tend to be younger as a whole." At the 2024 Beijing International Auto Show not long ago, Kim Airey, executive general manager of Bentley in mainland China, Hong Kong and Macao, told China Newsweek when talking about the characteristics of the Chinese market, "Bentley's female car owners in the Chinese market account for about 30%, and even 40% of individual models."
Younger Chinese users and more female customers mean higher demand for "personalization". Over the past year, the market demand for ultra luxury personalized customization services has reached a new high. Taking Bentley as an example, three quarters of customers choose customized services provided by Bentley's automobile personalized customization department MULLINER in addition to the 46 billion standard configurations provided by Bentley brand. This demand is 43% higher than that in 2022.
At present, China is one of the most important markets for ultra luxury car brands, but in the past year, the sales of ultra luxury brands, including Bentley, Ferrari, Lamborghini and others, declined in the Chinese market. However, the prevalence of customization still brings considerable profits to these ultra luxury brands, making them maintain strong profitability.
Super luxury brands are keen on "customization"
In 2002, Bentley officially entered the Chinese market. With the rapid growth of China's luxury car market and high net worth people, Bentley enjoyed dividends. In 2022, Bentley will hand over the best report card in history: sales of 15174 vehicles and profit of 708 million euros will be achieved in the whole year.
However, in 2023, sales of several ultra luxury car brands, including Bentley, declined. Data shows that in 2023, Bentley will deliver 13560 vehicles in the global market. In terms of revenue, although Bentley's annual operating revenue decreased by 13% year-on-year to 2938 million euros; Operating profit decreased by 17% to 589 million euros.
"Regardless of the global super luxury car market or the overall market economic environment, Bentley is currently at a relatively depressed node. Last year's sales volume has decreased compared with the previous year, which is in line with the current market state." An Ruike said that in the cycle of economic downturn, Bentley will not provide too many models in the market, Instead, it will "arrange production according to the actual order demand of the market to ensure the value of Bentley cars."
According to Anruike, Chinese customers are young as a whole, and their demands for personalized customization, attention to details and aesthetic requirements are increasingly high. At the same time, the proportion of female car owners of Bentley in the Chinese market is higher than that in other markets. "This may also be related to the growth of the demand for personalized customization to some extent. After all, women are better at choosing personalized items to customize exclusive cars that meet their own taste and preferences." An Ruike said.
Kim Airey said: "Bentley will launch a number of special MULLINER customized models with Chinese characteristics in 2024. The design inspiration of customized details comes from Bentley's Chinese customers, dealers and local culture, and responds to the high expectations of Chinese customers with the ultimate ultra luxury personalized customization service."
Photo source: Bentley
Photo source: Lamborghini
At the recent Beijing International Auto Show, Bentley unveiled three special MULLINER customized models specially designed for the Chinese market, all full of customized details of Chinese cultural elements. An Ruike said that in the process of customized design, the senior designers of Bentley's headquarters had in-depth communication with the local team in China, such as enabling them to fully understand the shape of "Ruyi", how to write Chinese characters and understand the cultural connotation behind it.
Customization means higher profits for ultra luxury brands. Although the sales volume of Bentley declined in the past year, considering that its Mulliner personalized customization business increased by 43% year on year, Bentley still has considerable profits in terms of single car. This is true for many ultra luxury brands.
Rolls Royce has not announced its revenue in 2023. Its profit in 2022 will increase by 57% to 652 million pounds. It is predicted that its profit will continue to grow in 2023. Rolls Royce's second exclusive senior customization center in the world will officially open in Shanghai in 2023; In 2024, Rolls Royce will add two exclusive advanced customization centers worldwide.
Ferrari also set a new high in net profit. The super sports car manufacturer said that in 2023, the company's revenue will increase by 17.2% year on year to 5.97 billion euros; Net profit rose 34% year-on-year to 1.257 billion euros, which was the first time that Ferrari exceeded 1 billion euros in history. Benedetto Vigna, CEO of Ferrari, said earlier when talking about the performance that the improvement of Ferrari's performance expectations was mainly due to the profitable personalized customization (including all carbon fiber finishes) and a strong product portfolio. Individualized customization means that Ferrari provides customers with customized choices of interior and exterior decoration, making the model more in line with customers' taste.
Lamborghini will deliver more than 10000 vehicles for the first time in 2023, reaching 10112, of which 845 will be sold in China, down 17%. However, its revenue reached 2.66 billion euros, up 12.1% year on year; Operating profit was 723 million euros, up 17.8% year on year. In this Beijing Auto Show, Lamborghini's new Urus SE has made its public debut. Urus SE can provide a wealth of advanced personalized customization options for Ad Personam, more than 100 car body colors, and interior options including 47 color combinations and 4 embroidery styles.
How to deal with electric and intelligent transformation?
At the moment of electric and intelligent transformation in the automotive industry, super luxury brands will also usher in major changes in the next decade.
An Ruike is cautiously optimistic about the future economic trend. However, he believes that under the wave of electrification and intellectualization, the customized services provided by Bentley can still bring a different experience to high net worth people. At the same time, Bentley is promoting electric transformation according to the "Beyond 100" business strategy, and striving to achieve full carbon neutrality by 2030. According to the information disclosed previously, Bentley plans to launch plug-in hybrid version selection for all models at the end of 2024, and plans to release the first pure electric model in 2026.
"It is a very important trend that fuel vehicles are gradually transitioning to electric vehicles in the Chinese market. Bentley has its own electrification route scheme based on the brand's' Beyond 100 'business strategy, which is a very important future development direction of the brand." An Ruike said: "Bentley is far more than a new electronic device with four wheels. We hope you can enjoy the luxury experience in the car and gain emotional resonance."
Lamborghini will launch a new type of Urus SUV and a new generation of Hurac á nche models for consumers to choose from this year. Among them, the former will completely stop selling pure fuel models, and will be equipped with the same 4.0T V8 plug-in hybrid engine of the Porsche Cayenne Turbo S E-Hybrid. The transmission system is matched with an 8-speed dual clutch transmission. At the same time, the new car is also planned to launch the second generation of Urus model in 2029, which will be driven by front and rear dual motors or four motors. The new generation Hurac á nche will also stop selling pure fuel models and replace it with the same 4.0T plug-in hybrid system of the Urus.
Maserati also officially announced the brand's electric product plan. Maserati will launch electric versions of all models before 2025, and successfully realize the transformation of pure electric vehicle brand by 2030. According to the plan, Maserati plans to launch the MC20 Folgore in 2025, a full-size pure electric crossover model in 2027, and the Quattroporte (president) pure electric version in 2028 after launching the GranCabrio Folgore double door sports car in 2024. At the same time, the official said that all new cars will be 100% designed, developed and manufactured in Italy.
In the era of electrification and intelligence, the technical advantages accumulated by ultra luxury brands in the era of fuel vehicles are no longer absolute barriers. The transformation from a 12 cylinder engine ultra luxury car manufacturer to a pure electric ultra luxury brand car manufacturer will be a huge test for Bentley and other ultra luxury brands. Can these super luxury brands continue their strong attraction and amazing profitability?
[Editor in charge: Zhao Puyu 】
