For a long time, the luxury car giant Porsche has been very popular in China. As the most popular luxury car brand, Porsche has always been the leader in the market. However, recently, the luxury car giant has met a Waterloo. Sales in China continue to decline, which makes one wonder why no one has bought the most popular luxury car?

1、 Luxury car giant Porsche welcomes Waterloo?

According to the Huaxia Times, Porsche released its 2023 financial report. The financial report disclosed that Porsche's operating revenue climbed to 40.5 billion euros, up 7.7% year on year; The sales profit increased by 7.6% year-on-year to 7.3 billion euros; The net cash flow of the automotive business was 3.973 billion euros. In terms of delivery, Porsche will deliver 320200 vehicles worldwide in 2023, up 3% year on year.

However, it is worth noting that Porsche, which had been very popular in China before, is no longer "bought" by the Chinese market. Its delivery volume in the Chinese market fell by 15% year on year, making it the only market where delivery volume declined in the same period.

According to Meisige's prediction, Porsche's revenue in 2024 will be between 40 billion and 42 billion euros, and the return on sales is expected to be between 15% and 17%; In the medium term, Porsche insists on the expectation of 17% to 19% return on sales; In the long run, Porsche aims to achieve a return on sales of more than 20%.

Although the overall performance has increased, it is an indisputable fact that the market in China has declined. In 2023, Porsche will deliver 79300 vehicles in the Chinese market, down 15%, making North America directly replace China as the largest regional market for Porsche. In North America, Porsche will deliver 86100 vehicles in 2023, up 9% year on year.

According to 21Finance, Porsche's 100th sales outlet in China, located in Tianhuan Square, Guangzhou, was suddenly closed and removed from the market, leaving the interior empty. On the social platform, some netizens said: "The Porsche cars in Guangzhou Tianhuan Square are gone, and the exhibition shelves are empty, with only two computers left."

According to the Guangzhou Daily, the Porsche Tianhuan Plaza store has no staff, and all the previous exhibition cars have been removed, leaving only tables and chairs. However, the store has not taken enclosure measures, so people who come to Tianhuan Plaza for shopping can still get in and out.

In this regard, the relevant person in charge of Tianhuan Plaza said that this is a normal exchange of customers in the mall. The customer service staff of Tianhuan Plaza replied: "Porsche has confirmed its withdrawal. If you need to see the car, you can go to Tianhe Porsche Center."

According to the WeChat official account of "Guangzhou Tianhe Porsche Center", Porsche Tianhuan Plaza was officially opened in November 2017, and it is the 100th sales outlet of Porsche China. It is positioned as a Porsche e-space in Guangzhou, covering an area of 460 square meters. As the first Porsche retail experience exhibition hall, the Porsche e-Space in Tianhuan Plaza is equipped with a series of multimedia walls and interactive devices, focusing on digital experience.

2、 Why hasn't anyone bought the most popular luxury car?

As a world-famous luxury car brand, Porsche has always attracted the attention of consumers around the world with its unique design, excellent performance and luxurious brand image. However, in recent years, the sales volume of Porsche has shown a downward trend, and even the outlets have been withdrawn. What are the reasons behind this? Why is Porsche, once a popular brand, now suffering from sales difficulties?

First of all, Porsche's success in China is the product of heroes created by the times. The decline of Porsche's sales volume seems to be an abrupt phenomenon in the current automotive market environment, but it actually contains profound changes in market logic and consumer psychology. Porsche's sales continued to improve in the year, with its specific historical background and market conditions. As a high-end luxury car brand, Porsche's pricing strategy not only ensures the brand's dignity, but also does not deviate too far from the purchasing power of mainstream consumers, which has greatly promoted its sales growth in the Chinese market.

On the one hand, Porsche's success in the Chinese market is inseparable from the rapid growth of China's economy and the improvement of consumers' purchasing power. With the rapid development of the domestic economy, more and more Chinese people begin to pursue a higher quality life. As an important carrier of personal identity and status, cars naturally become their first choice. In this context, Porsche has won the favor of a large number of consumers with its unique brand charm and relatively reasonable price positioning.

On the other hand, Porsche's success in the Chinese market also benefits from its precise market positioning and marketing strategy. Porsche is well aware of the psychological needs of Chinese consumers, and has successfully created a high-end, fashionable and luxurious brand image by constantly introducing models that meet the market demand and holding various high-end activities. This brand image not only attracts consumers who pursue individuality and taste, but also inspires more people to yearn for and pursue the Porsche brand.

Secondly, the decline of Porsche's sales is a reflection of consumption upgrading. In the past, the popularity of luxury car brands such as Porsche in the Chinese market was largely due to their representation of luxury and status. However, with the development of the economy and the improvement of the quality of consumers, people begin to view consumption more rationally and gradually return to the source of consumption. They no longer only pursue external display and brand added value, but pay more attention to the practical value, performance and cost performance of products. This change in consumption concept makes luxury car brands such as Porsche face the dilemma of declining sales when facing increasingly fierce market competition.

At the same time, the preference of Chinese consumers for second-hand Porsche models is also increasingly evident. On the one hand, this phenomenon is due to the gradual maturity of the second-hand car market and the increasing consumer acceptance of second-hand cars; On the other hand, it also reflects the change of consumers' concept of automobile consumption. They began to realize that buying second-hand cars not only can save a part of the purchase cost, but also can choose models with good performance and reliable quality. Especially in luxury brands like Porsche, second-hand models are often able to meet consumers' demand for quality and performance at a lower price, so they are favored by more and more consumers.

Third, the rapid rise of Chinese auto companies is also impacting the Porsche market. The rapid rise of Chinese automobile brands and the rapid development of the new energy market have had a huge impact on Porsche's market share. In recent years, Chinese automobile brands have experienced a transformation from imitation to innovation, and gradually reached the level of international brands in terms of technology and quality. Especially in the field of new energy, Chinese automobile brands, with their keen market insight and innovation ability, have realized the curve transcendence and gradually occupied a dominant position. For example, BYD looks forward to the launch of high-end luxury cars such as series, which not only breaks the monopoly pattern of traditional luxury brands, but also provides more diversified choices for Chinese consumers.

These Chinese auto brands have significant advantages in new energy technology, intelligent configuration and cost performance. They not only meet consumers' demands for environmental protection and energy conservation, but also provide a more advanced and convenient driving experience. At the same time, through precise market positioning and marketing strategies, these brands have successfully attracted a large number of young and dynamic consumers, further intensifying market competition.

In contrast, the layout of traditional luxury brands such as Porsche in the field of new energy vehicles is relatively backward, and the product lines are not rich enough to meet the market demand. This has led to Porsche being at a disadvantage in the competition in the new energy vehicle market, further affecting its overall sales.

Fourth, what should Porsche do? Faced with declining sales, Porsche had to re-examine its market positioning and product strategy. In the global market, especially in the Chinese market, Porsche needs to follow the industry development trend, accelerate the pace of electrification transformation, launch more new energy models that meet the market demand, and strengthen its competitiveness in after-sales service, brand experience, personalized customization, etc. At the same time, Porsche also needs to flexibly adjust the layout of its sales channels. It needs to maintain its brand image in the first tier cities and expand its service network in the second and third tier cities to meet the purchase and service needs of consumers in a wider region.

Therefore, the decline of Porsche's sales volume, accompanied by the withdrawal or adjustment of outlets, is a microcosm of the in-depth adjustment of China's and even the global auto market structure. In this process, if Porsche wants to continue to maintain its leading position, it must actively respond to challenges, grasp the air outlet of new energy and intelligent driving, and achieve continuous innovation of products and technologies. Only in this way can it truly achieve its long-term development.