As the automobile sector has evolved the gap between manufacturers has gone done broader. The strategy has focused on two poles of the market. The first brands that it bet everything on price and rational cars (Dacia) and the second the trademarks premium aspirational models (DS, Genesis). This situation has been reached because of the economic crisis and the increasingly higher ambitions of brands and sector groups.
In Europe we have the example of the new signature premium of the PSA group, DS. However the world increasingly more firms want to grab a piece of the premium cake and being born brands of this type. Genesis is the premium version of the cars that Hyundai Group can manufacture and it seems that they are enjoying in certain markets. Proof of this are 87.130 vehicles sold last year.
These sales are for a firm that has been scarce two years selling their models. However there is a weak point and is that 66.029 units were registered in its domestic market, South Korea. Therefore, you need as water may open up markets to diversify its sales and not dependent on a single market. For this reason, the management of Hyundai Group have agreed to facilitate their work through the creation of a sales channel for Genesis.
According to Manfred Fitzgerald, head of Genesis, the entrance of the firm in China will be held in the year 2019. Most importantly, they will do so using a sales channel independent of that used Hyundai (or Kia) in the country. Moreover, since the brand you are considering if import their cars to China from South Korea or lift a plant to reduce costs and improve the competitiveness of their models.
According to Fitzgerald, “it is something we are considering, especially in new markets” “don’t have the opportunity to get close to them in a different way”. With these words in mind, create a network of own distribution without the intervention of third parties it would facilitate the sale of products of Genesis and therefore increase their profitability by each model sold.
Source – Genesis