mercredi 28 novembre 2012

The luxury car market


As explained in the previous article, we are going to focus on two brands with very much opposed approach to making some of the world’s finest cars: Lamborghini and Rolls-Royce. Both belong to a whole market we will consider as the luxury car market. The two brands compete on this market with prestigious names such as Ferrari, Porsche, Aston Martin, McLaren or Bentley.
This market, just like every other, has its leaders, performing consistently through peaceful and crisis times; and its environment sensitive brands. Rolls-Royce selling performance is at the moment excellent, despite the economic turmoil since 2008, setting its all-time sales record in 2011 with 3,538 vehicles sold[1]. This may sound like a small number, but let’s keep in mind that the prices start at nearly $400,000[2]!


The latest Rolls Royce Phantom

On the other hand, Lamborghini is recovering from a couple of years of decreasing sales. In 2008, 2,430 were sold[3], but only 1,515 in 2009[4] and 1,302 in 2010[5]; whereas 1,602 vehicles were sold in 2011[6].Lamborghinis are actually cheaper (if such a word can be associated to the Sant’Agata’s Brand) than the Rolls-Royce. A standard rear-wheel drive Gallardo can be bought for less than $200,000.


The Lamborghini Gallardo LP-570


                As we mentioned, Lamborghini and Rolls-Royce each have their own approach, range, and therefore identity. So their competitors are not necessarily the same as they operate on different segments of this market. Lamborghini, like Ferrari or Porsche is very much about sportiness, performance and passion. These cars are usually referred as “supercars” because of their performance. Rolls-Royce however, competes with Maybach or Bentley in the making of elegant, comfortable and luxurious cars.
                Another interesting difference is that Lamborghini, Ferrari and Porsche are directly competing with very similar car layouts, performance and pricing; whereas Rolls-Royce’s closest competitor identity wise (Maybach) will disappear in 2013, replaced by the S-Class range of Mercedes-Benz in the Daimler AG range as Maybach’s sales were insufficient over the last decade[7]. Bentley however is showing pretty strongly over the last few years[8], even though, some of Bentley’s cars (as the Continental GT line) are not competing directly with Rolls-Royce’s.


The Bentley Continental Flying Spur (left) and the Rolls Royce Ghost (right)

                These brands are almost all parts of bigger groups of brands (Ferrari belongs to Fiat, Lamborghini to Audi and therefore to VW, like Porsche, Rolls-Royce is owned by BMW, etc…). So, a lot of care is taken to avoid brands cannibalizing each other. It also impacts the brand identity, but we will address this issue in a further article.
                In a nutshell, this market, though it has its challenges inherent to an economic crisis time, features brands standing very strong. Some actually stand stronger than ever, like Rolls-Royce.






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