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BMW China chief to retire after sales boom
By Lu Nengneng |
January 23, 2013, Wednesday
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Print Edition
Print Edition
AFTER overseeing a 20-fold increase in sales for BMW China since he was named chief of China operations in 2004, Christoph Stark will retire in the first quarter. Stark, 58, is credited with bringing his management skills and fluency in Mandarin to bear in BMW's leading position in the Chinese auto market.
In probably his last interview before retirement, the German native and history buff took a philosophical view of his tenure and the future of the company in the world's largest auto market.
"We are all part of an once-in-a-lifetime story," Stark said. "We didn't make this story. We just took the opportunity, and the story was done by the market."
He is not the only executive of BMW China to leave his post. This month, Lu Yi, vice president of BMW China Automotive Trading Ltd, and Daniel Kirchert, senior vice president of sales and marketing at BMW Brilliance Automotive Ltd, announced their resignations. Stark said there is nothing to be read into the changes as management shake-ups are normal in every industry.
No single person can take credit for making things happen, he said, and one must always "remain humble in the face of success."
One of the most important ideas Stark pushed through was to extend the wheelbase of the BMW 5 series to cater to the Chinese preference for spacious cars in 2006. It was the first time BMW ever modified a product for a single market, even at the risks of endangering the car's sportiness. In retrospect, Stark said, it was not only a successful strategy but also a significant symbol of the company's commitment to localization. After that, the BMW 3 series was extended for the China market without much debate.
Today, China is one of the biggest markets for BMW in terms of sales. This nation's specific preferences for space, comfort and in-car entertainment are deeply influencing development of BMW cars.
"In the future, you will see the 7 and 5 series significantly influenced by Chinese consumers," who are the biggest buyers of these cars, said Stark.
Market adaptation
The process of market adaptation is more painful when it comes to communications. It took BMW five years to decide upon "Bao Ma Zhi Yue" as the Chinese version of its marketing theme "JOY of BMW" in 2010.
"Twice we came up with ideas that didn't convince us," said Stark, adding that marketing campaigns "are not just about the money you invest, but also about the concept, which should be genuine and credible." Having recently delivered its millionth vehicle in China since 2003, BMW now is the second-largest premium brand in China after Audi. The company is poised to sell another 1 million cars in the next three years, said Stark back in November.
That's an ambitious target in an auto market where demand has cooled and dealership price wars are escalating.
Still, Stark said he remains optimistic. The upscale segment of the market will continue to outpace China's GDP growth and may well even improve this year, if the economy remains stable or even picks up a bit, he said.
And, he added, there are always ways carmakers can improve their products, customer relations and sales networks, no matter how things are going.
Last year, BMW China opened its first dealerships built with eco-friendly materials. It raised the standard for car dealerships across the country by adding "sustainability" to the traditional 4S dealership concept of sales, surveys, spare parts and service.
"What is unique today may become something quite average the next," Stark said. "A company that thinks itself as a leading brand should always push the frontier a little bit further."
In probably his last interview before retirement, the German native and history buff took a philosophical view of his tenure and the future of the company in the world's largest auto market.
"We are all part of an once-in-a-lifetime story," Stark said. "We didn't make this story. We just took the opportunity, and the story was done by the market."
He is not the only executive of BMW China to leave his post. This month, Lu Yi, vice president of BMW China Automotive Trading Ltd, and Daniel Kirchert, senior vice president of sales and marketing at BMW Brilliance Automotive Ltd, announced their resignations. Stark said there is nothing to be read into the changes as management shake-ups are normal in every industry.
No single person can take credit for making things happen, he said, and one must always "remain humble in the face of success."
One of the most important ideas Stark pushed through was to extend the wheelbase of the BMW 5 series to cater to the Chinese preference for spacious cars in 2006. It was the first time BMW ever modified a product for a single market, even at the risks of endangering the car's sportiness. In retrospect, Stark said, it was not only a successful strategy but also a significant symbol of the company's commitment to localization. After that, the BMW 3 series was extended for the China market without much debate.
Today, China is one of the biggest markets for BMW in terms of sales. This nation's specific preferences for space, comfort and in-car entertainment are deeply influencing development of BMW cars.
"In the future, you will see the 7 and 5 series significantly influenced by Chinese consumers," who are the biggest buyers of these cars, said Stark.
Market adaptation
The process of market adaptation is more painful when it comes to communications. It took BMW five years to decide upon "Bao Ma Zhi Yue" as the Chinese version of its marketing theme "JOY of BMW" in 2010.
"Twice we came up with ideas that didn't convince us," said Stark, adding that marketing campaigns "are not just about the money you invest, but also about the concept, which should be genuine and credible." Having recently delivered its millionth vehicle in China since 2003, BMW now is the second-largest premium brand in China after Audi. The company is poised to sell another 1 million cars in the next three years, said Stark back in November.
That's an ambitious target in an auto market where demand has cooled and dealership price wars are escalating.
Still, Stark said he remains optimistic. The upscale segment of the market will continue to outpace China's GDP growth and may well even improve this year, if the economy remains stable or even picks up a bit, he said.
And, he added, there are always ways carmakers can improve their products, customer relations and sales networks, no matter how things are going.
Last year, BMW China opened its first dealerships built with eco-friendly materials. It raised the standard for car dealerships across the country by adding "sustainability" to the traditional 4S dealership concept of sales, surveys, spare parts and service.
"What is unique today may become something quite average the next," Stark said. "A company that thinks itself as a leading brand should always push the frontier a little bit further."
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