26.06.2017

Shanghai Auto Show: a symbol of the importance of the Chinese automobile market

In late April, Shanghai hosted the 17th Shanghai Auto Show, a huge automotive trade fair for trade visitors and other people interested in cars and taking place alternately in Beijing and Shanghai. A ticket only costs 50 RMB (about 7 Euros), so I didn’t want to miss the opportunity to attend. In the spring climate of Shanghai, this show with its exquisite booths, elaborate presentations and show events always gives me an uplifting feeling which is a good match for this blossoming season.

 

 

Source of photo: private

By the way, the Auto Show in Shanghai (https://www.autoshanghai.org/?lang=en) has become the biggest auto show in Asia and had some highlights to offer this year which underline the importance of the Chinese car market (sources: Chinese Wikipedia Baike: Automobile Shanghai and:

• Approx. 1,000 exhibitors from 18 countries
• 1,400 cars exhibited, 113 of them celebrating their world premiere
• 11,.000 journalists from 2035 Chinese and international media
• more than 1 million visitors in 10 days

For the countless people, especially Chinese, who are interested in the show, but cannot attend it themselves or want to be informed about absolutely everything that happens during the entire 10-day event, there is a huge online offering. Other impressive facts:

• Every day, 6,500 press releases were spread over online platforms
• 40 million clicks on live online videos were registered on the show’s website
• 600 million clicks on private videos spread over social media
• 2,000 online orders of cars during the fair (car dealers offer special discounts during the trade show)

Sources

Premium sports cars: public attraction and sales drivers

Since 1985, when the Auto Show took place for the first time, lots of things have changed for Chinese consumers when it comes to cars. Back then, Volkswagen presented its Santana, which proved to be the highlight of the show and subsequently became the most widespread international car model in China. Today, the most popular exhibition hall is “Hall 8.1” with exclusive models from Porsche, Aston-Martin, McLaren, Ferrari, Lamborghini, Bentley, Maserati, Rolls-Royce, etc. And it is especially sports cars which are particularly fascinating for the audience.

This is reflected in the sales figures of sporty car brands. Not only SUVs and big limousines are successful in China, but also sports cars. In their 2016 annual reviews, McLaren, Lamborghini and Porsche unanimously reported the “highest sales figures” since their Chinese market entry.

In the case of Porsche, China has replaced the USA as the market with the highest sales. In 2016, Porsche sold 12.5% more than in 2015. (source)

The tradition of the Chinese love for sports cars

The love for sporty cars has a certain tradition in China. In the early 90’s the first automobile clubs were founded, and the majority of members were owners of (international) sports cars from the beginning and also liked looking sporty in terms of their outfits and overall appearance. This is when the tradition of “motorized getaways” evolved: People drove to the countryside together to have fun with their cars. In 2007 sports car clubs virtually sprung up like mushrooms in China, first in the major metropolitan centers like Beijing, Shanghai and Chengdu. The biggest club is called SCC (Sports Car Club), was founded in 2009 in Beijing and has local branches in 23 other towns. To be a member of the SCC, one must drive a Porsche 911, or an equivalent car which is at least as expensive. Currently, the SCC has 1,700 members with a total of 1,900 registered cars.

Automobile sports clubs muscle-flexing of the “jeunesse dorée”

In times when the number of sports car clubs was increasing, the clubs were also criticized, especially in the context of accidents caused by drunk sports car drivers. These drivers were considered the typical representatives of the “second-generation rich” (in Chinese: “富二代”), that is, the Chinese u “jeunesse dorée” who benefit from their successful parents’ wealth and are seen as spoilt, egoistic and arrogant. Indeed, a few years ago, there were many incidents when these people raced through the cities at night, just for fun and regardless the consequences, or organized dangerous car races. And many Chinese assume that the members of the sports car clubs are precisely this kind of people, which is comprehensible in a society with increasing inequality and income gaps. Yet, most auto sports clubs are now organizing races on roads and streets closed for regular traffic, or on designated race tracks. A very large event takes place regularly on the formula 1 circuit in Shanghai.

 

 

Charity events to improve the image

In the last few years, automobile sports clubs have been organizing charity events and campaigns as well. For example, the SCC facilitated the reconstruction of an elementary school in 2013, after the earthquake in the Sichuan province, raising donations among its members. Members also traveled to the province of Sichuan and supported needy children. With these and many other similar activities, the clubs are successfully improving their image: The image of auto sports clubs in society has improved radically.

Besides, auto sports clubs are especially careful when choosing their members. Those who want to become members of the SCC today do not only have to own an appropriate car and are checked in terms of their financial situation, but also in terms of adequate social behavior. Besides recommendations from existing members, the clubs might even require the presentation of a police clearance certificate.

Auto sports clubs today: common hobby & networking

Nowadays, there are still some representatives of the “jeunesse dorée” among the members of automobile clubs, but the majority of members have worked hard for their wealth and can finally fulfil their dream of owning a sports car. The best example is the founder of the SCC, Mr. Fu Li. Being the son of poor farmers from the north-east of China, and he completed his school education with the help of a state scholarship. Otherwise he would have had to work on his parents’ farm early on. After finishing school, he made a career with movie and TV productions. Following a few years of great success, he dedicated himself to his passion: sports cars. He founded the SCC, which he also turned into a great commercial success. For its members, the SCC is an opportunity to pursue a common hobby with like-minded people and at the same time establish useful contacts with other business people. So far, the context for common leisure activities and networking in China had traditionally rather been the family. The fact that this is now happening in the automobile clubs instead of the family context, is the innovative aspect of these clubs. It will be exciting to observe in the coming years how these clubs develop and to what extent they can be a blueprint for other civil society organizations.

Photos: https://www.scc.cn/updates.html