Challenge:
A prominent Chinese automotive manufacturer sought to penetrate the German market, aiming to quickly build a robust distribution network and enhance brand visibility. However, the company faced significant obstacles, including a lack of local market knowledge, regulatory complexities, and a highly competitive landscape dominated by established European brands.
Objective:
The client needed a strategic solution that would allow them to effectively enter the German market, ensuring that their sales, marketing, and distribution efforts were aligned with local demands while adhering to Germany’s regulatory standards.
Approach:
Recognising that the German automotive market is distinct from other European markets, automodicted recommended the establishment of a National Sales Company (NSC) to act as the company’s local arm. This NSC would handle key operations such as sales, marketing, distribution, after-sales service, and compliance with local laws.
automodicted worked closely with the manufacturer to define the ideal structure for the NSC. This involved hiring local executives with in-depth knowledge of the German market, who were empowered to make quick decisions, while still ensuring that the headquarters retained oversight and control over strategic decisions.
automodicted’s team provided comprehensive support in identifying potential locations for the NSC, liaising with local regulatory bodies, and securing the necessary permits. The consultancy also assisted in developing a detailed market entry plan, including a phased roll-out of the NSC’s operations across the country.
Outcome:
The establishment of the NSC was a game-changer. Within the first six months of operation, the company’s sales increased by 15%, with a steady upward trajectory in brand recognition. By the end of the first year, the NSC had effectively laid the groundwork for future expansion, and the manufacturer had successfully integrated into the local market, overcoming initial barriers such as customer perception and logistical challenges.
The NSC model provided the manufacturer with a tailored approach to the German market, enabling them to make faster, more informed decisions while fostering closer relationships with dealerships and customers.
automodicted’s expertise in localising business strategies proved pivotal in paving the way for the company’s success in Germany.
