Mercedes-Benz gears up to continue premium customer care in China

German carmaker Mercedes-Benz said it is cautiously optimistic about its performance in China in 2020, planning to offer more than 18 new models and more people-centric services to continue providing premium customer care in the country.

"We will strive to establish a new industry standard in premium customer care and to put the interests of our customers even more in the very center of everything that we do," said Jan Madeja, president and CEO of Beijing Mercedes-Benz Sales Service, in Beijing on Thursday.

"It is not an easy walk but we are firmly convinced that this is the right and the only direction to continue our sustainable development in China."

Current sentiment within the automotive industry is that companies are expected to continue to undergo various challenges, both globally and in China this year.

"But, challenges provide opportunities for the best. The DNA of our brand has always been to strive for the best and we will continue to work hard to fulfill this unwavering brand aspiration."

Madeja uttered these words to China Daily during the Mercedes-Benz New Year Media Reception, an occasion to recap on the previous year and look to the future. The company had a remarkable year in China even though a downward spiral had persisted for 18 months in the overall market and is expected to continue into this year. Total vehicle sales in the country fell 8.2 percent from 2018 to 25.77 million, according to statistics from the China Association of Automobile Manufacturers.

"The year 2019 was another challenging year for the automotive industry in China with various ups and downs," Madeja said. "But one thing remains unchanged: the Chinese premium automotive market remains our largest market worldwide and still provides enormous potential for the future."

Despite headwinds in the industry, the company delivered a total of 702,088 new vehicles under the Mercedes-Benz and smart brands in China, which has been its largest market since 2015, registering a growth of 4 percent from 2018. Its sales in China accounted for almost one-third of the global total of 2.46 million in the year.

Deliveries of Mercedes-Benz branded vehicles grew 6.2 percent year-on-year to 693,443 units in the same year.

By the end of 2019, the automaker had a customer base of more than 4 million in the Chinese market. With an average age of 35.8 years, it is their youngest and most dynamic customer group in the world.

The automaker's success is attributed to its evolving lineup and improved services. Madeja added that the company launched over 15 new or face-lifted models to the Chinese market in 2019. Among these were the all-new GLB SUV, which is the first 5+2 seater compact SUV in the premium segment, as well as the AMG A 35 L 4MATIC and the company's first battery electric car, the EQC SUV. Both vehicles are locally made at its Chinese joint venture with BAIC Group.

Together with its additional partner BYD, the company launched the all-new DENZA X to reach more customers in China.

Duan Jianjun, chief operating officer of sales and marketing at BMBS, said the company plans to introduce over 18 new models, including the new E-Class, the Maybach GLS and the all-new GLA, in 2020 for its Chinese customers.

"We strive to get close to our customers, putting ourselves in their shoes and being understanding," Duan said."We let them first become our friends before becoming our customers and ultimately, our fans to together discover 'the best' in our hearts."

Last year, Mercedes-Benz ramped up its efforts to highlight its customer-centric business philosophy in China by introducing a code of conduct with its dealers in May 2019.

The code of conduct laid out various standards for Mercedes-Benz sales and service staff for daily business activities, promising among other things to operate with integrity, and ensure that prices are transparent and that customers are always treated with respect.

Zhang Yan, senior executive vice-president at BMBS, said Mercedes-Benz became the first in the industry to implement a series of specific measures to protect consumers' interests, developing a model for sustainable development in the industry.

Meanwhile, the company has spent years optimizing pricing for accessories and services. The latest evidence came last year, with a new vehicle warranty policy and the world's first Mercedes-Benz pre-warranty. Under the latter, potential vehicle defects are detected in 36 dimensions to ensure that customer requirements are met.

With China at the forefront of innovation, customers in this market have some of the highest expectations for digitalization and connectivity in the world, the company said.

"From our O2O tire-replacement service that was rolled out nationwide in 2019, to the expansion of the advanced version of our Digital Order Status to cover about 60 cities in China, we pay close attention to our customers' demands," said Andreas Kleinkauf, executive vice-president of BMBS. In addition to efforts to strengthen products and services, Zhang said Mercedes-Benz is an active participant in social development, as it was in previous years.

He said the company has already invested more than 200 million yuan ($29 million) in corporate social responsibility projects across China.

Among others, it inked a partnership with the Dunhuang Mogao Grottoes in 2019, becoming the first international brand to partner with both these and Beijing's Palace Museum, showing its dedication to traditional Chinese culture and history.

Looking toward the future, Mercedes-Benz said it will further upgrade its brand positioning to become more people-oriented with the needs of its customers always in mind.

"We develop our business on long-term perspectives and targets, and the long-term perspectives for China remain very promising," Madeja said.