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What is shown in the column chart above indicates that dramatic changes have taken place in the market shares of certain brands in the domestic car market from 2008 to 2009. During that period,There was a marked jump of 8% from 25% to 33% in market shares of Chinese brands, while that of Japanese brands declined significantly, by 10% from 35% to 25%. At the same time, the percentage of American brands remained steady.
There are at least two fundamental causes accounting for these changes. On the one hand, advancements in science and technology have offered a technical foundation for the rapid development of the Chinese automobile industry by providing a material basis and technical means. Meanwhile, it’s not difficult to notice that these days national automobile companies in mounting numbers have turned to price promotions to boost scales. On the other hand, the dishonest words and behaviors of Japanese automobile corporations such as Toyota in recent years have cheapened their image and finally ruined their reputation.
To sum up, brands are intangible treasure. They amount to a product’s or a company’s reputation. Obviously, if the Chinese automobile industry wants to make continuous profits, what it needs is to try promotions that will reinforce Chinese brands’ images.