This past November, I represented the New Car Dealers Association (NCDA) of BC on a trade mission to China along with the province’s Premier Christie Clark, and spoke at the annual convention of the China Automobile Dealers Association (CADA).
We signed a Memorandum of Understanding with the CADA, who, with more than 6,300 members, is one of the largest new car dealers associations in the world. Last year, members of the CADA sold more than 24 million new vehicles and eight million used.
The aim of the memorandum was to share industry knowledge to strengthen the capabilities of both our organizations.
When developing ethnic advertising, it’s important to cater to that specific culture. Tapping into a community’s cultural values helps you tap into the market itself.
Together we looked at how we can help the emerging Chinese auto market deal with environmental and consumer issues, but also learned about best practices to serve the ever-growing number of Chinese vehicle buyers in our communities.
Our partnership with CADA continued this March when it sent delegates to the Vancouver International Auto Show held by our association. This auto show has always been a huge draw for Vancouver’s Chinese communities.
During the visit, we shared our expertise on issues ranging from green initiatives to emissions standards, but also gained insight on how to further target our own Asian demographic.
So what have we taken away from this partnership so far?
First of all, targeted marketing campaigns are essential. Ethnic advertising isn’t just a one-two-three translation process of current campaigns.
When developing ethnic advertising, it’s important to cater to that specific culture. Tapping into a community’s cultural values helps you tap into the market itself.
Different ethnicities also consume media in different ways. For example, while many Asians consumers use the Internet for news, Chinese businesses tend to emphasize print media, while South Asians prefer TV.
Luxury is key when targeting the Asian demographic. In China, buying a new vehicle — or even just getting your current vehicle fixed — is a high-class encounter.
The dealer service experience plays a crucial role in creating this luxury feel. Complaint handling, delivery and follow up all reach the highest standard.
Waiting rooms are spacious and comfortable, and the sales process is smooth, engaging, and informative. Some dealerships even feature massage chairs in their waiting areas.
Here in Canada, we have the untapped opportunity to adopt practices and products that give our own sales process a luxurious touch.
Representing more than 15 per cent of Canada’s population, people of Asian descent are our country’s fastest growing and biggest spending demographic. They represent a huge and relatively untapped auto market.
What’s more, data from global research firm IHS Automotive determined Asians were the most likely of all ethnic groups in North America to buy a new car, spend more on that car, and chose a luxury make.
A similar survey of new Canadians found that 66 per cent of ethnic consumers intended to buy a vehicle during their first year in the country.
On the West Coast, we’re working hard to tap into this potential.
As the Asian demographic continues to lead vehicle sales, partnerships like our work with the CADA, will be important in learning how to serve this segment of our population.
