Maserati vrooms into e-tailing sector

Online sales boost Italian luxury carmaker's confidence about business prospects with Chinese fans, chief says

It has become a trend for automakers to sell vehicles through e-commerce sites in China, the world's largest vehicle market and the second-largest for premium cars.

Maserati SpA, the Italian luxury carmaker, is no exception.

The Fiat Chrysler Automobiles NV subsidiary teamed up last month with Tmall, the online retail arm of Alibaba Group Holding Ltd, to sell its first sport utility vehicle online.

The response to the Levante was fast. Some 100 Levantes - each worth about 1 million yuan ($154,400; 133,850 euros) - were snapped up in just 18 seconds, says Harald Wester, chief executive officer of Maserati.

The sales have boosted Wester's confidence about the brand's prospects in China, where the Levante is expected to formally debut this summer.

Wester recently spoke to China Daily about his vision for the Chinese luxury vehicle market. The following are edited excerpts from the interview:

Q: Maserati opened an online store on Tmall. Have you ever tried to work with e-commerce companies in other markets?

A: This is a trend I personally believe will be set in China due to the average age of people. We were not the first. All major companies are selling cars on Tmall. It is a channel.

We chose a way we call "internet plus human". We don't want to take business from our dealers. We just want to help them reach customers who are unable to reach them.

Fifty of the 100 cars were sold in cities where we do not have dealers, and 30 percent were sold through mobile phones.

The customers paid through Alipay and then chose a dealer who contacted them to sign the contracts. The cooperation with Alibaba is the first. We met with them last night, and they were very happy with what was going on.

What is China's ranking in your global business?

This is our second-biggest market. The No 1 market is still the United States. There are also some smaller markets - Italy, South Korea, Japan, the United Kingdom, and so on.

How do you evaluate the ultra-premium vehicle market in China?

We only know our sales. It looks like the market has stabilized. I believe our strategy is not influenced. First of all, officially it is called the new normal. Nobody any longer can expect growth every year of 12 or 15 percent. The growth will be 6 or 7 percent, something in that range.

Second, referring to our objectives both globally and in this market, we are less dependent on significant growth of the market than mass-market brands or people who are selling millions of cars in the country.

What is your competitive edge in China?

Our advantage is the Maserati brand. It's made in Italy. The car's design, heritage and craftsmanship all make a big difference.

Would you share your sales target and its trend?

For sure, it's going to be significant growth compared with last year. For next year, the number will be more than 10,000 just for the SUV. The trend is extremely positive. When we compare our numbers for the first quarter of 2016 with those in 2015, we feel quite positive and confident.

How many cars did you sell in China last year? What do you think drives the growth?

The 2015 total volume was 8,600. The economy was slowing. We used the opportunity to reinforce our dealer network and to improve preparations because a new SUV was coming and the local operations needed to be strengthened.

Who are your typical Chinese customers?

They are young, very passionate. Talking about the Ghibli sedan, I think the average age is 30, and approximately 40 percent of our customers are female. The numbers for the Quattroporte sports sedan are not far from this. The average age is a little bit higher at about 33 or 34 and still with a significant percentage of women.

The average mileage of a Chinese car compared with a European counterpart is much higher. This is usually because of the way the car is used. The customers here use it for business and they also like showing it off. It is not like a toy, it is more like a suit.

What are your typical customers in Europe and the US like?

Totally different. Typical customers in the old markets like Western Europe, the US and Canada are male, over 55, which accounts for more than 80 percent.

What causes such a huge difference?

The structure of society. The majority of our Chinese customers are hardworking entrepreneurs. Despite working hard, they have a very distinctive approach to many things. They are individuals with a strong taste and a clear opinion. They prefer to buy a tailor-made suit instead of wearing a uniform.

What are the challenges and opportunities in the Chinese market?

The competition is fierce all over the globe. We do not want to, and we will not, participate in the race over volume for various reasons. More and more customers consider Maserati as an alternative among premium brands. I think we will see more reactions from them.

I think the biggest commercial opportunity that Maserati has ever created is Levante. If you look globally to the luxury car market, there are slightly more than 1 million units, of which over 50 percent are SUVs. The gravity of the sales region includes China, Singapore, Japan and South Korea.

What is an effective leadership strategy, especially when engaging in business in China?

The most important point is to create a great team. You do not lead by micromanagement but by shared objectives and tasks.

You have to listen, you have to consider that the world is evolving very quickly, and you need to be sufficiently open-minded to understand and to accept that things here are totally different.

So how do you work with an international team?

Through a core team that I can work with. This is something I have changed. I firmly believe it's good to have a mix of people. By far, it's dominated by local people.

Which cars do you drive?

I drive based on my job. Maserati, Alfa Romeo and others. If you don't know your competition, you don't know what you are doing.

Wang Lanxin contributed to this story.

duxiaoying1@chinadaily.com.cn

(China Daily Africa Weekly 05/06/2016 page31)