Price reduction and then price increase? Lotus CEO says it will never take this path, luxury brands need to be cautious

According to news on July 19, Lotus Group CEO Feng Qingfeng made it clear in an article published last night that Lotus will resolutely not participate in price wars. He pointed out that the essence of a price war is to exchange price for sales volume and market share in the short term to solve the immediate crisis faced by enterprises. However, this approach often causes damage to the brand image. Some brands suffer product image damage due to drastic price cuts, and ultimately do not receive positive evaluation and reputation in the market.

1. When talking about some luxury brands announcing product price increases after announcing their withdrawal from price wars, Feng Qingfeng said that although this behavior is understandable from the perspective of business operations and profits, from the perspective of brand loyal fans From the perspective of customers, this approach is like "child's play", which not only damages their loyalty, but also causes serious damage to the brand image.

Feng Qingfeng emphasized that Lotus has been determined not to participate in price wars from the beginning, and this position has not changed to this day. He explained that Lotus's brand culture, brand genes and pure product experience all determine that it cannot trade price for sales.

It is understood that Feng Qingfeng has also expressed his views on price wars in many previous discussions. He believes that although price wars are common in the current Chinese automobile market, not all brands must compete through price cuts. For those car companies whose price management and brand reputation management are out of control, this will undoubtedly increase consumers’ anxiety and purchasing concerns. Lotus will stick to its brand positioning and win the market with high-quality products and services.

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