Chinese-made bus on the streets of Manila, Philippines.
Posted on 02/03/2007 1:47:58 PM PST by jonassen
Chinese-made bus on the streets of Manila, Philippines.
Bus export offensive
I am referring to China ’s juggernaut that has claimed for itself a substantial space on the most visible place possible—our major roads and highways. This is China’s bus export offensive into the country, which in a period of less than five years has made inroads so impressive that experts say it is all set to dominate the Philippine market in a decade or less. Two conditions though for this to happen: its Japanese and European competitors fail to carry out dramatic moves. And South Korea does not do something to wipe out the “lemon tag” of the few buses it has sold here.
China’s bus juggernaut is all the more impressive because it came with no ad, no test-drives, no media rounds, not a single PR item. The literature that comes with the buses is even crude by First-World standards. Their sales and marketing people are mostly engineers, rough on the edges, totally ungifted with marketing savvy. The trade publications on transport and motoring are not even aware of the silent conquest. But on our roads and highways, you know every well that China’s buses have gotten a double-digit share of the local market.
“We started five years ago with zero share. The following year, we got five per cent of the market and ten on the third year. We had 15 per cent on the fourth year and we have a bigger share now.” This assessment came from the guy who has sold the most number of China buses locally and this guy tends to understate things.
Impressive aesthetics
Why do China buses sell? First is what most Filipinos fall for—looks. China buses have capitalized on impressive aesthetics, which is an across-the-board consideration of all Filipino vehicle buyers, whether transport operators or luxury vehicle purchasers. What drove SUV buyers to buy the earlier Pajeros despite their niggardly horsepower and the recent Fortuners despite their tough ride was the same reason why the China buses are selling: they are physically attractive and imposing.
They go by funny names—King Long and Golden Dragon—but no one can make fun of the looks. (By the way, King Long is the Chinese translation of Golden Dragon, and this is perhaps the only story in marketing where same-name brands are tough competitors.) The best and priciest Japanese and European buses in the local market look staid beside the China buses. The minimalist design which has been the rule in local body-building for buses for decades has been radically altered by the China buses, with their sharp lines and flashy look. And glossy paint.
P1-million-P2.5-million cheaper
Second, the price factor. Japanese and European buses are priced between P1 million to P2.5 million higher than the China buses. If a bus operator buys 10 units, at least P10 million is saved.
The Japanese and European buses are more powerful with bigger engine displacement and pulling power. But there is a speed limit at the expressways and it would be near-crazy to go top-speed in the pot-holed and antiquated roads and highways. A small edge in power does not really make a difference.
In the late 1980s, the last leg of then-President Aquino’s bus modernization program, the China buses that were exported to us were so crude that they seemed to be running on coal, not gasoline, and they looked and rode like rolling coffins. The buses were later sold to scrap dealers and the bus industry said then that Chinese buses were destined to adorn a place in the scrap heap of history.
After a decade, Chinese buses are a flashy, imposing presence on our highways and the last laugh, if the competitors don’t wake up, could be theirs.
P1Million is roughly equal to $20,000 ; this is the real reason that the buses are selling.
Manila traffic jams make getting out of the Holland Tunnel at 5PM Friday look like a walk in the park. So being able to go fast is not a requirement. Since everyone is going about the same speed, a more powerful engine doesn't buy you much. But $20K USD in the pocket is a big deal, especially in a country where taxes are for the most part, considered optional.
Interesting that America no longer deserves mention alongside Japan and Europe in this industry...
This is what happens when you overly glorify actors and the film industry (not only the Philippines; this goes for India.... and the United States, too).
Could be a design-patent infringement issue.
Well they look nothing like the buses the Chicago Transit Authority uses.
We all know that is true. What do you expect they are communist?
uh.......mmkk
Since when did design patents patented in one country apply to another country?
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