Succeeding in Europe: How to Build Trust through Price

In this series, we focus on how OEMs, particularly Chinese electric vehicle manufacturers, can shape their brand image and build credibility in Europe. This article focuses on the biggest profit driver – price. When entering new markets, pricing should not be a mere afterthought. Rather, we explain why manufacturers should start with the customer perspective and work backwards.

As the number one profit driver, price is key for a company’s success. It brings companies the value they deserve for their products and services and secures the profits they need to invest in change and growth. Yet in our experience, this is often the lever which receives the least attention from companies.

When developing their pricing strategy, newcomers from emerging markets should keep their bigger purpose in mind: establishing their brand in Europe. This means price positioning needs to be in line…