Jumat, 28 Januari 2011

Quality at affordable price

Perhaps, none of person who work in European car manufacture ever realize that some day cheap Japanese car can crush their market share in luxury premium class sedan. But instead of worrying their rival from Japan, most people who work in European car manufacture still think that most luxury market belongs to them.


Until someday, when Toyota launched Lexus for the first time, and Nissan released Infinity to global market and Honda start with Acura, then everything change and turn European car manufacture market from majority into common and some even into minority player.


The success behind those Japan car manufacture is not about how good they are, but it's all about reliability at affordable price, good enough but still can save some money in your pocket.


It is the same condition now with Korean manufacture. In the past, most Asian country still think Korean car manufacture is nothing except problem. But these day, manufacture from Hyundai and others can prove with some new model that slowly but sure change that image.


Even in the electronic industries, most of Korean company already a big problem for Japan electronic manufacture like Sony, Pioneer, Panasonic and others.


Slowly but sure, some Japan electronic manufacture have use some parts from Korean company. Even company like Samsung has conquer some Japan model, like LED Samsung C9000 has been a serious threat for Sony Bravia NX series.


This is something that 10 years ago none of us will believe that it would be happen someday.


But if you think that is enough, then you are wrong. Now even China company already start their revolution in high end industry. From stealth jet fighter that use some parts from Russia, to electronic industry like Changhong. Yes, Changhong, even I laugh when first time my friend said that brand.


In reality, Changhong did the same path like first time LG do. Both of them, for the first time, play in low class segment, but day by day, they start to improve their skill, their knowledge and even their vision.


My lecture in management school ever asked, "what is the difference between USA company and Japan company?". The Japan and most Asia company, they change step by step, doing some evolution not revolution.


It is the same situation that actually apply in our country. Do you know Toyota - Kijang? Have you ever know, that before it evolute into Toyota - Innova, it was a trial project using some unused engine parts from Toyota? I even surprised that the old Toyota Kijang from first generation that once used by my neighbor was a project car. But imagine how far that evolution has become from trial-error project into fly by wire MPV?


Yes, these day the new Innova use fly by wire technology in their gas throttle like many modern car these day. It is something that even the first team who build Kijang never dream of. And because of that, many driver still do wrong how to drive their car in correct way, instead of push the gas pedal slowly, they still do in hard way like it was in old days, and they complaining about how fast the fuel drop, that actually happen because their bad driving skill.


Now the lesson that we can learn from this story are:

  1. Major people in the end still look for price, even in luxury market, if there is a goods/services that can give pleasure and satisfy them both in quality and affordable price, consumer will do pick up that thing.
  2. Industry need to do evolution, if not, they will lag behind or die in market competition.
  3. To stay in very niche luxury / premium market, you cannot stand only with quality, but have to use many things, from prestige and exclusivity, lifestyle, community (like most brand name use this day), and later, fanatism. Because in the end, only fanatism can bend your logic :)


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