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Drew Smith: design strategist, journalist and host of CreativeMornings/London

The relentless pursuit of premium and why it's a waste of time

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I read an interesting post the other day on the Orange Envelopes Blog about the importance of consistency, authenticity and history in the creation of premium brands.

When I think about John Heaney’s argument applied to the automotive industry, there’s fertile ground for ripping certain brands to shreds. The market is littered with the humourously devalued remains of cars that have tried to punch well above their weight (VW Phaeton anyone?) yet still product teams chase the top end of the market in the head-long rush for fatter margins.

The most recent budget upstart wanting their slice of the premium pie is Hyundai with the unbelievably priced Equus. The 70-odd thousand Euro saloon is designed to sit atop the Huyundai range and consolidate the company’s upmarket ambitions (remembering that Hyundai has the critically acclaimed Genesis sitting just beneath).

But we can’t talk about the Equus and Genesis without taking a brief wander through the other vehicles in Hyundai’s range.

From the i20 up there’s not a single model that would sell on an authentically premium message. The closest you get – and it’s a long way off – is the Grandeur. The only person that this baroque monstrosity will tempt out of their German exec is Reg, the mini-cab driver who’s looking to offload his 20 year old, 6 owner E-Class.

I’m not saying that brands can’t create a more high-value proposition by appealing to the market’s more sybaritic side, but there is a limit to how far you can go. For me the Equus is writing premium cheques that the Hyundai brand can’t cash.

Let’s not forget that this is the company that made it’s name on the back of the Pony, Excel and Accent. These were cars that majored on dirt-cheap, reliable and thoroughly uninspired transport for those that didn’t care about what they drove, as long as it got them where they were going. It’s hardly the basis on which to quickly build a premium car empire. Surely the long, bloody wars fought by Acura, Lexus and Inifniti should be warning enough as to how long and hard the road to luxury superstardom will be.

The frustrating thing for me, as a design strategist, is that Hyundai has produced some fabulous concepts over the years that were focussed on creating a unique, innovation-led image that was much more in tune with the brand’s Korean heritage. Call it creating the K-Factor if you will (you heard it here first…).

When you think of Korea and Korean products, you don’t think of traditional luxury, you think of the amazing array of exceptional, high-tech product design from companies like LG and Samsung. The Qarmaq, Helion and Veloster translated some of this Korean cool into automotive form and gave a taster of what the brand’s designers could achieve given the freedom. The Equus shows what happens when the board wants a new limo, to horrifying effect.

In looking back to Heaney’s argument, Hyundai has neither the history, consistency or authenticity to make the Equus work outside of Korea.

It’s funny to think that the Korean brand to watch over the next couple of years is Hyundai’s budget sidekick, Kia. By being left out of the premium party they are free to develop their own, unique product identity that’s true to it’s affordable, Korean roots. If they can keep the creative juices that lead to the Soul flowing, Kia could well emerge as the cheaper Volkswagen, offering high-value, design-led products at a price point that’s completely in tune with the brand’s history.

Would You Buy a $30,000 Timex? | Orange Envelopes | Small Business Strategy, Design Thinking, Marketing and Branding.

BMW Project-i: Paradigm shifting for rich folk

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Car magazine is carrying a story regarding the development of the Project-i vehicles, BMW’s oft talked about but as yet unseen foray into the future of urban transportation.

That BMW is putting it’s weight behind such a programme is laudable. As I’ve often remarked on these pages, a radical shift in thinking regarding how we move about our urban centres will be vital to the return to good health of the automotive industry. It’s just a little galling that BMW is sticking to the notion that these vehicles must be “premium”.

Dr. Ulrich Kranz, the leader of Project-i, even goes so far as to say “They will not be Tata Nano rivals – no way! We can and will only build premium cars”. Wanting to distance his project from any associations with the tiny tot from India is understandable, having seen just how rudimentary it is (Euro facelift notwithstanding), but to stick to the concept that BMW will “…only build premium cars” seems a little short sighted.

Car also cites Shanghai and Mexico City, among others, as targets for the vehicles. Last time I checked Mexico City and Shanghai were flush with the cheapest wheels available, Beetles and bicycles respectively. These are not markets ripe for the introduction of premium urban mobility. They just need urban mobility full stop.

It’s been regularly discussed in the motoring press over the past year or two, and I see fit to bring it up again here: BMW is sitting on the perfect brand for reaching down out of their ivory tower and providing intelligent mobility for the masses. It’s called Isetta.

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Sure, it may not be terribly well known by name outside of Europe and groupings of predominantly old men who worship at the alter of slow, smelly and insane microcars of the mid-20th century. But nobody knew of Lexus when it launched, and it has done a passable job of establishing a presence for itself, answering a question nobody asked.

Crucially, Isetta has the all-important story behind it: it produced highly efficient, intelligent cars that intended to mobilise the masses. And as I’ve mentioned previously, having a great story is half the battle in getting people to fall in love with a new product.

Story aside, if BMW managed to nail a suite of solutions to urban mobility, no body would give a damn what it was called and whether it was “premium” or not. Our predicament is far more serious than that.

You can counter that the big changes in technology always start at the top of the market and work their way down (I remember when my first iPod cost €400 and held 500 more songs than the Shuffle that launched this week for €75. The thought of using it as a tie-clip was also a non-starter…). I honestly feel, however, that should we not work towards far-ranging, cross-market changes to the car industry, our recovery is going to be even more painful and protracted than we’re currently predicting.

According to Kranz it will be 2015 before we see the first fruit of his Project-i labour. From where I stand, we have until 2015 to convince him to spread the love.

[Source: Car Magazine][Images: Wiki Commons]

Is it about China?

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I’ve spent most of the day thinking about my earlier post on the BMW 5 GT concept that broke cover overnight.

It’s occurred to me that, somewhat foolishly, I’ve been looking at the market positioning from an extremely Euro-centric position.

What if BMW is taking a similar tack that they took, perhaps inadvertently, with the previous generation 7 series?

A car that initially tanked in Europe on the basis of it’s looks , the old 7 went gangbusters in the Chinese market. It also signalled a shift in BMW’s understanding of it’s future market. This shift was confirmed by the launch of the Concept CS as the Shanghai motor show (as opposed to a show in their traditional European heartland) and the somewhat lesser known introduction of a LWB (long wheel base) 5 Series sedan exclusively for the Chinese market.

In 2006 I completed my Masters thesis in automotive design and although the main thrust of my research was something else, I spent a good deal of my time coming to understand Chinese taste in the premium car market. One of the characteristics of the emerging haute-bourgoisie is the desire to be driven (having seen traffic in Hong Kong, I can understand why). And with the desire to be driven, less focus is placed on BMWs old maxim of the “Ultimate Driving Machine” and instead we start looking at the Ultimate Driven Machine.

And in this respect, as the new press images from BMW show, the GT will indeed be ultimate in the traffic choked streets of Asia’s cities. Masses of rear leg-room and stupendous head room within a package that won’t be unwieldy in traffic (unlike a LWB 7 series). Indeed, looking at the pictures, I imagine you probably would have to go to that size vehicle to get similar rear-cabin room.

 The vehicle I designed back in ’06 aimed to recreate a limousine experience within 5 meters, reclining seats and all. The 5 GT is 4998mm long and provides the same rear cabin experience as a LWB 7 which is a full 212mm longer. Maybe I was on to something…

My doubts about the car’s success in the European market still stands, but if China is indeed the target, who cares about fighting the same old scrappy battle the German premiums always fight. BMW just jumped out of the ring and found a new playground.

Mazda Kiyora: The start of something big.

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There was a time when Mazda, like Honda, Nissan and Toyota, was a premium manufacturer. Their Eunos, Xedos and stillborn Amati brands were an attempt to crack the burgeoning premium market in the early 90′s. Sadly, unlike their Japanese counterparts (who have gone on to achieve moderate-to-stellar success with Acura, Infiniti and Lexus respectively), Mazda never quite made it work. Read the rest of this entry »

Lincoln comes through with the goods…kinda.

Today seems as good a day as any to start the little experiment that is DownsideUp. I can’t promise you much but here goes…

It seems only yesterday that the bosses of the Big Three made their separate ways to Washington to plead for more cash in that most inappropriate of vehicles, the company private jet. It seemed impossible that companies headed by these insensitive oafs could actually produce anything remotely relevant for the Detroit show.

Well, I’ve been proved wrong!

Today Lincoln launched the Concept C, a vaguely C-Segment-ish hatch with a Fiat Multipla-aping 3-abreast seating layout. Of course the technical details are nothing but pie-in-the-sky stuff as far as any potential production version is concerned but it’s the package that really excited me.

Here is an American manufacturer seemingly realising that part of the future lies in downsizing. People who would have traditionally purchased D or even E Segment cars will be looking to get into something more manageable and economically/environmentally responsible but they aren’t going to want to give up on the luxuries, or indeed the sense of space, they have come to enjoy. The Concept C delivers on this idea by having a wonderful sense of spaciousness within its compact dimensions and an interior style and elegance appropriate to a small premium player.

For me the exterior design theme is a take-it-or-leave-it affair that plays on well established Lincoln themes somewhat awkwardly adapted to a radically smaller proportion. As I’ve said, the treat for me here was not so much the detailed execution and more Lincoln’s relisation that it can do small and still retain its values. Now let’s just hope FoMoCo has the bollocks to produce it and the American buying public can see it as a viable alternative.

More info at: Autoblog

About DownSideUp Design

I'm Drew Smith and I'm a design strategist and journalist. By day I'm an Executive Partner at Truth (no joke). By night I sleep (mostly). And once a month, I host an event called CreativeMornings/London.

DownsideUpDesign is a place for me to collect stuff that I like, often love and sometimes hate for safe keeping. All views represented here are mine and mine alone and do not represent those of anyone else.

Get in touch at downsideupdesigner (at) me (dot) com or tweet me (@drewpasmith) to rant, contribute or collaborate!

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© Andrew Philip Artois Smith and DownsideUpDesign, 2009. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Andrew/Drew Smith and DownsideUpDesign with appropriate and specific direction to the original content.