Lexus Brand Finally Launching In Japan

[Chiba]

You guys are undoubtedly already aware of this, but the Lexus brand will finally roll out in Japan at the end of this month. I really don't know if they can succeed with this, although I'm sure they must have spent a packet on market research. They're basically pitching Lexus ownership as a complete experience, they call it "total care"; kind of like an exclusive club rather than simply buying a car. The biggest concern is price - they've moved into BMW/Benz territory, which are serious status symbols in Japan. Can it work?

Check out the new website. Most of it's in Japanese, but there's enough English there to navigate. I've already tracked down my nearest showroom and will be down there for a look around as soon as they open. If they let me take photos, I'll post them. I will also, of course, be asking for a test drive.

[terdancam]

its going to be extremely interesting to watch given that the brand started waaaaaaaaaaay back in 1989!

Our Japanese brothers have a distinct liking for the "imported" european status brands such as BMW/Mercs given the amount of domestically made and owned cars---a complete revearsal to the market over here!!!!!!!!!!!!!!!!!!!

The trouble with the Lexus is that they are apparently going against the initial design philosophy and origin of the brand which is what ensured their original success. Now they are reasoning that the brand now has inherent value and can therefore stand up against the Germans on image and kudos.

Personally i think this would be a huge mistake, but car margins are not what they once were, for example VW makes a loss on every VW car sold, and there is now a huge range of choice from the once relatively exclusive premium brands.

If they want to realistically take on the perceived added value of the Germans they are going to have to make the Lexus universally desirable.

For europe that would possibly mean more of a range, to compete with the 60+varinats of just the BMW 3 series(!), but also adding a MPV, as Merc have done. They would also need to massively increase the racing profile of their range.

In Japan they have got to get the brand an iconic status, possibly cashing in on the Gangsta rap references, but they are going to have a tough fight given the "exclusivity" of the prestige brands. In making a car more expensive. just to cash in on the "image" is a mistake that BMW/Merc originally made in the US when a small upstart called Lexus arrived on those shores............and look what happened there........they`ve only just recovered!

I don`t know, I`m just not convinced they have a clear strong strategy for a global assault--i still think they`re going to be a niche brand unless they really get serious about marketing and range.

BY the way, if any Of Lexus (!)are reading this, i have a strategic plan that is available and my consulting fees are reasonable---alternatively now that i`m not far off completing my mba, i will be looking for a job soon...............

IS350 twin turbo LRD (lexus racing division) here i come............. :D :D :D

[Kazi]

Given Toyotas global grip on the car market, I don't think they will take no for an answer and it looks like they haven't rushed into this.

One point they should consider is not placing the showrooms next/combine Toyota showrooms.

Trying to distinguish Lexus as a premium brand will be difficult as it is over there. But you can't apply the same marketing strategy in one market and apply it in another because cultures and tastes vary so much.

Guess time will tell how successful they are. Good luck to Lexus.

[aido]

I guess the hardest thing they've got to do is work against people's perceptions that they are now expected to pay more for the same car just with a different badge!

Fingers crossed it doesn't bite them!

[Kazi]

I guess the hardest thing they've got to do is work against people's perceptions that they are now expected to pay more for the same car just with a different badge!

Fingers crossed it doesn't bite them!

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Very good point. Not sure how they are going to up their game. They need to offer that little bit extra than the BMWs and Mercs which has proven to be a big upper hand they ahve over their two rivals. Heavy marketing is just the start of it.