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Brand Identity: Chery Marches into the Luxury Vehicle Market

This month Chery, a Chinese car manufacturer, launched a luxury vehicle brand called “Riich”. Chery said the Riich G6 would be on par with the Audi A6, the most popular business sedan in China, and will sell between $26,000 and $32,000.

(source: google)

According to the official website, the design concept behind the brand Riich is “engines and drivers”, representing freedom, control, and leadership. The pronunciation “Riich” is similar to “Rich”, and the logo closely resembles that of Bentley. It is obvious Chery aims to position Riich as a mid-to-high-end luxury vehicle.

Chery originally positioned itself as a low-cost auto brand. They are most famous for the cheap “QQ” series. The introduction of Riich into Chery’s product line represents their effort to enter higher end market segments, with Chinese officials as possible target customers. This represents a significant challenge- Chery is attempting to change its target market and brand identity all at once. So will high-end customers accept a luxury car offered by a “cheap” company?

To confront the challenge of launching a luxury car brand, Chery is trying to separate Riich from the rest of Chery’s vehicles, as is apparent from Riich’s separate website. In addition, Chery hopes to improve the overall impression of their company so as to minimize the distance between the current brand identity and the one required of a luxury vehicle manufacturer.

In the luxury car industry, cars are not sold only for their high quality, but status elements are also important. What lifestyle does Riich symbolize? What statement is a customer making by driving a Riich car? Chery has created a Riich club for car owners to create the impression of belonging to an elite group. But will they be proud to say “I own a Riich” or “I belong to the Riich club”? At the moment it seems unlikely. Even the fact that the Riich logo is so similar to Bentley detracts from its credibility as a brand. However, with effective branding strategy backed by market research it is possible Chery can successfully enter the luxury vehicle market.

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