Blueprint for premium quality

From the time it arrived in China 18 years ago, BMW showed a dedication to high standards and a craftsman's commitment to quality - hard work that paid dividends as sales continued to hit new highs.

It again put in a stellar performance in the first three months of this year when it sold over 800,000 cars, a new record as China outperformed the US for the first time to become its biggest market globally in the period.

BMW's China head Christoph Stark isn't hiding his happiness with the latest numbers. As overall passenger vehicles sales in the first quarter declined 1.25 percent from a year earlier, combined deliveries of BMW's namesake and MINI brand cars surged 37 percent.

Stark took the position as president and CEO of BMW Group Region China in 2004, a year when the company moved some 16,000 vehicles in the nation - about half the number it delivered in March alone this year. The automaker's sales in 2011 surpassed 230,000 units, a 14-fold increase compared to seven years ago.

"We always try to think big but you can never think big enough here," Stark said in a recent interview at Capital Mansion, one of the tallest buildings in Beijing.

But while thinking big, "never become arrogant" and "never think you know everything," the prudent CEO added.

In the eyes of Stark, BMW's success story in China was not a matter of luck. "If you want to achieve business goals, there's no way to cut corners," he said. "There's no shortcut to a strong brand and no shortcut to lasting success."

He said the company's down-to-earth efforts to improve local production along with its dealer network, after-sales services and marketing led to the brand's success in China.

Four years ago, BMW was the first luxury carmaker in China to apply a unified standard for maintenance charges across the country, a move designed to build trust between the brand and the buyers. The company also offers "fast lane services" to reduce waiting time at repair shops.

Benchmarks in marketing

Its various driving training courses, and other noted experiences like the BMW Destination X Tour and the BMW Mission 3, are regarded by customers and industry insiders as benchmarks in successful experiential marketing.

"When the market matures, the key, on top of what you need to do previously, is customer relationship management," Stark said.

"This is the key to have more loyal customers - this is also part of quality."

BMW just opened its 300th dealership in China last month. While building a solid relationship with dealer partners and helping them expand, BMW has not compromised on quality, but rather consistently raised the bar on dealership standards.

The carmaker now has several training facilities in China and is about to open more. Every BMW dealer employee in China received six days of training last year, a leading number in the industry, according to the company.

The primary issues for Stark are not whether BMW can become No 1 in luxury car sales in China or if the country remains its largest market worldwide. Instead, the most important thing for him is to always put quality first and to win with what he called "substance."

"We try to really lead the market with innovations and new things that are backed up by substance. We compete with substance."

New possibilities

Since China switched from a planned to a market economy only three decades ago, "it gives a lot of new chances, creates a lot of new possibilities, and we try to capture some of them", Stark said. "In many areas we try to expand traditional ways of doing business."

To bring an unprecedented product is an example, according to Stark. When BMW first imported entry-level premium vehicles like the 1 Series and X1 to China, people doubted whether there was enough demand, but the models were well received.

Another example about the company's innovation is the first 5S dealership that BMW will open soon in Beijing. The automaker plans to build more such dealerships in China, which meet standards for sustainability through contributions to the environment and dealership communities.

In other aspects like brand marketing and corporate social responsibility, the company also blazed new trails that surprised the industry.

"This is the exciting part of doing business - that you can really do and create a lot of new things," Stark said.

Stark is optimistic about the outlook for China's premium car market this year. The prospect for BMW is even brighter as it has two important new locally made products, the X1 just launched in March, and the latest-generation 3 Series that will roll out near the end of the year. But as usual, the CEO declined to forecast sales figures.

At the interview room 180 meters above the ground with a clear view of the capital city and the mountains to the west through a giant window, reporters remarked about a link between the height and a new record for BMW in China.

Stark replied that it was just a coincidence, but then in Chinese named some taller buildings in Beijing that could be used for interviews when the company scales even greater heights.