Top 10 Actions Genesis Must Take To Challenge Mercedes-Benz

The rise of Genesis in the high-end car industry has been truly remarkable, and the corporation is determined to match the finest. Not long ago, Genesis vehicles still bore Hyundai emblems, but now the company boasts a complete range of cars that provide exceptional value and opulence for the cost, slowly but surely gaining the loyalty of customers for it. However, when comparing the brand to its European counterparts, there’s often a sense of disregard for the South Korean label, a perception that Genesis is striving hard to overcome.

We believe that Genesis’s roots do not hinder the brand – a notion often debated among enthusiasts – but rather that it hasn’t made significant progress in crucial areas to be on par with others. Therefore, we have gathered our recommendations on what the brand must accomplish to be viewed at the same level as a corporation like Mercedes-Benz. Let’s outline 10 key aspects that the company must address to compete globally with the best. These objectives are not ranked in any particular order, but we consider some more critical than others.

1 Effective Marketing And Brand Positioning

In a recent press statement, Chul Min Lee, Genesis’s Brand Experience Officer, highlighted that the company gauges its accomplishments in two spheres. Firstly, is the brand top-of-mind when someone thinks about buying a deluxe vehicle, and secondly, does the media discuss the brand in the same echelon as the established luxury labels? One aspect is simpler to assess than the other, as we are now discussing Genesis in the same breath as Mercedes-Benz, but the latter holds greater significance for its overall brand. This underscores the requirement for the company to ensure that its marketing strategies and brand messaging convey a cohesive image of opulence and elegance without merely mimicking the strategies of its competitors.

Being the inaugural South Korean luxury automobile brand to attain recognition globally, the enterprise cannot afford to shy away from taking gambles. It must present consumers with something unattainable elsewhere, and the advertising of the brand must communicate this distinctive aspect. What distinguishes a Korean luxury brand from its German, American, and Japanese adversaries, and why should it captivate us? Although the enterprise has excelled in branding thus far due to campaigns like “Luxe Is In The Details,” it necessitates advancing these concepts even further.

2 Establish Firm Partnerships And Collaborations

Collaborations hold significant importance for automakers as they not only broaden the appeal of the company but also expose the brand to potential customers who may not have previously contemplated it. Mercedes has carved a niche for itself by teaming up with sports teams, organizing exclusive ventures, and thrusting the brand to the forefront of motorsports, nurturing a unique and highly regarded image globally. Genesis presently endeavours to replicate this strategy, yet we believe that mimicking the exact partnerships of others could be a misstep.

While it is crucial to expose your luxury brand to affluent potential buyers, you should also avoid pigeonholing yourself with solely an older, wealthy demographic as Cadillac did for an extended period. Brand alliances with celebrities or social media influencers serve as a crucial method to introduce your company to a younger audience and establish a generational bond with buyers, complementing the ongoing partnerships the company has with Vogue and events like the Toronto Film Festival seamlessly.

3 Enhanced Emphasis On Excellence And Artistry

As previously mentioned, Genesis delivers exceptional opulence for the price point, yet this should not be the sole target for the company. The primary aim is to provide unparalleled luxury without compromise, an area where its current vehicle lineup is not entirely complete. Our evaluations of new models like the G90 and more recently, the GV80 Coupe, highlight the indulgent comfort immediately upon entry. The use of lavish leather and premium finishes, including genuine wood accents, create a luxurious ambiance. However, when competing with elite models like the S-Class, expectations naturally rise. There’s merit in crafting ultra-luxurious offerings with corresponding price tags; at times, the higher cost enhances perceived value. We are confident that Genesis will excel in this aspect over time. Challenging long-standing contenders after only a few years indicates a successful strategy.

4 Enhance And Extend The Product Range

Genesis has made remarkable progress in expanding its product portfolio swiftly. Presently, the company boasts nine variants, including electric editions of the GV70 SUV and G80 sedan.

With a lineup encompassing a broad range of segments, from midsize to full-size luxury sedans and SUVs, and three electric models, including the bespoke EV platform-adapted GV60, Genesis offers comprehensive choice to consumers.

Genesis has achieved near-comprehensive coverage in its range, except for a sports car/coupe and a flagship model. From a luxury brand standpoint, the latter is crucial in demonstrating the brand’s full potential, a role exemplified by the impact of the AMG ONE for Mercedes. We anticipate the introduction of these models eagerly.

Genesis X Concept set to be produced, as it signifies a remarkable achievement for the brand, and the cutting-edge technology is expected to gradually extend to lower-end models in the years ahead. This is closely related to the following point.

5 Enlarge Performance Division

Apart from filling out the lineup, the corporation requires its own high-performance subsidiary to challenge the renown of Mercedes-AMG and BMW M. Luckily, the firm is already taking steps in that direction with the Magma label, which it describes as “the extension of Genesis.” The rationale behind choosing the Magma name and color is to embody “the confident and fervent spirit of Korea,” resonating power and admiration. The initial model to debut is the GV60 Magma, which is anticipated to closely follow its corporate relative, the Hyundai Ioniq 5 N; however, we anticipate additional surprises from the GV60. Could the Magma brand eventually compete head-to-head with titans like AMG or BMW M? Only time will tell, albeit it’s still early days.

6 Allocate Resources to Innovation And Technology

Whether it’s safety features, Diesel motor technology, or all-wheel drive systems, Mercedes-Benz has continually remained at the forefront of innovation in the automotive sector throughout its history. This has established it as a pioneer, a trendsetter that brings a sense of authority and prestige to the brand symbolized by its iconic silver star. Genesis must aspire to reach similar heights and go beyond if it aims for potential customers to look at the Genesis emblem in the future with the same reverence.

Topping the J.D. Power 2023 U.S. Tech Experience Index Study, the company holds the highest ranking, signifying that customers perceive it as pushing the boundaries of technology further than its competitors. The company is also delving into remarkable hybrid technologies that are expected to provide a competitive advantage.

7 Cultivate a Worldwide Network And Reach

Genesis strategically launched its products, commencing sales in its origin, South Korea, then expanding to the United States a year later, followed by the Middle East, and reaching Europe in 2021. Presently, Genesis markets its cars in approximately 17 countries worldwide, a commendable beginning, yet not on par with the global penetration of Mercedes. Mercedes, an industry giant, distributes vehicles in almost every part of the globe. Even if your locality lacks a designated dealership, a Mercedes is likely around the corner. The legacy of Mercedes spans far and wide, and though Genesis is not mirroring its blueprint, there’s still substantial ground to cover.

8 Elevate Customer Engagement

In alignment with the previous notion, expansion is crucial, but providing customers with a premium experience akin to established brands is equally vital. During Genesis’s debut, Hyundai integrated the new brand into existing Hyundai dealerships. This amalgamation was a necessary step for the nascent brand, but Genesis patrons were disconcerted to see their $80,000 sedan beside a Hyundai Elantra, and the service level did not meet the standards of a luxury dealership.

After years of diligent effort, the company has emancipated itself from Hyundai’s constraints, embarking on a crusade to establish its independent network of dealerships nationwide. The proliferation in their dealership count over the past year signifies the ever-expanding horizon ahead.

9 Embrace Sustainability and Electric Cars.

Despite adjusting slightly, Mercedes maintains its pledge to sustainability and electric cars. The brand intends to continuously enhance its already impressive EQE and EQS models in the coming years. Genesis, not lagging far behind, likely has an advantage in this field since its parent company, Hyundai, entered the EV market enthusiastically. While the GV60 benefits from the E-GMP platform, Genesis aims to develop its unique luxury EV platform for future models, distancing itself from mere adaptations.

Genesis plans to introduce innovative hybrid models that utilize the engine as a battery generator, offering a unique market proposition. The brand also incorporates sustainable materials into its vehicles, reinforcing its commitment to sustainability. Genesis is poised to emerge as a leader in this realm in the coming years.

10 Improve Brand Image

Genesis faces the crucial task of enhancing its brand perception. With Hyundai as its parent company, known for mainstream products, Genesis must forge its distinctive identity associated with luxury and sophistication. Although Hyundai’s quality perception is evolving, Genesis must establish an independent and upscale image apart from Hyundai’s ‘value-centric’ reputation.

Genesis should strive to be perceived as an aspirational brand that customers aspire to own, not just settle for it as a compromise. Instead of aiming for the Buick or Infiniti level, Genesis must set its sights higher, establishing a heritage that echoes in its forthcoming products. Given our observations, Genesis seems to be moving in the right direction.