Thursday, November 28, 2013

Facebook's Advertising Innovations

Despite the fact the Facebook's stock price has grown over the past year, shareholders and investors were worried when Facebook officials told the public that they were not going to be able to "cram more ads into user's news feed." With Facebook's advertising-driven business model this posed a great threat on the shareholders. Another worry is the fact that reports have shown that teen are using Facebook less every time.
One way of offsetting the problem is putting forth better quality ads that are more suited according to each person. Another proposed method is introducing 30 second video ads that are said to generate almost 2 million per day.
This news regarding the lack of room for promoting more ads while it may seem as a worrying factor should come to no surprise. I generally have noticed that almost every other ad on Facebook is a sponsored news or an advertisement. It would be wise for Facebook to limit the amount of clutter in its site. I certainly agree that the way to continue to grow will be to provide better quality advertisements. In regards to the videos they must be of great appeal. Lastly, Facebook needs to become much more appealing and interactive since it is losing much of its market share to other competitors.

http://search.proquest.com.ezproxy.stthom.edu:2048/wallstreetjournal/docview/1447087057/14207BFCE4FEA9BD38/20?accountid=7115



Chinese and American Car preferences are similar

Car manufacturers have always struggled with creating models that fit into all parts of the world without major modifications. However, while the U.S. and Europe are the largest markets for the automobile industry, consumers from both of these geographic areas have different tastes. It has therefore been very difficult to introduce a car that appeals to all without drastic modifications done to the car.
With China as an emerging and prosperous economy, it has come to the surprise of car manufacturers that American and Chinese car tastes are similar. This in turn has enabled some U.S. car manufacturers to walk away from the challenge of a "one car model fits all" for U.S. and Europe, and instead apply that technique to U.S. and Chinese markets.
One such manufacturer is Lincoln who is planning on introducing the MKC in the coming months both to China as well as the U.S. markets. While Lincoln is mainly known for bulky luxury SUVs and sedans, the MKC is more of a compact vehicle. It seems to be a perfect combination for both markets and requires only minor modifications depending on the market.
I find that it is very innovative that car manufacturers are able to take advantage these trends and similar tastes. I think it would be a great option to move much of their efforts in creating brands that appeal to the Chinese market, instead of focusing so much on the European market. The European car industry while it is large, has seen a constant decline over the past years. I personally predict that the MKC will be a great success in China.

http://search.proquest.com.ezproxy.stthom.edu:2048/wallstreetjournal/docview/1450110111/142079BABA667553ABB/19?accountid=7115

TV Ads Slowdown in China

CCTV one of China's most powerful T.V. advertising companies shocked companies from all over the world as it failed to display its financial statements this past week. The company has thrived on T.V. advertisements for several years, but it seems as if the lack of openness comes from a not so successful year. Apparently companies are not using as much of their budgets on T.V. advertisings because less of the Chinese population is watching T.V.
Because of the easy access to the internet, a survey done locally by a research institute showed that many people watch t.v. only on weekends. Furthermore the survey also concluded that some people have changed and refrained completely from watching t.v.
I find that the change in consumer preference is due to the fact that there are so many devices such as smartphones and computers that have increased their popularity among the Chinese population. People are soon to realize that they can watch their favorite t.v. shows through the internet, or can have a more personal experience with websites such as YouTube that can tailor the videos to a person's specific preference. While the amount of t.v. viewers is still significant, as internet becomes more readily available, paying for cable television will be on the decline. It will be important for companies to start shifting their advertising money towards internet advertising as it is apparently the new trend in China.



http://search.proquest.com.ezproxy.stthom.edu:2048/wallstreetjournal/docview/1459954619/142074DCC253AC9625C/6?accountid=7115



    

Monday, November 25, 2013

Droid Sales Give Motorola a Boost




   Droid Sales Give Motorola a Boost


The new Motorola financial results are a good symptom because during the last years the American legendary brand of the communications was losing ground and dismembering due to its difficulties to compete against the advance of some European and Asian players.
 Moreover, "The only thing the iphone CURRENTLY has over the Droid is a bigger app store"

Both Android and iPhone platforms have pros and cons. If iPhone's only adv is app store, Verizon won't be paying only two-third of price compared to AT&T for iPhone as reported by WSJ 

Friday, November 22, 2013

Chinese estate investor and estate agency move their investment to western markets


Chinese estate investor and estate agency move their investment to western markets 


Last week, Shiyi Pan, the chairman of SOHO China, set up for selling three real estate they owned but haven`t been built in Shanghai, which is worth at least 500 million Chinese Yuan in total.

Chinese real estate markets growth at an unreasonable pace during the past 15 years. The average price for one square meter increases more than 20 times. So many estate agencies even profit by not developing the land they brought, instead just waiting for years and selling it again. They look like dealers rather than real estate developers. In such a good market, why one of the biggest real estate developers plan to exit Chinese market? In addition, the CEO of SOHO China just bought a residential building and 40% shares of an office building in Manhattan.

Someone says Shiyi Pan is following the myth person in Chinese investment industry, Jiacheng Li’s, the owner of Cheung Kong co., decision. Jiacheng Li’s begin to sell Chinese mainland real estate since August 2013. Since he is famous for investing over economic cycle, people tend to believe in his decision.

A Chinese real estate market is going to a really subtle period. After profiting such a high growth rate for more than 10 years, it has already taken so much social and economic problems into China. Everyone in China knows there are bubbles in Chinese real estate industry, but none of them know when will the bubbles broke, and what is the result. So investors begin to look for some more stable investment project. The U.S. economy is recovering from the ression. It has become the first choice of Chinese investors. 

Rivals Aim to Break German Hold on China Luxury-Car Market



The article in question is “Rivals Aim to Break German Hold on China Luxury-Car Market” which was published on November 2013. Its author – Colum Murphy – describes the current state of affairs of the leading automakers on the Chinese market. The thing is that Chinese consumers prefer to buy German cars from the companies like Audi, BMW and Daimler. In fact, those three companies hold 70% of the Chinese luxury-car market. However, in the recent years several less popular companies like General Motors and Tata Motors decided to take their share of that market. Experts say that a fierce competition is about to begin since Chinese market tends to grow even more in future. The only, but serious negative aspect about Chinese market is that it is greatly influenced by the government. The latter does not approve the desire of its people to spend excessive sums of money on luxury products for the sake of a mere show off. That is why all the car makers had to come up with a respond to the mentioned governmental policy and that is why Volvo company which now belongs to Chinese businessmen thinks that it will have the upper hand, because their products are not that “flashy” as their competitors propose.


This particular news is interesting for many reasons, but the most important one connected with the fact that I want to see whether Chinese government will remain “loyal” to the principles of market liberalization and whether it will forcefully exclude foreign businesses from its soil in order to support its own. The application of this article to other businesses is clear – it gives a hint concerning the future trends on the Chinese market in particular and on the global in general. Since China has one of the biggest and most promising economies in the world everything that relates to its national market inevitably affects the global economy, especially in a modern highly globalized and interdependent world.  

http://online.wsj.com/news/articles/SB10001424052702303755504579207922613280410?mod=WSJ_business_whatsNews

U.S. Demand Boosts Japan, Taiwan Exports


Japan and Taiwan have increased their exports because of a relatively high demand for their goods form the United States. This situation has boosted the status of their economies especially with regards to export trade. In October it was established that Japan’s export trade had increased by approximately 18.6% compared to the previous years and this has translated into continued economic growth in the country. On the other hand, Japan had its export growth increase by approximately 3.2% in October. When comparing domestic demand to foreign demand in Asia, the latter is higher. The implication of this is that the global market can present opportunities that are better than the local opportunities.
U.S. is in economic recovery and they have set robust fiscal and central-bank policies that pose a risk to global economic growth. In effect, this does not help the Asian economies because most American consumers are trying to reduce or eliminate their depts. However, this scenario is expected to be an opportunity for Japan to increase its exports. Therefore, this underscores the fact that economies should be strategic to maximize their sales especially when an opportunity presents itself.
Japan has majored in automobile manufacturing and exports. This indicates that their automobiles are very competitive, which is a crucial requirement for any commodity in the global market. On the other hand, Taiwan, which is a major exporter of electronics, may face stiff competition because Americans have increased their overall demand of electronics from Europe and China. Further, this underlines the fact that Taiwan should steer its relations with the U.S. in addition to finding other realistic ways of enhancing competiveness. This is applicable in other businesses because each and every business should maximize its opportunities besides engaging in extensive marketing analysis to develop competitive advantages. In addition, businesses and nations that engage in export trade should produce quality products to ensure that they can attract and retain their customers.


Disney, Netflix Sign Deal for Original Marvel Programs



Aside from the automobile industry, theatre companies are keen to increase their exports and limit import. This has created room for partnership and deals that are aimed in generating more sales and mark territories in market demand and supply. According to Tadena (2013), Walt Disney Company and Netflix Inc. have struck a deal to display original live-action series using some of the four most popular characters. Walt Disney will develop the programs needed for the partnership while Netflix will stream the video service. This has enabled Netflix Inc. to stay ahead of their market rival among them Amazon.com Inc. and Liberty Media Corp. It is also a mechanism to mark new markets and defend their current market share. The long-term goal of showing recent released Disney movies in their Watch Instantly queue will be realized if the company continues with the same pace. The global marketing strategy behind this move is to diversify their markets and exploit the different economic growth rates of sectors that are linked to the entertainment industry.

Toyota Concept Vehicles Offer More Exciting Green Vision


Toyota’s creativeness in their vehicle brands like Lexus is a marvel. The model is praised for its fuel-efficiency and low emission. According to Takahashi (2013), the awaited unveiling of a hydrogen car in 2015 is one of Toyotas innovative competition policy. The car is believed to run on hydrogen and emit water as a by-product. This is a great milestone in the marketing strategy of Toyota. This strategy keeps prospective clients two year glued and keen to see or may be acquire this car, once it is availed. It is a long-term plan of their approach to stay ahead of their competitors. Production of eco-friendly vehicles is a great formula to reach clients who are environment friendly and sensitive to global climate. This gives its client market value for their money because of the fuel efficiency these cars provide, unlike their rivals. This strategy is essential in meeting and even exceeding the customer satisfaction. The creativeness and creating value for the client’s money is aimed in retaining customer loyalty. In addition, the move is driven by opportunistic global market development in mind. On the contrary, the United States is keen to prevent the level of car imports into the country. Cheaper imports are more competitive than local automobile brands in the United States (Mitchell & Mauldin, 2013). This is a move driven to control the market share, which Japan has penetrated into their country. This control is aimed at encouraging local buyers to support their own economy.

Link: 

http://blogs.wsj.com/japanrealtime/2013/11/05/toyota-concept-vehicles-offer-more-exciting-green-vision/?KEYWORDS=unveil

Lower Prices on Japanese Cars Complicate Trade Talks.


Stiff competition between Japan and United States automakers has ensured that each country outwits each other to remain viable. Policies to encourage free trade and fair competition have been formulated. According to Mitchell and Mauldin (2013), Obama’s administration is keen to woo Japan business deal to come up with free trade deal to control the automobile market. Contrarily, Japan has come up with sound strategies that target sales acquisition rather than the competition between the US Dollar and Japanese Yen. It focuses more on their pricing, which is affordable and within reach for U.S market and overseas markets. Different marketers from countries that Toyota has a franchise connect through an internal platform to discuss the brands presence. This global marketing strategy has pushed Japan’s viability and competitiveness. This is because the strategy is able to identify the different needs of a client in that country. 

Emirates Airline Urges Boeing to Build 777X in U.S.




Emirates Airline urged Boeing Co.   to build its 777X family of aircraft in the U.S., and rule out producing major parts in Europe or Japan, to avoid the kind of problems that beset the 787 Dreamliner program.

Tim Clark, president of Emirates, said Boeing should assemble the 777X family in its own facilities to better manage the process and deliver the aircraft on time in 2020. Emirates is the biggest customer for the 777X family of two long-range jets capable of handling about 350 to 400 passengers and costing about $350 million to $377 million at list prices.

The head of Boeing said Monday that the aerospace group will decide where to build its new 777X jetliner in "two to three months," evaluating potential alternatives to its Puget Sound base near Seattle after workers there rejected a new labor contract.


Qatar Airways Chief Executive Akbar Al Baker similarly expressed a desire that Boeing assemble the 777X at a single U.S. facility. "Frankly, we would rather everything was built in one place, and I think Boeing from the 787 experience have learned a lesson," he said in an interview Tuesday.

Jim McNerney, Boeing's chairman and chief executive, said Monday that Boeing would release "very specific plans" for building the long-range jet in two to three months. These would cover final assembly, building its wings and fuselage and certain fabrication work. "We have a number of alternatives," Mr. McNerney said at the air show. He didn't detail other possible production sites, though the company has staff evaluating a number in the U.S.

Mr. McNerney also said there were "no plans" to assemble jets outside the U.S., though he didn't rule it out in the future.


Emirates Airline this week placed a $76 billion order at the air show for 150 777X planes, helping make it the biggest jetliner launch in history. The airline, which is the world's largest international airline by capacity, said it had purchase rights for a further 50 777Xs, and would purchase 50 more Airbus A380 aircraft.

Emirates joined Etihad Airways and Qatar Airways on Sunday in purchasing the 777X, with those airlines taking orders for 25 and 50 versions of the aircraft, respectively.

The relationship between Boeing and the three biggest carriers in the Gulf has been growing closer in the past five years, as the airlines expand rapidly and heavily use the plane makers' widebody aircraft. The 777X family represents Boeing's first planes designed in significant part for the needs of the Gulf carriers.

Boeing said it had received 259 orders and commitments for the 777X planes, with Emirates, Etihad and Qatar accounting for 225 of those and the remaining 34 from Deutsche Lufthansa AG  . Of the total Airbus A380s currently on order, Emirates's own order makes up about half of those.

Mr. Clark added that the growing reliance of Boeing and Airbus on the carriers from the Persian Gulf was a function of other airlines currently sitting on their hands, as much as it was his own airline and Qatar Airways and Etihad being overactive. Other airlines "are all a bit risk-averse at the moment," said Mr. Clark. "They've had four years of hell in the business.

http://online.wsj.com/news/articles/SB10001424052702303985504579207812108418086

Ad Confronts Taboos for Women in India



A still from the Tanishq commercial that stirred controversy for its challenge to traditional gender norms in India. Lowe Lintas India

 
A new ad from Bangalore jewelry chain, Tanishq, is causing quite the stir in India.  The ad depicts a wedding where the bride has a 6 year old daughter who is clearly not the biological child of the groom.  "Can I call you father from today?" the girl asks.

The commercial is front page news all over India and is being hotly debated. Some, like Shamina Shafiq think "Ads like these can go a long way to mend attitudes, prejudices and stereotypes. We need to see more of them." Ms. Shafiq is a member of India's National Commission for Women. Mohan Bhagwat, the chief of the conservative Hindu group Rashtriya Swayamsevak Sangh, said the ad was in "bad taste."  To imply an Indian woman conceived a child born out of wedlock—as the ad suggests—is "distasteful," while endorsing a second marriage, in his view, "violates Indian values and morals."

Second marriages, divorce and premarital sex are frowned upon in Indian culture.  Even widows often get blamed for the deaths of their husbands and are often see as bad luck. The ad will not change attitudes overnight but according to the creative director, the point of the ad was to challenge these norms and get people talking.  He has succeeded in that.

No word yet on how the ad will impact sales at Tanishq.








Link to Article Ad Confronts Taboos for Women in India

Thursday, November 21, 2013

Marketing Campaign

http://online.wsj.com/news/articles/SB10001424052702303531204579207890202790058 



   
     This article talks about the “Sunlight Campaign” as a medium used by Unilever to raise awareness and spread the company’s name. In the recent past, Unilever has been more recognized by its individual brands such as Dove soap , Axe Deodorant, or Ben & Jerry’s ice cream. However, with the advent of this companywide marketing campaign, they want to raise their presence in the marketplace a company taken as a whole. Though the cost of the entire campaign has not been disclosed, it would certainly cost the company billions of dollars as they plan on featuring Fergie, the pop singer, and Shahrukh Khan, a famous actor in Indian cinema.

Jaguar Land Rover to Open Technology Research Center in Portland, Oregon










The facility is a collaboration with Intel Corp and is scheduled to open in 2014, the company said. It will employ a team of about 30 infotainment specialists, including 16 software engineers.
The Portland center would lead Jaguar Land Rover's development of vehicle infotainment systems and would also collaborate with other technology partners. The facility would also complement Jaguar Land Rover's infotainment team based at its engineering center in Gaydon in the U.K.
In the future, the Portland technology center will also complement the research projects that will be undertaken by the Jaguar Land Rover R&D team at the National Automotive Innovation Campus at U.K.'s Warwick university when it opens in 2016.

Wolfgang Ziebart, Jaguar Land Rover Engineering Director, said the new center would allow for development of new technologies to drive the appeal of the company's products in the future.






Burger King Joins Crowd in India



Burger King Worldwide Inc. has decided to further globalize its company, and further expand into India. Other fast food chains like McDonalds, Domino’s, and Taco Bell are already well established in India. McDonalds has adapted a distinct menu, to better fit the local tastes and religious customs. McDonalds was able to establish a successful marketing due to its flexibility in adapting and changing their menu to provide a vegetarian section, for example. Different companies like Yum Brands Inc. and Everstone Group share a common domain. They both are working for these fast food chains to grow and expand in the Indian market. For the expansion to read optimum success the food companies will change the interior design and arrangements within the restaurant to fit the desires of the consumers. Burger King spokesman claims that the company has not decided on whether the signature whopper will be sold, because the company is taking into consideration of the large vegetarian population of Hindus, and also the Muslim requirement for halal beef. If the company can mend to these two major cultural impacts that impose for a remodel menu, the company will most probably become a success in the expansion of their market. 

BMW, Cadillac Aim to Pull Plug on Tesla With Pricey New Cars




Link: http://online.wsj.com/news/articles/SB10001424052702303653004579210053345661982?mod=WSJ_auto_IndustryCollection

LOS ANGELES— Tesla Motors Inc. TSLA +0.98% is about to get deep pocketed rivals in the luxury electric luxury car market after largely having the business to itself since the 2012 launch of the Model S sedan.
BMW AG BMW.XE -0.05% , General Motors Co. GM -0.84% 's Cadillac and VolkswagenAG VOW3.XE +0.26% 's Porsche and Audi NSU.XE +0.59% brands are among the luxury brands using this week's Los Angeles Auto Show to promote new plug-in models aimed at affluent, eco-conscious Californians who make up the heart of Tesla's buyers.
While models such as the BMW i3 and i8, the Cadillac ELR or Porsche's plug-in Panamera sedan offer different propulsion technology from the Tesla Model S and different body styles, they are all cars that get much of their energy from the electric grid instead of a gasoline pump.
So far, electric cars aimed at mass market consumers have sold in relatively low volumes, although the head of Nissan Motor Co. 7201.TO +0.54% 's U.S. sales arm said Tuesday that demand for the Nissan Leaf electric car has improved enough to justify adding production capacity. Still, electric cars have made up about 1% of U.S. light vehicle sales this year.
One reason electric cars are a tough sell to budget-conscious consumers is the high cost of lithium-ion batteries, and the limited driving range of cars like the Leaf. However, Tesla so far can't keep up with demand for its $70,000 and up Model S with an 85 kilowatt-hour battery, which has a driving range rated at 265 miles by the federal government.
Wealthy car buyers "can afford to have another vehicle" to deal with long road trips, says Devin Lindsay, an analyst with forecasting company IHS Inc. As more auto makers follow Tesla's move to make electric cars a luxury lifestyle accessory, "buyers are going to have a lot of choice," Mr. Lindsay says.
Established luxury brands are muscling on to Tesla's turf in part because government policies are forcing them to, and in part because they see Mr. Musk peeling away influential trend setters they don't want to lose.
"If you look at Audi buyers, they are interested in high tech, they are young, progressive and affluent," says Scott Keogh, head of Audi's U.S. arm. That is why Audi is promoting the A3 etron plug-in hybrid model at the Los Angeles show, ahead of its early 2015 launch.
Audi eventually will have an all-electric model, Mr. Keogh says, though he won't say when. Rudolf Krebs, the VW Group executive Vice President in charge of electric vehicle programs said Audi will get plug in hybrid versions of its A6, Q7 and A8 models next year as part of a broader VW Group strategy to roll out 40 plugin hybrid or battery electric models over the next several years.
GM's ELR is a luxury model that borrows its basic propulsion system from the plug-in Chevrolet Volt but at about $76,000 has a starting price more than $30,000 higher. Mark Reuss, head of GM's North American operations, says the ELR "will inevitably be compared to the Model S," but GM will focus on its combination of a gasoline-fueled engine and battery power that gives it a longer driving range than a Tesla.
"It's a dramatic design statement," Mr. Reuss says. "Which Cadillac really needs right now."
BMW is highlighting the i8 plug-in hybrid sports car at the LA show, The car, with a starting price above $135,000, has a carbon fiber body architecture and is propelled by electric motors in the front, and a three-cylinder gasoline engine in the back. BMW is also launching early next year a second electric model, the BMW i3, which is a small "city car" that will start at about $40,000 in the U.S.
"California plays a pivotal role in this technology," says Ian Robertson, BMW's global sales and marketing chief. The state's mandates requiring auto makers to sell more electric or plug-in vehicles are a major factor in auto makers' decisions to launch such vehicles. But there is also consumer demand, Mr. Robertson says.
Since BMW began offering test drives in the i3, about 100,000 people have signed up world-wide, including about 45,000 in the U.S., Mr. Robertson said. As for the i8, he said, "we are sold out for the whole of next year."
What impact the arrival over the next year of new luxury plug-ins will have on Tesla will depend a lot on whether the new entries expand the segment, or merely cut more slices from a same-sized pie.
Tesla Chief Executive Elon Musk has assured analysts he isn't concerned. Tesla didn't have a display at the LA Auto Show this year, a spokeswoman said. Mr. Musk has said the company doesn't need to try to generate more demand right now.
"I think there's a huge amount of untapped demand in North America," he said, regarding his company's outlook. Mr. Musk has said he expects Tesla can eventually sell 500,000 cars a year.
"I really do encourage other manufacturers to bring electric cars to market," Mr. Musk told analysts in a conference call earlier this year. "They need to bring it to market and then keep innovating and improving and making better and better electric cars."

Summary:
Tesla Motors Inc. is about to get serious competitors in the luxury electric luxury car market after largely having the business to itself since the 2012 launch of the Model S sedan. BMW, Cadillac, Volkswagen  Porsche and Audi  brands are among the luxury brands using this week's Los Angeles Auto Show to promote new plug-in models aimed at affluent, eco-conscious Californians who make up the heart of Tesla's buyers. 
My opinion:
In the pas Tesla has  the whole cake, but this week the nightmare started. several of luxury cars makers jump in Tesla market share with shiny cake knife. We heard this year 2013 there are 3 cases on Tesla which get fire after accident. That put Tesla in worst situation ever could Tesla be in. Success car makers smell a huge market with no barriers; this is a perfect opportunity to get part of electrical cars market by foreign competitors.

Will Shanghai Luxury Rides Rival U.S.?


When it comes to luxury cars, consumers in Chicago have more in common with Shanghai than Stuttgart.
That is the bet that Ford Motor Co. +0.30% is placing with a new Lincoln luxury model. And many of its rivals in the premium car business are making the same call.
The new Lincoln MKC will be largely the same in the U.S. and China. Ford
Lincoln, best known for cushy, plus-size vehicles, is expected to unveil on Wednesday a new small sport-utility vehicle called the MKC. It will go on sale starting next year in largely identical versions for in the U.S. and China. It won't be sold in Europe.
That is significant because for decades, auto makers struggled to design cars that could sell in the U.S. and Europe without significant modifications, the better to spread engineering and design costs over a broader base. The U.S. and Europe were the world's two biggest markets, so the goal made sense. But particularly for the Detroit auto makers, the efforts to build one-size-fits-both models fell short, because European and American consumers have different tastes. Europeans like hatchbacks and station wagons, for example. Americans largely don't.
Now, auto makers, and particularly luxury car brands, are shifting their focus, directing more energy toward exploiting an increasing convergence of consumer tastes among affluent drivers in the U.S. and China. One result of this is the coming wave of small sedans and compact SUVs from luxury brands, which can now build sales and profit projections for such models not just on Europe and the U.S., but on the enormous Chinese market as well.
"The emergence of China, for all luxury brands, has been a game changer," said Jim Farley, Ford's head of global sales and marketing. Ford decided to make the MKC the second of four new vehicles it is developing for Lincoln in part because its marketers several years ago believed Chinese consumers would see SUVs as "aspirational" purchases, much as many U.S. consumers do, he said
The exterior and interior styling of the MKC reflect a "global outlook," said Lincoln chief designer Max Wolff. When it comes to materials and colors, he said, "the similarities are more striking than the differences." Even white, once thought to be a taboo color in China because of its association with funeral vehicles is now the second best-selling color, he said.
The backs of the MKC's front seats are fully covered, so the bottom of the metal frame isn't visible to rear-seat passengers. It is a nice touch to convince a U.S. shopper the MKC should command a higher price than its small SUV cousin, the Ford Escape. But it is vital for China, where sometimes owners ride in the back
In China, the upwardly mobile entrepreneurs that Lincoln wants to attract are in their late 20s and 30s while U.S. customers are in their 50s, said Lisa Drake, the Lincoln MKC's chief engineer. The MKC will come with four cylinder engines in both countries. Chinese consumers tend to be less obsessed than Americans with the size and performance of the engine, Ms. Drake said.
Rival auto makers also see a convergence between the world's No. 1 and No. 2 auto markets. "What is preferred in the U.S. is preferred in China," said Hakan Samuelsson, chief executive of Volvo Cars, a unit of Chinese auto maker Zhejiang Geely Holding Group Co.
Volkswagen AG VOW3.XE +0.23% 's Audi NSU.XE +0.59% luxury brand is launching next year a new compact A3 sedan that exists in large part because Audi's target customers in the U.S. and China share a preference for the sedan profile over the hatchback look popular in Europe, said Filip Brabec, product planning manager for Audi AG's U.S. marketing arm.
"Without the U.S. and China, the sedan would have been a much more difficult case to make," he said.
The business case for the Lincoln MKC would also be harder to make without China. Once the No. 1 luxury brand in the U.S., Lincoln is now No. 8 here, selling through the first 10 months of this year less than a third the vehicles that U.S. luxury leader BMW AGBMW.XE -0.01% has delivered. Lincoln is almost entirely a North American regional brand, with its base in the U.S. heartland.
"We're a challenger brand," in the U.S., said Ford's Mr. Farley. In China, many consumers are aware of the Lincoln brand and think well of it, Mr. Farley says, but they associate it with stately limousines. The brand's task will be to link the compact MKC to that legacy.
Getting that right will require attention to detail, because U.S. and Chinese consumers may have similar tastes, but not precisely the same tastes. One point on which Chinese and U.S. buyers differ is wheel size, Lincoln executives say.
Americans like larger wheels, 19 or 20 inches in diameter. In China, consumers tend to prefer smaller wheels with larger sidewalls, Ms. Drake said. Lincoln has covered its bets, designing wheels for the MKC in 18-, 19- and 20-inch sizes.

Summary:
Lincoln, best known for cushy, plus-size vehicles, is expected to unveil on Wednesday a new small sport-utility vehicle called the MKC. It will go on sale starting next year in largely identical versions for in the U.S. and China. It won't be sold in Europe. Auto makers struggled to design cars that could sell in the U.S. and Europe without significant modifications, the better to spread engineering and design costs over a broader base. European and American consumers have different tastes. Europeans like hatchbacks and station wagons, for example. Americans largely don't.

My opinion:
First of all, it is not easy to make one product for global market especially when this product has many details such as a luxury car. Now Ford in this article tray to avoid make big change in its  MKC Lincoln and Ford planed to sell it in US and China ( ignore EU market). That's mean Ford did it homework, it find what each market like and dislike