The three biggest carmakers from Germany, BMW, Volkswagen's Audi and Mercedes Benz, have been in a constant race for dominance in the global luxury car segment. And now the rivalry has been taken to another level, the three have expanded to include a holiday season battle for playground prestige with new push cars and snow sleds.
Audi started the luxury kid toy trend when it launched a limited edition pedal-powered version of the Auto Union Type C. The scale model of the 1930s racer, designed for kids features an aluminum frame, hydraulic brakes, seven-speed hub gear, leather-clad steering wheel and oak dashboard. The car sells for 9,700 Euros.
And now BMW is all geared up for the feisty Christmas season with new BMW- and Mini-branded sleds for 79 Euros apiece. Mercedes Benz is reciprocating with a full version of gull-wing SLS supercar for toddlers, due in April for 90 Euros each. These carmakers believe that they can make a lot of money by promoting kid-focused merchandise than simply making a few Euros from hawking toy racers
It is no secret that Audi wants to oust
BMW as the world's largest luxury carmaker by 2015, and now the carmaker is revamping the Quattro GmbH unit to sharpen its focus on vehicle customization and accessories, said Peter Schwarzenbauer, Audi's sales chief said.
Along with toy cars, Audi also offers a range of teddy bears including one decked up in motor-racing suit for 47 Euros. Then, you also have Rob the Gecko, a black, grey and gold cartoon lizard featured in plush toys and baby items. Audi said in a brochure that the Gecko is made of such soft plush that you could hug and stroke him for ages without getting tired.
Like their cars, luxury car makers take all the steps to add small details to their toys that make them extraordinary. BMW's Snow Racer sled, which is available for 79 Euros, features replaceable metal runners, a suspension-system in the red steering ski, and a horn to warn inattentive passersby.
Mercedes Benz is all ready with its foot-powered SLS Bobby-Benz which will feature the shapes of its headlights, grill and rear end with Mercedes' $183,000 SLS sports car. The toy car will have quiet-running tires, an Ackermann steering system with tight cornering for living-room manoeuvrability and a steering wheel that absorbs impact to prevent injury in the event of a collision.
It has been 15 years since BMW began its lifestyle business, and now the company sells more than 2,000 products including 39-euro Mini rain boots and a 1,500-euro bike from BMW's M performance unit. BMW has also introduced a kid edition of the M3 GT2 race car. The battery-powered version, which costs 349 Euros, has forward and reverse gears and a top speed of 2.5 miles per hour.
"We are first and foremost a marketing initiative, and the main objectives are to broaden the brand's presence and strengthen loyalty," said Thomas Goerdt, head of BMW's merchandising and lifestyle unit. "We are a marketing effort that makes money."
In China, which happens to be the third-largest market for BMW cars, it opened a store selling merchandise a year before it began assembling cars in the country. There are now 40 BMW stores in China, and it is considering expanding its retail presence to Korea, Russia and India.
These days, luxury car owners want a variety of products to convey their association with a particular brand, but the merchandising have to be kept limited so that it does not interfere with the brands' core business.
Michel Gabriel, managing director for consultancy Interbrand in Zurich, who has previously advised Audi on branding, said, "Sometimes you have to say no, even if a lot of money can be made from a product like branded underwear".
In the end, Audi, BMW and Mercedes Benz are also chasing Aston Martin when it comes to luxury kids toys. The super-luxury British carmaker sold mini motorised replicas of the V8 Vantage Volante and Virage in the late 1980s and early '90s to customers including Prince Charles.
The Aston Martin Volante Junior was sold for nothing less than 15,000 pounds plus taxes. The toy car had a petrol engine, radio and a top speed of more than 30 miles per hour.
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Mr. Mirko further added that the company has received positive response from bike enthusiasts and the company is privileged to be a part of such a growing motorcycle market.
