"CMOs are becoming 'E-CMOs' and need to rewrite their job profile"
Anyone who thinks they have done their digital homework will be proven wrong in China. Jochen Sengpiehl, former Global CMO of Volkswagen and most recently CMO and Head of Product Strategy in the world's largest market, knows the rules of the game of the future. In his presentation at the Swiss Brand Congress, he will show how AI and Chinese speed are redefining brand management - and why CMOs now need to radically rethink their approach. He gives a little foretaste in this interview.
Jochen Sengpiehl, as the former CMO of Volkswagen China, you experienced the dynamic Chinese market at first hand and played a key role in shaping Volkswagen's transformation towards electromobility and digitalization. What challenges did you have to overcome?
Jochen Sengpiehl: Due to the global travel restrictions caused by the Covid pandemic, it was not possible to analyze the Chinese market and the competitive situation for more than two years. When we saw the street scene and the competitive situation for the first time in August 2022 after ten days of hard quarantine in a hotel in Beijing, we could hardly believe our eyes. It was unbelievable to see the innovative power that Chinese manufacturers had developed during this time - and how clearly they had shown us German OEMs [Original equipment manufacturer, editor's note]. technology in terms of software, sensors, batteries, design, autonomous driving and so on.
What was there to do?
In the first phase, it was imperative to carry out a tough and relentless analysis of the competitive situation and derive concrete strategies and measures from this. The key learnings were: five things are needed. First and foremost, a "China for China" strategy, i.e. greater independence from the German headquarters with more autonomy. Secondly, we need to build up our own research and development expertise and develop our own long-term and competitive product strategy for China. Thirdly, we need to reposition and modernize the brand in China. Fourthly, we need to establish and expand strategic alliances in the areas of software, purchasing and development. And fifthly, we need to develop a new design language for electric cars based on Chinese customer needs.
What can Western companies learn from the pace of innovation in China?
"China speed" is the key word. Chinese companies are digitizing the entire value chain of all B2C sectors. They are building holistic digital ecosystems and integrating social commerce options into them. At the same time, innovative key industries are being supported by the state. And finally, society as a whole is motivated, ambitious and performance-oriented - and has internalized this as its purpose.
How must organizations adapt to avoid being overrun by this speed?
European companies have already largely overslept the digital transformation. China and the USA are two to three years ahead of us in the areas of digital sales and marketing and are already in the next generation of transformation with AI. The key is a radical rethink of organizational responsibilities and the management of the process-related marketing value chain. Things like sales, marketing, PR and customer data must be digitally networked and become part of a holistic strategy along all customer touchpoints.
What is your most important recommendation to CMOs when dealing with AI?
AI is a matter for the boss and must be integrated holistically into the organization from the top down. Vertical silo organizations and divisional egoisms stand in the way of the goal of an agile organization. CMOs are becoming "E-CMOs" and need to rewrite their job profiles. The following applies to almost all sectors: digital, digital, digital! In addition, in future there will need to be a separate board member for the AI department - with power and access to all units.
The Swiss Brand Congress is the biggest industry get-together for brand decision-makers, service providers and media representatives. The industry will meet again on June 23, 2025 at "The Dolder Grand Hotel" in Zurich. The focus will be on the challenges of brand management. m&k is a media partner.
