Consumers know Germany for many incredible things: the best beer, delicious sausages, gorgeous cathedrals, and some of the best engineers in the world. In the most literal sense, this is one of the most innovative countries in the world. In 2020, Germany was the first country in the world in research and development, being ranked by the World Economic Forum in the Global Competitiveness Index as “the most innovative country in the world.” But its success is hardly surprising if we consider Germany gave to the world the television, the tram, X-rays and naturally, the car. This nation has been the powerhouse behind the development of transportation.
And four years ago, Germany launched another innovation when it announced the world's first autonomous AI-driven tram in Potsdam. But building a brand that can set itself apart from rivals is a difficult undertaking in a nation that frequently breaks down barriers and produces cutting-edge goods. Given the competitiveness of the market, what BMW has accomplished is even more remarkable.
In a country renowned for its engineering prowess and outstanding automobile lineup, BMW has established itself as a prominent automotive brand. During the first quarter of the year, the Munich-based luxury automaker ranked fourth in Germany with an 8.3 percent market share. Volkswagen, Mercedes and Audi occupied the first three positions, with 17.6 percent, 9.2 percent and 8.4 percent, respectively.
BMW is also one of the leading car brands in Europe, where the group had a 7.3 percent market share in 2021. But developing a memorable and timeless car brand that conquers markets takes time, and BMW has achieved this by placing R&D and innovation at the core of the business. So, for all car enthusiasts, this is the real story of BMW.
The Real Story Behind BMW: How It All Started
The beginning of BMW, also known as Bayerische Motoren Werke GmbH (Bavarian Engine Works Company) is linked to Rapp-Motorenwerke GmbH, a manufacturer of airplane engines. During World War I, Rapp manufactured engines for the German air force. But the Treaty of Versailles compelled the business to discontinue producing aircraft engines after the war.
Naturally, this mishap provided an opportunity to expand into new industries, so the German company started manufacturing railway brakes and built-in motors, according to BMW.com. Because of the company's incredible success, brakes manufacturer Knorr-Bremse AG acquired majority ownership of BMW in 1920. Inevitably, Knorr-Bremse AG consolidated the company and relocated it to Munich. But for a brief period, BMW vanished. Just to reappear in 1922, when Camillo Castiglioni purchased the BMW corporate name and took over the business of building engines.
This Is What Makes BMW An Iconic Brand
In the most literal sense, the James Bond movies have proved that the most famous spy in the world has Midas touch. When it comes to product placement, the goods featured in the franchise become instant market success, with many selling out instantly. Take for example, the BMW Z3 from Goldeneye- it became an instant commercial success thanks to its appearance in the movie.
“The placement was a success as the Z3 sold out in its first production year upon release,” says Medium. It’s clear that BMW spent well the $75 million integration fee paid for participating in the movie. But it’s not just the Z3 that had an appearance in the James Bond franchise, as producers have featured the BMW 750iL in Tomorrow Never Dies and the BMW Z8 in The World Is Not Enough.
With that being said, BMW cars also ended up in other highly successful movies like Ronin, The Transporter, Fast and Furious 6, and Mission: Impossible - Rogue Nation. BMW automobiles have become increasingly popular over the years, in part due to a successful product placement strategy that improved consumer’s perception of the brand.
BMW Today
BMW has similarly broadened its appeal to Mercedes-Benz, evolving from a small airplane engine company to a luxury automaker and then to a lifestyle brand. Currently, the German automaker is manufacturing far more than high-performance luxury cars, and it has developed extensive apparel and accessories collections. The car manufacturer sells watches, sunglasses, umbrellas, luggage, bottles and even toys for kids.
Furthermore, BMW has a strong relationship with fashion labels, having collaborated with fashion designer Ronnie Fieg, founder of Kith and LaQuan Smith. WWD reports that the extensive collaboration with Kith went beyond the creation of an apparel and accessories collection since the parties agreed to release the BMW M4 Competition x Kith vehicle, which had a suggested retail price of between $109,000 and $120,000. Likewise, the German luxury car manufacturer has been the official automotive partner of New York Fashion Week: The Shows for the FW ‘21 season and New York Fashion Week (NYFW): The Shows for the Spring/Summer 2020 season.