Konzepthaus Design Study

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ASIAN REPORT

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Facts & Figures

Participants86 ^A^ge

range

18 - 24 25 - 34 35 - 44 45 - 54 Over 55

4.65%

9.31%

13.95%

37.21%

34.88%

Levels

Junior Senior Manager Senior Manager VP & SVP

16.28%

8.14%

20.93%

29.07%

25.58%

Gender

91.4% male

8.6% female

Konzepthaus Design Study (KDS)

The goal of the KDS is to create the most comprehensive, empirical overview of mobility design departments. The results are aimed to support OEMs and suppliers alike to prepare their departments for the challenges of the coming years.

Employment Statistics & Development

The KDS #1 focuses on the research field of “Employment Statistics & Development” and is divided into four chapters – salary, creative work and personal training. The data was collected in a three-week period via an anonymous online survey and can be regarded as representative and resilient, because more than 84 persons participated. In the following, the key findings are highlighted and have been evaluated by the experts at KIC. The focus of the report is on Asia (China, Japan and South Korea).

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Asian average annual salary incl. bonus*

Design department Full time employee and temporary employment Automotive manufacturer Working in China, Japan & South Korea

„Within the Asian market, design is certainly a reputable profession and rewarded as such, through salary. The significant increase from Manager to Senior Manager can be explained by a larger number of expats or foreign staff holding these levels. However, overall salaries are

very similar to their counterparts in the European or North American markets.“

Martin Groschwald

(Managing Director)

* Currencies were converted into USD on the date February 22^nd, 2021

Junior/Specialist Senior/

Senior Specialist Manager/

Team Leader/

Expert

Senior Manager/

Department Leader/

Senior Expert

Senior Vice President (Head of Group Design) Vice President

(Head of Design/

Head of Exterior/

Head of Interior)

52.762 $ 72.989 $ 98.565 $ 190.272 $ 302.224 $

659.281 $

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Average salary increase when reaching the next hiring level

„What jumps out at you on this chart, is the massive jump from Manager/Team Leader to Senior Manager/Department Leader. This can be explained with two general observations. The Asian market, in particular China, often uses the term manager for job descriptions, even at lower levels but doesn’t represent the same supervisory role as in Europe or North America. On the Senior Manager level, we have observed a

strong increase in non-local staff being hired to support design operations. This requires larger salaries to incentivise relocation.“

Team Leader/

Expert

Senior Manager/

Department Leader/

Senior Expert

Vice President (Head of Design/

Head of Exterior/

Head of Interior)

+ 38.34% + 35.04%

+ 93.04%

+ 58.84%

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„I am very certain that if we surveyed people 5 years ago, this number would have been very different. The gap between start-ups and established companies would have been closer to 20-25%. However, due to large growth in the Asian design market over the past 5 years, established companies have had to address this gap to attract their share of the best talent. A concentration in the locations of studios such as

Shanghai, Tokyo and Seoul have also caused an increase in competition that leads to a smaller gap.“

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Salary comparison between car manufacturers

0.84%

higher salaries than established manufacturers

Start up car manufacturers (founded after 2010) pay

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„Our analysis points to a very low representation of women within design departments for the Asian automotive industry, 8%. All respondents either held roles without leadership responsibility or lower levels of management. No respondents were employed in middle or senior management roles. These results are considered valid when compared with other industry benchmark reports showing the average proportion of women in the automotive industry at 13.8%. With such low representation, a true comparison of salaries by gender was not feasible. This all

points to the pressing topic of how to get better gender representation within design departments on a global basis. “

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Gender distribution

Gender distribution on the level without leadership responsibility*

86.26%

Gender distribution on the first and second management level**

2.56% 97,44%

* Junior & Specialist

** Manager, Team Lead, Senior Manager

Florian Teufel

(Associate)

13.74%

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„The result is one of the biggest deviations from US and Europe. In Asia even high managers have to invest most of their time to be actively involved in the daily creative process. For some it seems to be difficult to delegate this work to their first-line managers, some are obliged by

their superiors to contribute personally to the design.

So what happens to all the others tasks, like managing the own direct reports or representing design to internal and external stakeholders?“

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Percentage of time spent on administrative vs creative work

No leadership responsibility

(Junior/Specialist/

Senior/Senior Specialist)

Lower and middle management

(Manager/Team Leader/Expert/

Senior Manager/Department Leader/

Senior Expert)

Top management

(Head of Design/ Head of Exterior/

Head of Interior/Head of Group Design) 65.0% creative

40.9% administrative 35.7% administrative

35.0% administrative

Oliver Vogt

(Partner)

64.3% creative 59.1% creative

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„We can see a typical exponential growth of training budgets over the management levels. However Asian OEMs spend a little less to upskill their teams as in other regions. One reason might be that teams are in average a bit younger and managers might not see such a high need to

train their people.“

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Average annual training budget*

Team Leader/

Expert

Senior Manager/

Department Leader/

Senior Expert

309 $ 923 $ 1.437 $

4.657 $

Oliver Vogt

(Partner)

* Currencies were converted into USD on the date February 22^nd, 2021

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„Almost half of all participants in this study do not receive any training. It is a shame that some companies are not willing to invest in their staff. Designers that receive training are not only more productive, resulting in better economic output, but they are also more satisfied with

their employer. From a management perspective, it is a smart move to offer training in place of a pay rise if currently not possible.“

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Annual available training days

0 days ≤2 days ≤4 days ≤6 days >6 days

48.3% 15.0% 7.5% 6.6% 22.6%

Oliver Vogt

(Partner)

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„Our report shows that traditional tools such as Alias are still common, ignoring newer tools or processes, such as poly-modelling which can help digitalize work processes and future-proof design departments. However, there is a growing awareness and a keen desire to upskill to

newer 3D applications like Blender and Maya, which are currently at very low levels of adoption.

I predict a strong transitioning point towards digitalisation, versatility and diversity, with enormous upskilling potential, not only for a cost- saving workflow using digital tools but also, faster data communication and multi-users team-based processes.”

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Use of 3D software tools (Alias, Blender, Maya)

Design department Full time employee and temporary employment Automotive manufacturer Advanced Design, Interior, Exterior, Colour & Trim

Asaf Yaacobi

(Academy Director)

I use _69.6%

Alias

I do not use _17.4% Would like to learn ^13.0%

I use _11.8%

Blender

I do not use _49.2% Would like

to learn ^39.0%

I use _19.3%

Maya

I do not use _56.1% Would like

to learn ^24.6%

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The Konzepthaus Design Study in 2021

Digitalisation & Design

(July 2021)

Leadership & Organisation

(April 2021)

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Your KDS Team

Managing Director

[email protected] +49 176 700 500 92

Asaf Yaacobi

Academy Director

[email protected] +49 89 1250 190 13

Oliver Vogt

Partner

[email protected] +49 179 50 66 849

Florian Teufel

Associate

[email protected] +49 170 789 60 71