Executive Outlook of the Future of Automotive Retail

Executive Outlook of the Future of Automotive Retail

Executive Summary—Key Takeaways

Automotive OEMs are expected to leverage more digitization in their new retail business models to transform the way new vehicles and parts are sold in future.

Future of Automotive Retail: Key Takeaways, Global, 2014

Mega Trends are Driving the Future of Retail in the Automotive Industry

Urbanization, connectivity and convergence, bricks and clicks, and social trends are expected to be the key drivers of future retail in the automotive industry.

Top transformational Shifts by Key Global OEMs

8 transformational shifts are likely to take place, depending on degree of certainty and degree of impact.

Future stores, omni-channel retail, connected retail, and new business models are a few of these shifts.

Multiple Retail Formats by global OEMs

Premium, luxury, and volume OEMs are targeting region-specific retail programs.

Future retail strategies include digital showrooms, virtual experience centers, and online retail stores complemented by digital after-sales suites, real-time diagnostics, and online service booking.

Digital Sales to Dominate and Transform Retail

By 2016, 􂀀-􂀀% of sales leads will originate from digital means. The average digital marketing spending is expected to reach 􂀀% of the marketing and advertising budgets of dealerships and OEMs.

Modularized and Multi-point Retail Network

By 2016, OEMs will bring in multiple touch points for a customer’s car purchase process. Test drive centers, service centers, and delivery centers will work in independent silos and form a central hub-and-spoke methodology.

UHNWIs are Assessing Dealership Potential in the Value Chain

Ultra-high-net-worth individuals (UHNWIs) are attracted to US car dealerships as they offer a large customer base and the purchase of used and new vehicles, along with maintenance, insurance, and financing.

  • Executive Summary
    • Executive Summary-Key Takeaways
    • Executive Summary-Future Outlook of the eRetail Market
    • Executive Summary-Digital Retail Strategies of Key OEMs
    • Executive Summary-Digital Retail Strategies of Luxury/Premium OEMs
    • Executive Summary-Digital Retail Strategies of Mass Market OEMs
    • Executive Summary-Future Trend: Small Store Format
    • Executive Summary-Future Automotive Retail Network
    • Executive Summary-New Entrants and Disruptive Models in the Aftermarket
    • Executive Summary-Online Retail: Integrated Customer Journey
    • Executive Summary-Evolution of Online and Digital Auto eRetail
    • Executive Summary-Conclusions and Future Outlook
    • Associated Multimedia
  • Research Scope, Objectives, Background, and Methodology
    • Research Scope
      • Table Future of Automotive Retail: Key OEMs' Vehicle Sales, Global, 2014-2022
    • Research Aims and Objectives
    • Key Questions this Study will Answer
    • Research Background
    • Research Methodology
    • Key OEMs Compared in this Study
  • Definitions and Segmentation
    • Definitions of Selected Terms Used in the Study
    • Definition of Digital in Retail
    • New Mega Trends
    • Vehicle Segment Definitions
  • Impact of MegaTrends on the Future of Retail
    • Mega Trends Driving the Future of Retail
    • Impact of Mega Trends on the Aftermarket in 2025
    • Implications of Mega Trends-Retail and Aftermarket
  • Top Transformational Shifts Shaping the Future of Automotive Retail
    • Top Transformational Shifts by Key Global OEMs
    • Transformational Shift 1-Future Stores
    • Transformational Shift 2-Omni-channel Future of Retail
    • Transformational Shift 3-Connected Retail
    • Implications-Future Automotive Retail will be More Consultative than Directive
    • Implications-From Car Configurator to Mobility Configurator
    • Transformational Shift 4-New Business Models
    • Transformational Shift 5-Engaging Retail
    • Transformational Shift 6-Last-mile Retail (Logistics)
    • Transformational Shift 7-Big Data Retail
    • Big Data in the Car Industry-The Business Case
    • Transformational Shift 8-Women Empowerment
    • Nissan Lady First Dealerships
  • Future Trends in New Car Retail
    • The Car Dealership of the Future
    • Future Car Dealerships: Tesla and Audi City
    • Future Channel Network Structure in a Mega City
    • Smart Distribution Network
    • Unbundling of the Automotive Business
    • Digital Touch Points of a New Customer Journey
    • Future Retail Formats
    • Interactive Stores of the Future
    • Digitization in the Value Chain
    • Centralized Structure for Heavy Repair
    • OEMs are Increasingly Investing in Data Mining and Analytics
    • Off-store Digital Sales Generation
    • Conventional versus Digital Set-Up
    • More Interactive and Seamless Dealerships than the Siloed Model
    • More Consultative Dealerships than Directive
    • Case in Point-US Mega Regions and the Impact on Digital Store Development
  • Future Trends in Automotive Parts Retail
    • 5 Key Trends in Automotive Parts eRetail
    • The Connected Parts Store in 2025
    • Online Sales Penetration-Key Traditional Participants in North America
    • Bricks and Clicks in Future Automotive Service Aggregation
    • BMW's Future Digital Parts Retail Strategy
    • Audi Digital Car Servicing
    • Key Comparative Features of Service Aggregators
    • whocanfixmycar.com's Service Aggregation Model
    • Emerging Bricks and Clicks Convergence Models in Parts and Services
    • Key OES Channel Developments
    • GM's Use of Technology in Service Strategy
    • Tesla Service: Remote Options
    • GM's Prognostic/In-vehicle Sales Capabilities
    • Aftermarket 2025-Changing Digital Purchase Pathways
    • Aftermarket 2025-Emerging B2B eCommerce Business Models
    • Digitization Expansion in Auto Parts and Service
  • Illustrations of OEMs' Future Retail Strategies
    • Audi City Digital Car Showroom
    • KPIs: Audi City Digital Car Showroom
    • Mercedes Me (Hamburg)
    • Renault Store
    • Fiat Live Store
    • TrueCar
    • Hyundai Rockar, Bluewater
    • KPIs: Hyundai Rockar
    • Rockar-Digital Touch Points of a New Customer Journey
    • Nissan Delivers a Versa Note via Amazon Box
    • Lincoln Black Label Experience
    • Google's Mobilegeddon is Pushing for Mobile Websites
    • Scion Targets an Enhanced Portal Experience for Customers
    • Future Volvo Dealerships
    • Renault's Tie-up with TVS for Digital Dealership in India
    • New Entrants in the Digital Retail Space
  • Conclusions and Future Outlook
    • Key Takeaways on the Future of Automotive Retail
    • Conclusions and Future Outlook
    • The Last Word-3 Big Predictions
  • Appendix
    • Abbreviations and Acronyms Used
    • Internet Sales Growth of Key US Dealerships
      • Table Internet Sales Growth of Key US Dealerships
    • Digital Retail Landscape
    • BSIG Research Program
    • Market Engineering Methodology

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