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.
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