Car buying will shift to online, finds KPMG survey
19 January 2018
UK automotive executives expect that almost half of all car dealerships will disappear in less than a decade, according to KPMG’s Global Automotive Executive Survey 2018.
Read the full survey KPMG’s Global Automotive Executive Survey 2018. https://gaes.kpmg.de
RETAIL OF THE FUTURE https://gaes.kpmg.de/brain.html#retail-of-the-future
The pressure is on – OEMs will have to reconsider their retail concept to keep hold of customer touchpoints
There will not be one single retail concept in the future. We need to find a way for an evolutionary, revolutionary and disruptive retail concept to co-exist.
The retail landscape is undergoing a transformation phase that requires re-thinking today’s retail concepts
This year, over half of all execs (56%) are highly confident that the number of physical retail outlets as we know them today will be reduced by 30 – 50% already by 2025. This certainly is a warning sign and creates the urgent necessity to rethink retail concepts and business models.
There are two reasons for the reduced number of retail outlets. The obvious fact is that an increasing number of customers can purchase their new private car online, but the second reason seems more striking and fundamental. Mobility patterns are changing and if customers request more and more intelligent mobility solutions instead of owning a private car, we will see a shift from a one-off transaction towards TCO-driven recurring transactions throughout the entire customer lifecycle. These transactions will probably be made on an online platform with multiple mobility solutions for traveling from A to B. In this world, product profitability alone has become out-dated and will be transformed to measuring customer value over the lifetime.
The vision of such a platform may still be in a distant, but we shouldn’t forget that we cannot jump into completely new retail concepts without remembering where we come from. There will never be the one single retail model of the future, instead retail will undergo transformation and a variety of retail concepts will co-exist.
This includes the optimization and industrialization of current retail outlets (for example with quality, customer experience, response time, etc.), enhancement using digital services and in the long-run: The creation of an entirely new retail platform where customers can log-on in their own ecosystem with their individual ID. This will certainly require completely new structures, sales channels, customer touchpoints and mindsets