Digitalization of Car Retail & Aftersales, 2021

Digitalization of Car Retail & Aftersales, 2021

Quantitative Analysis on the Interest Level in Digital Retail and Aftersales and Impact of Covid-19 on the Customer Journey in Europe and GCC Regions

RELEASE DATE
16-Aug-2021
REGION
Europe
Research Code: MG3D-01-00-00-00
SKU: AU02198-EU-MT_25681
$4,950.00
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AU02198-EU-MT_25681
$4,950.00
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Description

As more digitally native customers look to purchase a vehicle, industry players are ramping up digital enhancements in the customer journey relating to the purchase of new and used cars or in aftersales services. COVID-19-induced social distancing norms are changing "business as usual", acting as an accelerator for more dealerships, OEMs, and traders to explore aspects of an omnichannel system that can be automated or performed online. Most OEMs use a trial and error approach when introducing digitalized retail models, for instance, the various agency models being piloted in selected countries. A multinational end customer view to identifying the aspects of the journey the customer wants to have digitalized is an extremely powerful knowledge base.

This study captures the interest level and customer readiness for a digitalized retail and aftersales journey. With a quantitative research setup, the report includes findings from comprehensive customer research on 610 respondents from selected countries in Europe and GCC regions. It also analyzes how COVID-19 affects customer purchase processes. Besides identifying the key customer groups willing to purchase their next car online, the study also examines the essential elements of a digital customer journey and matches them with the end customer interest. This includes new customer journey concepts and customer feedback on used car sales or digital aftersales. While demand for digital aftersales enjoys higher interest and approval rates, 15% of customers are highly likely to consider an online car purchase. Frost & Sullivan has a dedicated automotive retail research team that tracks the multiple aspects of automotive retailing, including new vehicle sales, used vehicle sales, digital retailing, new store formats, dealer networks, and branding and customer journey.

Author: Moritz Bedenk

Table of Contents

Why Is It Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top Three Strategic Imperatives on Automotive Retail and Aftersales

Growth Opportunities Fuel the Growth Pipeline Engine™

Research Objectives

Research Scope

Research Methodology

Survey Respondent Profiles

Current Car Profile of Respondents

Future Car Buyer Profile—Expected Type and Budget

Current and Future Car of Owners—Correlation of New and Used Cars

Impact of COVID-19 on the Next Car Purchase

Car Purchase Attitudes

Top Car Purchase Attitudes—Car Buyer Profile

Respondent Segmentation by Online Car Purchase Interest

Respondent Segmentation

Respondent Segmentation—Country Distribution

Respondent Profile Segmentation

Current Car Profile—Respondent Segmentation

Future Car Profile—Respondent Segmentation

Summary of Key Findings

COVID-19 Impact on the Next Car Purchase–Respondent Segments

Car Purchase Attitudes—Respondent Segment Overview

Car Purchase Attitudes—Respondent Segmentation In Detail

Purchase Journey Steps—Concepts Ranking

Purchase Journey Steps—Best Prospects

Digital Purchase Journey Steps—Non-Prospects

Interest in Digital Aftersales by Country

Interest in Digital Aftersales—Respondent Segments

Digital Aftersales—Likes, Dislikes, and Experience

Top 3 Digital Aftersales Elements—Respondent Segments

Digital Purchase Journey Concepts

Purchase Journey Concepts

Digital Engagement Tools—Evaluation

Extended Test Drive Booked Online—Evaluation

Car Evaluation—New Car, Used Car, and Online Contract

Car Purchase Location Considerations—Respondent Segments

Car Purchase Place Selection Criteria (Online)—Respondent Segments

Car Purchase Place Selection Criteria (Dealership)—Respondent Segments

Digital Aftersales Concept

Key Liked Aspects of the Digital Aftersales Concept—Respondent Segments

Key Disliked Aspects of Digital Aftersales—Respondent Segments

Used Elements of Digital Aftersales Concept—Respondent Segments

Growth Opportunity 1—Digital Retail to Orchestrate Vertical Business Expansion, 2021

Growth Opportunity 1—Digital Retail to Orchestrate Vertical Business Expansion, 2021 (continued)

Growth Opportunity 2—New Product Launches will be Core to Facilitate Digital Retail, 2021

Growth Opportunity 2—New Product Launches will be Core to Facilitate Digital Retail, 2021 (continued)

Summary of Findings

Summary and Conclusions

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

Legal Disclaimer

Related Research
As more digitally native customers look to purchase a vehicle, industry players are ramping up digital enhancements in the customer journey relating to the purchase of new and used cars or in aftersales services. COVID-19-induced social distancing norms are changing business as usual, acting as an accelerator for more dealerships, OEMs, and traders to explore aspects of an omnichannel system that can be automated or performed online. Most OEMs use a trial and error approach when introducing digitalized retail models, for instance, the various agency models being piloted in selected countries. A multinational end customer view to identifying the aspects of the journey the customer wants to have digitalized is an extremely powerful knowledge base. This study captures the interest level and customer readiness for a digitalized retail and aftersales journey. With a quantitative research setup, the report includes findings from comprehensive customer research on 610 respondents from selected countries in Europe and GCC regions. It also analyzes how COVID-19 affects customer purchase processes. Besides identifying the key customer groups willing to purchase their next car online, the study also examines the essential elements of a digital customer journey and matches them with the end customer interest. This includes new customer journey concepts and customer feedback on used car sales or digital aftersales. While demand for digital aftersales enjoys higher interest and approval rates, 15% of customers are highly likely to consider an online car purchase. Frost & Sullivan has a dedicated automotive retail research team that tracks the multiple aspects of automotive retailing, including new vehicle sales, used vehicle sales, digital retailing, new store formats, dealer networks, and branding and customer journey. Author: Moritz Bedenk
More Information
No Index No
Podcast No
Author Moritz Bedenk
Industries Automotive
WIP Number MG3D-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9801-A6