SHOPSMART AUTOS – CUSTOMER INFORMATION – FEBRUARY 7, 2021
The Rise of the omni-channel experience In the early 2000s, many firms within the photographic film industry had to make strategic choices about the future of their businesses in response to the major shift from analog film photography to digital photography. Fujifilm was one of the few to successfully navigate the transformation. Chairman and CEO Shigetaka Komori led the company into a new era by embracing and not fearing change. “It was a painful experience. But to see the situation as it was, nobody could survive. So we had to reconstruct the business model.” Today’s automotive ecosystem is being hit with a perfect storm of three major forces–changing competition, technological advances in digital and the connected ecosystem and increasingly empowered consumers. These three forces are providing new opportunity for innovation, business model disruption and customer engagement as new players enter the market and begin to capture a share of the value stream. To embrace these forces, automotive retailers will need to consider new retail models and update a distribution channel that hasn’t changed significantly in the past century. Based on trends in other industries, Deloitte foresees a certain move towards omni-channel retail for automotive companies where customers will experience seamlessly integrated shopping, buying, and owning processes regardless of the channel in which they interact. On the back end, original equipment manufacturers (OEMs) and dealers will need to align more closely and share customer and sales data to enable an omni-channel customer experience. According to Deloitte’s recent Digital Divide study, automotive is the third most digitally influenced purchase, coming in only after electronics and home furnishings. OEMs and dealers can learn from industries that have already gone through the omni-channel experience transformation to continue to stay relevant in today’s digital age. The automotive retail model has been relatively consistent over the last century: Vehicles are wholesaled by OEMs to dealers. The transaction from OEM to dealer is financed by captive finance organizations aligned to the OEM before the vehicle is delivered via third party logistics companies to the dealer. The dealer then sells the vehicle to the customer that similarly finances through the captive finance organization or through their bank. This model has persevered even as the rise of e-commerce has brought major changes to most brick-and-mortar retailers. As companies like Amazon and ebay emerged, offering convenience of shopping and fast but seemingly free delivery, traditional retailers had to find ways to incorporate e-commerce into their business model. Customers flocked online as shipping became more reliable, credit cards were more readily available, and personal data security was ensured by companies like TRUSTe and the WebTrust. Online retail sales have experienced double-digit growth since 2005, except during the recession in 2008 and 20093,4,5 and is expected to continue growing.Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Kia Optima, 2020 Mercedes Benz, 2020 Nissan Versa, 2020 Subaru WRX STI, Audi SUV, BMW, Brandon K. Hardison, Chevrolet Car, Chevrolet Sonic, Dodge charger, electric vehicles, honda, Honda Pilot, Hyundai SUV, Mercedes Benz, Nissan Rogue, SUV, upcoming car, Volkswagen, Volkswagen Tiguan SEL Premium R-Line, Volvo Car
Trackback from your site.
