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Executive Outlook of the Future of Automotive Retail

  • ID: 3293917
  • Report
  • June 2015
  • Region: Global
  • 118 Pages
  • Frost & Sullivan
Beyond 2020, Digitization will Enable Lead Conversion Ratio Improvements of More than 80%

This study analyzes the impact of digitization on the new car and the parts retail business. It provides a strategic overview of global Mega Trends and their disruptive impact on automotive retail. The study also highlights the top transformational shifts in the automotive retail space. It demonstrates the activities of automotive OEMs and their current and future new car and parts retail strategies. The study also discusses the future of automotive retail and presents an actionable set of recommendations for stakeholders.


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.

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

Note: Product cover images may vary from those shown
1. Executive Summary

Executive Summary - Key Takeaways
Executive Summary - Future Outlook of the eRetail
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

2. Research Scope, Objectives, Background, and Methodology

Research Scope
Research Aims and Objectives
Key Questions this Study will Answer
Research Background
Research Methodology
Key OEMs Compared in this Study

3. Definitions and Segmentation

Definitions of Selected Terms Used in the Study
Definition of Digital in Retail
New Mega Trends
Vehicle Segment Definitions

4. 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

5. 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
Exhibit 1 - Nissan Lady First Dealerships

6. Future Trends in New Car Retail

The Car Dealership of the Future
Exhibit 2 - 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

7. 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
Exhibit 3 - BMW’s Future Digital Parts Retail Strategy
Exhibit 4 - Audi Digital Car Servicing
Key Comparative Features of Service Aggregators
Exhibit 5 - whocanfixmycar.com’s Service Aggregation Model
Emerging Bricks and Clicks Convergence Models in Parts and Services
Key OES Channel Developments
Exhibit 6 - GM’s Use of Technology in Service Strategy
Exhibit 7 - Tesla Service: Remote Options
Exhibit 8 - 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

8. Illustrations of OEMs’ Future Retail Strategies

Exhibit 9 - Audi City Digital Car Showroom
Exhibit 10 - KPIs: Audi City Digital Car Showroom
Exhibit 11 - Mercedes Me (Hamburg)
Exhibit 12 - Renault Store
Exhibit 13 - Fiat Live Store
Exhibit 14 - TrueCar
Exhibit 15 - Hyundai Rockar, Bluewater
Exhibit 16 - Hyundai Rockar, Bluewater (continued)
Exhibit 17 - KPIs: Hyundai Rockar
Rockar - Digital Touch Points of a New Customer Journey
Exhibit 18 - Nissan Delivers a Versa Note via Amazon Box
Exhibit 19 - Lincoln Black Label Experience
Exhibit 20 - Google’s Mobilegeddon is Pushing for Mobile Websites
Exhibit 21 - Scion Targets an Enhanced Portal Experience for Customers
Exhibit 22 - Future Volvo Dealerships
Exhibit 23 - Renault’s Tie-up with TVS for Digital Dealership in India
Exhibit 24 - New Entrants in the Digital Retail Space

9. Conclusions and Future Outlook

Key Takeaways on the Future of Automotive Retail
Conclusions and Future Outlook
The Last Word - 3 Big Predictions
Legal Disclaimer

10. Appendix

Abbreviations and Acronyms Used
Internet Sales Growth of Key US Dealerships
Digital Retail Landscape
BSIG Research Program
Learn More - Next Steps
Market Engineering Methodology
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