Automotive retail industry trendsTrends in the retail business are inevitably impacted and influenced by technological advancements, changing market place circumstances and evolving customer behavior. Last year we anticipated that global vehicle sales would be challenged and that was just what occurred, with global passenger car sales limping to a marginal improve of just over 400,000 units in 2018. We had all our chips on the unstoppable rise of mobility services and, by year end, the prime 5 ride-hailing companies—Uber, Lyft, DiDi, Grab and Go-Jek—were estimated to be worth more than $230 billion. We also predicted that value added solutions in automotive retail would be massive. So, on the one hand, software technology businesses made further inroads into the automotive sector by means of services like usage-primarily based insurance coverage, new finance and leasing solutions, and connected auto solutions even though, on the other, automotive firms kept their consumers engaged and happy via expanded and enhanced soon after sales services and solutions.
The basic shifts beneath way in the mobility ecosystem pose a further challenge to automotive players—indeed, the adjustments threaten to undermine long-standing assumptions of private vehicle ownership on which today’s company models are constructed. In addition to responding to the rising demands of today’s consumers, OEMs and dealers need to prepare for even much more transformative adjustments that will demand a reimagining of what it implies to be an auto retailer.
Retailers that are in a position to successfully curate assortments for their customers will win in 2018. Gone are the days when you could just stock up on more products and anticipate men and women to get. Contemporary shoppers are inundated with solution alternatives, and at the finish of the day, a lot of will decide on to acquire from category authorities with inspiring collections.