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The Digital Retail Revolution
Content by The Buzz Business
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Mobility

Once upon a time , if you wanted something , you went to a store and , if the item was in stock , you bought it . In the last 20 years , all that changed . Since the advent of online banking and digital retailers such as Amazon and eBay , you can now get almost anything you can think of delivered to wherever you are with just a click .

The auto industry , however , resisted the revolution until recently , hanging on to an outdated business model that forced customers to drive to a dealership in their existing car to discover , order and pay for a new

The Digital Retail Revolution

The Rockar Hyundai store at Bluewater shopping center in the U . K . one . According to a 2015 report by EY , entitled Future of Automotive Retail , this product-based approach will soon become customer-centric , fostering loyalty and adapting to clients ’ expectations .
Hyundai Motor Europe is way ahead of the curve . Inaugurated in November 2014 , Rockar Hyundai is the world ’ s first digital car retailer , now with two outlets . Launching Hyundai Click2Drive and opening its corresponding dealership in Madrid ’ s Gran Plaza 2 shopping center is the latest achievement in the company ’ s digital strategy to revolutionize traditional car sales . With these two concepts , Hyundai has opened stores in some of the biggest shopping malls in the U . K . and in Spain , attracting young , tech-savvy customers . The Rockar Hyundai store in the U . K . Bluewater Shopping Center welcomed 163,000 visitors in its first year . Half of its new customers completed the car purchase at home , 94 % were new to the brand , and 96 % satisfied with their retail experience .
Car buying turned on its head
What is the automotive retail revolution ? The biggest issue is about the customer and the value chain . The auto-manufacturing industry has taken a while to sit up and take notice of competitors like Uber , Google and Apple . Consumers are digital . In the car industry channels , some dealers are still living in the
The biggest challenge we are facing is the clash between the digital industry and the old car industry ” Jochen Sengpiehl , Vice President Marketing , Hyundai Motor Europe
past where everything is manual . You see this if you try to test drive or make an appointment over the internet . Some 95 % of interested customers contact a dealer online and 80 % change dealers if they do not receive an email within seven hours . Around 41 % would consider buying a car online and as
many as 25 % would do so without even test driving it .
What are the key steps when buying a car today ? There are five digital moments in the customer journey that are crucial for every manufacturer : Which car is best ? Is it right for me ? Can I afford it ? Where should I buy it ? And am I getting a good deal ? This is the new mantra of car buying and why the digital value chain is so important in getting things right .
Tell us what Hyundai is doing differently . We started some initiatives with Rockar whereby we are leapfrogging the old legacy system and going directly to the consumer . We are working with our dealers to help them make the digital transformation . With our digital strategy in Europe and the digital hubs , we are taking a shortcut to increase new business , income and interest from buyers who want a Hyundai .
What is the secret of your current retail success ? The idea behind the Rockar and Click2Drive story is that we went
Jochen Sengpiehl , Vice President Marketing , Hyundai Motor Europe
to a busy shopping center where customers go on a frequent basis to buy food and clothes . People don ’ t have the time or inclination to go to a dealership in the suburbs for a test drive . So , we saw the potential for a completely new online retail strategy . We welcome customers in to take a look and , if they are interested , get in touch with someone who is not a salesperson , but instead comes from the hospitality industry . We do not want to replace dealers , but we want to find a new contemporary way to reach our customers ’ needs . Under these premises we build incremental business by installing
digital hubs and retail stores that invite people to develop a relationship with the brand in a different , more efficient way . Everything is built around the customer .
What else is included in Hyundai ’ s digital communication strategy ? For the first time Hyundai Motor is launching the new IONIQ models across Europe primarily via digital channels and video content . In doing so , the IONIQ Digital Hub bundles all relevant content about the vehicle tailored to the target audience by datadriven storytelling based on the different customer interest and needs . By using the potential of the digital approach , we are able to directly address the customer with a product that fits his or her needs . Through this approach the customer becomes familiar with the technology and features and finds the perfect match . The customer can digitally explore the IONIQ family from the outside and inside while also being helped by augmented reality .