LITTLE BY LITTLE, one careful step at the time, life is slowly returning to normal. Or some version of post-pandemic normal. The world adapts, continues to evolve, and will never be quite the same again.
Long before the pandemic, the digital revolution was well underway. Industries with less complex challenges than car dealerships had already been transformed beyond recognition. Some had been virtually eradicated, replaced by a simple app in your smartphone. But automotive retail was clearly lagging behind
“LAGGARDS”?
Consumer studies often define and classify individuals as Innovators, Early adopters, Early majority, Late majority, or Laggards. Applying the same crude terminology for entire industries, music and literature would qualify as Innovators, and automotive retail as (Sorry, folks!) Laggards. Late to change, for very understandable reasons, but moving in the same general direction.
For a hundred years, car buyers have periodically endured the same physical buying journey, including phone calls and physical meetings with sales reps, visiting one or several car dealers’ showrooms, test driving, negotiating car price, trade in terms, financial arrangements, and more. This is still the typical modus operandi, but in recent years millions of buyers have experienced the convenience of online car browsing and car buying. A growing minority completes their entire journeys online.
NO STRAIGHT ROAD AHEAD
The strategic, long-term issues are still there, of course. As the aftermath of the pandemic fades away, many of us have vague or conflicting ideas of how global warming, urbanization and a host of other issues should affect our choices today.
For the automotive industry, electrification alone brings a range of new challenges. Some critics reflect on the fact that most cars, produced at high costs and with considerable environmental impact, are only used a fraction of the time.
But most car owners still reject the idea of car sharing. Here, the challenge is mainly psychological. We all love the convenience of having our very own cars, easily available on short notice 24/7. Enjoying the power. And, not least, expressing who we are on the road.
So, back on track. Business (nearly) as usual. But the road further ahead does look a bit muddy, doesn’t it?