Blog: Online retailing
Dave Leggett | 22 November 2012
Buying a car is always going to be a little bit more complicated than buying a book from Amazon. Isn't it?
Well, traditional automotive retailing models have not been seriously disrupted by the emergence of online shopping over the past decade.
If you are going to purchase a car, it's never been easier to do your own research online and then walk into the dealer armed with facts and figures over the car spec you want and the price that you are prepared to pay. But the physical act of visiting a showroom and talking to a salesman remains at the heart of the process.
Will that continue to be the case? The consultants at Arthur D Little have been considering the issues. One interesting change in the market may be that people move away from the car purchase as an emotional purchase to it becoming more of a rational one (for example, as they shift from direct ownership of a vehicle to personal lease). Online sales channels might be well suited to such a transition - for example in allowing quick and easy 'commodity style' comparisons. The car becomes a utility purchase, like switching household energy provider perhaps. Anyway, it's an interesting report (below link to summary, there's a PDF available for more detail).
Making cars where you sell them makes sense on a number of grounds. It can be a way to save on shipping costs, exploit lower manufacturing costs, avoid import tariffs and reduce exchange rate risks....
The Paris Show seems a long time ago now, but I have been sent a link to a BBC news item in which just-auto's editor makes a brief appearance....
It was interesting to speak with UK prime minister David Cameron yesterday. I didn't have much time, so I went for the European question....
- COMMENT: US JLR plant likely to get a warm welcome
- THE WEEK THAT WAS: Interesting, interesting...
- VEHICLE ANALYSIS: Mitsubishi's top-selling PHEV
- VEHICLE ANALYSIS: 2014 Peugeot RCZ R
- VEHICLE ANALYSIS: 2014 Kia Sportage
- JLR eyes US southern states 'transplant' - paper
- Tatkata airbag recall extended to 7.8m US vehicles
- JLR-Chery JV opens China factory
- Daimler restructures cooperation with Tesla
- Tesla outsells rivals as Europe sales rise 6%
- Jaguar Land Rover: Providing remarkable growth throughout the economic downturn
- PLDB - vehicle cycle plan database (annual subscription)
- Global light vehicle safety systems market- forecasts to 2029
- LMC Automotive's European Passenger Car Production Estimates (annual subscription)
- Ford Motor Company - Strategy and SWOT Report