Beyond the conventional bricks, mortar and glass of dealerships, the company is exploring the possibilities of complete online sales transactions for customers as well as other retail options from pop-up stores to car supermarkets.
This shows Australian management is starting think along the lines of the disruptive Rockar and Hyundai UK combined online shopping centre business model in the UK – where 94 per cent of sales are first timers to Hyundai and one of Rockar/Hyundai’s UK showrooms can see more foot traffic than the rest of Hyundai UK’s dealerships combined.
Speaking at a media event, Hyundai Australia COO Scott Grant told GoAutoNews Premium that the company had room to improve its shopping experience and that customers could expect something new when shopping for one of its vehicles.
“There is a lot more in-dealership interactive equipment and (having) customers almost self-sell is becoming increasingly important,” he said.
Mr Grant explained that a “self-sell” customer was one that has done their homework prior to visiting a dealership and needs minimal help from a sales consultant to make a purchasing decision. This was changing the role of Hyundai showroom staff.
“There is great potential for online transactions where the customer completes a sale with a mouse click.”
“Some of the research we’ve seen recently particularly focused on so-called millennials where their perspective of buying is different”, he said.
“They are far more open to looking at devices for a reference and to be able to shop online interactively; choose colours, wheels, and are far more open to make significant transactions in this way (online) rather than the traditional way.
“As they come through we are going to have to cater for those people.”
With the shift to online research, a dealership would still have a purpose for the validation of a sale through seeing vehicles in the metal and test drives, but Mr Grant said there is great potential for online transactions where the customer completes a sale with a mouse click.
As the brand aims to better serve a younger customer base, Hyundai is also reshaping its dealership experience and training its national sales team to focus more on a buyer who already knows what they are after before setting foot inside the showroom.
Younger and more tech-savvy shoppers are doing their research online before venturing out, and the South Korean car-maker says it is expanding the purchasing options it offers its buyers to align with this shifting trend.
“Even people who buy in the traditional way are doing a huge amount of research online – over 86 per cent”
“Even people who buy in the traditional way are doing a huge amount of research online – over 86 per cent. But there’s a type of person who wants to do all that and then buy online as well,” Mr Grant said.
“I think we’ve got to admit that we could do better in those areas. I think most car companies – certainly ours – have invested and continue to invest in people and process and training and dealerships.”
Mr Grant said that Hyundai was “a challenger-type brand and growing. We need more dealers and more capacity in order to get to our potential”.
He said Hyundai has 165 dealers whereas the market leader “has something like 220” and that “our go-to-market position is to work with dealers”.
As more customers do their research in advance, Mr Grant said ‘enquiries’ — the number of people walking in or calling a dealer — were dropping but the sales hit-rate per customer entering a dealership was actually increasing.
“The enquiries are kind of dropping, but the quality of enquiries is going up exponentially, in that once they come in they pretty much buy,” he said. “It’s because they’ve already done their research and when they come to you, they are ready.”
While the company is considering all options as it continues to freshen dealerships, Mr Grant said the company would not lose sight of a more traditional customer and the future of Hyundai shopping would cater for all.
“We have the choice in this new world. Do we grow through new technology alternatives or through a more traditional way by appointing more dealers – bricks and mortar? I think for us it will be a combination of both, but definitely with a stronger technology flavour.”
Footnote: “In the future maybe that name (dealership) needs to change a bit because a dealership conjures up thoughts of a property and buildings. But it might be an ‘e-dealer’ … who is a retailer,” Mr Grant said.
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