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Leader in Digital Transformation April, 2017 Cars Online 2017 Beyond the CarHighlights Deck

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Page 1: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Leader in Digital Transformation

April, 2017

Cars Online 2017 – “Beyond the Car” Highlights Deck

Page 2: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Cars Online – The voice of the consumer since 1999

2

Cars Online is the “voice of the customer” with its main focus on the different phases of the customer life cycle from interest over purchase to owning and repurchase

The study also covers the “hot topics” such as mobility services, autonomous driving, and cyber security

Every second year

Next issue will be published 16th of May

Trend Studies focusing on specific topics will support the Cars Online with additional reports (approx. 2 per year)

Consumer research: 70 questions in an online questionnaire

Country scope: Brazil, China, France, Germany, India, Italy, UK, US

Purpose & Content Method Frequency

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2017 2011 2012 / 13 2014

Cars Online Europe 1999

Global customer

survey 2001

Unlocking hidden value

Creating opportunities for revenue growth

Changing customer trends and buying

behavior

Smart growth options in volatile

conditions

Changing dynamics drive new

developments

Global recession

Emerging markets

eBust / downturn

Mobility & mobile

Internet hype

Climate debate

Growth agenda

Web 2.0

Financial crisis

Global consumer

survey 2000

The adaptive automotive

enterprise study

Driving growth through

collaboration

Understanding the dynamics of

consumer buying behavior

Buying behavior in mature

and developing markets

Listening to the voice of

the consumer

Social media

My Car, My Way

Digital

Generation Connected

Connectivity

The Selfie Experience

2015

Cars Online Study

2016

Leader in Digital Transformation

March, 2017

Cars Online 2017 – KFW Highlights Deck

Automotive Online Sales

© Capgemini Consulting 2017. All rights reserved.

Page 3: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

30%

70% owned a car before

first car

10%

34% 56%

Total

In less than 1 month

In 1 - 4 months

In 5 - 12 months

Cars Online Study 2017 – Methodology of the online survey

HISTORY OF OWNERSHIP

AGE GROUPS AND GENDER:

18-34: 38%

35-49: 38%

50+: 24%

59% male 41%

female

INTENTION OF PURCHASE

1010

Growth markets Mature markets

8101 8MARKETS RESPONDENTS FROM

3

General car purchase considerations Searching for information / Use of social media The customer journey and loyalty The future of mobility

The survey took place between16th January and 17th February 2017

TOPICS

1001 1005 1013 1011 1020 1005 1036

© Capgemini Consulting 2017. All rights reserved.

Page 4: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Cars Online Study 2017 „Beyond the Car“ – Executive Summary

4

1 Dealerships are becoming less important in the Interest phase.

3 Customers are open to additional offers in the phase between vehicle purchase and hand-over.

4 Consumers are looking forward to new players entering the market for new car sales and used car re-selling.

5 There is a high and growing interest in mobility services.

7 The “cyber resilience” of a car is seen as having a high impact on the buying decision.

8 The success of electric vehicles depends on many factors beside the vehicle e.g. loading infrastructure.

Consumers are very interested in additional features for information (e.g. virtual reality). 2

6 Autonomous Driving is seen as a compelling issue, with consumers willing to pay for it.

© Capgemini Consulting 2017. All rights reserved.

Page 5: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Cars Online Study 2017 „Beyond the Car“ - Key Findings Summary (1/2)

Interest

• Dealerships are becoming less important in this phase, especially in emerging markets

• Social Media is becoming even more important, especially OEM and dealer sites

• Consumers are very interested in additional features for information (e.g. Virtual Reality)

Purchase

• There are less contact points with consumers, especially in the dealership (e.g. test-drive alternatives); more technical help is expected

• The appetite for online sales continues to grow. There is a shift from premium brands (2015) to volume brands (2017)

• There is a strong desire for more communications – and the ability to modify orders - between purchase and delivery. Consumers are open for cross-selling and up-selling

Ownership

• There is a high/growing appreciation of authorized service outlets. However, there is a strong decline in support for specialized service shops in Germany

• There is a high/growing interest for buying parts and accessories online. There is a strong interest in being able to buy „digital“ services (in-car apps, functions on demand)

• There are mixed/complicated messages about communications: knowing which customer wants which level/type of comms is key (eg some consumers are never contacted and like this, others hate this)

• Consumers value transparency in data usage. Many do not feel well informed about how their data is being used

Repurchase and Loyalty

• New market entrants have taken - or are looking to take - market share (eg online sales of used cars; autonomous cars from Google or Apple)

• Brand loyalty is complex and needs deep analysis to maximize marketing spend: 10% are brand ambassadors, 50% are likely to change brand anyway, 30% would change after bad service experiences, 20% are strongly influenced by image)

© Capgemini Consulting 2016. All rights reserved. 5 © Capgemini Consulting 2017. All rights reserved.

Page 6: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Cars Online Study 2017 „Beyond the Car“ - Key Findings Summary (2/2)

Mobility Services

• There is a high/growing interest in mobility services, with especially strong growth in the US and Germany

• Mobility services are seen by most consumers as complementary to owning a car more than as an alternative

• Cars brands are seen as important in car-sharing programs, especially in emerging markets and for premium brand customers

Connected Car Services

• The demand for connected car services is strong, but it is not seen as a compelling issue for consumers

• There is a general openness to share data, especially with OEM’s and dealers

Autonomous Driving

• Autonomous driving is seen as a compelling issue, with consumers willing to pay for these services

• Safety is seen as the top benefit with regards to Autonomous driving

Cyber Security

• The “cyber resilience” of a car is seen as having a high impact on the buying decision

• Very few consumers are not concerned about cyber security

• Very few consumers are strongly against surveillance whatsoever

Electric Vehicles

• Many things need to happen before take-up of electric vehicles grows significantly

• Consumers are interested in electric vehicles, but are not passionate. Many things will need to happen before this becomes a reality

© Capgemini Consulting 2016. All rights reserved. 6 © Capgemini Consulting 2017. All rights reserved.

Page 7: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

7

1 Interest Phase

A DEALER VISIT IS NOT THE PREFERRED WAY OF GATHERING INFORMATION ANYMORE, DEALERS MAY RETAIN INFLUENCE BY BEING ACTIVE ON SOCIAL MEDIA

© Capgemini Consulting 2017. All rights reserved.

Page 8: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Dealerships are becoming less important in the interest phase, especially in emerging markets

8

Q: WHICH OF THE FOLLOWING TYPES OF INFORMATION SOURCES AND CHANNELS DO YOU EXPECT TO USE WHEN RESEARCHING YOUR NEXT CAR?

50%

46%

40%

35%

33% 32%

20%

16% 15%

12%

49% 48%

47%

42%

32% 32%

16%

14%

10% 9%

51%

43%

30%

23%

36%

33%

27%

20%

23%

15%

45%

40%

31%

23%

41%

33%

25%

22% 23%

16%

0%

20%

40%

60%

Independent press Manufacturer website

Dealership Dealer website Family and friends Manufacturer brand store

Auto shows General social media

Manufacturer social media

Dealer social media

Total Mature markets Emerging markets India

© Capgemini Consulting 2017. All rights reserved.

Page 9: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Social Media is becoming even more important, especially when owned by the OEM or dealers

9

50%

41% 40%

37%

34%

25%

13%

44%

36%

31%

28% 28%

15%

20%

61%

50%

55%

51%

44% 42%

2%

61%

47%

57% 58%

50% 52%

0%

0%

20%

40%

60%

80%

Dealer or manufacturer

social media sites

Third-party automotive

blog or discussion forum

Personal or professional

social networking sites

Online video or photo

sharing service

Informative or

encyclopaedia site with

user-generated content

Social messaging or

micro-blogging services

None of these

Total Mature markets Emerging markets India

Q: WHEN RESEARCHING YOUR CAR PURCHASE ONLINE, PLEASE INDICATE IF YOU EXPECT TO USE ANY OF THE FOLLOWING:

© Capgemini Consulting 2017. All rights reserved.

Page 10: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

We see a strong influence of social media on the purchase decision

2%

2%

11%

8%

2%

2%

9%

6%

14%

16%

29%

24%

42%

44%

36%

39%

40%

36%

15%

23%

India

Emerging markets

Mature markets

Total

Very unlikely 2 3 4 Very likely

10

Q: HOW MUCH WILL YOUR PURCHASE DECISION BE INFLUENCED BY POSITIVE COMMENTS ON SOCIAL MEDIA ABOUT A CAR, DEALER OR MANUFACTURER?

© Capgemini Consulting 2017. All rights reserved.

Page 11: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Consumers are very interested in using additional features when searching for information (e.g. virtual reality)

11

1%

45%

54%

59%

64%

1%

35%

48%

56%

67%

9%

15%

29%

35%

58%

6%

23%

36%

43%

62%

-10% 0% 10% 20% 30% 40% 50% 60% 70%

Other

Video Chat

Video blogs from customers

Live Chat

Virtual Reality vehicle presentation

Total Mature Markets Emerging Markets India

Q: BESIDES TRADITIONAL METHODS OF RESEARCH, WHICH ADDITIONAL FEATURES WOULD YOU LIKE TO USE?

© Capgemini Consulting 2017. All rights reserved.

Page 12: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

12

2 Purchase Phase

CONSUMERS HAVE A HIGH INTEREST ON BEING INFORMED ABOUT THE STATUS OF THEIR VEHICLE ORDER, MANUFACTURERS AND DEALERS COULD USE THE OPPORTUNITY FOR UP-SELLING

© Capgemini Consulting 2017. All rights reserved.

Page 13: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Potential Customers are visiting dealers less often

13

Q: HOW MANY TIMES WILL YOU VISIT A DEALERSHIP BEFORE PURCHASING YOUR NEXT CAR?

2015 2017

6%

67%

20%

4% 2%

8%

70%

16%

3% 3% 3%

63%

26%

7%

1%

4%

62%

26%

8%

0%

0%

20%

40%

60%

1 2 to 3 4 to 5 More than 5 Don't know

Total Mature Markets Emerging Markets India

6%

59%

24%

6% 5%

8%

59%

21%

5% 7%

4%

60%

29%

6%

1%

4%

61%

29%

5%

1%

0%

20%

40%

60%

1 2 to 3 4 to 5 More than 5 Don't know

Total Mature Markets Emerging Markets India

© Capgemini Consulting 2017. All rights reserved.

Page 14: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

63%

52%

38% 37% 35%

30% 30%

5%

65%

59%

38%

34% 31%

27% 25%

8%

59%

42% 39%

41% 41%

37% 39%

1%

64%

44% 43% 40%

30%

34%

43%

0%

0%

20%

40%

60%

80%

Technical expert

available in the

dealership to answer

my questions

Navigation through

the available vehicles

at the dealer to see

different options

Cars in showroom

have digital info

available (e.g. QR-

Codes, augmented

reality)

Interactive touch

screens to view or

configure car

information with

pictures and videos in

3D/Virtual Reality

Tablet for me to use

in the showroom to

get detailed

information,

compare cars,

configure cars, etc.

Ability to transfer

data from or to your

mobile device (e.g.

contact details,

configurations)

Virtual test drive

stations

None of the above

Total Mature markets Emerging markets India

14

Q: WHAT SERVICE ITEMS DO YOU EXPECT WHEN VISITING A DEALER BEFORE PURCHASING OR LEASING A CAR?

When consumers visit a dealership, they are looking for technical help and assistance in navigating through the showroom.

© Capgemini Consulting 2017. All rights reserved.

Page 15: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

15

Q: INSTEAD OF VISITING A DEALER FOR A TEST DRIVE, WHAT ALTERNATIVES WOULD YOU CONSIDER IF THEY OFFERED THE CAR OF YOUR CHOICE?

2017

41%

35%

29%

22% 21%

20%

4%

37%

28%

33%

18%

14%

18%

6%

46% 46%

22%

29%

33%

24%

1%

46%

41%

23%

33%

29% 29%

0%

0%

20%

40%

Dealer brings

car to me

Pick up car

at safe and

well known

location of

my choice

I would only

test drive at a

car

dealership

Use another

owner

through a

peer-to-peer

test drive site

Use a car

sharing

service

Use a car

rental

company

None of the

above

Total Mature markets Emerging markets India

40%

30%

27%

22%

19% 18%

16%

38% 38%

21%

15% 16%

12%

8%

42%

18%

35%

32%

24%

26% 25%

49%

12%

41%

33%

28%

30% 29%

0%

20%

40%

Dealer brings

car to me

I would only

test drive at

a car

dealership

Pick up car

at safe and

well known

location of

my choice

Self-service

test drive

using a

mobile app

Use a car

rental

company

Use another

owner

through a

peer-to-peer

test drive site

Use a car

sharing

service

Total Mature Markets Emerging Markets India

Customers are interested in alternatives to a dealer when looking for a test drive

2015

© Capgemini Consulting 2017. All rights reserved.

Page 16: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

The appetite for online sales continues to grow. There is a shift from premium brands (2015) to volume brands (2017)

16

Q: HOW LIKELY ARE YOU TO PURCHASE YOUR NEXT CAR OVER THE INTERNET? BY THIS WE MEAN THE COMPLETE TRANSACTION, EXCEPT DELIVERY OF THE CAR, THROUGH AN INTERNET CAR DEALER OR MANUFACTURER INTERNET SITE OR A SALES OR AUCTION SITE (E.G. EBAY).

12%

20%

28%

25%

11%

13%

18%

17%

20%

22%

23%

23%

27%

28%

20%

22%

30%

17%

11%

13%

India

Premium

Volume

Total

Very unlikely 2 3 4 Very likely

8%

18%

21%

20%

9%

13%

15%

14%

20%

22%

25%

24%

32%

27%

25%

26%

32%

20%

14%

16%

India

Premium

Volume

Total

Very unlikely 2 3 4 Very likely

2015 2017

© Capgemini Consulting 2017. All rights reserved.

Page 17: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

There is a strong desire for more communications between purchase and delivery

17

Q: WHEN WOULD YOU LIKE INFORMATION FROM YOUR CAR MANUFACTURER OR DEALER DURING THE PHASE BETWEEN PURCHASE AND DELIVERY?

43%

38%

17%

2%

Regular update Constantly available

Only on status change Not at all

© Capgemini Consulting 2017. All rights reserved.

55% 38%

7% 0%

Regular update

Constantly available

Only on status change

Not at all

India

All respondants

Page 18: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

61%

44% 38%

34% 29% 28%

21% 19% 16%

71%

40%

25% 28% 27% 25%

14% 12% 9%

53% 47% 49%

39%

30% 31% 27% 26% 23%

51% 45% 47%

42%

31% 33% 35% 28% 27%

0%

20%

40%

60%

80%

Estimated delivery

date or time left

until delivery

Additional

information on my

model

Offers and

information on

insurance and

service contracts

Suggestions to

upgrades and

adjustments to my

order around the

car

Assembly status

including pictures

Information on my

dealer (customer

care manager,

service team)

Car Manufacturer

information on

other car models

General Car

Manufacturer

information

(company sales &

revenue growth,

sustainability, etc.)

Lifestyle stories

around the brand

Customers wish to receive more information and are open to additional offers

18

Q: WHAT KIND OF INFORMATION WOULD YOU LIKE TO RECEIVE FROM YOUR CAR MANUFACTURER OR DEALER DURING THE PHASE BETWEEN PURCHASE AND DELIVERY?

20

15

62%

50% 46%

37% 36% 28%

22%

3%

64%

43% 41% 32% 32%

23% 17%

4%

58% 61% 55%

47% 42%

37% 29%

1%

59% 59% 56% 53% 49%

37% 34%

0%

0%

20%

40%

60%

80%

Estimated delivery

date or time left

until delivery

Offers and

information on

additional services

Additional

information on my

model

Suggestions to

upgrades and

adjustments to my

order

Information on my

dealer

Assembly status

including pictures

Lifestyle stories

around the brand

No information at all

Total Mature markets Emerging markets India

20

17

© Capgemini Consulting 2017. All rights reserved.

Page 19: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

There is a strong desire for the ability to modify orders between purchase and delivery

19

56%

48%

45%

42%

38%

31%

31%

4%

55%

42%

35%

35%

32%

26%

25%

5%

57%

56%

55%

49%

45%

36%

37%

2%

52%

55%

60%

55%

46%

45%

48%

2%

Options/accessories

Insurance and service contract options

Safety features

Colour

Connected and entertainment features

Model

Engine

None of the above

Total Mature markets Emerging markets India

Q: AFTER SIGNING THE CONTRACT, WHICH OF THE FOLLOWING WOULD YOU EXPECT TO BE CHANGEABLE?

© Capgemini Consulting 2017. All rights reserved.

Page 20: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

20

3 Ownership

BUYING PARTS AND ACCESSORIES ONLINE IS A COMMON BEHAVIOR, CONSUMERS ARE ALSO READY TO PURCHASE DIGITAL SERVICES ONLINE

© Capgemini Consulting 2017. All rights reserved.

Page 21: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

There is a growing appreciation of authorized service outlets

21

64% 20%

13%

3%

Authorized or brand dealer workshop

Independent workshop (local)

Specialized service shops (national chains)

Myself, friend, family

Q: WHERE WOULD YOU EXPECT TO HAVE YOUR CAR SERVICED?

2015 2017

58%

18%

19%

5%

Brand dealer

Independent dealer

Special service Shops

Myself, friend, familiy

Total Total

© Capgemini Consulting 2017. All rights reserved.

India

66%

20%

10% 4%

Brand dealer

Independent dealer

Special service Shops

Myself, friend, familiy

India

69%

15%

12%

4% 0%

Brand dealer Independent dealer Special service Shops Myself, friend, familiy Other

Page 22: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

There is high interest for buying parts, accessories and digital services online

22

Q: HOW LIKELY ARE YOU TO PURCHASE CAR PARTS AND ACCESSORIES OVER THE INTERNET ?

Q: WHAT PARTS AND ACCESSORIES WOULD YOU LIKE TO BE ABLE TO BUY ONLINE?

4%

4%

14%

10%

4%

4%

10%

8%

18%

18%

24%

22%

35%

37%

31%

33%

39%

37%

21%

27%

India

Emerging markets

Mature markets

Total

1 = Very unlikely 2 3 4 5 = Very likely

69%

54%

45%

19%

11%

65%

49%

35%

13% 15%

75%

63% 62%

28%

4%

75%

56%

65%

33%

3%

0%

20%

40%

60%

80%

Accessories (e.g. floor

mats, wiper blades)

Parts (e.g. spark plugs,

oil filter)

In-car apps and

service (e.g. additional

navigation features)

Functions-On-Demand

(e.g. more horsepower

for the weekend)

None of the above

Total Mature markets Emerging markets India

© Capgemini Consulting 2017. All rights reserved.

Page 23: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

It is important to get to know your customer, and which level and type of communication he expects

23

Q: HOW SATISFIED ARE YOU WITH THE COMMUNICATIONS WITH YOUR DEALER AND MANUFACTURER ?

Q: HOW OFTEN HAS YOUR DEALER OR MANUFACTURER PROACTIVELY CONTACTED YOU IN THE PAST?

3%

5%

4%

17%

18%

26%

23%

41%

46%

40%

42%

38%

32%

27%

29%

0% 20% 40% 60% 80% 100%

India

Emerging markets

Mature markets

Total

Very dissatisfied 2 3 4 Very satisfied

© Capgemini Consulting 2017. All rights reserved.

2%

2%

1%

1%

7%

28%

43%

22%

More than 6 times 3 to 6 times

1 or 2 times Never

Total

12%

42%

37%

9%

More than 6 times

3 to 6 times

1 or 2 times

Never

India

3%

Page 24: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Consumers value transparency in data usage although many do not feel well informed about how their data is being used

24

Q: HOW IMPORTANT IS TRANSPARENCY ON THE USAGE OF YOUR PERSONAL DATA TO YOU?

Q: TO WHICH LEVEL ARE YOU INFORMED ABOUT HOW THE DEALER OR MANUFACTURER USES YOUR PERSONAL DATA?

2%

1%

3%

2%

3%

3%

15%

14%

20%

18%

33%

34%

32%

33%

49%

50%

43%

45%

India

Emerging markets

Mature markets

Total

1 = Not important at all 2 3 4 5 = Very important

6%

11%

22%

18%

7%

8%

15%

12%

24%

25%

28%

27%

33%

34%

23%

27%

30%

22%

12%

16%

India

Emerging markets

Mature markets

Total

1 = Not informed at all 2 3 4 5 = Very well informed

© Capgemini Consulting 2017. All rights reserved.

2%

Page 25: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

25

4 Repurchase and Loyalty

NEW COMPETITORS ARE GAINING SIGNIFICANT MARKET SHARE IN PROFITABLE AREAS, LIKE THE PRE-OWNED CAR BUSINESS

© Capgemini Consulting 2017. All rights reserved.

Page 26: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

Customers are open to buy a vehicle from a tech company

26

Total

Q: IF TECHNOLOGY COMPANIES (E.G. APPLE, GOOGLE) PRODUCED A CAR, ARE YOU LIKELY TO SWITCH FROM YOUR CURRENT BRAND?

57%

43%

Yes No

© Capgemini Consulting 2017. All rights reserved.

India

83%

17%

Yes No

Page 27: Cars Online 2017 Beyond the Car Highlights Deck...Cars Online Study 2017 „Beyond the Car“ – Executive Summary 4 1 Dealerships are becoming less important in the Interest phase

New market entrants are looking to take market share

27

54%

43%

37%

37%

35%

23%

2%

55%

40%

34%

32%

27%

21%

3%

54%

48%

43%

46%

49%

27%

1%

53%

58%

46%

43%

57%

36%

1%

Dealer or authorized service outlet

Online classified ads

Sell privately to friends

Independent second-hand car dealer

Online car buying companies

Paper classified ads

Other

Total Mature markets Emerging markets India

Q: IF YOU WANT TO SELL YOUR CAR, WHICH CHANNELS WOULD YOU PREFER TO USE?

© Capgemini Consulting 2017. All rights reserved.

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Brand loyalty is complex and needs deep analysis to maximize marketing spend

28

49%

36%

29%

21%

11%

10%

49%

32%

25%

18%

11%

12%

48%

43%

35%

25%

10%

6%

64%

34%

31%

25%

11%

6%

I just want a change

Unhappy with the performance of the car

Unhappy with the servicing of the car

Unhappy with the image of the brand

Other reason

I am not going to change the brand for my next car

Total Mature markets Emerging markets India

Q: WHAT WOULD MAKE YOU CHANGE THE BRAND FOR YOUR NEXT CAR PURCHASE?

© Capgemini Consulting 2017. All rights reserved.

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29

5 Mobility Services

CONSUMERS COMBINE THE ADVANTAGES OF AN INDIVIDUALLY OWNED CAR AND INTELLIGENT MOBILITY SERVICES

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There is a high and growing interest in mobility services

30

Q: HOW LIKELY ARE YOU TO CONSIDER EACH OF THE FOLLOWING ALTERNATIVE MOBILITY SERVICES?

4%

21%

3%

22%

3%

19%

1%

5%

13%

9%

15%

6%

14%

4%

11%

23%

24%

24%

23%

21%

23%

17%

23%

36%

26%

34%

25%

38%

28%

38%

29%

33%

16%

30%

15%

32%

16%

40%

21%

India Car sharing programme

Car sharing programme

India Ride-share service

Ride-share service

India Multi-modal package

Multi-modal package

India Mobility on demand

Mobility on demand

Very unlikely 2 3 4 Very likely

2015 2017

© Capgemini Consulting 2017. All rights reserved.

6%

31%

5%

30%

4%

28%

3%

6%

14%

9%

15%

7%

13%

7%

14%

27%

23%

24%

24%

24%

25%

28%

29%

34%

21%

35%

20%

38%

22%

37%

22%

27%

11%

27%

11%

27%

12%

25%

12%

India Car sharing programme

Car sharing programme

India Ride-share service

Ride-share service

India Multi-modal package

Multi-modal package

India Mobility on demand

Mobility on demand

Very unlikely 2 3 4 Very likely

23% 16%

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Mobility services are widely seen as complementary to owning a car

31

Total

Q: DO YOU SEE MOBILITY SERVICES AS COMPLEMENTARY OR AS AN ALTERNATIVE TO AN OWNED OR LEASED CAR?

56% 34%

10%

Complementary Alternative

Don't know

© Capgemini Consulting 2017. All rights reserved.

India

63%

36%

1%

Complementary

Alternative

Don't know

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Car brands are seen as important in car-sharing programs

32

Total

Q: IF YOU CHOOSE A CAR-SHARING PROVIDER IS IT RELEVANT WHICH CAR BRAND THE PROVIDERS USES?

66%

34%

Yes No

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84%

16%

Yes No

India

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33

6 Connected Car

SHARING DATA IS NOT A NO GO ANYMORE, ESPECIALLY OEMS AND DEALERS BENEFIT FROM HIGH CUSTOMER TRUST

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The demand for connected car services is there, but it is not seen as a compelling issue for consumers

34

36%

24%

15%

12%

11%

3%

32%

18%

13%

17%

15%

4%

41%

33%

18%

4%

4%

1%

34%

34%

21%

5%

5%

1%

My current car does not have Connected Car services, but I would

like my next car to have them

I already use Connected Car services in my current car

I have Connected Car features in my car, but do not use them

I am not interested in Connected Car services

I have not heard of Connected Car services before

Don't know

Total Mature markets Emerging markets India

Q: PLEASE INDICATE YOUR USAGE OF CONNECTED CAR SERVICES

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Customer are generally open to share vehicle data

35

Q: WHILE THE CAR IS CONNECTED, WHICH OF EACH OF THE FOLLOWING TYPES OF DATA WOULD YOU BE WILLING TO SHARE? - VEHICLE DATA

34%

31%

25%

9% 1%

Yes, if necessary for an incentive or

a service I want to get

Yes, but only anonymous data for

research and statistics purposes

Yes, without restrictions

No data sharing

Don't Know

Total

© Capgemini Consulting 2017. All rights reserved.

India

37%

27%

29%

6% 1%

Yes, if necessary for an

incentive or a service I want

to get Yes, but only anonymous

data for research and

statistics purposes Yes, without restrictions

No data sharing

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36

7 Autonomous Driving

CUSTOMERS ARE WILLING TO PAY EXTRA FOR AUTONOMOUS DRIVING FEATURES

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Autonomous driving is seen as a compelling issue, with consumers willing to pay for these services

37

Q: ARE YOU WILLING TO PAY AN ADDITIONAL PRICE FOR AUTONOMOUS DRIVING FEATURES?

81%

19%

Yes No

Total

© Capgemini Consulting 2017. All rights reserved.

India

93%

7%

Yes No

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Increased safety is highest among many strong expectations in regards to Autonomous Driving

38

60%

51%

43%

39%

11%

53%

51%

30%

30%

17%

72%

53%

63%

55%

2%

72%

53%

64%

52%

1%

Increased safety / reduced risk

Less stress

Save time, faster reaching the destination

Time to concentrate on other topics (e.g. family,

smartphone usage)

None of these

Total Mature markets Emerging markets India

Q: WHAT DO YOU EXPECT FROM AUTONOMOUS DRIVING?

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39

8 Cyber Security

CYBER SECURITY HAS A HIGH INFLUENCE ON THE BUYING DECISION

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The protection against cyber fraud has a high impact on the buying decision

1%

1%

5%

4%

2%

2%

4%

4%

17%

20%

28%

24%

40%

43%

35%

38%

40%

34%

28%

30%

India

Emerging markets

Mature markets

Total

1 = Not at all 2 3 4 5 = Key decision factor

40

Q: TO WHAT DEGREE THE CYBER RESILIENCE OF A VEHICLE WOULD INFLUENCE YOUR PURCHASING DECISION ?

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Very few consumers are not concerned about cyber security

41

Q: HOW DO YOU WANT TO CONTROL THE PERSONALLY IDENTIFIABLE INFORMATION FROM YOUR VEHICLE?

Q: HOW WOULD YOU CONSIDER SECURITY SURVEILLANCE OF YOUR VEHICLE?

1%

1%

11%

7%

2%

3%

8%

6%

16%

20%

30%

26%

37%

39%

31%

35%

44%

37%

20%

26%

India

Emerging markets

Mature markets

Total

1 = I am totally against any surveillance

2

3

4

5 = I support surveillance if it provides a service

© Capgemini Consulting 2017. All rights reserved.

33%

26%

15%

14%

8%

4%

31%

23%

14%

19%

8%

5%

35%

32%

18%

5%

9%

1%

34%

34%

19%

5%

7%

1%

I want to select myself which data are collected,

transmitted and used, and when they are destroyed.

I want to be informed about the type and amount of

personally identifiable data that are created, stored

and transmitted beforehand.

Creation, storage and transmission of personally

identifiable data must be restricted to absolute

emergency cases (danger to life)

I want no creation, storage or transmission of personally

identifiable data by my car whatsoever.

I don't care / everybody can see when, where, how I

drive

None of the above.

Total Mature markets Emerging markets India

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42

9 Electric Vehicles

OEMS AND THE SOCIETY NEED TO SOLVE SEVERAL ISSUES BEFORE ELECTRIC VEHICLES MAY BECOME A SUCCESS

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The success of electric vehicles depends on various open aspects

43

43%

40%

37%

36%

31%

27%

18%

11%

40%

37%

37%

32%

24%

24%

13%

16%

49%

46%

37%

41%

42%

32%

25%

3%

43%

43%

39%

45%

51%

35%

33%

2%

Charging the batteries is as quick and easy as picking

up gas/petrol/diesel

The cost of EVs is further subsidised to make them as

cheap as gas/petrol/diesel cars

The driving range of EVs is significantly increased

beyond current levels

The cost of gas/petrol/diesel increases significantly

The environmental impact of gas/petrol/diesel is proven

to be far worse than previously imagined

The variety of available models is as great as with

conventional combustion engine cars

It is more fun driving an EV

None of the above

Total Mature markets Emerging markets India

Q: WHAT WOULD DRIVE YOU TO BUY AN ELECTRIC VEHICLE FOR YOUR NEXT CAR PURCHASE?

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44

Based on our study, six key recommendations have been derived for OEMs and dealers to be successful in the future

Improve the (digital) customer experience by providing social media content and using digital tools to stay part of the game

1

Provide additional offers and services between purchase and hand-over of the vehicle. 2

Be aware of new competition for car sales and pre-owned car (re-)sales. Provide services as convenient as the new ones.

3

Get to know and leverage your brand ambassadors. 4

Make use of mobility services as a complementary offer to car possession. 5

Make your cars cyber resilient and promote this, as it will affect the buying decision. 6

Customers are looking for more – Provide products and services that go beyond the car

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THANK YOU!