global strategic analysis of women as customers in the car industry
TRANSCRIPT
Global Strategic Analysis of Women as Customers in the Car Industry
Women set to Become the Largest and Most Influential Vehicle Customer Segment
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Today’s Presenters
Lisa Whalen is Vice President, Automotive & Transportation Growth Consulting and Co-Business Unit Leader for Frost & Sullivan’s Americas Region. In her role, she collaborates with automotive industry stakeholders to formulate growth strategies. She has managed several hundred research, analytical, and consulting projects and reports and serves as a thought leader on mega trends and their impact on urban mobility.
Elisabeth Young is a recognized figure in the French car industry and founded in 2007 the leading body promoting women in the sector. Women and Vehicles in Europe (WAVE) a professional network with over 400 women and men members.Elisabeth's automobile career has covered senior management positions in finance and HR as well as hands-on experience in dealerships. Today she is a consultant advising the major independent dealer groups in France.
Olivia Walker is a Senior Consultant in Automotive and Transportation and Visionary Innovation Teams of Frost and Sullivan. With a law background her research and consulting focus is global mega trends – and she is currently leading the study into the empowerment of women in the automotive industry. Olivia has worked on and managed numerous high-value consulting projects for the last 9 years.
With special guest
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POLL QUESTION: Where in the automotive value chain will the global
increase in female car consumers have the most impact?
1. Interior and Exterior Styling 2. Features and Technology
3. Retailing 4. Aftermarket and Service
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2012 tipped the gender balance with 51% female license holders in the USA marking women asthe biggest driving segment across all age groups. Canada was at 49% female and will likelyfollow suit in 2014/15 followed by the UK by 2016/17.
OEMs such as Fiat, Renault and Porsche have been aiming new vehicle models at women. Smaller city cars started the trend but then traditionally ‘male’ categories such as luxury and SUV are following. Top 10 OEMs will all launch vehicle models aimed specifically at women in next 3/5 years.
The dominance of female customers will drive changes in the retail space such as that undertaken by Nissan in Japan with their 378 ‘lady first’ dealerships– stores will become more lifestyle oriented, higher % female staff and an emphasis on consultative selling.
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Source: Frost & Sullivan
Women as a Car Customer - Key FindingsWomen are set to become a larger and more influential consumer segment than men– driving OEMs to launch specific models targeting women
Currently one of the lowest global industry averages for diversity at 18%, the automotive industrywill proactively hire women at all levels. By 2020 leading OEMs will have an average of 25%female workforce and 15-20% at management level.
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New business models to appeal to women such as longer warranty periods, pay as you drive andcar as a service. Dealers, car brokers, leasing companies and insurers will win competitiveadvantage by marketing specifically to women.
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USA Canada UK Japan Italy Germany Spain Brazil
Men holding a driving license (%) Women holding a driving license (%)
Passenger Car Licenses by Gender: Country SummaryUSA is the country with the biggest percentage of female license holders, followed by the other Anglo-Saxon countries – Germany, at a comparably low base is growing quickly
lic
en
se
Ho
lde
rs (
% o
f th
e t
ota
l)
Source: Frost and Sullivan Analysis
Country
Driving License Holders by Gender 2012
50.44%
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Leasing appeals to women since the whole process can be done online, no need for dealership interaction / the assumed hard sell and fixed pricing
50% of women globally are dissatisfied with their cars
74% of women globally feel misunderstood by car manufacturers
Dealers feel women do more research before they purchase
Women As Car PurchasersWomen are said to drive 90% of all car purchases due to their multi-faceted need for vehicles and increasedearning power
Women are routinely reported to dislike servicing and are often more challenging on detail and have done research as a result
Source: Forbes, Bloomberg, Frost and Sullivan Analysis
Women are more likely to engage with social media regarding brand marketing
Around 40% of women in Europe own a driving license and in some countries such as the UK – women's car buying since the recession has been more
robust down 6% between 2007 and 2012 whilst men's was down 17%
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Features and Benefits: What Women (Don’t) WantOver half of women globally are thought to be unhappy with their cars leading OEMs to design cars specifically for women
A Car Made for Men•Seat to window spacing and adjustments•Things that require pushing, pulling and
slamming•Ergonomics that don’t cater for average body
types
Cheap Materials•Dislike of plastics – cheap and unsustainable
materials•Authenticity of materials is key
•Scratchable/wearable materials that start to look worn quickly
Low Tech•Lack of interior lighting
•Too little internal storage•Unrefined technology
Source: Frost and Sullivan Focus Group Analysis
Complexity•Lack of direction regarding defects/problems
•Lack of signposting •Complex warranty and servicing terms
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Eight Key Design Trends Female Consumers PreferOEMs like Renault, BMW and Mercedes are incorporating female-preferred features and all leading OEMs across all categories will continue this trend with female tailored models
Customized CabinSpaciousness is equated with comfort & children are a key
consideration
Green CredibilitySustainability and low level environmental damage is
expected
Auto Assist FunctionsFeatures like park assist and
sensorized doors are becoming standard
High Quality MaterialsPlastic is equated with poor quality. 2014 models feature 60% more leather (compared
to 2012)
Wellness FeaturesTime spent in the vehicle must
not add to the stresses and strains of daily life
High VisibilityIncreased use of panoramic sunroofs and glass viewing
panel
Source: Frost & Sullivan
Intuitive ControlsIntuitive in this sense means easy
to locate and identify
Personalization OptionsInnovation in personalization will be
a key factor for securing multiple female buyer segments to the same
model
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OEMs are Evolving Small City Models: Citroen and BMWOEMs are evolving smaller city cars to appeal more to the growing number of female consumers by incorporating common female demands in new models
5 doorHighly
personalized
7 inch touchscreen that controls the radio, phone, computer
Heated mirrors
Leather trim
Back up camera
Reverse parking camera
Convertible roof
Front drive
4.5 inches longer, 1.7 inches wider, 0.3 inches taller with a longer wheelbase.
Intuitive interior controls
Leather & woven trim
Back up camera
Automatic breaking & parking
Infotainment touch screen
Citroen C1 2014Citroen C1 2014 BMW MINI 2014BMW MINI 2014
Shared Strategies
That Appeal to Women
High grade materials such as
leather
Increased interior space
Increased convenience features for parking and
manoeuvring
2014 Model Updates 2014 Model Updates
Source: Frost & Sullivan
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Case Study: Porsche Macan Engineered ‘For Her’Porsche Has Announced the Porsche Macan as Their Strategy to Target High Growth Women Customers
Panoramic roof
Higher seating
position than
shoulder line
+600
personalization
options
High grade
infotainment as
standard
Porsche Macan 2014• 3 years in
development• Crossover body
type
Porsche Macan 2014• 3 years in
development• Crossover body
type
Source: Bloomberg, Frost & Sullivan.
Female brand ambassador, tennis star Maria Sharapova
Female brand ambassador, tennis star Maria Sharapova
Target females across segments –SUVs and small, sporty
convertibles, too
Target females across segments –SUVs and small, sporty
convertibles, too
Get younger urban femalesGet younger urban females
Change perceptions; 85 % of Porsche buyers were men,– so far in 2014 ¼ of Macan sales
have gone to women
Change perceptions; 85 % of Porsche buyers were men,– so far in 2014 ¼ of Macan sales
have gone to women
Named by
Porsche as “the
sports car among
compact SUVs”
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Case Study: Mercedes S Class - Cabin Designed for ‘Energizing Comfort’
Source: Image – Mercedes Benz Ltd (Futures Team), Frost & Sullivan analysis.
Climate control system for fine dust
and an ionizing system to filter out viruses and spores and freshen the air
A built-in atomizer, which diffuses scents into the cabin. Heated
steering wheel and arm rests
All other materials are either wood,
leather or aluminium – no
plastic
Lighting designed to make two 12.3-inch TFT screens appear to be free
standing
Wellness Features Comfort and Atmosphere
Attractive TechnologyHigh Grade Materials
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Case Study: Nissan ‘Lady First’ DealershipsJapanese automakers believe optimizing the sales process for women will give them a return on investment and competitive advantage
Source: images – Nissan Motor Co Ltd., Frost & Sullivan
What enables dealerships to qualify for ‘lady first’ status?
Stylish interiors -Polished
wooden floors
Nursing room
Spacious children’s play
area
Female staff –sales and
mechanics
“Serving the influential female customer base and leveraging the under-tapped talent of female employees is a key focus area. Across segments, we are increasingly selling and marketing vehicles aimed at women”
Carlos GhosnCEO Nissan
July 2014
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OEMs Targeting Females with New Business ModelsWith women’s high use of social media – sales and marketing campaigns could be a key way to capture women’s attention
Source: Frost & Sullivan
BMW– Joy of Leasing
BMW believe more women are under the age of thirty are leasing luxury cars. BMW’s Joy campaign is targeting the young professional
women.
Brand Extensions in Lux Market
Luxury brands use brand extensions to build relationships
with female customers and seek to establish a loyalty pattern
Lexus – Education Sessions
Lexus dealers in the US run workshops for women
Kia - Longer Warranty and Women Selling to Women
Kia’s 7 year warranty is said to be principally aimed at women – Kia UK hires female sales people in
their dealerships
Bentley - Event Based Car Buying
Bentley dealers run ladies’ evenings, pop-up restaurants, charity auctions and fashion
events
Fiat
Fiat cater for gender preferences by making vehicles entirely
customizable and releasing many variations of model
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Targeting Women Earlier in the Purchase JourneyAlternative players in the automotive retail value chain will seek to connect with female consumers –potentially overriding the traditional approach of dealers and OEMs
Eg
. Tru
ecar • Truecar is a broker
to offer information and transparency on car buying
• The majority of Truecars users are females as they favor negotiation free car buying and transparency on cost comparisons E
g. F
oxy L
ad
y D
eale
rsh
ips • US and the UK are
leading in the creation of ‘female friendly’ dealer consortia
• These dealers would be ‘approved’ by the consortia and judged to be open and welcoming to the needs of female customers
Eg
. V
roo
mG
irls • There is a
proliferation of female oriented review sites
• This could grow as auto retailers seek to connect with the customer earlier on the journey
Online Brokers
Female Friendly Dealers
ReviewSites
Future areas women oriented
offers will be developed
Aftersales – ‘female friendly’ repair and
maintenance centers
Test drives –service like Tred
(US) but for women
Car clubs – run by brand groups to tutor in usage
Source: Frost & Sullivan
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Automotive Industry: Diversity Statistics SummaryMany OEMs have ambitious goals to increase their gender diversity – leading OEMs will aim for 20% females in management by 2020
OEM % Total Workforce % in ManagementFemale Represented
Board LevelNotable Aims
Ford 23% Not found X
Nissan 11% (2011) 10.6% X14% female management
by Apr. 2017
BMW17.4% Group (14.5%
BMW AG)
13.8% Group (10.9%
BMW AG)X
Women in leadership
position 15-17% by 2020
Daimler 16.3 13% XWomen in executive
management position to
20% by 2020
Toyota 11% 1% X /
GM Not found Not found ���� /
Volvo Cars 22% 23% ����35% women in leading
positions by year 2020
VW Group Not found 9.8% XWomen in leadership at
all levels 30% in the ‘long
term’
Fiat Group 19.6% 13.1% X /
Renault 17.6% 18.4% ���� /
Source: company annual reports, Frost & Sullivan
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The Last Word—3 Big Predictions
2All the major OEMs will design vehicles aimed at women across segment and category with luxury OEMs taking the lead in the short term
3Automotive retailing will have a revolution pushed by rise in female consumers leading to a female oriented omni-channel retailing strategies with 50% or more female staff at key dealerships
1Women will be more larger and more valuable consumer segment than men -The rise in the number of females holding passenger car licenses will continue to overtake men country by country
Source: Frost & Sullivan
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For Additional Information
Julian Borchert
Corporate Communications
Automotive & Transportation
+49 (0) 69 770 33 43
Olivia Walker
Senior Consultant
Visionary Innovation Research Group Automotive & Transportation
+44 (0)207 343 8394
Cyril Cromier
VP Sales
Automotive & Transportation
+33 1 4281 2244
Lisa Whalen
Vice President, Growth Consulting and Co-Business Unit Leader- Americas
Automotive & Transportation
248-231-9592