DEALERS returning to trading as the lockdown eases could prompt a step change in online motor retail.
iVendi says that a shift away from showroom-based interaction seems inevitable in the medium term at least, and that it has already seen an uptick in interest from dealers who want to upgrade their online presence.
Chief Executive James Tew said: “The showroom-based retail model has persisted in the motor industry for much longer than almost any other sector but, for the medium term at least, that picture is likely to change and perhaps substantially.
“Even if the Government allows dealers to reopen their doors in June, consumers are likely to remain wary about utilising showrooms in numbers for the foreseeable future and, in truth, a socially distanced premises may just not be much fun to visit.
“There is every reason to believe that click-and-collect and home delivery will be the dominant methods of trading as we emerge from lockdown, and that showrooms will become more like fulfilment centres where vehicles are processed.
“There will be some face-to-face vehicle retail, but it will probably be relatively limited.”
Tew said that iVendi had seen a surge in interest in its online retail products over the last week as the industry had begun to look to return to trading – but that quite difficult issues needed to be solved for some retailers.
“The issue is not the technology itself. We can demonstrate that the technology works, can be easily integrated into almost all dealer systems, and is cost-effective.
“Where issues are much more likely to arise is in retailers having to create real-world processes that align with the technology where they don’t currently exist, such as to enable click and collect. This is probably a much bigger task than enhancing your web site to enable a complete online purchasing process, for example.
“In a sense this is where we are going to see the real step change. Our view is that, however the coronavirus crisis is resolved, showrooms will continue to have an important part to play but all dealers will have effectively digitalised themselves.
“Even the most traditional will no longer be a showroom with a web site bolted on but will have integrated their physical and online operations completely.”
Tew added that iVendi had been in the process of launching its new product range when lockdown began and that the technology appeared to be gaining traction.
“We now have three products – ENGAGE, CONVERT and TRANSACT – that together are designed to deliver a complete online motor retail journey.
“A few weeks ago, we provided TRANSACT free of charge to our direct customer base as a gesture of solidarity during the crisis. The product is designed to drive deals with an approach intended to reflect real-world negotiations, and the statistics we are seeing suggest that it is already helping to make a different for our dealers.
“We believe that conditions are going to be difficult over the coming months and probably years in the motor industry but also, for us, this is a moment when we can prove exactly how well online processes work when it comes to selling vehicles.”
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