Face of motor retail industry set to change

The face of consumerism in the motor retail industry is set to change dramatically in the next ten to twenty years and the driver for the changes is none other than-technology.

Image by Enjith Krishnan. Just as other retail industries have been affected by advances in technology, the motor retail industry is in no way exempt from these advances and what has been standard practice in the industry from manufacture to retail practice for the last century or so, will see drastic changes in no less than the next decade.

Just look at the concept of “cocooning”, that is, the increasing trend whereby people opt to remain at home in the comfort of their homes where all their needs can be met, is a reality and one that the motor retail industry will have to adapt to.

I see a future where consumers will be able to visit a dealership, look at the exterior and interior of vehicles and even test drive vehicles without stepping out of the living room. Consumers will be able to enjoy a fully immersive retail experience at home powered by developments in 3D TV and Heads-Up Displays. The days of large luxurious dealerships may become a thing of the past in the next few decades.

What’s more the South African motor retail industry will benefit from these technological advances. Consumers will no longer be paying for “Taj-Mahal” dealerships and the concomitant expensive building and operating costs. The future will see us driving electric, fully recyclable and disposable vehicles that will not need to be serviced and will cost a fraction of the price of a petrol or diesel vehicle.

The past five years has seen the dramatic evolution of manufacturing in that vehicles are being made to order. In the future consumers will order their vehicle from the retailer and the vehicle will be manufactured on demand.
It is essential that retailers adapt to these changes since the manner in which they deal with consumers will change. Consumers will always be “owned” by retailers as retailers are their point of call (since they cannot talk to factories) however the interaction between consumer and retailer will be different due to consumers being able to “personalise” the manufacture of their purchase. The change required by retailers is a mindset change – an industry that has remained much the same for the past century or so will require retailers to accept and adapt to an ever changing world enhanced by technology.

The South African motor retail industry does not fare particularly well with regards to technological infrastructure and this is mainly due to Telkom’s monopoly which has largely cost the South African economy. South Africa may be behind technologically but the outlook for the future is a positive one if retailers and the industry are amenable to embracing the technological advances. Retailers can look forward to a cheaper, more personalised and efficient retail experience.

0 thoughts on “Face of motor retail industry set to change

  • 12th November 2010 at 11:20 am

    A scary thought is the fact that with this “cocooning” concept comes the possibility that people might eventually stop leaving the comfort of there homes “cocoons” altogether.

    This might possibly reduce vehicle sales altogether.


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