The vehicle industry, after solely depending on chains of dealerships to reach out to customers and sell cars and bikes, has also joined the eCommerce bandwagon.
A few manufacturers have found their way onto established online marketplaces in a bid to generate greater presence and conversations for their vehicles, as well as attract a different breed of customers.
Deccan Herald recently spoke with General Motors India Vice President of Marketing and Customer Experience Jack Uppal, whose company created a buzz when it presented its latest sports utility vehicle offering, Chevrolet Trailblazer, on Amazon. The 2016 Chevrolet Trailblazer, imported from Thailand, was available for bookings on Amazon.in during October 21–25, at a reservation deposit of Rs 25,000.
“If you look at the landscape of today’s market, a lot of opportunities show up online. These platforms offer a unique purchasing experience, and help reach a new audience every time,” Uppal told Deccan Herald over phone from Dubai.
General Motors has had a rather uneventful run in India during the last few years. The company’s total sales (domestic + exports) between January and October 2015, stood at 41,134 units, compared with 50,738 units the previous year, garnering a domestic market share of around one per cent.
Stating that the partnership with Amazon is a mutually beneficial one, Uppal claimed, “ECommerce meets Chevrolet’s vision of being a brand for the present generation. Consumers have appreciated the platform.”
Keen on digital strategies
According to PriceWaterhouse Partner and auto expert Abdul Majeed, “For GM, the biggest issue was in the realm of social networking, and this move in eCommerce is certainly an important one.”
While Amazon does not possess a specific car brand category, a separate Chevrolet Store was created under the site’s automotive category, to showcase the car.
“Our research showed that consumers spent a lot of time online, and would gather a lot of information about all sorts of products, including cars. Hence, we added a new digital step to their car experience and purchase journey,” Uppal added.
Amazon customers got the chance to view the car, experience its features, and understand its specifications. All relevant details, including about dealerships, could be accessed. “Our internal findings stated that over a million visitors had watched the site when we launched the car on it,” Uppal claimed.
Following the experience, users could either make a booking on the site, or click a dealership for further assistance, and also opt for a test-drive. While customers received their SUVs from their local Chevrolet dealership, bookings can also be made through the dealerships.
The company has a network of 241 sales, and 268 service points throughout India, and Uppal clarified that though GM was enthusiastic about eCommerce, the company’s dealerships play a major role in its sales and marketing push.
Meanwhile, the Chevrolet Trailblazer, priced at 26,40,000 lakh (ex-showroom Delhi), was also well-received on Amazon. The company claimed that about 80-90 per cent of all cars allocated on Amazon were booked.
“The target audience for the Trailblazer is an important one, which includes the tech-savvy youngsters,” Uppal said. Accordingly, GM has said that digital strategies would play a key role in innovations and technology creation for the company, going forward.
New motorcycle diaries
While car companies are yet to tread the online eCommerce path in a big way, two-wheeler makers have already gone full throttle on it. Being led by India’s market leader Hero MotoCorp, which has taken the Snapdeal route, other competitors may follow.
It was in December last year that Hero launched its online sales in partnership with Snapdeal, and the company claims that the response has been phenomenal.
“Our online customers are also entitled to all benefits of warranty and service. The two-wheelers are also priced the same as Hero’s offline dealerships,” a Hero MotoCorp spokesperson said.
The company offers the entire range of bikes and scooters of all colours and variants on the platform, available at the Hero Brand Store on Snapdeal.com. “Enthused by the success of this initiative, we are now in the process of setting up our own eCommerce platform on our website,” the spokesperson added.
The company claims to have sold over three lakh bikes and scooters on Snapdeal, in just over 10 months by the end of October 2016.
Talking about the different mindset going into buying cars and bikes online, Majeed opined, “The car industry may take a longer time to take to this route, since the investment and experience component in buying a car is greater than that while buying a scooter or bike. Hence, the latter industry may take to eCommerce faster.”
While going digital is a novel push in the realm of marketing and sales, the most important element for any company is building a robust product line, Majeed said.
“For GM, it’s important that it develops a robust product portfolio. A big issue is that in a while, there hasn’t been a major product from the company, in the Indian market. It’s to be noted that for large automobile companies in India, if there’s no growth in the country, it’s difficult to grow elsewhere,” he said.
Precisely, that’s GM’s plan — to launch 10 new models over the next five years, beginning with the Trailblazer. These cars (unsure about the categories) are expected to give a new flavour to the company, whose current stable is slowly ageing.
The second car from the list is the mini-MPV Chevrolet Spin, which will arrive in India, sometime in late-2016, or in 2017. “We continue to evaluate our strategy as we draw new plans to revamp our portfolio,” Uppal said.
And what about seeking eCommerce or other digital channels to sell the other cars? “We continue to seek digital channels,” replied Uppal.
As Majeed put it, “Manufacturers are looking at a young, NextGen clientele, all brought together by social media. ECommerce helps in not only providing vital information about the products (through the internet), but also by enabling research and understanding of the former, may help facilitate strong buying decisions.”