MILLENNIALS AND TECHNOLOGY SHAPE RETAILING
For auto dealers, this demographic group is spawning a new breed of online competitors that thrive outside the traditional bricks-and-mortar business model.
In suburban Halifax, N.S., Stephen Seibel and his partners launched clutch.ca, a virtual used-vehicle dealership that allows customers to conduct the entire transaction online.
U.S.-based YourMechanic.com, which invites consumers to “skip the repair shop,” recently expanded its mobile car repair network to Toronto, with plans to “grow our presence beyond that,” said spokeswoman Valerie Demicheva.
In a September interview with sibling publication Automotive News, YourMechanic CEO Anthony In a September interview with sibling publication domain,” said the report, titled “Driving the Road Ahead.”
“Competitors can present a credible business case to consumers to lure them away from franchised dealers.”
But another reason accounts for their growth: Their consumer-direct model allows them to successfully foster the customer relationship and “gain potential long-term customer loyalty,” the CADA report said.
What does this mean for franchised dealers? The report encourages retailers to follow the lead taken by automakers that have struck strategic joint ventures with tech companies and forge partnerships with “certain third parties.”