China-based shoppers are very comfortable with purchasing a vehicle fully online… but believe dealers can do better
The Finding: At 61%, China-based respondents exhibit a vast openness toward purchasing a vehicle fully online – 13 percentage points higher than respondents in Mexico (at 48%), and 25 percentage points higher than the US (at 36%).
Half of respondents take that a step further, expecting dealerships to engage in helping them purchase a vehicle fully online. The poll also revealed that China-based shoppers were more trusting in dealers to safeguard their personal data (56% compared to 42% in US and Germany, 38% in UK), further bolstering the case for shopping online.
The Implications: With China-based shoppers saying they are both very comfortable buying online and trust dealers to protect their information, it’s incumbent on dealers and manufacturers to educate consumers throughout the purchasing journey and uniquely position key dealership in-person interactions (beyond test drives) – improving the overall brand and customer experience.
The challenge: creating and implementing a strategy that meets the unique wants and needs of China-based auto buyers
China-based shoppers are providing a roadmap for dealership and manufacturer success in China – but like any map, it’s easy to take the wrong path if you don’t have a partner who “knows the way” at the ground level.
In addition to over 40 years of experience in global strategic network planning, Urban Science has over a decade of experience specific to the Chinese mainland and its shoppers. We know and understand the many ways urban shoppers (who are used to highly digital and connected lifestyles), differ from rural shoppers and their needs. We’ve been analyzing and guiding several major manufacturers in the journey from traditional to alternative retail formats. We’re experts in all aspects of dealership operations, and know the challenges of digitalization, including the generational gaps that need to be overcome to fully take advantage of the available opportunities.
We leverage our learned experiences at every level of the automotive network to help guide our process of establishing market share and auto-buyer trust. In order to to succeed in China, OEMs and dealers have to understand:
- China-based auto-buyer preferences surrounding potential digital touch points in the car buying journey
- Where China-based buyers see the most value in in-person dealership interactions
- The evolving shopping/buying dynamics and how they impact dealership operations and performance benchmarking