“Traditional retailers will triumph” over disruptors, says iVendi
Established automotive retail players are highly likely to remain dominant, despite digital disruptors entering the second-hand market, iVendi predicted.
Paul Bennett, senior vice president of international business and banking alliances, said that by 2022, traditional retailers and lenders will begin to match or exceed the services offered by newcomers.
He said: “The really appealing aspect of the arrival of new and exciting digital used car retailers is that they are catalysts for change. Quickly becoming household names, their extensive marketing spend helps educate and facilitate a transformation in consumer thinking when buying a car online.
“Make no mistake, these disruptors are nimble, fast and here to stay, helping to spark real movement in a used car industry that hasn’t fundamentally changed in over 100 years.
“However, whilst we are certain that many of them will be commercially successful, we are also confident that the big winners will be established players across Europe – traditional dealers working in partnership with their financiers will triumph in the race. to the dominance of digital automotive retail.
“The reason is simple: they are able to offer consumers the best of both worlds. That means a hybrid, digital and physical experience, which is exactly what the overwhelming majority of car buyers want today and no doubt will continue to do for the foreseeable future.
Bennett said digital-only retailers would ultimately follow a similar journey to disruptors in other markets that introduced new and superior technology that excited consumers and prompted adoption of new approaches.