“European digital buyers drive the purchase decision”

www.scout24media.de
“European digital buyers drive the purchase
decision”
European Automotive Summit 2016, Munich, 9th June 2016
Marc Hundacker, Vice President Scout24 Media Europe
Agenda
1.
The digitalisation of the new car market
2.
How do consumers search for new cars today?
3.
Purchase action, online driven
The digitalisation of the new car market
Digitalisation has already changed various industries
Retail
> large portions of the retail have
shifted to online channels,
Media
> Many media have been
transformed into digital products,
e.g.:
Travel
> Travel products are increasingly
sold via online portals rather than
travel agencies, e.g.:1)
Restaurants
> Large range of delivery service
platforms, e.g. Lieferheld,
Lieferando; pizza.de
e.g.: 1)




Amazon: 187.5m
Zalando: 7 m
Cyberport: 1.7m
40% of department stores
closed 2)


72% of internet users use
Wikipedia
10% e-book market share
~4% video on demand
Newspaper circulation
reduced by 25%2)
*1) Estimated monthly visits (Average 2015) *2) Since 2015)
Source: Roland Berger consulting services



Expedia: 2.4m
Holiday Check: 8m
HRS: 2.7m
29% of travel agencies
closed2)


15% of all Germans have
already ordered food online
57% can imagine ordering
food online in the future
Number of restaurants
reduced by 17%2)
New car market - digitalisation: Thread or Opportunity ?
S
W
O
T
Opportunity: What consumers wish
45%
44%
97%
like being anonymous
to the dealer until they
lock in a deal
would buy a car online
21%
see independent online
vendors (e.g. Amazon)
as an alternative sales
channel to the dealer
59%
of young car buyers
expect a response to email/web enquiries
within 24 hours
81%
prefer a different test
drive experience than
the traditional
use the internet to
research vehicles
Source: AutoScout24 “Autokauf in der Zukunft“; Autotrader “Car Buyer of the future“ (2015); Capgemini “Cars Online“(2014),
Microsoft /Wakefield Research “Automotive Industry survey – Millenials ‘ technology preferences“
Opportunity: Number of new car sales made online will double by 2020
Source: Roland Berger
Various players entered the market to fulfill the purchase funnel
1995 - 2002
1st wave
Marketplace for used cars
2004 - 2008
2nd wave
New cars and brokers

Entry of Marketplaces


Sales of used cars remained
dominant business model in
this period (private sellers)


Auto portal portfolios
expanded to include new cars
Market entry of brokers with a
focus on used and new cars
Online sales of new cars on
“build-to-stock“
3rd wave
Professionalisation and OEM entry



Source: Roland Berger consulting services
2014 - 2015
2010 - 2013
Professionalisation of auto
portals driven by increased
competition for market share
OEMs focusing on multichannel activities, including
direct sales
Expansion of online sales of
new “built-to-order” cars
4th (current) wave
OEMs & dealers

Start of new car online
sales on behalf of dealers

Increasing focus on online
sales of new cars by OEMs,
several pilots under way
Summary Digitalisation of the OEM market
 Customers car purchase intent is to
 research online and
 buy offline today
 Customers car purchase action is transforming online
 All market partners aim to execute this trend
A
How do consumers search for new
cars today?
I
D
A
The internet is the primary resource for consumers
searching for new cars
84%
61%
37%
17%
Internet
Source: Google Gearshift Study 2014 / Netpop Reseach
Dealer
Family,
friends
TV
13%
13%
Magazines
Newspapers
A
I
D
A
European overview – “The internet is the primary
resource for consumers searching for new cars”
A
I
D
A
85% Internet, 61% Dealer
72% Internet, 67% Dealer
S
RUS
69% Internet, 59% Dealer
NL
P
D
B
UA
CZ
65% Internet, 46% Dealer
F
A
CH
I
HR
R O
BG
E
TR
Source: Google Gearshift Study 2014 / Netpop Reseach
A
Online search car resources
I
D
A
54%
car / newcar portals
car configurator of the
producer
Source: DAT Report Germany 2016
39%
search engine
27%
test reports
27%
social networks
11%
online advertisement/
promotion
11%
A
The use of new car portals
I
D
A
> 50 %
of new car buyers
use auto portals
other
19%
MeinAuto.de
7%
autohaus24.de
9%
Neuwagen.de
9%
Source: puls marktforschung GmbH, Internet Neuwagenportale setzen den Autohandel unter Druck, Germany 2015
AutoScout24.de
new cars
29%
mobile.de new
cars
27%
The effect of the internet
A
“Because of the internet, I have…”
D
I
A
contacted dealers
in the industry
changed dealers
a new car instead of
a used car
Source: DAT Report Germany 2016
54%
39%
27%
purchased an
alternative make…
27%
changed model
11%
Purchase action, online driven
European overview –
Time frame of decision to purchase
A
I
D
A
2.0 months
S
2.2 months
3.0 months
Decision time
has halved
since
2012
RUS
NL
P
D
B
UA
CZ
F
3.2 months
A
CH
I
HR
R O
BG
E
TR
Source: Google Gearshift Study 2014 / Netpop Reseach
A
Time frame: Decision of purchase
I
D
A
new car
used car
Ø 53 days
16%
23%
17%
6%
38%
Source: DAT Report Germany 2016
< 2 weeks
2–4 weeks
4-6 weeks
6-8 weeks
8 weeks +
Ø 33 days
25%
32%
18%
7%
19%
Point in time where the consumer visits the dealer
during the purchasing process
41%
visit the dealer at
the end of the
purchase process
Av. number
of Dealer visits
decreased
from 5 to 1
(within last 4 years)
Source: McKinsey 2013 Retail Innovation Consumer Survey
A
at the beginning
I
in the first half
D
in the middle
A
Source: Google Gearshift Study 2014 / Netpop Reseach
at the purchase
A
I
D
A
10
20
28
41
Point in time where the consumer visits the dealer
during the purchasing process
A
I
D
A
41 % towards the end of the process
S
30 % towards the end of the process
RUS
28 % towards the end of the process
NL
P
D
B
UA
CZ
F
25 % towards the end of the process
A
CH
I
HR
R O
BG
E
TR
Source: Google Gearshift Study 2014 / Netpop Reseach
Why do consumers visit the dealer?
A
I
D
A
4
4
4
36
37
31
Only experimental test-drive of
other brands
Only confirmatory test-drive
37
53
Final confirmatory and
experimental test-drive of other
brands
10
12
No test-drive
USA
China
49
23
Europe
Source: McKinsey 2013 Retail Innovation Consumer Survey
Summary & Outcomes
Summary: the internet transfers from communication platform
A
to a distribution channel for new cars
D
 The internet plays an important role in the whole purchase process of new cars
 The number of online driven contact opportunities has greatly increased
 New car buyers are well informed and there is transparency in the market
 Visits to the dealers are decreasing and
 The “offline” role of the dealers has changed
I
A