An automotive dealership is a local business focusing on retail sales and distribution of new or used vehicles. Automotive dealers operate as per the dealership contract with the original equipment manufacturer (OEM) or its sales subsidiary. A typical automotive dealership management structure includes dealer principal/general manager, sales manager and frontline staff. The automotive industry implements supply-push strategy where the network of dealership and other channel partners are designed to leverage private capital, hold inventory and provide service & support to customers. Traditionally, this network is designed to cater customer requirements of specific geography or region with few brands only. However, current trend shows increased dissatisfaction from customers in terms of purchase process.
The automotive industry essentially consists various channel partners in order to efficiently address the customer needs. Channel partners include retail distribution, regional or national based businesses, retail outlets and franchised businesses. Presently, OEMs are employing automotive dealership management systems (ADMS) to monitor and manage these partners. ADMS include features such as online marketing tool, inventory management, audit reports & analysis among others to measure, report and control various activities within the dealership.
The business of selling and distribution of vehicles is going through a rapid transformation which is changing overall market dynamics. The automotive dealership model is experiencing a shift from traditional vehicle dealerships and showroom-based buying to multi-channel retailing, which is a mix of traditional and online retailing. The digital model is expected to leverage offerings by OEMs and simultaneously improve customer relationship.
Preference for internet-based automotive retailing is increasing among customers. Customers are using internet services to gather information, get price quotations and sometimes, execution of transactions. In addition, key global OEMs are also expected to adopt innovative auto retail models, including future stores, connected retail and omni-channel retail to address shifting consumer requirements.
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