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3 reasons automotive retail is sleepwalking towards a nightmare.

Recession ahead!
As someone who heads up Client Services at an agency partnering with automotive brands I’m naturally close to the market, consumer behaviour, the recent challenges around post pandemic production and the impact the country’s economic landscape can have on the sector.

Right now it feels like a period of significant change and disruption, and there are 3 big challenges on the horizon for automotive brands and local retailers.

1. Customers are happy to wait for their new car, for now. But how long will this last? Supply chain issues and post pandemic production challenges mean that what was once almost a purchase available for immediate collection now comes with a lengthy lead time. Latest insights from Zenith Vehicles suggest that on average you can expect to wait 7 months for a new car in the UK, but some models have a 12 month lead time or longer.

2. Associated with the above production challenges are higher prices. With demand outstripping supply the chance to haggle a deal on your new car is less than what it was before. With consumers having money in their pocket post pandemic this hasn’t been an issue up until now. But this might change in the near future with the threat of recession and cost of living crisis on the horizon.

3. In times of high demand it’s easy for best practice principles to slip. Orders are taken rather than cars sold. Areas such as marketing are perceived to be less important. But what happens when the phone stops ringing? As market conditions change those who aren’t following best practice might find that they need support to get back into good habits.

If you’re an automotive brand or retailer now is the time to start preparing. Get ahead of the pack by starting a conversation with We Are Acuity.
Why not schedule a FREE 30-minute assessment today here? It will be well worth your time.

Or alternatively read more about Local Marketing on our blog page "Local Thinking': https://www.weareacuity.com/local-thinking-our-blog


#digital #marketing #automotive
 

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