Dealers who create revenue streams and expand their businesses will be better prepared for the toll automotive retail disruption could take on their profit lines.
Those who don't innovate could put their companies in jeopardy.
That's according to a study released last month by McKinsey Center for Future Mobility, a division of McKinsey & Co.
In the study, called "As Dramatic Disruption Comes to Automotive Showrooms, Proactive Dealers Can Benefit Greatly," the consulting firm says autonomy, connectivity, electrification, shared mobility and the evolving digital consumer are major auto retail disrupters.
But it sees success for dealers who center on one of the following approaches.
- Focusing on luxury brands in tier-two cities less prone to disruption
- Expanding geographic scale and increasing scope of work, such as offering new products or services
- Prioritizing less disrupted rural markets
- Creating a personalized omnichannel sales approach. Omnichannel typically describes a seamless buying experience, whether the consumer is shopping from a computer, mobile device or in the store.