As part of a major marketing strategy makeover, Volvo is planning to tap into the realm of online sales and increase its investment in digital advertising. Speaking to Reuters, Volvo sales chief Alain Visser stated that research has shown that 80% of Volvo clients already shop online.
Further studies have indicated that "many will do the same for cars in the future," added Visser. Understandably, there is a fair amount of trepidation regarding online sales, as BMW can prove with less than satisfactory results of online bookings for the company's i8 hybrid performance car.
Another marque that has dabbled in online sales is Tesla Motors, where the deletion of dealers has led to a fair bit of conflict. Volvo, however, is well aware of the potential backlash and has taken the necessary steps to ensure that the 2,000 global dealerships that carry the brand will not be affected.
"If you say the word e-commerce, initially dealers get nervous," he said. "We don't see a car distribution network without dealers in the foreseeable future." Visser added that orders placed online "will still pass through the dealer network" for delivery.
Earlier this year, the company successfully sold the Volvo XC90 First Edition online. In just under 47 hours, all 1,927 units of the car were sold out. With new models like the XC90 and more set to follow, Volvo is planning to raise its sales target for 2015 with the accessibility of online shopping for its models.
Another initiative as part of Volvo's revamp is the withdrawal of the company's presence from most motor shows. The Swedish carmaker instead aims to stage its own global event to showcase its products. Only three shows remain on the company's radar - the Detroit, Geneva and alternating Shanghai/Beijing event.
Unlike its rivals - BMW, Mercedes-Benz and Audi - Volvo will not aim to establish 'boutique' dealerships. "We're a different brand with limited financial means. We don't believe in building these big palaces," proclaimed Visser.
GALLERY: Volvo XC90 First Edition
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