Cars Online 2017 Beyond the Car
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1 Nick Gill Chairman, Global Automotive Council Beyond the Car Presentation to Telematics India 2017
2 Cars online the voice of the consumer since O Cars Online Europe 1999 Global customer survey 2001 Unlocking hidden value Creating opportunities for revenue growth Changing customer trends and buying behavior Smart growth options in volatile conditions Changing dynamics drive new developments My Car, My Way The Selfie Experience Beyond the Car Global consumer survey 2000 The adaptive automotive enterprise study Driving growth through collaboration Understanding the dynamics of consumer buying behavior Buying behavior in mature and developing markets Listening to the voice of the consumer Generation Connected Automotive Online Sales 2
3 Methodology 8101 RESPONDENTS FROM 8 MARKETS Mature markets Growth markets INTENTION OF PURCHASE 10% Total In less than 1 month In 1-4 months In 5-12 months AGE GROUPS AND GENDER 56% 34% 41% female 59% male 18-34: 38% 35-49: 38% 50+: 24% The survey took place between16 th January and 17 th February 2017 TOPICS 1. Interest 2. Purchase 3.Ownership 4.Repurchase 5. Mobility Services HISTORY OF OWNERSHIP 30% 70% owned a car before first car 6. Autonomous Driving 7. Connected Cars 8. Cyber Security 9. Electric Vehicles 3
4 Sharing data is not a no go anymore, Especially OEMs and dealers benefit from high customer trust Connected car services
5 Cyber Security has a high influence on the buying decision Cyber security
6 Customers are willing to pay extra for autonomous driving features Autonomous driving
7 Consumers combine the advantages of an individually owned car and intelligent mobility services Mobility services
8 OEMs and the society need to solve several issues before electric vehicles become a success Electric vehicles
9 For telematics, certain key points can be deduced for OEMs and dealers to be successful in the future Accept that connectivity has more financial benefit inside the automotive industry. It is a ticket to play the game, not a gold-mine for consumer sales Provide additional connectivity offers and services between purchase and hand-over of the vehicle. Be aware that convenience and customer centricity will always win in today s transportation services marketplace 4 Understand that the role of the dealership will change radically in the coming years. Transportation services for consumers, not just car sales for dealers and OEMs 5 Make use of mobility services as a complementary offer to car possession. Many consumers will want both 6 Make your cars cyber resilient and promote this, as it will affect the buying decision. Customers are looking for more: we need to provide products and services that go beyond the car 9
10 Business Cases for connectivity have been very limited The estimated value of 15 use cases *These use cases are excluded from the total as they cannot be offered at the same time as PHYD. ** Rounded figure Use Case Value per Vehicle Per Year Pay How You Drive Insurance Pay As You Drive Insurance 2.46* CRM - know the customer - vehicle sales 7.50 CRM - service - MILEAGE 1.60 Prognosis 1.25 Advertising - PULL - proximity deals 0.03 Weather 0.02 Traffic - Live FCD 0.12 Road Maintenance 0.01 Insurance - previous driving record 8.75* Warranty trends (quality improvement) 5.00 Product design 1.25 Advertising - trip analysis 0.00 Trip analysis - Public 0.01 Advertising PUSH Radio ads 0.01 Total Source: SBD Consulting 10
11 Case Study Mobike, OfO (Alipay) Huge consumer uptake, now expanding from China to other countries. Dubious business case for bike companies, great for FS providers 11
12 Case Study - Filld Extensions possible to valet services, maintenance etc Targeting the luxury car market 12
13 Case Study Gig Car Share Very niche market, ideal for California!! 13
14 Case Study - MovInBlue Joint venture between a T1 and a digital service provider 14
15 Case Study - ServiceMandi 15
16 The dealership of the future 16
17 About Capgemini With more than 190,000 people, Capgemini is present in over 40 countries and celebrates its 50 th Anniversary year in A global leader in consulting, technology and outsourcing services, the Group reported 2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini creates and delivers business, technology and digital solutions that fit their needs, enabling them to achieve innovation and competitiveness. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience TM, and draws on Rightshore, its worldwide delivery model. Rightshore is a trademark belonging to Capgemini The information contained in this presentation is proprietary Capgemini. All rights reserved.
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