The automotive sector in Mexico is one of the largest and hardest hit in Mexico. Strengthens ECommerce In June 2019 the industry officially declared itself in crisis. During that month, the directors of the National Association of the Automotive Industry and the Mexican Association of Automotive Distributors issued a warning that vehicle sales, as well as their production and export, are going down.
Guillermo Rosales of the Mexican Association of Distributors declared that the automotive industry had a 25-month decline. Faced with this apparent crisis, companies began by investing in new lands, the step that the automotive industry had to take was Sweden Email List based on the intention of reaching e-commerce. It is a growing market sector, according to Market Research Future, the growth outlook in annual rate is 6 percent until 2023.
Volkswagen and its drive for eCommerce
According to Forbes, the change towards eCommerce is largely based on generational change, millennial habits have come to generate a change in the dynamics of industries. In Mexico, the eCommerce business is beginning to become a reality and one of the brands that is already exploring this possibility is Volkswagen.
According to data such as the Com score study, it is estimated that 19 percent of the country’s consumers are willing to buy a car online, in order to cover that market and get closer to its consumers Volkswagen launched its new corporate image in Mexico, with which it seeks to consolidate itself as one of the major vehicle marketing brands through the internet.
The brand’s foray into online sales has already been previously proven with the sale of the last 65 Beetles of the company were sold by Amazon during 2019. Also the T-Cross SUVs were put on exclusive per-sale only online.
This undoubtedly already left a teaching mark for the brand and its sales methods. According to what Edgar Estrada, the company’s brand director, told Expansion, the change in the company not only occurs in the logo, but also implies a change in behavior with respect to new consumers. The automaker stressed that the change of image in front of the market does not respond to its most recent scandal, the diesel gate. Scandal that confirmed the alteration in the results of broadcasts through the use of illegal software.
The change according to the brand is a natural evolution.
Market change and consumer changes
It is more than established that the change of generation also implies a change in the behavior of consumers, in their shopping habits and in their approaches. The Mexican user, for example, has a natural process to first turn to google before deciding to buy, according to Oliver Aguilar, research manager at the IDC, 52 percent of Mexicans approach google and 51 percent approach YouTube looking for reviews.
The Com score study can illustrate the picture, according to the report 89 percent of people who are interested in buying a car do a preliminary search. It also established that 16 percent of Internet users in the country have entered news mobile lead sites or pages specialized in the automotive sector. Volkswagen is not the only brand in the automotive sector that is trying to enter the online business. Companies like Nissan, Tesla and Renault already sell through eCommerce.
The eCommerce seems the way to go by brand, the next step in the industry taking into account that the industry has been one of the hardest hit in the Mexican market. A clear example of how the automotive industry seems to be heading to a new market, and that in addition to the impression of working is Renault. The French brand has already proven that the formula can work and that the channels to be closer to the young consumer is through online sales. Renault managed to pee-sell 22 units of its KWID Outsider, during the month of January. The 22 units sold were resolved without a prior approach, that is, the buyers finalized the purchase without knowing the vehicle.