Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Upcoming SlideShare
Digital Transformation in Automotive
Next
Download to read offline and view in fullscreen.

3

Share

The digital transformation: Used car retail performance management 2.0

Download to read offline

The digital transformation: Used car retail performance management 2.0
Jörg Höhner, Global Managing Director INDICATA
E.N.G. Automotive Retail & Distribution Summit
Berlin - April 5, 2016

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

The digital transformation: Used car retail performance management 2.0

  1. 1. The digital transformation: Used car retail performance management 2.0 E.N.G. Automotive Retail & Distribution Berlin - April 5, 2016 Jörg Höhner, Global Managing Director INDICATA
  2. 2. Papal Inauguration Pope Benedict XVI Papal Inauguration Pope Francis
  3. 3. NO TRIVIAL CHANGE Major trends changing consumer car buying patterns The internet empowers consumers Smartphones and tablets are game changers Consumers take their homework seriously Targeted research results influence buying decisions WWW
  4. 4. NO TRIVIAL CHANGE And also the used car business sees already disruptions…
  5. 5. In a time where supply and demand changes faster than ever, data-driven insights are vital to drive your used vehicle business to growth.
  6. 6. Actionable Metrics & Insights DATA-DRIVEN INSIGHTS Monitor real-time data to improve used car performance
  7. 7. MARKET DAYS SUPPLY PRICE TO MARKET INVENTORY AGE PRICING STRATEGY STOCK TURN SHARE OVER FIRST PRICE TO MARKET NUMBER OF PHOTOS DATA-DRIVEN INSIGHTS KPIs to guide used vehicle suceess
  8. 8. STOCK TURN Careful stock management to improve operational performance 5,6 7,4 0,0 2,0 4,0 6,0 8,0 10,0 Nov. 2014 Nov. 2015 Profit Impact: € 38.400 Small Dealer 6,6 8,3 0,0 2,0 4,0 6,0 8,0 10,0 Nov. 2014 Nov. 2015 Profit Impact: € 180.300 Mid-size Dealer 7,3 9,2 0,0 2,0 4,0 6,0 8,0 10,0 Nov. 2014 Nov. 2015 Profit Impact: € 1.140.700 Large Dealer Group
  9. 9. MARKET DAYS SUPPLY Measures the relationship between supply and demand today 120 Supply Total number of vehicles currently available Demand Average number of vehicles sold per day 60
  10. 10. MARKET DAYS SUPPLY How can Market Days Supply help protect residual values? Volume Distribution Pricing Strategy
  11. 11. GERMAN PREMIUM MANUFACTURER JAPANESE VOLUME MANUFACTURER EUROPEAN VOLUME MANUFACTURER 1 - 3 0 d a ys 3 1 - 6 0 d a ys 6 1 - 9 0 d a ys 9 1 + d a ys INVENTORY AGE Minimize the profit harming effects of increased market volatility 24% 13% 13% 50% 28% 15% 12% 45% 29% 18% 13% 40%
  12. 12. 105 % 5% above Price to Market 100 % Average Price to Market 95 % 5 % below Price to Market Nøgletal PRICE TO MARKET Assess the price position of your inventory
  13. 13. Price/ Market MDS 97 50 100 74 101 150 99 217 Price/ Market MDS 101 60 98 60 95 60 - - Days in stock 1-30 31-60 61-90 91+ Typical Ideal PRICING STRATEGY Know when Market Days Supply is in your favour
  14. 14. Attractive cars priced too low Identify network dealers who consistently price below the market Identify network dealers without “rational” pricing strategy Know when Market Days Supply is in your favour „Discount“ dealers Fresh inventory priced lower than old Attractive cars priced too low PRICING STRATEGY Top 3 dealer pricing strategies undermining profitabilty
  15. 15. SHARE OVER FIRST PRICE TO MARKET Identify and manage deprecation risk of your inventory Avrg. Price/Market 102% Total Inventory Value € 8.426.359 Share Over First Price/Market 37% Value @ Retail Asking Price € 3.754.629 Depreciation Risk Next Month € 56.319
  16. 16. TOO FEW PICTURES Manage the ideal photo count
  17. 17. CASE STUDY Premium Brand Dealer in the Netherlands Average stock days reduced by 15% 95% Gross Margin per unit up by Used car sales grew 113% YOY 2,1 to 3,7 Stock turn increased from
  18. 18. CASE STUDY Asian OEM Apr. 2015 Nov. 2015 Change % Over aged (>90 days in inventory) 2.348 1.747 -26% Slow market (MDS >120 days) 1.982 1.564 -21% Over first price to market 2.218 1.723 -22% Price not changed recently (>60 days) 2.869 2.135 -29% Too few pictures (<3 pictures) 846 474 -44%
  19. 19. www.indicata.com
  • Sunil1408

    Aug. 30, 2017
  • robbieboardman

    Jul. 27, 2016
  • DuranGarner

    May. 27, 2016

The digital transformation: Used car retail performance management 2.0 Jörg Höhner, Global Managing Director INDICATA E.N.G. Automotive Retail & Distribution Summit Berlin - April 5, 2016

Views

Total views

736

On Slideshare

0

From embeds

0

Number of embeds

9

Actions

Downloads

13

Shares

0

Comments

0

Likes

3

×