As part of its efforts to emerge as the most sought after premium brand in the country, auto major Volkswagen is in the process of revamping its car sales network across the country.
To achieve this, the company has decided to invest heavily in transforming its dealerships into tech-driven sales stores.
“Volkswagen is working relentlessly towards increasing accessibility within the Indian market. As we gear up for our next phase, we plan to introduce 30 pop-up and city stores across the country in the next 12 months,” Steffen Knapp, managing director, Volkswagen, Passenger Cars India, told The Hindu.
Emphasising the importance of these sales formats, he said a recent survey conducted by Google and research firm Kantar revealed that more than 64% of respondents began their car purchase research online owing to increased Internet penetration.
“Thanks to the Internet, customers are walking into sales stores with all relevant information, ready with their preferred brand choices. What they require is a store nearby that can facilitate product experience and a test-drive.”
“As the industry witnesses this shift in the car buying process, we think sales formats should be more upscale, vibrant and reflect an aspirational brand value that our customers aim for. Additionally, they are also cost-effective for our dealer partners,” Mr. Knapp said.
Under Volkswagen’s new ‘Fit for the future’ initiative, the company has introduced two new cost-effective and efficient sales formats: Pop-up stores and city stores.
Pop-up stores that are expected to come up in regional markets will cater to customer aspirations for premium mobility. These stores will offer customers the opportunity to experience the products first hand and understand the various service value packages they can opt for before making their purchase decision.
The city store, a derivative of the pop-up store, will cater to the young, vibrant and energetic customers living in urban areas. These paperless stores will be able to address customer queries seamlessly.
Asked if this sales format would be replicated in other markets, Mr. Knapp said: “This initiative is India- focussed, similar plans are on for Europe, beginning 2020.”
Mr. Knapp further said to drive up passenger car sales, Volkswagen had been additionally focusing on corporate customers along with MSME segments and individual professionals, who are taking the next leap in their career growth and aspire for a brand like Volkswagen.
“For this, we’re also in the process of introducing Corporate Business Centers across key markets in India. That will comprise a dedicated team consisting of relationship managers that will cater to the requirements of our corporate customers.”