Challenges of New cars Distribution Lars-Henner Santelmann Executive Vice President, Sales & Marketing SEAT S.A.

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Presentation transcript:

Challenges of New cars Distribution Lars-Henner Santelmann Executive Vice President, Sales & Marketing SEAT S.A.

New competitors –More overcapacity –Even more pressure in prices Overcapacity –Prices under pressure Drivers of change Challenges of New Cars Distribution New customer behaviour –Internet: smart shopping/ new channels –Niches / subsegments –Fleet business –Less Loyalty BER –Accelerator –Less network control

Price Pressure –Permanent productivity increase and cost reduction –The new task: Distribution cost, logistics.. Network Structure –Importer  Wholesaler –Fleet  Direct sales –Profitability in every individual business –Exclusivity reserved to strong Brands –Dealer  Retailer More niches + Stable market + More competitors –Pressure on investments : R+D, Production, Logistics Consequences Challenges of New Cars Distribution –Shorter life cycle, less units per series

Approach to Customer Challenges of New Cars Distribution Supplier Franchising Direct Sales Wholesalers Desirability + - Multichannel Internet Exclusivity Key in hand Retailers Profitability criteria Distribution costs Economies of scale ExclusivityMultibrand

Approach to Customer Challenges of New Cars Distribution Supplier Franchising Direct Sales ExclusivityMultibrand Wholesalers Desirability + - Multichannel Internet Exclusivity Key in hand Retailers Profitability criteria Distribution costs Economies of scale i.e.Bang & Olufsen i.e.SONY i.e.Medion

Efficiency –Avoid waste in every process –Distribution process key of success Network Management –Use the opportunities of multichannel approach Individualism –One size does not fit anymore all Branding –Define and live a Brand profile Short Term  Regular Brands –Define your product attributes Challenges of New Cars Distribution

Traditional Structure Future Brand Importer Retailer Customer Brand Wholesaler Retailer Customer Summary Challenges of New Cars Distribution

Future Brand Wholesaler Retailer Customer Summary Steer the network optimisation process Challenges of New Cars Distribution

–From factory to retailer (one level Distribution System) (Wholesale+Retail) Steering the Network optimisation process “SEAT Distribution System” (SDS) R1000R2W2W1R1... Brand Challenges of New Cars Distribution

–Orders & Stock Management ( Allocate to order) *Every car has a Dealer order. *All Dealers have access to all cars in stock Steering the Network optimisation process “SEAT Distribution System” (SDS) Challenges of New Cars Distribution –Production Flexibility *Manufacturer to real demand

Product “superiority” does not guarantee the future Conclusion for a regular Brand Challenges of New Cars Distribution Do not neglect the radicality of the challenges Lead the change