Didier Van Bouwel, Chief Operating Officer of Cox Automotive business Modix International, recently joined Fuel/talk host James Davis to speak about the acceleration of digital retail across global markets. Having spent more than 20 years working in automotive wholesale and retail across Europe, including the past 16 within the Cox Automotive family, Van Bouwel has witnessed significant change with OEMs and the retail network, although he is reluctant to refer to himself as an industry veteran, commenting: “I’m not that old yet!”
Modix has been around for two decades, having started out in 2000 as an ambitious start-up. Now part of Cox Automotive, the digital retail innovator works with more than 16,500 dealer customers and 30 vehicle manufacturers across more than 70 global markets. Offering powerful online tools that captivate customers, generate sales and secure long-term growth, Modix is the only business in the automotive retail sector with Google Premier Partner Status.
“In a nutshell,” comments Van Bouwel, “we provide dealer websites, used car locators, new car locators and everything to support dealer groups with visibility of their stock towards consumers, plus lots of other market intelligence and digital marketing tools.” Van Bouwel refers to Modix AdBox as an example of collaboration with Google to drive more traffic to OEM and dealer websites, supporting the move towards online vehicle retailing, as well as providing consumers with more opportunities to interact with their next vehicle virtually.
Based between Belgium and Germany, Van Bouwel oversees Modix offices throughout the world, including China (APAC), Germany, Austria, Switzerland, Belgium, The Netherlands, Luxemburg, Spain, Portugal, Italy, France, the UK, and other strategic partnerships. This provides Van Bouwel with a unique view of vehicle digital marketing across the globe, as well as the support of the scale, networks, and resources of Cox Automotive.
While acknowledging the role that the COVID-19 pandemic has played in accelerating digital retail rollouts across the globe, Van Bouwel is keen to point out that many markets were already investing heavily in their online showrooms: “Even before the pandemic, it was already the case that the website was the main platform for new and used car information.” He continues: “If you think about brands like Amazon, it is obvious that consumers are expecting so much more in terms of digital convenience and functionality. They want this in the automotive sector too.”
Van Bouwel suggests that COVID-19 and the subsequent lockdowns have accelerated a move towards digital retailing that was taking place anyway. He goes on to list trends within the automotive sector, from booking test drives online through to reserving and buying vehicles using digital channels: “Consumer behaviour is changing, and the car industry needs to respond.” However, he also identifies that there are market differences throughout the globe.
“Everyone knows that in China it is all digital,” comments Van Bouwel. “You don’t even have a menu in a restaurant anymore; everyone just orders on their phone. The expectations of consumers are to access information about vehicles in a digital format, not to get handed a brochure in the car showroom.” He also highlights the test drive process in Japan, where you book online, the vehicle is dropped off outside your house and collected, with no real dealership interaction. Some of these behaviours are now starting to become more commonplace in western markets, like the US and the UK.
Internet penetration is emphasised as a key driver of digital adoption, with areas of the world where coverage remains patchy still reliant on more traditional sales channels. Van Bouwel also highlights that the way in which economies have been impacted by COVID-19 will also play a part in how consumers want to interact with the car buying process, suggesting those hit hardest may still see consumers wanting to ‘kick the tyres’ because of the size of the investment in a vehicle in proportion to their income and savings. “Some people still want to touch, feel and smell the car before buying online,” he explains.
While the adoption of digital retail is taking a large share of the headlines in the automotive sector, Van Bouwel is keen to point out that technology is an enabler but it still requires insight and personalisation to create a customer experience which allows manufacturers and dealers to stand out in a crowded marketplace. “Digital retail gives you a bunch of functionalities,” he comments. “I can trade in my car, finance my car, get my car delivered to the house, but first I need to be attracted to one site, manufacturer or model over another.”
Van Bouwel talks about how consumer expectations are changing. Professional photos are no longer enough, with some consumers expecting to see 360-degree video presentation of the vehicle. With some consumers having exacting requirements, such as a large boot or space to transport a large family, there is the option to request personalised videos which create a real connection between the salesperson and prospective buyer. “We expect to see much more of this personalisation and intelligent digital retail, targeted specifically at the potential customers,” he says.
Concluding with a nod towards the future, Van Bouwel suggests the relationship between the OEM and the dealer, as well as the dealer and customers, will need to evolve. He suggests: “Digital retail doesn’t need to be a threat or danger to dealers; there will always be a role for them in servicing the vehicle and managing that in-life relationship. However, consumer expectations of online retail are changing, and the industry needs to continue to develop in line with those trends. No one needs to be scared; digital retail has been a trend for a while and now it is becoming reality, that’s all!”
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To watch the full interview, click here or listen via Spotify or Apple Podcasts (search for Cox Automotive).