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By 2020, 60-70 Percent of New Car Sales Leads Will Be Generated Digitally, Says Frost & Sullivan

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By 2020, 60-70 Percent of New Car SalesBy 2020, 60-70 Percent of New Car Sales Leads Will Be Generated Digitally, Says Frost & Sullivan PR Newswire LONDON, Jan. 28, 2014 -- Bricks and Clicks sales model gains ground in the automotive industry as dealerships turn to digitization to engage customers The disruptive influence of connectivity is changing the way business is conducted even in traditional industries such as automotive. High real- estate costs, expensive resources, and need for innovation to stay afloat have compelled many automotive dealerships to shrink store space by about 20 percent and resort to digitisation for interactivity with the customer. As bricks and mortar gives way to a bricks and clicks sales model, European OEMs are pushing for standalone digital formats while North America seems to prefer digitisation within existing franchise models. New analysis from Frost & Sullivan (http://www.automotive.frost.com), The Advent of Digital Retailing and its Impact on Car Dealership Structures, finds that global passenger car companies are desperate to innovate and adopt a new retail model to the next generation of young car buyers, the so-called generation Y, a generation that engages through collaborative consumption and targeted digital marketing campaigns. Frost & Sullivan expects that by 2020, 60-70 percent of new car sales leads are likely to be generated by a digital platform, be it websites, mobile sites, social media or apps.
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By 2020, 60-70 Percent of New Car Sales Leads Will Be Generated Digitally, Says Frost & Sullivan

PR Newswire

-- Bricks and Clicks sales model gains ground in the automotive industry as dealerships turn to digitization to engage customers

The disruptive influence of connectivity is changing the way business is conducted even in traditional industries such as automotive. High real-estate costs, expensive resources, and need for innovation to stay afloat have compelled many automotive dealerships to shrink store space by about 20 percent and resort to digitisation for interactivity with the customer. As bricks and mortar gives way to a bricks and clicks sales model, European OEMs are pushing for standalone digital formats while North America seems to prefer digitisation within existing franchise models.