As part of a major marketing strategy makeover, Volvo is planning to tap into the realm of online sales and increase its investment in digital advertising. Speaking to Reuters, Volvo sales chief Alain Visser stated that research has shown that 80% of Volvo clients already shop online.
Further studies have indicated that “many will do the same for cars in the future,” added Visser. Understandably, there is a fair amount of trepidation regarding online sales, as BMW can prove with less than satisfactory results of online bookings for the company’s i8 hybrid performance car.
Another marque that has dabbled in online sales is Tesla Motors, where the deletion of dealers has led to a fair bit of conflict. Volvo, however, is well aware of the potential backlash and has taken the necessary steps to ensure that the 2,000 global dealerships that carry the brand will not be affected.
“If you say the word e-commerce, initially dealers get nervous,” he said. “We don’t see a car distribution network without dealers in the foreseeable future.” Visser added that orders placed online “will still pass through the dealer network” for delivery.
Earlier this year, the company successfully sold the Volvo XC90 First Edition online. In just under 47 hours, all 1,927 units of the car were sold out. With new models like the XC90 and more set to follow, Volvo is planning to raise its sales target for 2015 with the accessibility of online shopping for its models.
Another initiative as part of Volvo’s revamp is the withdrawal of the company’s presence from most motor shows. The Swedish carmaker instead aims to stage its own global event to showcase its products. Only three shows remain on the company’s radar – the Detroit, Geneva and alternating Shanghai/Beijing event.
Unlike its rivals – BMW, Mercedes-Benz and Audi – Volvo will not aim to establish ’boutique’ dealerships. “We’re a different brand with limited financial means. We don’t believe in building these big palaces,” proclaimed Visser.
GALLERY: Volvo XC90 First Edition
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Good move. Buyers will be less cheated by dealers. Shop online actually is secure and has more benefits than popular belief. Buyers can add or remove accessories that suitable to them before placing an order. Maybe local automakers (P1 and P2)should follow suit.
Don’t believe the idea will work.
When you shop car at this price range, you go to BMW, Mercedes, Audi….then maybe Volvo. If the customer arrive at Volvo showroom, the expert sales consultant will quickly change customer mind about the brand and get the sale. The warranty is better and it comes with more free service plus superb safety package.
You cannot get the human touch to get the sale online. Volvo’s current image is still garbage compared to the German brands and will require a lot of convincing to jump with the brand.
Volvo, the Xiaomi of cars. Great job, spending where it matters most.
And dayum, love that sexy 850 T5-R and V60 rebel blue.
Volvo Malaysia will use mudah.
If rosak, complaint it online to HQ also. No need bising bising on Facebook.
Seriously, 80% buy Volvos online. That’s good for Volvo, as it reduces the cost of marketing the car (less showrooms to build). If it also ultimately reduces car prices, then it should be good for the buyer too.
But a car enthusiast would surely still prefer going to a showroom and go for a test drive. It’s the best part of the buying experience. How will one know the ride and handling unless through a test drive. Or, how will one know whether a rear facing baby seat can fit into the rear seats without touching the front seats unless he tries it out himself.
Having said that, the Generation Z who are still in school now and are future car buyers (if they buy cars in the future) might like this concept, seeing as to how many things are done online. Might a bit of future marketing by Volvo for the Gen Z.
It’s quite ambiguous with the buying experience. Mercedes Benz S400 Hybrid sell like hot cakes even when there isn’t a demo unit or test drive unit in the showroom. It’s proven that how prestige buyers are gaining trust on the brand that they are already associated positively with.
“Volvo sales chief Alain Visser stated that research has shown that 80% of Volvo clients already shop online.”
If they need to depend on “research” to tell them about where their deal is closed, chances are this information is not correct.
Shop online could just mean browse their website.
80% of volvo buyers buy car without visiting show room, just by clicking a few buttons?
Few weeks later a wild Volvo appear at front of my house and someone knock the door and says “That car is your” and VICTORY!!! But still weird.
Mmm…
Agree, very weird, like ordering pizza..
online or showroom doesn’t matter . main point is nobody buying Volvo .
I challenge Volvo to walk the talk and do it here.
In my opinion, a very poorly conceived idea if you are trying to sell luxury car.
Not to mention without a sale rep to do all the HP and insurance, you have to do it yourself.
And do I need a Super Platinum card to pay for the car 10% downpayment?
And you expect all the 60 year old uncle who doesn’t even have a facebook to buy it online for this uncle car?
I’m in my thirty, i dont have facebook.
but almost everything i purchased online groceries, smartphone, laptop, car part, etc..
I did say 60..
30 is a different generation from 60?
Be real, you wont buy a volvo anytime soon, let alone do it online. You will probably buy a BMW, a Merc, go through your midlife crisis with a 2 door roadster, and then you will consider using your EPF money for a Volvo (because you value your life more at that stage of your life and you know, volvo are “supposedly” safer).
I buy stuff online too. There are stuff that I would buy online, and there are stuff that I simply wont, car is one of them, not unless it comes with like 20% off showroom.
Cool…but will not work in certain countries like ours. Dealers are still important especially during after sales period plus here in Bolehland you do not have the option to select the kit you want which is a real bummer.
On a side note – love the new XC90 but the price to own one in the UK is more expensive than a BMW X5 so I can imagine how it will be priced here….a huge hike in price compared to the current XC90 being sold here for under RM369k.
That Polestar looks so serious! I will take that over Audi S4. Long live VOLVO!