Digital to lead automobile sales strategies for OEMS

Global passenger car original equipment manufacturers (OEMs) are attempting to moderate costs for new vehicles by innovating and adopting novel retail models, such as digital car showrooms like Audi City, BMW Brand and MINI Pop-up

stores. A new analysis from Frost & Sullivan, finds that investments in digitisation worth $500 million to $5 billion are expected from multiple vehicle OEMs and dealer groups in Europe and North America in 2016. In fact, 20 to 30 percent of the conventional dealership space will be allocated for digital technology. Digital spending is anticipated to account for roughly 70 per cent of marketing and advertising budgets of dealerships and OEMs.

European and North American OEMs have been making significant investments to digitally integrate various aspects of the car retailing process. The report says around 50 to 60 percent of sales leads will originate from digital channels by 2016.