Online Sales

of New Cars
Study

Munich, January 2016

Management summary
How the world is today
The way cars are sold is changing, putting market models under pressure. Customer expectations are shaped by retail experiences in other
industries, while advanced technology opens up new opportunities within traditional retail approaches

About 10%1) of new cars are sold online today – High growth rates expected by market experts, at least doubling today's volume by 2020
Within the German market, there are several dominant players – Four archetypes to be distinguished, each one with its own 'raison d'être'
> Marketplaces for comparing prices of different dealers – High degree of transparency
> Brokers as mediators between authorized dealers and end customer in selling process – High degree of convenience
> Special concepts being a one-stop-shop solution for car leasing – High degree of convenience
> OEMs/dealers where the online shop presents a further customer touchpoint within the multi-channel approach – High degree of trust
Two types of customers within the online market for cars: "the informed saver" and "the multi-channel customer". Whereas the informed
saver has long been a priority for existing archetypes, the focus is increasingly shifting to multi-channel customers; not least because they
account for almost half of the market. Hence, online portals focusing on one-stop shops are currently receiving a strong push
Nevertheless, all of the big players in the German market display some gaps in fully capturing the convenience-seeking customer – Reason:
customer journey not entirely integrated seamlessly (discontinuity within ordering process, missing link between online and offline world)

Result
Increasing number of start-ups are surging onto markets, especially from the US. Whereas some business models aim at taking the customer
journey to the next level, others focus on enhancing specific steps. Both price and convenience seekers are targeted

Suggestion
Current dominant players will increasingly be challenged by new entrants – It's time to enhance existing business models! Future success
depends on thinking outside the box to find the optimum solution for the future customer requirements. Start-ups from around the world are
already demonstrating what is possible within the market for online sales of new cars

1) Definition of online sales: car purchase substantially initiated online, incl. forwarding customer to dealer, online request for consultation

Roland Berger_Car Online Sales_final_220116 (2).pptx 2

Contents Page

A. The case for change: New customer requirements 4

B. Where we are today: Snapshot of the German market and its players 10

C. What the future brings: New entrants and implications 21

Roland Berger_Car Online Sales_final_220116 (2).pptx 3

A. The case for change:
New customer
requirements

Roland Berger_Car Online Sales_final_220116 (2).pptx 4

Digitization has already fundamentally changed various industries

Digitized sectors in Germany

Retail Media Travel Restaurants

> Large portions of the retail > Many media have been > Travel products are increasing- > Large range of delivery service
business have shifted to online transformed into digital ly sold via online portals rather platforms, e.g. Lieferheld,
channels, e.g.:1) products, e.g.: than travel agencies, e.g.:1) Lieferando, pizza.de
– Amazon: 187.5 m – 72% of internet users – Expedia: 2.4 m – 15% of all Germans have
– Zalando: 7m use Wikipedia – Holiday Check: 8m already ordered food online
– Cyberport: 1.7 m – 10% e-book market share – HRS: 2.7 m – 57% can imagine ordering
– ~4% video on demand online in the future
> 40% of department stores > 29% of travel agencies
closed2) > Newspaper circulation closed2) > Number of restaurants
reduced by 25%2) reduced by 17%2)

1) Estimated monthly visits (August 2015) 2) Since 2004

Source: Various (BDI Federation of German Industries, similarweb, etc.); Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 5
As a consequence, customers have also changed the way they buy
or want to buy a car – It's all about online sales
Customer behavior created by digitization
see independent online
rated the current car buying vendors (e.g. Amazon) use multiple
<1% process as their ideal
customer experience
21% as an alternative sales 42% devices to shop for a
channel to the dealer car

like being anonymous feel that negotiating

44% would buy
a car online 45% to the dealer until they
lock in a deal 56% with a salesman is
more painful than
going to the dentist

prefer a different

97%
of young car buyers1)
81%
use the
test drive experi-
59% expect a response to
e-mail/web inquiries ence than the
traditional
internet to
research
within 24 hours vehicles

1) 18-34-year-olds
Source: AutoScout 24 "Autokauf in der Zukunft" (2015); Autotrader "Car Buyer of the Future" (2015); Capgemini
"Cars Online" (2014), Microsoft / Wakefield Research "Automotive industry survey – Millennials' technology preferences" Roland Berger_Car Online Sales_final_220116 (2).pptx 6
To get a better understanding of the potentials and pitfalls of online
car sales, we asked representatives of leading market players
Potential and pitfalls of online sales of cars
"Today, at least one in every two car purchases "OEMs strive to offer more online sales capabilities
begins online; in 2020, it will be nearly 100%." but face major challenges in offering a seamless
CEO, meinauto.de process, especially at the interface between the
online and offline world."
VP Corporate Development, TRUECar
"Customers demand a one-stop-shop solution;
otherwise you risk losing the customer."
CEO, Sixt Neuwagen "The online store targets customers who don't
intend to haggle on price but who have a focus on
convenience."
"In the online world, market shares will be gained by Mercedes spokeswoman
those focusing on credibility, transparency and
service orientation. This applies to the sale of both new
and used vehicles." "In the future, customers will only spend an hour at
CEO, Mobile.de the dealership buying a car. The majority of the
buying process will take place online."
VP Corporate Development, TRUECar
"Years ago, a customer went to the dealer 4-5 times before
the purchase decision was made. Today, it is only 1-2 times.
In the future, the dealer's role in the purchasing process "Customers should have the same experience when
will be focused on services around the purchase (e.g. using tablets at home as they do when going
used car trade-in, financing, accessories)." shopping offline."
CEO, meinauto.de Sales Director, Daimler AG

Source: Expert interviews, Gesellschaft für Konsumforschung (GfK), Wirtschaftswoche, Sixt AG, Auto Motor Sport, Autohaus Online, Roland Berger,Roland
HUK Berger_Car Online Sales_final_220116 (2).pptx 7
Today, the focus of online sales is more on customers who haggle
on price – One in two customers, however, focus on convenience
Opposing types of customers within the online market for new cars
Customer types

"The informed saver" "The multi-channel customer"

Core > Price as the purchase criterion, little focus on > "Convenience" factor complements "best price"
needs services (e.g. personal advice) > Strong focus on services that go beyond pure
> Personal involvement in purchase process selling support
> Decision-making power > Tailored solutions for individual needs
> Level of basic trust needed > High degree of trust – Objectivity of the advice
needs to be guaranteed
Buying > Online channel primarily for price > Online channel as an integral part of every
behavior comparisons, search for alternative offers ("beat shopping process (mobile usage as a driver)
my offer") > Higher price accepted if value added is obvious
> Use of retail stores for personal advice > High level of convenience in service (e.g.
> Use of various comparison platforms counseling, availability)
Market
Increasing presence within the
represen- ~55% ~45% online market for new cars
tation1)
1) According to survey with n = ~ 250
Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 8
Regardless of the type of customer, several general rules need to
be considered when it comes to online sales of cars
Ranking of success factors in online sales1)

1 Transparency
Customers must feel like they are
fully informed!
Seamless integration
Customers must be accompanied
throughout the entire sales process!
4
> Broad product portfolio, incl. product/ > Fully integrated (additional) products
price information and services
> Comprehensive support functions Successful > Interfaces to offline world (e.g. dealers)
develop-
2 Trust
Customers must believe in what
they get shown in the online world!
ment of
online Customers must be able to enjoy
their shopping experience!
Services
5
sales of
> High customer awareness/reach with new cars > Innovative and individualized services
positive feedback > Various touchpoints (online, offline,

✓
> Use of impartial information sources mobile, etc.)

3 Ease of use
For customers, the website and
Flexibility2)
The business model itself must be
adaptable!
6
processes must be clear!
> Intuitive design, clear structure and fast > Scalability of business model regarding
results users and new products/services
> Comprehensive support functions > Use of new technologies
1) Ranked according to survey with n = ~ 250 2) Not a result from the study; insight from expert interviews
Source: Expert interviews, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 9
B. Where we are today:
Snapshot of the
German market and its
players

Roland Berger_Car Online Sales_final_220116 (2).pptx 10

Importance of online platforms for sales of new and used cars has
steadily increased – OEMs are currently entering the market
Market development of online car sales in Germany
1995 2000 2002 2004 2006 2008 2010 2012 2013 2014 2015 …

1st wave 2nd wave 3rd wave 4th (current) wave

Marketplaces for used New cars and brokers Professionalization and OEMs & dealers
cars OEM entry
> Started with market entry of eBay in > Existing marketplaces expanded > Increasing competition for market > Start of new car online
Germany – the (second-hand) their product portfolio to cover share leads to professionalization sales on behalf of
consumer-to-consumer new cars of platforms dealers
marketplace
> Market entry of several brokers > Occasional market entry of further > Increasing focus on online
> Entry of other car-specific market- with a focus on used and new cars, marketplaces/brokers, e.g. from sales of new cars by
places during dotcom bubble especially from 2007 onward car-related services OEMs, several pilots
under way
> Sales of used cars remained > Focus of online sales of new cars > OEMs increasingly focused on multi-
dominant business model in this on "build-to-stock" channel activities, some of them
period (private sellers) with direct sales approach
> Expansion of online sales of used
and new cars to "build-to-order",
comprehensive configuration
possibilities

Leading platforms expand product portfolio from used to new cars

Source: Company websites, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 11
Today, 10% of all new passenger cars within the private segment
are already bought online – Volumes will double by 2020
Market volume in Germany, 2014
Top-down approach Bottom-up approach
New passenger car registrations Germany Online sales of new Market volume of relevant market players
[#, '000, 2014] [#, '000, 2014]
cars in 2014 [#]
100% 36% 4%

100% 10%
~115,000
3,037 1,937 Definition of online
1,099 989 sales:
110-115 Car purchase was 50 <5 110-115
substantially initiated 60
online, incl. forwarding
customer to dealer,
online request for
Total Commer- Private Offline Online consultation Market- Brokers OEMs Total
cial regis- buyers pur- purchase places
trations chase B2C

Forecast – Online sales of new cars in 2020: ~ 250,000

Source: Expert interviews, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 12
The market is split between four archetypes of online sellers –
OEMs and dealers, and now special vendors as the latest to appear
Archetypes of online sellers
Multi-brand Vendor structure Mono-brand

1 Marketplace 2 Broker 3 Special concept 4 OEM & dealer

Best known
market players
Business > Marketplaces for comparing > Mediator between authorized > Online retail car leasing platform > Online store as central point
model prices of different dealers (based dealers and end customer in as one-stop-shop solution of interaction within the multi-
on configuration, budget, etc.) selling process > Transaction-driven (involve- channel sales approach
> Traffic-driven (no interaction in > Transaction-driven (involvement ment in sales process)
transaction) in sales process)
> Revenue pools: > Revenue pools: > Revenue pools: > Revenue pools:
― Insertion fees (key) (~70%) ― Sales commission (~80%) ― Sales commission (~80%) ― Vehicle sale (~95%)
― Cross-selling2) (~10%) ― Cross-selling2) (~10%) ― Cross-selling2) (~10%) ― Cross-selling2) (~5%)
― Advertising (~20%) ― Advertising (~10%) ― Advertising (~10%)
Process & > Marketplace provides customers > Brokers choose best offer for > Brokers choose best offer for > Depending on platform, cus-
support with full transparency on current customer customer considering the tomers can configure a new
offers > Online/offline support during leasing and financing options car (e.g. Tesla) or search for
> No additional support/advice in sales process (e.g. contract available from the seller built-to-stock vehicles (e.g.
the sales process preparation) > Online/offline support during Mercedes)
> Only customer interacts with > Contract closed directly with sales process until closure > Mostly the dealer has the key
dealer dealer, no broker involved > Contract closed with broker role – Support function and
contracting party1)
Market share of
online sales (2014) ~50% ~45% < 5%

1) Does not apply to direct sales model (e.g. Tesla) 2) Mainly financial products
Source: Company websites, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 13
 1 Marketplace – Deep dive

Leading marketplaces have an almost identical market presence –

Mobile.de boasts broader coverage in terms of unique visitors
Industry leaders in the 'marketplace' category

General Ownership Scout 24 group eBay

information New car listings [#, Sep. 2015] ~190,0001) (total: 2.4 m) ~150,000 (total: 1.4 m)
Unique visitors [#, m per month, Aug. 2015] 12.3 34.9
Offer Product portfolio
attractiveness New cars ✓ ✓
Used cars ✓ ✓
Parts & accessories ✓ via DAPARTO ✓ via eBay
Others ✓ Motorcycles, commercial vehicles ✓ Motorcycles, commercial vehicles
Service portfolio
Financing and leasing ✓ Integrated service offer by various partners ✓ Integrated service offer by various partners
(e.g. Check 24) (e.g. Check 24)
Insurance ✓ ✓
Handover/delivery ✗ Not part of business model ✗ Not part of business model
Aftersales ✓ Integrated own workshop service portal ✓ Workshop service run by eBay Motors
Price
List price ✗ ✗
Retail price ✓ ✓
Online process Customer service
attractiveness Hotline (✓) Only for defined business hours (✓) Only for defined business hours
E-mail ✓ ✓
Others ✗ ✗
Functionalities
Need analysis ✓ Via MotorAgent ✓ Via MotorAgent
Alternative suggestions ✓ Part of business model ✓ Part of business model
Test drive request ✗ ✗
Trade-in ✓ Integrated registration link to easyautosale ✗
1) Including cars with one-day registration

Source: Company websites, press research, similarweb, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 14
 2 Broker – Deep dive

Leading brokers have similar product and service portfolio – Several

additional services offered via partnerships, not always integrated
Industry leaders in the 'broker' category

General Ownership Several shareholders (e.g. Holtzbrinck Ventures) Sixt SE/Autobild.de

information Unique visitors [#, m per month, Aug. 2015] 0.27 0.34
Offer Product portfolio
attractiveness New cars ✓ ✓
Used cars ✗ ✗
Parts & accessories ✗ ✗
Service portfolio
Financing and leasing ✓ Integrated service offer by various partners ✓ Integrated service offer by various partners
Insurance ✓ (e.g. Check 24) ✓ (e.g. Check 24)
Handover/delivery ✓ Home delivery possible at additional cost ✓ Pickup at Sixt leasing stations or home delivery at
additional cost possible
Aftersales ✓ Partnership with Easyautoservice.de for workshop ✓ Partnership with ATU, e.g. for special offers with tires
services
Others ✓ E.g. car registration ✓ E.g. customer can submit a cheaper offer and
autohaus24 will try to find even better offers
Price
List price ✗ ✗
Retail price ✓ ✓
Online process Customer service
attractiveness Hotline (✓) Only for defined business hours (✓) Only for defined business hours
E-mail ✓ ✓
Others ✓ Branch offices, desktop sharing ✗
Functionalities
Need analysis ✓ ✓
Alternative suggestions ✓ E.g. from local dealer ✓ E.g. from local dealer
Test drive request ✗ ✗
Trade-in ✓ Integrated service with DEKRA partnership ✓ Integrated service with DEKRA partnership

Source: Company websites, press research, similarweb, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 15
 3 Special concept – Deep dive

Sixt Neuwagen as online retail car-leasing platform – One-stop shop

with online order inquiry and several additional services
Industry leaders in the 'special concept' category

General Ownership Sixt Leasing AG SE

information Unique visitors [#, m per month, Aug. 2015] 0.18
Offer Product portfolio
attractiveness New cars ✓
Used cars ✗
Parts & accessories ✗
Service portfolio
Financing and leasing ✓ Part of business model – Customer chooses between classic leasing financing and vario financing1) –
Contract is closed with Sixt
Insurance ✓ Integrated offerings possible
Handover/delivery ✓ Pickup at Sixt leasing stations or home delivery at additional cost possible
Aftersales ✓ E.g. flat-fee maintenance service
Others ✓ E.g. follow-on financing, 24h assistance in case of vehicle breakdown
Price
List price ✗
Retail price ✓ High discounts due to large order volume by Sixt
Online process Customer service
attractiveness Hotline (✓) Only for defined business hours
E-mail ✓
Others ✗
Functionalities
Need analysis ✗
Alternative suggestions ✓ Customer can decide to take a similar dealer car in stock
Test drive request ✗
Trade-in ✓
Others ✓ Online transmission of damage claim, information on delivery time, workshop search, etc.
1) Option to buy vehicle after the contractual period

Source: Company websites, press research, similarweb, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 16
 4 OEM – Deep dive

Online sales an essential part for premium OEMs within their multi-
channel approaches – Maturity still differs on levels of integration
Industry leaders in the 'OEM' category

General Ownership Tesla Motors BMW AG Daimler AG

information New car listings [#, Sep. 2015] n.a. n.a. < 100
Unique visitors [#, m per month, Aug. 2015] n.a. 0.15 (general BMW website) n.a.
Offer Product portfolio
attractive- New cars ✓ Only built-to-order ✓ Only built-to-order ✓ Only built-to-stock for A, B, CLA and
CLS models
ness
Used cars ✓ ✗ (✓) Separate website, search of DMS
Parts & accessories ✗ ✗ ✓ Via Mercedes me portal
Service portfolio
Financing and leasing ✓ ✓ ✓ Online leasing contracts only
Insurance ✗ ✓ ✓
Handover/delivery ✓ Via Tesla Service Center ✓ Via BMW dealers, mobile agents ✓ Via dealers, mobile agents
Aftersales (✓) Offerings limited to chargers ✗ ✓
Price
List price ✓ No price negotiation and discounts ✓ n.a. - leasing offerings
Retail price ✗ ✗ n.a. - leasing offerings
Online Customer service
process Hotline ✓ 24/7 call center (✓) Only for defined business hours (✓) Only for defined business hours
attractive- E-mail ✓ ✓ ✓
Others ✓ Call back option from product specialist ✓ Call back option, BMWi Stores ✓ Mobile consultants, live chat, call back
ness option, Mercedes me stores
Functionalities
Need analysis ✗ ✗ ✗
Alternative suggestions ✗ ✗ ✗
Test drive request ✓ ✓ ✓
Trade-in ✓ ✓ ✓
Others Tracking of delivery time in customer Tracking of delivery time in customer Tracking of delivery time in customer
portal, car registration service, document portal portal, online order BMW i Wallbox
upload installation

Source: Company websites, press research, similarweb, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 17
Marketplaces offer the highest degree of transparency – Others
have advantages in providing convenient shopping experience
Comparison of archetypes within the scope of existing offerings
Success factors Archetypes
Marketplace Broker Special concept OEM/dealer
Customer is promised No comparison of
Very high number of
Transparency car listings
cheapest price, com- prices, limited
parison difficult selection

Original source with

Trust highest trust

Ease of use
Additional services Additional services
Seamless integration not always integrated not always integrated

Several additional Several additional

Services (integrated) services (integrated) services

No restrictions on
Flexibility scalability

"The informed
Main target group "The multi-channel customer"
saver"

Low/not met High/met in full Most positive attribute Most negative attribute

Source: Expert interviews, Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 18
OEM example: BMW has a central platform for online sales in which
dealer, central systems and processes are integrated
Example: BMW eRETAIL
Success factors Archetypes
OEM/dealer
Transparency > Central platform displaying dealer and NSC new car stock
> Possibility to initiate and finalize leasing/financing process online ✓
> Matching of stock cars

Trust > Customer is linked to the dealer via BMW ✓

Ease of use > Intuitive design, clear structure, several support functions ✓
Seamless integration > Solution integrated with central systems (e.g. digital) and processes
> Seamless linkage from digital configurator to preferred dealer ✓
Services >
>
Variety of channels for sales support (chat, call back, …).
Dealer communication platform (incl. online negotiation, document upload, etc.) ✓
> Online shop capabilities (e.g. 'buy' button)
> Convenient online services (online test drive booking tool option to receive a first
non-binding offer online for a used car, online support on product consultation)

Flexibility > Flexible and scalable central platform ✓

Source: Expert interviews; Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 19
Nevertheless, the convenience factor for customers is still limited –
Customer journey not entirely integrated in a seamless model
Pitfalls within the customer journey today
Customer journey 1 Marketplace specific:
Cust. Cust. Vehicle
Con-
Con- Vehicle > Customer needs to proactively approach the dealer
Test tract Trade- After- OEM specific:
acqui- consul- search/ tract hand-
drive negoti- in sales
sition tation config.
ation
closure over > No connection between offline, mobile and virtual
formats/touchpoints
For all:
> Limited real-time face-to-face consultation
tbd
1 Different chan- 2 No tracking of customer anymore 7 (e.g. video chat with product expert)
Market- nels (not fully > No visual support in the configuration process –
integrated), limi- Separate
place ted use of new market Difficult for the customer to imagine the configured car
technologies (e.g. the look and feel of leather)
2 Scope of business model ends, customer is lost within the
3 4 5 6 journey, e.g. for further cross-selling, data gathering
Broker Limited Poor Offline Limited
inte- commu- process inte-
3 Limited integrated offerings, offerings do not fit with
gration nication gration configuration – Risk that customer may not enter journey
again, no conversion;
Demo car often does not match configuration
Special 4 Lack of real-time communication –
concept Time lag within ordering process
5 Mostly offline process due to legal barriers,
e.g. no acceptance of online signature by OEM
OEM/ 6 Not fully integrated, left to customer's initiative to organize
dealer car valuation, etc. – Limited convenience
7 Lack of integrated, tailor-made aftersales services
Current scope of business model Need for improvement

Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 20

C. What the future
brings: New
entrants and
implications

Roland Berger_Car Online Sales_final_220116 (2).pptx 21

Online sales of new cars as a global phenomenon – New business
models are emerging everywhere, especially in the US
New business models on a global level (selective examples)
Pilot for online sales
as indirect sales

sale on
amazon

by GM

Fiat Live Store

by SAIC
Motor
Dealer-driven online sales One-stop auto e-commerce platform, incl.
OEM independent business models platform extended to include auto financing and aftermarket services
OEM dependent business models aftermarket service functions.
Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 22
 New business models are revolutionizing online sales of new cars in
different ways – Price and convenience seekers are targeted
Examples of new business models
New cars New and used cars Used cars

> Comprehensive car buying > Selling platform where > Data-driven online platform > 'Follow a vehicle' based
service starting from finding dealers see which vehicles that enables users to obtain selling platform
the vehicle until handover the customers are looking for market-based pricing data on > Customers receive alerts any
and final paperwork ('wish list' based) – Dealers cars and to connect with time prices change, cars are
(executed at customer's contact customers TrueCar certified dealers sold or new cars that match
home within 20 minutes) > After purchase, customer > Customized offers for affinity their search are added
> Roadster being the broker1) gets reward from Carmony in group partners (e.g.
exchange for information American Express)

Transparency
Success factors

Trust
Ease of use
Seamless integration
Services
Flexibility
1) Through subsidiary BuySideAuto LLC

Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 23

While some business models aim at enhancing the entire customer
journey, others focus on specific steps, especially vehicle search
Enhancement of customer journey
Customer journey

✓
Con-
Cust. Cust. Vehicle Con- Vehicle
Test tract Trade- After-
acqui- consul- search/ tract hand-
drive negoti- in sales
sition tation config. closure over
ation
Value added for …
… customer … vendor
> Personal concierge > High conversion
service rate
> Fully integrated > High potential for
services cross-selling

> Convenient, > Transparency on

reactive car sales closure
search > Customer/market
> Extra cash data
> Leads
> Full price > Data, data, data!
transparency > Allows for different
> Pricing engine prices in separate
based on zip code markets
> Customized offers > Leads
> Price transparency > Market data
> Convenient, > Potential for cross-
reactive car search selling (customer
stays on platform to
receive new offers)
Area of action
Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 24
Food for thought: New entrants indicate where we might be heading
in the future – Time to enhance existing business models
Customer journey tomorrow
Customer journey
Vehicle Contract
Customer Customer Test Contract Vehicle
search/ negoti- Trade-in Aftersales
acquisition consultation drive closure handover
config. ation

Marketplace specific: > Extensive follow-ups on customer (e.g. satisfaction, prices paid) > Aftermarket
Market- > Introduction of reactive search > Additional services that can be booked via marketplaces, e.g. organization of home service
place (e.g. via wish list, "likes") delivery, registration service functions
(booking,
For all: reminder, etc.)
> Use of new technologies (e.g. > Enhanced > Fully inte- > 'Buy now' > Concierge > Registration
video chat, 3D configurator) organization of grated, digital button, incl. service (e.g. service
Broker > Integration of product experts test drives ordering and credit check
and billing
vehicle valu- > Collect–return
instead of pure selling (e.g. con- negotiating ation at home) for garage
personnel cierge service process process services
within x hours) > Tracking of
> Send home 3D sample of
configured car, selected delivery time
Special material for interior
concept OEM specific:
> Stable, systematic, personalized
linkages between the various
OEM/ selling formats

dealer

Current scope of business model Enhanced/additional activity (may include enhancement of current business model)
Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 25
The next stage: Digital player setting up an aggregator business that
consolidates all vehicle-related demand, incl. aftersales, FS
Aggregator – Overview
Startups specialize in selected New players start to aggregate Disruption: What if one player
M&S activities several M&S activities integrates all M&S activities?
Pre-sales Search (incl. browsing) Search (incl. browsing)
Test drive Test drive
Finance Incl. Finance
Purchase Purchase
Roadster Roadster
Sales Paperwork Paperwork
Pickup/delivery of new car Pickup/delivery of new car
Aftersales Maintenance and repair Maintenance and repair
Roadside assistance Roadside assistance
Used car sales … Used car sales …

New players become Wide-ranging M&S activities (e.g. Tech giants have the funding and
intermediaries for several M&S new, used car sales and finance) know-how to acquire or re-build
activities as well as mobility offerings are aggregators to cover all value
aggregated chain steps

Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 26

Aggregation of major M&S activities by a digital player would result
in a significant loss of customer relationship for OEMs
Aggregator – Implications
Disruption: What if one player
integrates all M&S activities? Implications
Search (incl. browsing)
Test drive Demotion to supplier and loss of sovereignty
Finance
Purchase Loss of customer access
Roadster
Paperwork
Pickup/delivery of new car
Loss of emotional (brand) relationship with customer
Maintenance and repair
Roadside assistance
… New competitor offers revolutionary customer experience
Used car sales

Tech giants have the funding and Customer decision is highly influenced by third parties –
know-how to acquire or re-build
aggregators to cover all value significant loss of influence by OEMs
chain steps

Source: Roland Berger Roland Berger_Car Online Sales_final_220116 (2).pptx 27

We look forward to hearing your comments and having
some interesting discussions with you

Philipp Grosse Jan-Philipp Nadine Deuring

Kleimann Hasenberg

Senior Partner Principal Senior

Automotive CC Automotive CC Consultant
Automotive CC
Roland Berger Roland Berger Roland Berger
Sederanger 1 | 80538 Munich Am Sandtorkai 41 | 20457 Hamburg Bertolt-Brecht-Platz 3 | 10117 Berlin

E-mail: philipp.grossekleimann@ E-mail: philipp.hasenberg@ E-mail: nadine.deuring@

rolandberger.com rolandberger.com rolandberger.com
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