[RavenAvi]

Renault India, fresh off the launch of its competitively-priced 7-seater Lodgy, is all poised to change the way customers experience car showrooms. Dubbed "Experience Centers", Renault will allow TVS & Sons (originator of the digital dealership concept) to showcase its cars and their features on digital screens, instead of actual cars, for the benefit of the customers visiting its company showrooms.

With the digital dealership concept originating from TVS & Sons, the parent company of TVS Group, Renault will allow TVS to pilot the new concept of showing cars on digital screens. The concept suggests that instead of placing an actual car in the showroom, customers will get product introduction of the car on the internet-enabled television screens and can also have information aggregators for comparison purposes. The digital dealer will store the inventory in a stockyard while reducing the floor space otherwise used for a dealership. This in turn will help reduce costs of the dealer, making the business more viable and profitable.

Renault India will be calling these digital dealerships as “experience centres”. Though the experience centre concept hampers the idea of physically seeing and experiencing the car inside a showroom, the French manufacturer states that the absence of the vehicle should not be seen as a negative trait since customers already see the car on roads before going into the showroom for a look.

SOURCE - Motorbeam

[GTO]

Renault will allow TVS to pilot the new concept of showing cars on digital screens. The concept suggests that instead of placing an actual car in the showroom, customers will get product introduction of the car on the internet-enabled television screens

A car showroom without cars! Which dimwit came up with this idea. Let Renault come to my restaurant the next time, I'll show them pictures of food!

Seriously, the primary reason that folks visit car showrooms is to 'touch & feel' the car. It's in our culture...we love touch & feel. The buyer is usually accompanied by his family members who - collectively - experience the car.

If I want to see 'internet-enabled' pictures or videos, I'll see them on my computer. What the heck do I need to go to the showroom for??!! Not like the usually uninformed sales advisors add any value either. If I read a Team-BHP review, not only have I saved the travel time, but I also know 100X of the information the sales advisor would've shared with me. So again, why should I visit a car-less showroom?!

I'm sure the dunce who came up with this idea is all smiles because he thinks he's very 'technologically savvy & with the times'. But what he really is, is plain stupid.

the French manufacturer states that the absence of the vehicle should not be seen as a negative trait since customers already see the car on roads before going into the showroom for a look.

Oh stop it! I'm rolling on the floor now.

EDIT on 16th April 2014:

*Breaking News*

Buoyed by the success of its 'car showroom without a car' strategy, Renault now moves the game a level up. Introducing version 2.0 of the concept - a 'car showroom' without a car or a showroom!

Renault's grit & determination in reducing dealer overheads is admirable. Participating dealers in the innovative new showroom strategy don't have to worry about land costs, as they will be located on public property (parks & the like). There's no need for any costly 'internet-enabled' LED screens either. Dealers complained that the 55" LED TVs were expensive to procure, and ran high electricity bills as a result of keeping them on throughout the day. Renault's solution is to replace them with high-resolution photo frames. The car showroom v2.0 completely addresses dealer concerns, leaving absolutely no room for complaint.

When the French company launched its earlier car-less showrooms, it had stated that:

the absence of the vehicle should not be seen as a negative trait since customers already see the car on roads before going into the showroom for a look.

The open-air showroom take this a step further. Because they are strategically placed by public roads, customers will be able to see plenty of Renault cars whizzing by at the same time that they are admiring those cars in the photo frames.

Dealers are further excited at the prospects of saving costs on the complimentary hot beverages they are forced to offer. Insider sources confirm that locations are being scouted based on their proximity to chaiwallas (tea-stands).


Picture Source

[sleepyk]

I think this will be more like those experience zones that get set up in malls every Diwali and Christmas...
A way to catch eyeballs and build brand presence rather than sell cars.
Renault doesn't enjoy the brand recognition of a Maruti or Honda, especially among the non-English speaking masses, and this is a way to change that in the long term.

On a lighter note, perhaps they aren't including physical cars in the showroom because they don't want people to see the basic interior Renault is selling for 10-12 lakhs.

[rajeev k]

Perhaps, with the Lodgy and the soon to be launched new small car, Renault would be aiming to hit big time. TVS is a Renault dealer and TVS could not instill confidence in customers with their kind of service and customer care. Which is exactly why, TVS has come out with a sticker "I love TVS Service" and pasted this on all the cars serviced by them. A Renault Kochi dealer's Team Leader himself agreed to this couple of months back, when I went there as a prospective Duster buyer.

Locating these close to Bus shelters would be a boon to passengers as an air conditioned shelter.

[speedgun]

I really dont understand why Renault allotted dealership to TVS in Kochi . Here in kochi TVS has a very a bad reputation with its prior endeavour with Mahindra &Fiat. I know at least few of my friends who stayed away from duster since its sold and serviced by TVS ,Kochi. My humble request is before playing with all the gizmos just make sure your basic Service and customer interaction is on the higher side.

[RSR]

I guess this idea draws inspiration from similar "virtual showrooms" in other car markets, to put it in polite terms.

An example:

http://youtu.be/XV5TalNuVU0

What if the (potential) customer asks for a test-drive? I believe Renault & TVS would have got that situation covered as well, with something like this:

[Jeroen]

A few more gems from the Renault braintrust on this one:

The digital dealer will store the inventory in a stockyard while reducing the floor space otherwise used for a dealership. This in turn will help reduce costs of the dealer, making the business more viable and profitable.

Duh, to be profitable, you need to be actually selling stuff first! Cutting cost will not help you sell.

Developed nations have also advanced to buying cars online, having the same delivered to their residence.

Whereas I'm sure there are a few places you can buy a car online, I'm not aware that this has caught on big time yet, or ever will.

Far from me to comment on sales strategies, but for most of us buying a car is likely to be the second most expensive outlay, next to buying a house, one undertakes. The very notion that you would spend this sort of money on a new car without actually seeing it, sounds ridiculous to me.

The French have been known to shoot themselves in the foot before when it come to new marketing strategies. They confuse cost cutting with marketing/go to market model.

Several years ago in the Netherlands Peugeot set up what then was known (also) as an experience centre. Rather then have new cars available at all the dealers, they set up a huge place in the centre of the Netherlands where they had more or less all model available to see and to drive. Again, all to cut cost.

You were supposed to make an appointment, drive down there, do your test drive, drive back to your own dealer and order your car. Even in a small country like the Netherlands it never really worked as people just did not want to travel that far. It was just too much of an hassle. People wanted to be dealing end to end with the dealership. In the end they had to shut it down and have dealers stock (demo) cars again. http://www.peugeot.nl/archief/peugeo...rience-center/

The other thing is competition. If they don't do this, you better make damn sure your new innovative go to market model has real value over and above what the other guys offers. Why would I bother to buy from a cheap two bit company, that won't put cars in the dealers showroom whereas everybody else does.

To me it sounds as just cost cutting, rather then an innovative new go to market model with real value to the customers.

We will see how this works out. To summarise, I'm rather skeptical if this will work.

Jeroen

[Rajeevraj]

Wonder where these fancy ideas come from. Renault seems to have got the definition mixed up. Any experience zone by any company is a place where you can try the products ( but maybe don't have the option to buy from there. For that you go to the actual store/online site).Renault seems to be doing the opposite, you can buy the product but cannot try it.

For a moment I thought I was reading the official joke thread.

[Cartman]

I'm just glad they won't hand you a scale model to play with.

This is what the car looks like Saar. Little small only Saar. You saw on road no Saar.

The idea is ridiculous. I mean what if, for example I want to sit in the car before buying it? Will the sales advisor flag a similar car down from the street and get it?


Cheers!
Cartman

[ghodlur]

Originally Posted by Cartman

Will the sales advisor flag a similar car down from the street and get it?

Haha. The only car which will stop will be the Renault Logan Meru cabs.

In addition to the cars in the showroom, if Renault had introduced this digital circus to showcase upcoming models or manufacturing facility it would make the possible future customers feel at home.

[GrammarNazi]

It's either just plain dimwitted, or meant to allow the customer to be misled about how the car actually is!

If they take away the option of actually experiencing the vehicle, customers would be unable to access the car based on their needs.

Hence, the decision remains unassisted & impaired.

After delivery when the customer finds differences between what was promised & what's been delivered, the dealer would hide behind subjectivities & refuse to accept any claims.

Gone are the days of customers compromising & putting up with the nonsense that some of these auto-makers try to pull off.

[msdivy]

Originally Posted by RavenAvi

With the digital dealership concept originating from TVS & Sons, the parent company of TVS Group, Renault will allow TVS to pilot the new concept of showing cars on digital screens. The concept suggests that instead of placing an actual car in the showroom, customers will get product introduction of the car on the internet-enabled television screens and can also have information aggregators for comparison purposes.

I can do that stuff at my home. Maybe Amazon or Flipkart can offer this. Why should I go to the showroom? Atleast they must offer 3D hologram images of their models in the showrooms

This in turn will help reduce costs of the dealer, making the business more viable and profitable.

Well isn't dealership business viable or profitable now?

[RavenAvi]

Originally Posted by RSR

What if the (potential) customer asks for a test-drive?

Originally Posted by Cartman

I mean what if, for example I want to sit in the car before buying it?

I think there will be Demo Cars of all models available at the dealership stockyards. Once the customer "digitally" checks out the models/variants and the features offered in each variant of his/her chosen Renault car, he/she may ask for a Test Drive, and the corresponding Demo Car will be made available to him/her.

Renault doesn't boast of a big product lineup in India - Pulse, Scala, Lodgy, Duster, Fluence, Koleos and the soon-to-be-launched Kayou. So this idea might actually work, with the "digital presentations" doubling up as replacements for the official car brochures.

Of course, if there are no Demo Cars made available, this whole idea is moot. Specially in a country like India where, as GTO rightfully pointed out, physical experience is paramount in a car-buying process.

[Cartman]

Originally Posted by RavenAvi

I think there will be Demo Cars of all models available at the dealership stockyards. Once the customer "digitally" checks out the models/variants and the features offered in each variant of his/her chosen Renault car, he/she may ask for a Test Drive, and the corresponding Demo Car will be made available to him/her.

So, let me get this right. I first check the car virtually, then I check the car physically? Why is the first step even necessary if I am going to check the car physically anyway? There'll be very very few instances of a customer not wanting a physical inspection after a virtual one.


Cheers!
Cartman

[luvtandon]

The concept suggests that instead of placing an actual car in the showroom, customers will get product introduction of the car on the internet-enabled television screens and can also have information aggregators for comparison purposes. The digital dealer will store the inventory in a stockyard while reducing the floor space otherwise used for a dealership.

Maybe what they intend to say is that instead of the brochures and Sales Adviser set-up, now the customer can obtain all the knowledge about the vehicle from the digital screens, which maybe are interactive too. The dealer can save the space that is required for keeping display cars in the showroom and the display/demo car can be made available on demand from the stockyard, thereby reducing the rental cost as showrooms won't require huge space as they do right now.