The Digital Disruption of Distribution

Abstract

Digital transformation across human activity has emerged as a critical evolutionary trend. It has not only led to the emergence of neo-business models but has disrupted traditional industries like automobile manufacturers and stakeholders. A ripple effect is visible in the distribution phase of the automobile value chain due to the rapidly evolving needs of automobile customers, awareness and access to digital platforms, and the need to enhance customer lifetime value by manufacturers. In this chapter, the digitalization of automobile distribution has been discussed in three aspects – customer acquisition, retail experience, and customer life-cycle management. Digitalization has not only helped automobile dealers reduce their customer acquisition costs but also driven higher customer engagement and satisfaction. As more customers become tech-savvy and digitally aware, automobile dealers and manufacturers will need to quickly adapt to the new normal of digitalization in order to remain relevant to customers, innovate sustainable business models, and unlock customer lifetime value.