2022 AADA Convention showcases the resilience of local dealers, and how to prepare for even more change
If there is a silver lining to the cloud that swept across the world with COVID-19, the subsequent storm has seemingly strengthened and improved the automotive retail business in Australia. That was the overarching perception from the 2022 Australian Automotive Dealers Association (AADA) Convention held in Brisbane last week, the first physical expo of its type since the pandemic sent the world into lockdown.
In the wake of social distancing, travel restrictions and other crippling consequences, automotive dealerships across the country were forced to rethink how they do business.
And, by implementing new ideas, as well as using the power of innovative technologies and digital platforms, most have seemingly future-proofed their operations – at least for the short term.
“I think it is really important to look back and reflect on where we were when we last held this event, because the world has changed,” said AADA Chairman, James Voortman (below), in his opening remarks at the convention.
“Back then, I had never worn a face mask. I had never heard of Zoom. And I didn’t think it was possible that we would close our country’s borders to the rest of the world, let alone lose the ability to travel within our own country.
“But back then our industry was also struggling. Fast forward two and a half years and it couldn’t be any more different.
“The pandemic unleashed a set of forces that supercharged demand. An aversion to public transport made the car popular again. And flying holidays were not in vogue and driving holidays were.
“The last two years have seen profound changes to our businesses, and the regulatory settings in our country. The question is ‘where do we go from here?’ And I really do not know.
“But, if anything, the last three years has proven that dealers will adapt to changing circumstances.”
Appropriately, the theme for the 2022 AADA Convention was ‘Future Focused’, with 20 informative workshops showcasing new business solutions throughout the two-day event, as well as keynote speakers and panel discussions from some of the industry’s leaders, thinkers and power brokers providing a glimpse over the horizon at the next challenges for the automotive retail business.
The AADA expo also allowed suppliers that provide key support roles to dealerships, such as finance brokers, vehicle repairers, digital agencies and more, the opportunity to highlight new products and services to the 450 delegates that attended.
With carsales as a presenting partner of the event, it played a pivotal role in informing dealers on the innovative solutions available to them to improve their operations.
Kicking off the keynote presentations, carsales’ Executive Director – Dealer, Michael Holmes, and carsales’ Head of Executive Business, Ren Blanning, spoke about the changing trends in the auto buying journey, and particularly highlighted how consumers are spending more time than ever before researching their next purchase.
The latest insights indicate that buyers are now taking on average seven months to buy a new vehicle, whereas two years ago it was less than three months.
This stretching timeline, Blanning (above) says, means it is more important than ever that dealers have effective channels of communication with consumers, respond to leads promptly and consider broadening their workable hours and react to enquiries during the times when consumers are making them, such as commuting to and from work or in the early evening.
Blanning also pointed out key benchmarks for dealerships that work their inventory harder through forward planning and better lead management strategies.
In her more detailed workshop, “How Dealers Can Adapt and Create Seamless Customer Experience via Digital Transformation”, Blanning delved deeper into the suite of solutions that carsales can provide to improve dealership productivity and profitability.
The next day, carsales’ National Business Manager, Finance, Darren Kumar, hosted his “How to Leverage Finance in Your Digital Strategy” workshop.
Here, Kumar (below) again highlighted the increased time of the average buying journey and how it can potentially be shortened by introducing finance options earlier in the consumer’s research phase.
But the AADA convention wasn’t all about post-pandemic back-slapping, as several keynotes provided insight into new challenges that dealers will face in the not-too-distant future, including increasing environmental pressures placed on the automotive industry and the likelihood of emission regulations being introduced under the newly elected Labor government, as well as the knock-on effects that the inevitable increase in market share for electric vehicles will have on their businesses.
If anything, the 2022 AADA Convention showcased just how dynamic the automotive retail sector has been in spite of the pandemic-induced adversities it has encountered.
But it also highlighted that dealers cannot afford to look in the rear view mirror either, as the future of how, what, when, where and why consumers buy their next car will change dramatically.
