The digital revolution has transformed the way consumers buy cars, and luxury automakers are no exception. With affluent customers demanding personalised experiences, traditional wholesale dealer networks are no longer enough. Luxury car manufacturers are now adopting a direct-to-consumer approach to own the entire customer experience from start to finish, ensuring a seamless omnichannel journey.;
This shift requires a significant build-up of capabilities, as luxury brands transition from wholesale to retail. But the payoff is worth it. By serving customers directly and augmenting the experience with appropriate digital and remote customer experience innovations, luxury brands can cost-effectively reach their core customers and create unique, unforgettable experiences.
However, a direct approach can have its challenges. Customers may become frustrated by price inconsistencies and haggling, which can erode trust in the brand. To prevent this, luxury brands are adopting a mixed approach to go-to-market, using a combination of direct sales, online interactions, and exclusive own-retail assets. This strategy allows brands to reach customers both digitally and in-person, while maintaining control over pricing and ensuring a high level of customer service.
Newer luxury EV manufacturers are leading the way in innovative sales strategies. By focusing on the customer experience, they differentiate themselves from incumbents. Many are operating through a strict direct-to-consumer model, with no retailers, and special spaces or houses serving as showrooms. Customers can order cars online as part of a unique end-to-end user experience that features multiple customer interactions.
In contrast, some European incumbent manufacturers favour the agency model, where sales agents operate on commission under the automaker’s strong control. Some EV specialists and niche incumbents choose outright retail network ownership, selling directly online or through their physical stores, and owning the complete customer experience. As the luxury automotive industry continues to evolve, it’s clear that direct-to-consumer sales will play a significant role. By combining digital and in-person experiences, luxury brands can meet customer demands for personalization and exclusivity while ensuring a high level of control over the buying experience.
