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Are we really connecting with online buyers? UAE, KSA and Kuwait auto shopper habits revealed
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Are we really connecting with online buyers? UAE, KSA and Kuwait auto shopper habits revealed

By:  Jorge
·
February 11,2018
·
5 min read

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Online Car Buying Habits

In a market that lacks transparency, the internet seems to be one of the best tools to get some hints on the workings of the automotive industry.

The Global Auto Shopper Study addresses interesting insights when it comes to the New Car research and buying process. Moreover, it also looks at how New Car buyers use online tools to make well-informed decisions, and how we will eventually end up buying cars online. 

A couple of days back I headed over to Think with Google MENA. While my intention here is not to promote it, obviously, I find it relevant and a "monthly I must hit" for everyone who works in the automotive industry. Either if it's online or offline, doesn't really matter. You will be surprised with relevant insights that will help to develop your business. 

I was happy when I saw an automotive study addressing the MENA region, specifically United Arab Emirates, Saudi Arabia and Kuwait. Usually, these studies are always addressing research from USA and in this region, we need to think how we can localize it to our markets. So, high five to Google for this. 

Global Auto Shopper Study

What’s relevant to understand from this study? 

1) Who's the real influencer? Nowadays there are a bunch of "in high demand" very well (or not) populated Instagram / Facebook accounts run by teens which deviate the focus on who the real influencer truly is. Does anybody doubt the power of Google Search? I definitely don’t think so. Yet, I don’t hear this often enough during meetings or at events. Think of it this way, or put yourself in the shoes of a potential car buyer, where do you first go when you need information? "In the Gulf region, search engines are key influencers – 57% of buyers in the KSA and 44% in the UAE start their research with a query on a search engine" And believe me, this figure will only go up. 

2) Over the last 12 months, I've visited at least 150 - 160 dealers (a different article will follow in the upcoming days since it was a very, very, interesting experience) across the 7 geographies we operate (GCC & Egypt). Doesn't matter if the dealer is a New Car Dealer or Used Car Dealer; both want the same. "I want people to visit my showroom". Well buddy, let me tell you, usually what you want is not what your customer wants. It's clear that buyers are visiting showrooms much less than before. Porsche CEO, Deesch Papke, also confirmed this to me during the launch event of the first Porsche Studio in Beirut a couple of days back <Read Article here>. He stated that in the past, customers used to visit the showroom at least 8 times before purchasing a car; now it’s just a matter of 1 or 2 visits.  So, should the statement should be "I want people to visit my showroom" or "I want potential buyers to find my brand and absolutely all the information online, so they can eventually come to my showroom and buy the car?” 

3) Another comment I get from meetings and it's relevant to this study is, "I want people to test drive my car because I know how to sell it". Which makes a lot of sense, because you have the buyer, there with you, in a controlled environment, no distraction, experiencing the brand, smelling the car, it's all yours. But again, apparently, one of the most common automotive selling techniques, is coming to an end. Khalas. With the amount of information available online, not to forget detailed configurators and what not, people don't necessarily need to test drive the car. Online tools are empowering buyers to make the right decision according to their needs. To the extent that buyers have more information about the car than the salesperson. "37% in the KSA, 9% in Kuwait and 12% in the UAE are making purchase decisions without performing a test drive. In the UAE, 70% of car buyers use configurators, with the proportion even higher in the KSA at 81%". Again, this number will only go up. 

4) I recall when I was in high school, nearly ten years ago in Uruguay, our professors saying "This new generation doesn't read. And instead of catching up with the trend, they were forcing students to read more, and more, and more. The video factor is essential now. But the question here is what's the relevant format to influence the car buying decision? Although the online world is packed with video content, very few can help car buyers make informed decisions. Which ones then? Automotive features or technology, consumer reviews, car walk arounds and safety tests. So, how many car-related websites address these needs? "After search engines, online video is mentioned as the second most influential touchpoint among 85% of people in the KSA, 81% in the UAE and 86% in Kuwait". And guess what? This number will only go up. 

5) Now about the future. While online purchases are not common yet, they will eventually take over face to face sales. Doing facts, "67% of buyers in the KSA and 42% of buyers in the UAE would consider buying online if given the option". However, most of them we must say might miss the physical interaction with the product. And it's at this stage where brands need to develop online tools and services to overtake it. 

Bentley Showroom Dubai

If you want to read the article without my points of view, please head over to https://www.thinkwithgoogle.com/intl/en-145/perspectives/local-articles/global-auto-shopper-study-ksa-kuwait-and-uae-car-shopping-habits-revealed/ 

If you feel like, I'm happy to take this discussion further. Leave a comment below and I'll get right back to you. 

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