By Erika Morphy E-Commerce Times
09/14/01 5:03 PM PT
BuyPower Japan offers shopping preliminaries - the ultimate sale must be finalized at a
local dealership participating in the venture.
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General Motors, Suzuki Motors, Fuji Heavy Industries and Isuzu Motors announced they
have formed a joint venture company, Japan Auto Web Services. The first item on the new
company's agenda, executives said, is the immediate establishment of
BuyPower Japan, an online automotive shopping
service.
BuyPower will allow Japanese auto buyers to search, select, get pricing
on models and options, and even configure a Cadillac, Saab, Opel or
Chevrolet online.
The new venture is a significant one for the participating companies -– and a milestone
for the Japanese consumer.
Market Dynamics
For GM, Suzuki, Fuji and Isuzu, the new venture is a no-brainer. Despite the country's
economic woes of the last decade, Japanese consumers still have a great deal of
disposable income at their command and are among the most active online shoppers in
the world.
Japan has some 47 million Internet users, Mark Hogan, GM group vice president responsible
for e-commerce, has said in wire reports and news accounts. More importantly, last year
the country accounted for 62 percent –- or US$9.5 billion -– of regional e-commerce, he
added.
As for Japan Auto Web Services, the new company's combined market share
automatically has made it the number two automotive group in Japan with some 17 percent
of the market, according to Rudolph Schlais, GM group vice president and president and
CEO of GM Asia Pacific.
Consumer Tastes
Japanese consumers will have a number of new choices and service
options at their disposal. Customers will be able to choose from 65 vehicle models in
179 variations, ranging from compact cars to larger, luxury sedans.
Like many other car-buying Web sites, BuyPower Japan offers shopping preliminaries --
the ultimate sale must be finalized at a local dealership participating in the venture.
However, while this may be considered a hassle in the United States, in Japan the consumer
tends to value the face-to-face transaction.
GM hopes that the venture will go a long way toward changing the Japanese
perception of American cars and American sales methods. While many imported brands –-
especially those from Europe and in particular, Germany –- are highly valued in Japan,
U.S. imports do not have as much cachet.
Goal To Expand
GM said it would like to expand its auto exports to Japan to
about 100,000 units a year from its current level of 35,000. The new Web site, the
company anticipates, will help it reach that goal.
A similar initiative launched a few years ago by GM in South Korea and Taiwan, called
"GMBuyPower.com," has thus far been very
successful, according to news accounts. The company also launched a site in China
earlier this year.
Each site is designed to address consumer preferences,
buying habits and distribution channels for its particular market.
E-Commerce Feels Shock Waves from Attack September 13, 2001
Because of the shock of the terrorist attacks on U.S. soil Tuesday,
e-businesses are focusing more on answering customer service questions
by phone than on making new sales via the Web.
Related Stories
Car Dealers Look For an Online Jump Start July 23, 2001
Auto dealers - used to doling out small bits of information during the sales
process - have been learning to work with customers armed with
online research about the cars they want.
Study: Car Dealers Fumbling Web Potential June 21, 2001
Car dealers tend to view buyers who make initial contact with them over the Internet as
'fickle customers who contact multiple dealers in search of unrealistic discounts,'
the study said.
New GM Site To Offer Rival Auto Brands February 05, 2001
Automakers have been moving to reassure dealers that they will not be cut
out of the sales process by the Internet.
Cars Online: Miles To Go Before They Sell January 31, 2001
Analysts are throwing out some big
numbers for online car sales. Forrester Research, for
example, says that by 2004, the Internet auto market
will swell to a whopping $16.6 billion.
GM Races into E-Commerce September 19, 2000
Major automakers are racing to expand their e-commerce capabilities.
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