The 3D Revolution In Automotive Retail

Frost & Sullivan, the Growth Consulting firm, has released a white paper on what is being called the “3D Revolution” in automotive retail. The company has been researching the future of automotive retailing for the past few years, and has now released its paper which focuses on a next generation 3D car configurator solution, provided by IBM and ZeroLight. The white paper is focused on this new platform because of its impressive ability to allow customers to see, feel and take a virtual test drive of a car at the touch of a button.

But is this really a game changer?

It’s a hard question to answer, but one thing that’s clear is that this trend is on the rise. Frost & Sullivan’s research indicates that in 2016, OEMs will invest up to $5 billion in digitalization and will unveil over 100 digital showrooms across the globe. In addition to the large financial investment in digitalization, a move toward “floor space” investment is also occurring. By 2016, existing showrooms are expected to dedicate between 20-30% of their floor space to digital technology instead of physical car displays. This is on top of the trend toward smaller stores and an expected reduction of 15-20% of total showroom floor space by 2020.

“The technology now exists to overcome automotive retail barriers and transform automotive retail as the world knows it today,” said Frost & Sullivan consultant Catherine Hutt, who produced the paper. “The next generation 3D car configurator solution provided by IBM and ZeroLight delivers an experience so ‘real’ that time-poor, urban-based customers no longer need to travel to an out-of-town car dealership, and those who do visit a physical store will have a completely new and exciting retail experience. By zooming in on minute details like the stitching, by opening the doors and boot, by turning on and hearing the roar of the engine, and by letting the customer take a virtual test drive in a setting of their choice, this configurator brings the car (and the car buying experience) to life – virtually.”

Certainly, many automakers and dealers recognize that there will be a massive disruption in the retail process over the next 10 years, and are therefore embracing the changing landscape by considering the cost of technology as an essential investment as opposed to an expense.

According to Frost & Sullivan, the collaboration between IBM and ZeroLight brings together a unique blend of skill-sets to satisfy both the customer and the OEM:

• ZeroLight’s 3D car configurator technology is anchored in 27 years of experience and large investments, and it is able to excite customers with advanced and interactive visual features that personalize the consumer journey and capture valuable customer data.
• IBM brings its global network and expertise in IT implementation to complement the cutting-edge technology with well-tested methods and data analytics that can improve new product development and lead generation as well as provide a platform to shift retail strategy online.

The crucial differences between the IBM/ZeroLight solution and traditional configurators is firstly, the 3D versus 2D factor, and secondly, the fact that car models, options and information available to the customer can be updated across the globe from the cloud.