Manufacturers who skip auto shows do a disservice to their dealers — and their customers
Did you miss the auto show? Not you personally, but did your automotive brand?
The attendance numbers for the 2024 Canadian International AutoShow were announced last month, and there was a record set of 371,559 for the 10-day show.
Despite that adding up to 2.5 per cent of the total population of Ontario, some Original Equipment Manufacturers (OEMs) completely “opted out” of the big show for reasons unknown. I think that is a significant missed opportunity on a number of levels.
Looking beyond the consumer aspect of the event, on the Thursday press day, 1,107 media attended. During the public days, an estimated 400 more media visited. The media, of course, usually only report on the vehicle brands that were there. Regrettably, by my count, at least seven OEM brands stayed home. Why the no-show at such a large show?
I am positive each of these absentee brands are all run by very smart marketing people. But, with respect, I don’t agree with the decision both at a strategy, and at a tactical level.
Having worked for two auto brands and having run marketing for one of them (which gives me some 11 years combined of booth duty at the show!) I have very strong opinions about this.
Auto shows are a big chunk of budget investment, and a significant amount of work. As an OEM I feel you need to show up, not just at the Canadian International AutoShow in Toronto, but at the other shows in Canada.
According to research conducted at the Toronto show last year by Clarify Group Inc., on behalf of the Toronto show, 38 per cent of people attending the auto show plan to make a vehicle purchase in the next 12 months.
To take this a bit further, from my perspective, an OEM is letting down their dealer partners. The expectation the OEM has of the retailer is that they must have beautiful stores with huge investments. Yet some entire brands skipped the largest auto focused consumer event in Canada.
Being a no-show at a major event could also be perceived as a disservice to the current owners of your brand, and yet another missed opportunity. Most brands would agree that owner loyalty and retention are key for success. Why pass up an opportunity to engage with your current owners and show them new and upcoming products?
What are the benefits of going as a brand to an auto show? Well, first and foremost, it is the opportunity to connect with potential customers in a non-confrontational environment, and educate them about the products on the market.
It gives consumers a chance to see the product in person and hopefully add the vehicle to their own consideration list. Lots of consumers go to an auto show long before they start formally shopping. Even though I am a “veteran” of the car business, I have used an auto show visit to help make a final purchase decision more than once.
According to research conducted at the Toronto show last year by Clarify Group Inc., on behalf of the Toronto show, 38 per cent of people attending the auto show plan to make a vehicle purchase in the next 12 months. If the math holds for 2024, and early numbers suggest they will, that means the sale of some 141,000 new cars in the next year are attached to the show attendees.
There is also the powerful word-of-mouth effect. It is pervasive in so much research I have seen in my two decades in the auto industry, that the recommendation of friends and family appear as the number one reason for a vehicle purchase.
I am going to be bold and suggest that many people who go to the auto show tell their friends, families and coworkers about the experience. If a given brand was not at the show, they are not part of that conversation.
I suggest that it is even more important, at this point in automotive history, to be at an auto show than ever.
The industry is changing at a hyper pace, and it is increasingly difficult for the consumer to understand what is going on.
There are ICE vehicles, mild hybrids, hybrids, PHEVs, EVs and maybe hydrogen. Especially with the shift to electrification, there is a lot of misinformation and uncertainty. For a consumer to speak to an expert directly at an OEM in the brand’s booth is meaningful, and ideally a perfect start to selling a vehicle. Speaking of electrification, of the new 100 per cent EV brands, Tesla, VinFast, Fisker, and Polestar attended. I guess they know a good opportunity when they see one.
It is perhaps just a pet theory of mine, but I believe that vehicles are becoming and will become less differentiated over time from a feature / function / benefit standpoint.
The brand and the image of the brand becomes even more important, especially as new players enter the market. What is your brand all about? An auto show is a great environment to explain your brand to consumers. It is the marketing message equivalent of shooting fish in a barrel.
To quote the great Wayne Gretzky, “You miss 100 per cent of the shots you don’t take.” It appears there were some misses in Toronto back in February, but there is always next year.
