Complete liberation of the European car market: the arrival of new car-distribution-brands?

Selling cars in Europe will be completely liberated in 2002. This will end the monopoly between car producers and importers. This has been the case in the USA for years.

Meanwhile European car distributors are busy developing new and alternative ways to sell cars.

Virgin, well known for its rebellion towards the establishment, is already selling cars on the Internet. You can buy a BMW 750 at www.virgincars.com (if your credit card limit allows you to) with all possible options. You can even have the car delivered at your house.

The French supermarket chain 'Casino' will gladly provide you with a new car and Harrods is another option.

The difference with the current situation is that these new ways of distribution support a multi-brand approach.

As part of our monthly special "Brand & Car" www.brandhome.com contacted Cardoen, the Belgian pioneer who implements this new approach.
www.brandhome.com wanted to know Cardoen's position towards brands, so we discussed this topic with Wim Bruggeman, Marketing Manager at Cardoen

WHO IS CARDOEN?

Cardoen is a Belgian sales agent of different brands of both new and used cars. It is the first multi-brand car sales agent in Belgium. Cardoen has created a firm reputation in Belgium and received a 'Test-Aankoop Certificate' of the Belgian magazine 'Test-Aankoop' because of its unique combination of juridical security and price benefits. Cardoen offers many different brands in its showroom at lower prices than the brand concession holders

What are your personal requirements to consider a car brand to be strong?

What is the general definition of a strong brand? I think we should look at a customer's preference towards a certain product and his willingness to pay more for this preferred product. If someone is willing to pay more for an identical product when it is labelled 'VW' instead of 'Seat' (cfr. VW Sharan - Seat Alhambra) it is clear that VW is a stronger brand than Seat.

Besides that we should consider the dealer's 'brand'. Someone who has built a good relationship with his customers will be rewarded with high loyalty from his customers, even when he switches to another car brand. He has created a strong brand of his own within the limited number of his own clients.

You are selling a lot of different car brands in one shop. Cars need maintenance. Test Aankoop has nominated you because of your excellent service. This implies that the quality of your maintenance work is as good as the service offered by the concession holders. Does this mean that there is no real difference between the different car brands, just between the different "BRANDS"?

Our brand does not focus on a certain maintenance service, but on a new way of selling cars. A more customer friendly and efficient way than the one offered within the classic car sales system. When we look at maintenance service, we can see new brand which specialise in a certain aspect. Just think about Carglass, Speedy,... The car manufacturers on their turn, are promoting their cars towards the customer by means of product innovation and car brand marketing.

We think that in the future there will be car design and development specialists, maintenance specialists and distribution specialists. We think we belong within the latter category.

Slowly, Cardoen is becoming a brand on its own. Cardoen is the first brand in the "different car brands one shop" retailers.

• Do you think that in the future consumers will rather opt for the "Cardoen" brand and afterwards choose a car brand sold by Cardoen?

In the first place a Cardoen customer acknowledges his trust in our brand. At this point a lot of people already buy another car brand then they had planned initially. However, some brands are that strong that, when a customers can not find it at Cardoen, he will buy that car in the classic dealer network.

• Or do you rather think that the "car brand" will increase its importance and that car producers will have to safeguard and fortify their brand more in the future? This because their brand is faced with a more direct competition of other brands (since they share the same showroom)?

Why does one consumer buy a Danone yoghurt, while the other will always choose a retail brand? I do not see any differences when it comes to cars. Some people will always go for a strong brand, and are willing to pay for it. Others will opt for another brand because it happens to offer a good deal, or it is placed in a eye catching spot in the showroom.

As part of the multi brand policy, do you think Cardoen might also sell other products in its showroom. For instance BWM clothing or Peugeot bicycles?

No. We think of ourselves as a car retailer. In order to achieve that goals we already have our work cut out for us.

More info at www.cardoen.be