Europeans’?
There seems to be a lot written about migrants from Central and
Eastern Europe coming to the UK and ‘taking our jobs’ – but are you
selling them ‘our cars’ as a quid pro quo?
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Nobody knows the exact number of Poles, Czechs, Slovaks and
Latvians, among others, presently working in the United Kingdom.
Contrary to the more lurid stories in some of the red tops, they
are not all involved in organised crime or scams. They are
hard-working, doing the jobs – and providing the skills – we don’t
want or don’t have.
That new labour force has helped hold down inflation by accepting
competitive wages to help get that first job and a National
Insurance number, to improve their skills and learn the language.
At the same time there are specialist shops springing up to service
their demands, which are well worth a visit – and why not ask for
advice while you’re there?
Yes, many are economic migrants but, as such, they are here to work
hard and, in many cases, to return to their home countries within a
few years. However, many of them slip back regularly on the
plethora of cheap flights and, if you look at the number plates of
often middle-aged cars in Warsaw or Prague, you will see a growing
number of British number plates.
Are you, as dealers, seeking to participate in the emerging niche
market and sell this new economic force cars and the associated
finance as their aspirations and expectations grow?
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The chances are they will not want to buy new cars,
at least to start. The requirement will initially be more for a
third- or fourth-hand unit, hopefully in reasonable condition, and
often with a lot of space to transport goodies back home. First
time buyers, so I’m told, trade up quite quickly as their economic
position improves. A good experience with the first car may well be
rewarded by a replacement and perhaps sales to friends as well.
Word of mouth is a powerful marketing communication tool, but a bad
sale will get round the community very quickly.
The other side of the equation will be the wherewithal to put the
car on the road – legally. That means finance, insurance, tax,
driving lessons perhaps. These new would-be buyers may well not
have a credit history in this country; equally, they may well not
have – or perhaps do not want to admit – an insurance history. As a
forward-thinking dealer here is a classic point of sale finance
opportunity: hire purchase, insurance and other soft services. The
dealer may need to learn new skills for what once might have be
called ‘sub prime’ lending and first time insurance. Equally, the
dealer may be advised to find a specialist finance source and
insurance. A little investment in such mundane questions may pay
dividends many times over,
“Not me – it’s too difficult” is not the answer. Have a
person in the dealership who understands the needs, can ‘read’ the
prospect, can help them fill in the forms for credit and insurance.
It’s not rocket science – but it can generate good business!
Circles within circles
One of the issues may be to ‘seek a niche within a niche’. Check
out the local immigrant community – which groups of nationals are
the biggest economically active in the area? Do they have their own
social clubs or favourite pubs – do they have shops which cater for
their food and drink? Is there a commercial radio station
dedicated to a specific language? Is there a local paper or a
church popular among specific groups of immigrants? Your
initial points of contact?
My marketing instincts say to focus on one economically active
ethnic group, and develop an expertise and reputation among that
community. Why not have somebody in the dealership who speaks the
language and can assist with language and advice – to both
sides.
Such a niche marketing strategy is obvious but few dealers appear
to be set on developing the opportunities. The sector is tightly
focused; observers may not even realise such market communities
even exist. Those communities, as they achieve a critical mass,
rapidly become a micro-market in their own right with a broad range
of communications and networks into which a focused dealer might
tap.
While the products and services bought by the most recently arrived
ethnic communities may be relatively basic at the beginning, they
can mature rapidly, with all the marketing opportunities that may
offer.
Go for it – and the best first step may be a visit to the deli or
cafe!
Professor Peter Cooke, KPMG Professor of Automotive
Management, University of Buckingham
