Since their 2021 arrival on UK shores, Genesis cars have only been sold online. That could be about to change, with the Korean manufacturer announcing plans to build a dealer network. Keep reading as we explore what’s behind their plans and what the network will entail.
A brief history of Genesis in the UK
Relatively new on the car scene, Genesis Motor was founded in 2015. It was originally the luxury vehicle division of Hyundai, with the first release coming in 2004 – the Genesis sedan. After becoming an independent brand, the first standalone Genesis model was launched in 2017 – the Genesis G90.
They’ve since launched a number of different models all with the naming formula G (for Genesis) followed by a number – with GV for crossover SUVs and “electrified” for battery-powered cars. That range comprises the G70, G80 and G90 sedans, plus GV60, GV70 and GV 80 crossovers, topped off by the Electrified G80 and Electrified GV70
In 2021, they began selling in the UK through studios in shopping centres. To date, they have two in London, at the Westfield shopping centre and Battersea Power Station – also a shopping centre, for those unfamiliar with the capital! There’s also one due to open in Edinburgh.
That said, the studios themselves can’t make sales. It’s up to customers to purchase a Genesis car online after visiting a studio, seeing an advertisement, or simply of their own accord. That was the case for around 1,000 UK customers in 2022. But going forward, there looks to be another option available…
What does Genesis have planned?
In the first quarter of 2023, Genesis Europe has announced plans to supplement their high street facilities with more traditional showrooms. Still relatively small in size, the new sites are expected to comprise a showroom of about five vehicles and offer both aftersales support and used car operations.
However, their 2021 pledge focused on personalised customer service, clear pricing and online car sales. So, is it a change of tack from the Korean manufacturer? Apparently not, according to their European managing director, Lawrence Hamilton.
“Phase one was about coming to Europe and establishing a luxury car brand,” he explained. “We came with some very strong ideas about customer experience and a product portfolio direction, and wanted to see how it was received. And the answer so far is that it’s been very well received.”
Referring to the plans for a UK dealer network, he added, “Phase two is where we really roll out Genesis by recruiting retail partners to help us expand the footprint of the brand.”
Building a UK dealer network
It’s one thing planning a network of UK dealers, but it’s a whole other challenge building it. With the network scheduled to be operational by the start of 2024, work is now underway to start choosing the dealers to partner with. Genesis has reportedly started consulting with potential dealers, including both large PLCs and smaller firms.
“Large dealers groups are definitely on the list, but we have to have a balance,” said Hamilton. “We’ve started by looking at our Hyundai dealer network and the investors they have. We have a number of them that we’ve started a conversation with, and we’re going to go and have a chat about this new business model.”
Of course, it’s not simply a case of any dealer will do. Hamilton has emphasised that the company is only talking to those with the requisite scale and track record with good customer service and experience. While they could easily find people to build a showroom, the challenge is finding those who are focused to do it the Genesis way.
Balancing stakeholder interests
A key part of the arrangement above is balancing the interests of what Genesis see as the three key stakeholders – the customer, the retail partner, and Genesis themselves.
Customers need to get a great experience at a showroom, with Genesis consistently delivering what they’ve promised. As a luxury car brand, people are coming for a luxury experience and impressive product portfolio.
Next are retail partners, who need to make a good return. But they also need to understand the direction of the brand and be able to deliver on it.
Finally, Genesis – the original equipment manufacturer (OEM). They obviously have to get something from their dealers, with the main aim to build brand value and loyalty.
“If all these three things are in balance, we’ve got a winning business,” said the Genesis Europe managing director. “So it’s not an off-the-shelf agency model discussion, but built purely around how do we get this balance into this equation.”
“We’re designing a commercial arrangement around what we need to deliver as a brand – so I wouldn’t label it at this stage as an agency agreement in the way that I think other people may look at it.”
Are online sales on the way out?
The final question on many people’s minds is whether online sales – a key part of the brand’s UK operation to date – will be phased out with the introduction of physical showrooms. However, that doesn’t appear to be something Genesis are planning.
Even with retail partners, vehicles will still be ordered and delivered to a customer much like the current process. It simply means that studios can assist with the final stages of the customer journey, rather than bidding them farewell and crossing their fingers.
Put Genesis to the test with a luxury car lease
Given the manufacturer’s luxury positioning, Genesis cars aren’t within budget for most buyers. Thankfully, Genesis leasing deals can help! At Leasing Options, we have a choice of leasing deals for Genesis models like the G70 and GV80, so you can get that luxury experience without the upfront costs.
Any questions? Simply contact our friendly team who can provide answers and help you find the best deal for your requirements.
