Japan's Auto Dealers Finding Innovative New Ways to Promote Car Sales
11 March 1999
Japan's Auto Dealers Finding Innovative New Ways to Promote Car Sales
WASHINGTON, March 11 -- American-style auto malls and
Internet information services are catching on with Japan's auto dealers as
they seek substitutes for traditional "door-to-door" sales, according to Japan
Auto Trends released today by the Japan Automobile Manufacturers Association
(JAMA).
"Selling cars in Japan has usually begun with a knock on the customer's
door. Now increasingly it's through the windows of the Internet or the
shopping mall," according to William C. Duncan, General Director, JAMA USA.
Traditionally, Japanese consumers bought vehicles from door-to-door
salesmen who visited homes to provide brochures and then maintained contact
for the eventual sale. Therefore showrooms were small with only one or two
models.
Today, new technology, the prolonged recession and changing attitudes are
motivating dealers to diversify and seek new ways to attract consumers. For
example, Nissan will open Japan's first large-scale auto mall later this year
near Tokyo. Honda has introduced Internet-based information kiosks called
HEAT (Honda Exciting and Active Terminal) at its showrooms.
Last April, Toyota introduced a visual information network called "GAZOO."
Nissan now offers an Internet sales system named "Clicar" which lets consumers
select price, grade and color for new cars or to set up appointments with
dealers.
"High standards of service have and will continue to dominate Japan's
retail business." Duncan added, "Notwithstanding the decline in door-to-door
selling, it will be this high standard of service that continues to determine
which cars end up in the parking spaces of Japan."
Also in this newsletter issue is a review of JAMA members' record level of
purchases of American-made auto parts during the first half of Japan's current
fiscal year (April-September 1998). According to JAMA figures, U.S. companies
sold a record $13.26 billion in parts and materials to Japanese auto
manufacturers, up 15.7 percent over the $11.46 billion recorded during the
preceding fiscal year's first half. For the full fiscal year 1997, which
ended March 1998, total purchases reached $24.96 billion dollars.
Another article reports on JAMA members' development and introduction of
gasoline and electric-powered hybrid vehicles in North America, Europe, Asia
and Japan. Toyota has announced plans to sell its hybrid Prius in the U.S. in
2000. Honda will introduce its hybrid, code-named VV, in the U.S. and other
countries this fall. Nissan is planning to offer a variation of its Tino
station wagon as a hybrid. Fuji Heavy Industries aims to offer a hybrid
Subaru minivan in 2001.
The newsletter also reviews 1998 passenger car sales in Japan of both
domestic and imported vehicles. Last year, the top-selling cars in Japan were
domestic compacts and hatchbacks. This is exactly opposite to 1998 U.S.
sales, which were dominated by large sports utilities and light-trucks.
Japan Auto Trends is a quarterly publication examining developments in
Japan's auto market. The publication, including all back issues, is available
on JAMA's Web site -- http://www.japanauto.com.
JAMA, headquartered in Tokyo, has offices in Brussels, Singapore and
Washington, D.C.