Jaguar Land Rover’s plan to shift all of its UK dealers to the so-called ‘agency model’ by the end of 2024 will include a reorganisation of its showrooms as a “house of brands” where Jaguar, Range Rover, Discovery and Defender will all have their discrete area, JLR’s UK head of sales has said.
The most radical change, however, will be the shift to agency itself, under which JLR will take control of the buying process, whether online or via the showroom, with the dealers paid an agent fee for handling each sale.
That’s a big departure from the current wholesale model, whereby JLR sells cars to their dealer network. That works well in that JLR recoups its money quickly, but it also hands the dealer responsibility for the final sale price – and ultimately, it becomes them and not the car company that forms a bond with the buyers.
When the car maker sells directly to the buyer, however, that changes. “In an agency model, we have the direct relationship with the customer,” Paddy McGillycuddy, UK sales director and JLR rising star, told Autocar. That’s crucial as JLR expands its business model to sell additional software benefits such as features on demand. It also wants to get rid of the unseemly haggling. “If we are to fulfil our ambition to have luxury brands, then price cannot be an element of that transaction,” McGillycuddy said. “The price is the price of the car.”
But agency for JLR ultimately means consistency. “Fundamentally, it’s about experience. How do we deliver luxury brands around luxury experiences?” McGillycuddy said.
Which comes back to the “house of brands” idea. Under this reorganisation, the dealer that has already invested in the imposing ‘arch’ showroom design might now be asked to create four separate spaces under the one roof to better showcase Jaguar and those Land Rover models that have now become brands in their own right: Range Rover, Defender and Discovery.
The exact look and feel of the new showrooms is still under discussion with JLR’s agency steering committee body made up of various stakeholders including dealer groups, but it is likely to involve “no desks, softer furnishing, and a much more client-oriented luxury experience,” McGillycuddy said.
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