A still-obscure luxury brand that is also young is Genesis which has a complicated history an the brand is passing through a period of very significant change currently.
The widely praised 2019 mid-sized G70 – another upscale model from the stable of the Korean carmaker Hyundai is set to be rolled out shortly. Some of the entry level luxury models such as the Mercedes C class or BMW 3 series are the primary competitors of the sports sedan with a starting price tag of around $32,000.
In February, this new car was ranked as the top automotive brand by Consumer Reports. And in June the brand also topped the list of JD Power's Initial Quality survey. And in terms of vehicles satisfaction, the Genesis sedan was ranked at the top that very month by industry researchers AutoPacific.
However there has bene a drop of 50 per cent in the sale of the brand over the last six months while the brand is attempting to develop a completely new network of dealers in the US and is attempting to differentiate the brand from its competitors and even others from the same company - Hyundai and Kia.
Additionally, the brand is also trying to sell sedans in a market niche that is more4 receptive to SUVs.
But Hyundai apparently is playing a very long game with its Genesis brand.
Erwin Raphael, general manager of Genesis North America said that new network of standalone dealerships for Genesis would be unveiled by the company within a month.
In order to differentiate the brand from Hyundai, 100 separate stores had been desired by Genesis for a long time. however, in the US, the brand h\d to jostle within the Hyundai network that has 840 dealers in the country and many of the dealers were not happy hat they would have to now sell Genesis vehicles.
But a solution apparently is now at hand. All of the dealers have been given the offer of either convert to selling Genesis or to construct a separate store or accept a generous buyout offer, Raphael said.
However, the company has had to halt production in the meantime and also stall marketing of the brand. Raphel says that sale have been severely affected because of the tight inventory position.
"We are not concerned about our sales at all," he said. "This is a process we have to go through to build a stronger foundation for Genesis."
It is expected that in August, the G70 will start to be sold at the dealerships.
One of the biggest challenges for the brand is the dearth of awareness about it, said Raphael. However, this is not the best time to embark on a brand awareness program because of the transition in the dealership network, that is currently underway for the brand. According ot the internal data of the company itself, a\=only about 6 per cent of the customers are aware of the existence of the brand.
"In fact when we look at customers who can afford to buy luxury vehicles, a full 83 percent of them do not buy luxury vehicles at all," he said. "So there isn't a need to fight over the 17 percent who do buy luxury vehicles," Raphel said.
(Source:www.cnbc.com)
The widely praised 2019 mid-sized G70 – another upscale model from the stable of the Korean carmaker Hyundai is set to be rolled out shortly. Some of the entry level luxury models such as the Mercedes C class or BMW 3 series are the primary competitors of the sports sedan with a starting price tag of around $32,000.
In February, this new car was ranked as the top automotive brand by Consumer Reports. And in June the brand also topped the list of JD Power's Initial Quality survey. And in terms of vehicles satisfaction, the Genesis sedan was ranked at the top that very month by industry researchers AutoPacific.
However there has bene a drop of 50 per cent in the sale of the brand over the last six months while the brand is attempting to develop a completely new network of dealers in the US and is attempting to differentiate the brand from its competitors and even others from the same company - Hyundai and Kia.
Additionally, the brand is also trying to sell sedans in a market niche that is more4 receptive to SUVs.
But Hyundai apparently is playing a very long game with its Genesis brand.
Erwin Raphael, general manager of Genesis North America said that new network of standalone dealerships for Genesis would be unveiled by the company within a month.
In order to differentiate the brand from Hyundai, 100 separate stores had been desired by Genesis for a long time. however, in the US, the brand h\d to jostle within the Hyundai network that has 840 dealers in the country and many of the dealers were not happy hat they would have to now sell Genesis vehicles.
But a solution apparently is now at hand. All of the dealers have been given the offer of either convert to selling Genesis or to construct a separate store or accept a generous buyout offer, Raphael said.
However, the company has had to halt production in the meantime and also stall marketing of the brand. Raphel says that sale have been severely affected because of the tight inventory position.
"We are not concerned about our sales at all," he said. "This is a process we have to go through to build a stronger foundation for Genesis."
It is expected that in August, the G70 will start to be sold at the dealerships.
One of the biggest challenges for the brand is the dearth of awareness about it, said Raphael. However, this is not the best time to embark on a brand awareness program because of the transition in the dealership network, that is currently underway for the brand. According ot the internal data of the company itself, a\=only about 6 per cent of the customers are aware of the existence of the brand.
"In fact when we look at customers who can afford to buy luxury vehicles, a full 83 percent of them do not buy luxury vehicles at all," he said. "So there isn't a need to fight over the 17 percent who do buy luxury vehicles," Raphel said.
(Source:www.cnbc.com)
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