UK: COOL RESPONSE TO NEW CAR REGISTRATION
Article Abstract:
The launch of new W-registered cars in the UK on 1 March 2000 met with a cool response from consumers deterred by high prices. Amid expectations that the report by the Competition Commission on dealerships would result in prices falling, sales of new cars on the country's forecourts have been in decline. Dealers acknowledged that the outlook looks gloomy, with the UK government report expected to have an impact on sales for March 2000 as more potential buyers again defer purchases. Traditional car dealers are also being challenged by firms such as Oneswoop.com which are offering cars via the Internet. Oneswoop.com is offering Land Rover's Freelander model at GB[pound] 13,989, which is GB[pound] 9,826 under its list price in the UK.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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US: INTERNET RETAILING CONTINUES GROWTH
Article Abstract:
According to figures from the US Commerce Department, Internet retailing for the final three months to December 1999 stood at US$ 5.3bn. Despite the figures, Internet retailing only accounted for 0.64% of total sales of US$ 821.2bn in the same period. Internet retailers in the US have a market penetration of 0.6%, and although it is a low figure, it is still thought to be twice that of the UK's 0.3%.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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UK: ONLINE CAR SALES SLOW TO TAKE OFF
Article Abstract:
Despite the growing number of online car retailers being launched in the UK, sales levels have so far remained low. Existing players include the new Virgin.com/cars service, joint venture company OneSwoop, jamjar.com from insurance company Direct Line, non-profit service Carbusters set up by the Consumers' Association, and Totalise Eurekar. Carbusters has reported some of the strongest sales, with 958 cars sold in the first two months, while car manufacturer Vauxhall has sold only 500 cars since the launch of its online service in November 1999. OneSwoop is said to have sold just 20 cars in the first few weeks after launch in March 2000, although the company is claiming that sales have now risen to 100 per week. The long delivery times for cars ordered via the Internet, and little brand awareness for most sites could be contributing to the slow growth in sales. In addition, OneSwoop and Virgin do not offer test drives. Nevertheless, online sales could account for 18.9% of European car sales by 2005, up from 0.4% in 2000, predicts Datamonitor. The leading car companies could be the main beneficiaries, due to their recognised brands, as the Datamonitor survey found that 34% of customers who bought online went straight to the manufacturer's web site. Manufacturers which maintain their dealership networks and adapt to lower margins are likely to be the most successful online. Alternatively, start-up online retailers could buy up dealer networks to develop their own distribution network, or set up broker websites that act as intermediaries between customers and dealers.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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