Genesis, which has become an established luxury brand, is refining its strategy to win loyal customers.

Genesis, which has become an established luxury brand, is refining its strategy to win loyal customers.

Genesis's creation of a sophisticated product lineup since its U.S. launch in 2016 has fueled the premium brand's steady growth, but competing with traditional rivals in the competitive luxury market will require refining the ownership experience.

That means poaching car buyers from established luxury players, maintaining Genesis customer loyalty, and building a network of luxury dealerships for the brand.

“Our biggest challenge right now is meeting new customers and introducing ourselves, but once you get to know Genesis, it's really cool,” Ash Corson, director of product planning for Genesis, told Automotive News in August.

Corson noted that the brand's approach to loyalty is two-pronged: delivering the right product at the right time and developing what he calls a “support infrastructure” tailored to the customer's needs.

The introduction of performance variants for dedicated electric models under the new Magma sub-brand, the recent refresh of the core 80 Series vehicles and the addition of hybrids to every model line are set to expand the portfolio in several dimensions.

The infrastructure also includes home charging stations to support Genesis' growing lineup of electric vehicles, complimentary connected services such as an in-car Wi-Fi hotspot, and digital platforms that enable easy interaction between customers and the brand.

“This is an important part of building customer loyalty and retention as Genesis continues to expand its brand presence,” Corson said.

Corson's team plans which Genesis models to release so that existing customers have what they need “when they're ready to upgrade their mobility options.”

The first Genesis electric performance variant under the Magma sub-brand will be the GV60 Magma, which is likely to arrive in late 2025. A three-row electric crossover based on the Neolun concept, expected to be called the GV90, will round out the brand's current vehicle portfolio. The crossover is expected to arrive in mid-2026.

Genesis parent Hyundai Motor Co. recently announced it would add two hybrid systems to the brand, with a hybrid offering in every model line — except dedicated EVs. The expanded electrified options will help bridge the transition from internal combustion to all-electric powertrains.

Genesis initially said it would stop selling new internal combustion engines by 2025 and plan to go all-electric by 2030. However, the pace of EV adoption has slowed, and the shift to hybrids will help Genesis adapt to changing consumer preferences.

The brand hasn't confirmed where hybrids fit into its long-term goals, but Genesis's views on electric vehicles have clearly softened.

With just three leasing cycles under its belt, the 9-year-old brand still relies heavily on winning over new customers.

Mercedes-Benz, BMW, and Audi — the German rivals the brand aims to compete with — far outsell Genesis. In 2023, Mercedes and BMW surpassed 350,000 vehicles in the U.S., while Audi registered sales of 228,550. Genesis sales last year fell just short of 70,000 vehicles.

“The U.S. is not a growth market, so it's hard to say whether Genesis can match the sales levels of the Germans,” Stephanie Brinley, chief automotive analyst at S&P Global Mobility, told Automotive News.

S&P Global Mobility estimates that U.S. auto sales will finish 2024 around the 15.6 million they reached last year, but remain below pre-pandemic levels. The industry sold 17.1 million vehicles in 2019.

Brinley said Genesis doesn't have to match Mercedes-Benz, BMW or Audi in volume to be as good at product. “They've almost closed the gap in terms of driving dynamics,” she said.

“Dealers and how they treat their customers will be critical,” Brinley added. “Clearly, Genesis is focused on building a strong luxury brand and dealer network, not chasing big sales volumes.”

Genesis' performance in the U.S. has so far been driven by strong vehicles. Following the introduction of the midsize GV80 crossover and compact GV70, sales jumped more than 200 percent to 49,621 in 2021.

The brand's first dedicated EV, the GV60, arrived in the U.S. in 2022, helping boost sales 14 percent to 56,410. Deliveries of the electrified GV70 — an electric crossover — and the G80 began last year, with sales up 23 percent to 69,175.

Genesis sales rose 3.1 percent to 45,401 in August. A refresh of the 80-series lineup, including the addition of the GV80 coupe, which embodies “sporty elegance” in design and engineering, is helping to drive sales. The automaker is also focusing more on retail customers than fleets.

Genesis declined to provide a 2024 forecast, but a company spokesman said further growth is expected.

Genesis' biggest opportunity is to expand and improve the dealer experience. This includes the number of dedicated dealerships as well as their geographic coverage.

“Dealers are a key touchpoint for the customer, not just when looking at or buying cars, but also for repeat visits,” Corson said. “Cars are becoming so feature-rich and feature-rich, especially in these evolving digital spaces, that having that initial point of contact in a dedicated environment is really important.”

In 2022, after six years of selling cars through Hyundai dealerships, Genesis opened its first store in Lafayette, Louisiana. In 2023, the brand opened its first East Coast dealership, a massive 20,000-square-foot flagship store in Marlton, New Jersey. Today, there are 56 upscale, glass-front Genesis stores in 26 states.

The retail network has shrunk from 254 dealers at the end of last year to 227 as of Aug. 1, the company said. A spokesman said some dealers voluntarily decided the brand might not be best for their market or business. Genesis expects the network to eventually have more than 100 separate dealerships, he added.

“Genesis has done a great job of separating itself from Hyundai, even though it started out as a Hyundai,” Sam Fiorani, vice president of automotive data firm AutoForecast Solutions, told Automotive News.

The rear-wheel drive Genesis models differ from cars in Hyundai's lineup, which are primarily front-wheel drive, Fiorani said.

The premium brand also underwent a corporate expansion, giving it greater independence from the main Hyundai brand.

Corson, who took over as chief product planner at Genesis in late 2023 after more than a year at Hyundai Motor North America, is part of that change. Before joining Genesis, he spent more than a decade at Toyota and Lexus.

“My position reflects Genesis' commitment to growing from where we are and where we want to go,” Corson said.

Other changes include the appointment of former Mercedes-Benz executive Drew Slaven as chief marketing officer and Hyundai Motor veteran Troy Saito as chief sales officer. These dedicated resources, along with standalone dealers and a growing product portfolio, will help Genesis write its own story.

Compared to the long legacy of Mercedes-Benz and BMW, Genesis started from a deficit, Fiorani said.

“We need to chart a path that doesn't rely on the models of past generations,” he said.

Source link

Leave a Comment

s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a s3a