The Big Challenge: Selling Cars is Getting Harder
Imagine you’re running a car dealership. You’ve invested in AI-driven pricing models, launched a slick new website, and even trained your sales team to use customer data to predict buying behavior. But despite all this, your dealership is still selling the same number of cars per employee as you did ten years ago.
Sounds frustrating, right?
This is the reality for many automotive companies today. A McKinsey report on boosting auto sales productivity found that even though car dealerships have invested in new technologies, the sales per employee have stayed between 14 and 16 cars per year. Even worse, operating costs have risen by 8%, squeezing profits. (McKinsey)
Now, let’s shift gears.
European consumer goods companies—the businesses that sell everyday products like toothpaste, clothes, and packaged foods—have cracked the code on driving consistent revenue growth. Even though they operate in tough, competitive markets, top brands have found ways to optimize their sales, cut costs, and grow profits.
What if the automotive industry could borrow strategies from these consumer goods companies?
Let’s take a deep dive into what car dealerships and automakers can learn from companies selling everyday products—and how applying these lessons can supercharge auto sales.
Lessons from Consumer Goods: How They Stay Ahead
A recent McKinsey study on leading European consumer goods companies found that top performers focus on four key areas:
1. Simplifying Product Lines
Companies like Unilever and Nestlé don’t try to sell every possible product. Instead, they:
- Focus on best-selling products
- Cut out underperforming items
- Invest heavily in what customers already love
For example, Coca-Cola reduced its number of product variations and focused on fewer, more profitable options, leading to higher sales per product.
2. Mastering Retail & Store Execution
Successful brands make sure their products are always in stock, easy to find, and well presented—whether in a big supermarket or a small shop.
For example, Procter & Gamble partners closely with retailers like Tesco and Carrefour to ensure its products are always displayed prominently.
3. Leveraging Digital & E-Commerce
More people are shopping online than ever before. Smart consumer goods companies invest in digital tools that:
- Help them track customer behavior
- Make it easier to buy products online
- Allow them to predict demand and adjust prices dynamically
4. Using Data to Improve Sales
Top-performing brands don’t rely on gut feelings. Instead, they:
- Analyze real-time sales data
- Test different pricing strategies
- Use AI to predict what customers will buy next
This data-driven approach has helped companies like L’Oréal and Danone improve profit margins and customer satisfaction.
