Interview with Mark Kass, Regional Managing Director, Al-Futtaim Honda
Second of a series of interviews with senior car guys about the state of the industry as we head into 2012
By Shahzad Sheikh
Q. Whilst initial expectations for 2011 were optimistic, it appears to have been a case of a stalled recovery with political unrest across the region, a natural disaster in Japan severely impacting the car industry, and fears of a double dip recession causing buyers to put off purchases. Now in the final quarter, do you find things are better, worse or about what you expected for the year?
In truth, Al-Futtaim Honda are cautiously optimistic given that the UAE market is up year-on-year whereby we are witnessing growing consumer confidence over the second half of 2011.
Q. What changes in strategy, if any, did you have to employ to cope with the changing situation and unsettling events of the 2011?
The strategy Honda adopted was to intensify employee and customer engagement that has proved hugely successful. We delivered a PCP proposition “Advantages” along with “Honda Approved Used Cars” by way of additional channels for which both have been a revelation and extremely well received.
Q. In the retail environment in the UAE what have been the major developments this year, particularly in light of the new finance rules requiring buyers to have a minimum 20% deposit on new car financing?
It all boils to managing expectations in a responsible manner by way of delivering innovative financing solutions such as PCP along with an aggressive trade-in programme. We encourage customer equity that ultimately determines the term period; the new rules had also made us think more entrepreneurially as a business.
Q. Has there been any apparent shift in the demands, needs and requirements of customers? Are they buying more used cars, are they chasing more incentives, are they negotiating more, are they playing hard to get?
If anything customers have become more understanding given the supply constraints and as such are prepared to place down payments and wait six to eight weeks for the car of their choice. Buying habits are changing, that ultimately will improve dealers cash flows by way of reduced inventories more in line with traditional European buying patterns whereby cash is king!
Q. Is new product still helping you to get customers into the showrooms?
Yes of course, we have a lot to look forward at Honda given new MY012 Civic, MMC Pilot and City that will debuted at the Dubai Motorshow.
Q. Have you had to work harder at marketing your products and brand this year? What’s been the most effective way to deploy your advertising spend this year?
Not throwing good money after bad by way of flooding the press with confusing tactical offers that I feel is kind of old hat. We have placed particular emphasis on communicating tangible benefits to our existing customer database and by focusing on what should become second nature “meet and greet” within the showrooms and enhancing test drive ratios that ultimately drives purchase consideration.
Q. Looking ahead, what are your realistic expectations for 2012?
Al-Futtaim Honda is looking forward positively in what I feel will be a year of resurgence – watch this space.
Please ask more questions next time, about what most people would like to know. e.g. in my case, sport cars and car range or variety. thanks