'Competitive Deterioration': Exploring Rolls-Royce's Unconventional Approach to Avoid Pursuing Quantity Like Peer Brands
Selling Cars in Tumultuous Times: How Rolls-Royce Navigates the Storm
Let's face it. Selling cars in today's world is no walk in the park. Tariffs, economic uncertainties, and political turmoil – these roadblocks have made life challenging for even the most seasoned automakers. Yet, one luxury brand, Rolls-Royce, seems to be riding this tempest with aplomb.
Jon Colbeth, the new president of Rolls-Royce North America, is quick to acknowledge these challenges. To tackle them, he's prioritizing a personal touch, reaching out to the brand's clients, and making them feel like part of the family. He's been harnessing the power of technology, resorting to an app called Whispers, where Rolls-Royce owners can connect with each other and even message him at any time of the day.
"There's probably not many brands where you can pick up your phone and in an instant message the CEO of the company," Colbeth shared. "I respond to all the requests – I try to get back very quickly. [Clients] like that personal access."
Rolls-Royce is in the midst of expanding its operations at Goodwood, England, home to the brand's global headquarters and factory. In 2021, the company sold 5,712 vehicles, marking its third-best annual sales result. These numbers give the brand the confidence to take a slower and steady approach, focusing on smaller sales while some competitors are gunning for the millions.
Colbeth articulated this approach: "Our customers like the fact that we’re not going to start chasing volume."
As Rolls-Royce navigates these complex times, Colbeth has set sights on its future, especially in the U.S. He aims to maintain its status as the epitome of luxury, and believes that knobs and buttons will always be more important than screens.
In an exclusive interview with us, Colbeth shared his thoughts on what clients are looking for, the company's stance on branding, and the growing demand for pre-owned Rolls-Royces. Here are the highlights:
- Individuality and Bespoke Over Logo Showcase: Rolls-Royce customers don't want their vehicles plastered with the brand logo. Instead, they appreciate the understated charm that accompanies the brand's offerings.
- Continuing the Pursuit of a Younger Clientele: The brand will carry on its effort to attract younger clients while ensuring they become an integral part of the Rolls-Royce family.
- Electric Spectre Demand: The demand for the all-electric Spectre is steadying, with customers expressing their love for the car.
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Here's what Colbeth had to say about inventory, tariff-related pricing, and Rolls-Royce's unique investment strategy:
- Inventory Variations by Dealership: The availability of inventory at U.S. dealerships varies depending on the location. Some dealers might have vehicles in stock, but the brand aims to keep inventory minimal to preserve the exclusivity of its products.
- Price Protection and Tariff Concerns: Rolls-Royce has price-protected everything through the end of June to provide clients with stability during this period of economic uncertainty.
- Investment, Not Volume: Rather than increasing production volume, Rolls-Royce is investing in expanding its bespoke capacity. The company views the art of craftsmanship as a key distinguishing factor, empowering its artisans to create unique commissions for clients.
Rolls-Royce isn't just a car company; it's an enduring symbol of luxury, quality, and personalization. With Colbeth at the helm, the brand appears poised to continue fostering these values while staying ahead of the curve in an ever-evolving automotive landscape.
- Rolls-Royce appears to thrive in challenging business environments, prioritizing personal connections with clients and using technology like Whispers to engage them.
- The brand focuses on sustainably expanding its operations, achieving its third-best annual sales in 2021, and maintaining a discriminating approach to volume.
- Colbeth emphasizes individuality for Rolls-Royce customers, focusing on understated charm in the design process, attracting younger clients, and strengthening the brand's relationship with them.
- Price protection measures have been implemented, and Rolls-Royce is investing in expanding bespoke capacity, emphasizing its artisanal craftsmanship as a key competitive advantage in the industry amid economic uncertainties.
