Inchcape is a leading global automotive distribution and retail group. We operate in 31 markets, both developed and emerging, with a portfolio of the world’s leading car brands in the fast-growing luxury and premium segments.
INCHCAPE’S TRACK RECORD OF PERFORMANCE CONTINUED IN 2017
Our robust profit growth was driven by our strong positions in a global portfolio of markets, trading across a diversified set of five revenue streams as a Distributor and Retailer for our leading OEM partners.
Building on this strong foundation and leveraging the opportunities we have identified from the changes underway in our industry we have developed a new strategy for continued growth.
INCHCAPE 2017 HIGHLIGHTS
DRIVEN BY TRUST
Our strategy is underpinned by a new vision: to become the world’s most trusted automotive Distributor and Retailer
Trust underpins the virtuous circle that helps us to grow our business: building and maintaining the trust of our OEM partners creates new opportunities to gain the trust of our customers; gaining the trust of customers drives results that build and maintain the trust of our OEM partners.
This is why we seek to embed trust as our highest priority at every stage of our value chain, from product planning to brand management, from car retailing to aftersales.
DRIVEN BY A UNIQUE GLOBAL PROPOSITION
Our business model brings together our core strengths that enable us to leverage our unique proposition in attractive, growing markets.
STRONG GLOBAL POSITION
We have strong positions in 31 countries around the world. Our global portfolio is a fundamental strength of the Group, with a healthy balance between developed economies and emerging markets. We have a leading presence with our high-margin, capital-light distribution model in small, medium and emerging markets where we have secured strong positions with our marketing expertise, customer-centric approach and technical capabilities. This is complimented by our scale retail presence in medium and large markets with our strong portfolio of premium brands.
Strong in Asia Pacific, Selective in Emerging Markets, Scale in Developed Markets
LEADING OEM BRAND PARTNERSHIPS
We have strong and long-standing relationships with the world’s leading OEM (Original Equipment Manufacturer) groups. These OEMs are the world’s main drivers of automotive innovation, new fuel technologies, powertrain developments, safety breakthroughs and cutting edge engineering. Our partnerships provide us with an attractive line-up of models across the world. And by consistently focusing on the core needs of our OEM partners, we seek to build and deliver ever-deeper relationships, outstanding brand representation and strength in market share.
Long-standing relationships with the world’s leading OEM groups
DISTINCT ROUTES TO MARKET
Market size, potential and dynamics determine the specific operating model we employ from country to country.
In small and medium sized markets, as exclusive Distributor, we manage the entire value chain post the factory gate for our OEM partners. We are the OEM’s brand custodian in these countries, responsible for everything from importing vehicles and parts to all sales and marketing activities, including the appointment and management of the third party retail network. In larger, more developed markets, such as the UK, we operate our Retail model, with a focus on delivering a superior customer experience online and in our retail and service centres.
DIVERSIFIED REVENUE STREAMS
Five distinct value drivers support Inchcape’s revenue and profit performance throughout the economic cycle.
We leverage opportunities from the New car market by selling New vehicles, Finance and Insurance products. And we simultaneously take advantage of the defensiveness of the growing global Car Parc (the total number of cars on the road) through Used vehicle sales, Aftersales Servicing and Parts. Maintaining this balance prepares us well to respond to the full array of different market conditions and trends at play in all our local markets across the world.
INSIGHT AND EXPERTISE ACROSS THE AUTOMOTIVE VALUE CHAIN
We operate across every link of the post-factory automotive value chain for our OEM partners, providing a highly efficient, customer-focused route to market that delivers shared rewards at every stage.