Genesis is looking to separate itself from parent company Hyundai by establishing its own dealership network in the U.S. The move is seen as a way for Genesis to create its own luxury identity, something that it could struggle doing if it remains in the shadow of Hyundai. The Korean luxury brand is putting together a multi-year business roadmap that will create as many as 100 retailers all over the country, covering all of the company’s important luxury markets. In the meantime, the new network will conduct its business in temporary stores or shared facilities.
If you’ve been following Genesis’ exploits, you know that this was coming. Hyundai’s new luxury brand can’t rely on the parent company if it wants to become a force in the luxury car segment. There’s a significant difference in demographic between the two brands that could be disadvantageous for Genesis. It’s why Lexus, Infiniti, and Acura have their own networks. Genesis needs to do the same if it wants to make the same impact as its rivals.
At Genesis, we believe in putting our customers first and giving them a proper ownership experience,” said Erwin Raphael, General Manager of Genesis Motor America said in a statement. “To ensure that happens, we need to take this next step in the separation of the Genesis brand from our parent company.”
Part of the need of having its own dealership network means that Genesis can cater its consumer experience to fit its specific market. Luxury brands are more geared to offer upscale amenities to its consumers. Lincoln, for example, has a concierge service that can assist with roadside assistance. Other luxury automakers offer something similar, to go with pick-up and delivery options for vehicle services.
Genesis needs to offer something similar because its potential customers expect to get treated the same way. These retail networks will go a long way in helping the company gain the kind of luxury status it needs to compete in its segment. It’s important to do it soon, too, because the Genesis brand is growing. Last year, the automaker sold 20,584 units of the G80, G80 Sport, and G90. With the arrival of other models like the G70, Genesis will need to grow out of its Hyundai bubble and become the luxury brand it’s meant to be.
“Establishing a right-sized Genesis retailer network, as our product portfolio grows, will ensure the Genesis brand can succeed and thrive long-term within the luxury automotive market,” Raphael said.
Truer words have never been spoken.
References
Genesis G80
Read our full review on the 2018 Genesis G80.
Read our full review on the 2018 Genesis G90.
Genesis G70
Read our full review on the 2018 Genesis G70.