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Infiniti Wants Dealer Showrooms to Improve

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Old May 26, 2005 | 07:02 AM
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Default Infiniti Wants Dealer Showrooms to Improve

Coming off its best year ever, Nissan's Infiniti division plans a complete remake of its dealer network, the first since the brand launched in 1989. Dubbed the Infiniti Retail Environment Design Initiative, or IREDI, it is part of a multi-pronged campaign designed to turn the long-struggling nameplate into a major global luxury brand.

Infiniti burst through the 100,000 barrier for the first time in 2004, closing the year at about 130,000 cars, trucks, and crossovers. The target for 2005 is "the high-130,000 range," said the division's general manager, Mark Igo, during an appearance at the Detroit Automotive Press Association, on Wednesday. So far this year, things are on target, with sales through April up six percent. Igo credited a wave of new product, ranging from the full-size QX56 sport-utility vehicle, to the new M45 sports sedan. He hinted that a concept vehicle scheduled for debut at the Detroit auto show, next January, would reveal a new, sporty styling theme for Infiniti. When it comes to luxury cars, said Igo, "People used to pay for the badge. Now they're paying for design."

While product has been at the center of the turnaround at Nissan and the Infiniti subsidiary, Igo noted that other steps will be needed to move his brand into the luxury mainstream. Starting this summer, Infiniti will begin a slow, global rollout. South Korea is the first market on tap, followed by China and Russia. Infiniti will then become a truly full-line, independent brand in the home market of Japan.

For years, Infiniti was a struggling also-ran to mainstay luxury brands like Mercedes-Benz, BMW, and Lexus, the highline arm of Nissan's arch-rival, Toyota Motor Co. "We hadn't done a good job defining ourselves internally, or to our customers," Igo admitted. He believes the IREDI project will help make Infiniti's changes readily apparent.

The basic shape of the showrooms echoes the sporty shape of Nissan's sports sedans. The mostly glass buildings will make it easy for potential customers to see the products on display, especially at night. The project was developed by the New York-based brand identity and design firm, Lippincott & Mercer. Igo noted that between 2001 and 2004, when the Nissan brand phased in a new showroom look, sales at participating dealers jumped 57 percent. Dealers who didn't participate reported an average 33-percent increase. Infiniti officials believe IREDI will help sales per dealer jump from 750 to over 1000. -Paul A. Eisenstein

source : thecarconnection.com
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Old May 26, 2005 | 04:20 PM
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While, of course, an attractive showroom never hurts....I won't argue that........the fact is that you don't put out $30,000 to $60,000 for a showroom. You are buying a CAR. What is INSIDE that showroom and how that vehicle is built, IMO, is far more important than the showroom itself.

Take Hyundai....a perfect example. Their showrooms, yes, are a joke. But their vehicles today (and I mean TODAY, not 5-10 years ago) are anything BUT a joke.
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Old May 26, 2005 | 04:56 PM
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Originally Posted by mmarshall
While, of course, an attractive showroom never hurts....I won't argue that........the fact is that you don't put out $30,000 to $60,000 for a showroom. You are buying a CAR. What is INSIDE that showroom and how that vehicle is built, IMO, is far more important than the showroom itself.

Take Hyundai....a perfect example. Their showrooms, yes, are a joke. But their vehicles today (and I mean TODAY, not 5-10 years ago) are anything BUT a joke.
We're talking about a premium brand here. Infiniti is doing the right thing here because premium car buyers enter a premium car showroom expecting to be greeted in a premium way.

Hyundai is meant to be a volume/mainstream brand in the US and definitely not a good example for the dicussion here.

Last edited by XeroK00L; May 26, 2005 at 05:23 PM.
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Old May 26, 2005 | 05:16 PM
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This is part of the total luxury car ownership experience concept used by Lexus, & is proven successful, I think Infiniti has hired a former Lexus marketing executive recently to help them market the Infiniti brand . . .
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Old May 26, 2005 | 09:33 PM
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Originally Posted by AmethySC
This is part of the total luxury car ownership experience concept used by Lexus, & is proven successful, I think Infiniti has hired a former Lexus marketing executive recently to help them market the Infiniti brand . . .
Infiniti should first worry about their quality, refinement and craftsmanship, before they spruce up their dealer network .

Nissan is getting too ahead of itself ... go figure ... it's no longer based on Japanese ideals, no thanks to Mr Carlos "cost cutter" .
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Old May 27, 2005 | 04:15 AM
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Originally Posted by XeroK00L
We're talking about a premium brand here. Infiniti is doing the right thing here because premium car buyers enter a premium car showroom expecting to be greeted in a premium way.

Hyundai is meant to be a volume/mainstream brand in the US and definitely not a good example for the dicussion here.
Well...like I said in my post.....a nice showroom never hurts. But IMO it is not a necessity. And.....since you mention Hyundai as a volume/mainstream brand, that is what Infiniti is trying to become....MORE high-volume and MORE sales.

You also mention people being greeted in a "premuim" way. That varies more among individual people than it does by brands or dealerships. Walk into any given dealership almost anywhere and you will be treated courteously by some people while others act like jerks....even at Lexus dealerships, considered the cream of the crop.
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Old May 27, 2005 | 08:59 AM
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Originally Posted by AmethySC
Coming off its best year ever, Nissan's Infiniti division plans a complete remake of its dealer network, the first since the brand launched in 1989. Dubbed the Infiniti Retail Environment Design Initiative, or IREDI, it is part of a multi-pronged campaign designed to turn the long-struggling nameplate into a major global luxury brand.

Infiniti burst through the 100,000 barrier for the first time in 2004, closing the year at about 130,000 cars, trucks, and crossovers. The target for 2005 is "the high-130,000 range," said the division's general manager, Mark Igo, during an appearance at the Detroit Automotive Press Association, on Wednesday. So far this year, things are on target, with sales through April up six percent. Igo credited a wave of new product, ranging from the full-size QX56 sport-utility vehicle, to the new M45 sports sedan. He hinted that a concept vehicle scheduled for debut at the Detroit auto show, next January, would reveal a new, sporty styling theme for Infiniti. When it comes to luxury cars, said Igo, "People used to pay for the badge. Now they're paying for design."

While product has been at the center of the turnaround at Nissan and the Infiniti subsidiary, Igo noted that other steps will be needed to move his brand into the luxury mainstream. Starting this summer, Infiniti will begin a slow, global rollout. South Korea is the first market on tap, followed by China and Russia. Infiniti will then become a truly full-line, independent brand in the home market of Japan.

For years, Infiniti was a struggling also-ran to mainstay luxury brands like Mercedes-Benz, BMW, and Lexus, the highline arm of Nissan's arch-rival, Toyota Motor Co. "We hadn't done a good job defining ourselves internally, or to our customers," Igo admitted. He believes the IREDI project will help make Infiniti's changes readily apparent.

The basic shape of the showrooms echoes the sporty shape of Nissan's sports sedans. The mostly glass buildings will make it easy for potential customers to see the products on display, especially at night. The project was developed by the New York-based brand identity and design firm, Lippincott & Mercer. Igo noted that between 2001 and 2004, when the Nissan brand phased in a new showroom look, sales at participating dealers jumped 57 percent. Dealers who didn't participate reported an average 33-percent increase. Infiniti officials believe IREDI will help sales per dealer jump from 750 to over 1000. -Paul A. Eisenstein

source : thecarconnection.com
Well glad that after 16 years in business, they realize how important this is.
I think I have mentioned before that a local Infiniti dealer here moved into an old Lexus dealership as they moved to a new start of the art facility b/c of growth. As a matter of fact over 1 billion dollars is being invested in Lexus dealerships in the states to ensure they have more service bays and state of the art features. The new ones here have a day care, computers etc etc and are just HUGE in comparison to the old ones.
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Old May 27, 2005 | 10:00 AM
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Like I previously said...a nice showroom never hurts, but considering Infiniti has been virtually tied with Lexus for many years at the top of the customer satisfaction charts, I'd say they've done pretty well with the showrooms they've got.
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Old May 27, 2005 | 10:10 AM
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Originally Posted by mmarshall
Like I previously said...a nice showroom never hurts, but considering Infiniti has been virtually tied with Lexus for many years at the top of the customer satisfaction charts, I'd say they've done pretty well with the showrooms they've got.
I agree and its not like the product is super luxurious where the dealerships are needed. I think currently they are very appropriate.

This does show they think they will see significant growth in the future.
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Old May 27, 2005 | 11:16 PM
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Originally Posted by TRDFantasy
Infiniti should first worry about their quality, refinement and craftsmanship, before they spruce up their dealer network .

Nissan is getting too ahead of itself ... go figure ... it's no longer based on Japanese ideals, no thanks to Mr Carlos "cost cutter" .
i dont know what cars you have been looking at, but id say infiniti's quality, refinement, and craftsmanship is fine.... they are close to lexus in these regards.
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