The Genesis luxury brand is in the process of distancing itself from its parent company, Hyundai. Although Hyundai has made significant strides in enhancing its reputation in the United States in recent years, Genesis is striving to establish its own unique identity, separate from the more affordable and high-volume Hyundai brand. It presents a challenge to market a top-tier luxury vehicle when it shares showroom space with a Hyundai Accent.
To further advance this initiative, Genesis is setting up its own network of dealerships. According to a press release, Genesis plans to establish roughly 100 dealerships to develop a distinct and appropriately sized Genesis retail network. Existing Hyundai dealers in key markets that currently sell Genesis products will be given priority in acquiring these dealerships.
Which markets are considered key targets for this endeavor? Genesis representative Kevin Smith mentioned, “While I won’t specify all key markets, I can confirm that there are 18 major key markets with multiple Genesis outlets and 30 key markets with a single Genesis retailer.” It is likely that these key markets will primarily include regions where luxury vehicles enjoy high demand, such as major coastal cities. When questioned about the potential expansion of Genesis dealer networks beyond the U.S., Smith stated, “Genesis operates independently in Canada, and we have plans to enter other global markets in the near future.”
The Genesis press release indicates that “new Genesis standalone facilities will be built over the next three years to further enrich the overall ownership experience.” When questioned about the specifics, Smith mentioned, “We currently provide complimentary maintenance for the first three years/36,000 miles and introduce a service named Service Valet, which allows you to have your Genesis serviced without stepping foot in the dealership. Simply schedule an appointment with the retailer, and they will deliver a loaner vehicle to your location, take your car to the service center, return it after servicing, and retrieve the loaner vehicle.”
“We are exploring other customer-centric initiatives for the future. The establishment of new standalone facilities is all about providing customers with the purchasing and overall ownership experience they anticipate from a luxury brand,” noted Smith. Therefore, it appears that marketing the Genesis brand to a wide audience is as much about the ownership experience as it is about the vehicles themselves. This approach could prove effective given the fierce competition Genesis faces as a new entrant in the market.
