Genesis turns to retail partners to grow UK retail footprint of up to 20 sites

Genesis has begun conversations with potential car retail partners across the UK ahead of a growth push that will see the premium Korean brand establish a physical footprint of up to 20 locations.

Lawrence Hamilton, who was appointed managing director for Genesis Motor Europe last September, has been tasked with recruiting retailers to the Hyundai-backed OEM’s network after completing a similar growth strategy in the Canadian market.

The move represents a significant change of direction for the brand which was launched in the UK in 2021 on the premise that it would “look after the customer from end-to-end, taking full control of that with no agents, no dealers”.

In an interview at the time, UK managing director Andrew Pilkington told AM that there was no pressure to deliver rapid growth, but ambitions have been ramped-up after the range swelled to seven models, with three new fully-electric vehicles (G60, GV70 and G80).

Speaking to AM as he revealed the new growth plan, which will be mirrored in the German market, Hamilton said: “We’re ready to press the big red button and launch into phase two in Europe.”

Lawrence acknowledged that, despite standing alone as it launched in the UK, the brand knew that “we knew it would be very difficult for Genesis to stand alone.”

He added: “You can have the nicest cars, the best cars but if you don’t have people around you that can build relationship (with customers) that doesn’t count for much.

“By expanding with specialist partners, we can take our award-winning cars to even more customers.”

Creating a sustainable network

Society of Motor Manufacturers and Traders (SMMT) data showed that Genesis registered 1,000 vehicles in 2022, compared to 127 in 2021.

Genesis currently operates its own Genesis Studio sites in Shepherd’s Bush and Battersea Power Station and announced last month that it would be opening a third location in Edinburgh in May.

Further expansion with retail partners will see up to 20 locations opened by early 2024, according to Lawrence.

“What we know is that we don’t want to stuff every town with multiple retail points,” Lawrence told AM.

“Our business model is much more suited to developing a sustainable business in multiple area without excessive competition.

“Single partners in a particular area can deliver a better ROI and deliver a better customer experience, which we see as an essential part of our offering.”

In Canada, a market of around two million new cars, Genesis sells around 6,000 cars a year, Lawrence said, and has 30 retail partners which operate sites which adhere to “very clear global facilities standards”, Lawrence said.

Lawrence told AM that four-or-five car stores would be required by the brand, adding that Genesis’ requirement for remote servicing – with collection and delivery to/from a customers’ door – meant that retail partners aftersales facilities need not be located within or directly alongside their showroom space.

Agency model?

Genesis will continue to serve customers in an omnichannel way, he said, but refused to pigeonhole the brand’s haggle-free, fixed-price online retail proposition as an “agency model”.

But he suggested that a manufacturer-owned, centralised inventory of cars would ease the funding requirements on potential partners.

Key to the growth of the brand would be recruiting the right retail partners, however.

He said: “Globally Genesis wants to grow. We have our own sense of what our potential is (in the UK), but we have to create a network that is profitable for our partners and ourselves.

“We think it’s important to play the long game.”

Genesis’ move to create a car retail network now put it in competition with a number of emerging automotive brands seeking partnerships with UK retailers.

While online only performance EV brand Polestar continues to grow its footprint ahead of the launch of new models, Great Wall Motors (GWM) Ora brand and BYD are also in the process of creating dealership networks.

Other brands, including Lynk & Co and NIO are also expected to launch in the UK market in the near future.

AM asked Lawrence about the difficulty of establishing a premium car brand in a European market populated by established brands such as Audi, BMW and Mercedes-Benz.

He said that customer experience would prove to be Genesis’ key differentiator, adding: “I read recently that there is a much greater acceptance of new brands around the world of EV. EV, I think, is a great leveller across the industry and there is a great opportunity.”