Industry leader - Inchcape

Inchcape plc Annual report and accounts 20066162253541Inchcape in the UKRetail– Audi, BMW, Ferrari, Ford, Honda,Jaguar, Kia, Land Rover, Lexus, Maserati,Mercedes-Benz, MINI, Mitsubishi, Renault,smart, Toyota, Vauxhall, Volkswagen, VolvoDistribution– Inchcape Automotive,Inchcape Fleet Solutions2Inchcape in the Emerging MarketsBalkansDistribution and Retail– Bulgaria, Romania, MacedoniaToyota/LexusBalticsDistribution and Retail– Estonia, Latvia Jaguar, Land Rover, Mazda– Lithuania Jaguar, Land Rover, MazdaRussiaRetail– Moscow Toyota/Lexus (opening 2008)– St. Petersburg Toyota/LexusChinaRetail– Shaoxing Toyota (opened January 2007)and Lexus (opening 2008)3Inchcape in AsiaHong Kong, MacauDistribution and Retail– Daihatsu, Hino, Jaguar, Mazda,Toyota/LexusSingaporeDistribution and Retail– Hino, Suzuki, Toyota/Lexus4Inchcape in AustralasiaAustraliaDistribution– SubaruRetail– Hyundai, Kia, Mitsubishi, Subaru,VolkswagenNew ZealandDistribution– Subaru5Inchcape in the Rest of the WorldChile, PeruDistribution and Retail– BMW/MINIBrunei, Ethiopia, Guam and SaipanDistribution and Retail– Toyota/Lexus6Inchcape in EuropeBelgium and GreeceDistribution and Retail– Toyota/LexusFinlandDistribution and Retail– Jaguar, Land Rover, MazdaLuxemburgDistribution and Retail– Jaguar, Toyota/LexusFranceRetail– Audi, VolkswagenPolandRetail– BMW/MINIRetailThe focus for our Retail operationsis on scale.Consolidation in developedmarkets is proving the case for fewer,bigger, better retail operations.It provides for an improved customerexperience, creates scale vehicleand aftersales activity and promotesinvestment in good managementand infrastructure, which ultimatelygenerates higher returns.We build scale regionallyin our markets by channelling ourinvestment into specific geographicareas to provide economic andoperational advantage.We also build scale relationships withour core brand partners where we aspireto represent around 10% of their networkin each country. This provides realmarketing efficiencies. We operatea dedicated brand managementstructure to ensure focus, a betterunderstanding of our partner’s brandvalues and the establishment ofenduring relationships.Our approach to retailing istotally customer-centric. We aim to createa differentiated customer experiencethrough our Inchcape Advantageprogramme and, by building on ourbrand partners’ customer programmes,deliver a real competitive advantage.Our retail businesses benefit frommultiple income streams from the saleof new and used vehicles, finance andinsurance products, servicing, partsand accessories.As our brand partners pursuetheir expansion plans in the high growthemerging markets, they look to establishstrong and efficient retail operations,learning from the consolidation activitiesin more developed countries. From theonset they will benefit from fewer, biggerand better retail sites offering world-classretail standards to their customers.We are in a leading position to partnerthem in their growth plans.