Why Did a 70-Year-Old Japanese Customer Write a Handwritten Letter to a Car Company?
[Report] Visiting Hyundai Motor's Yokohama Customer Experience Center in Japan
After Re-entry Last Year, a Hub for Electric Vehicle Purchase, Delivery, and Maintenance
"Reducing Burden and Providing Thorough Maintenance... Sharing the Customer Journey"
Using Eco-friendly Materials and Transparently Disclosing Maintenance Processes
Inviting Customers for EV Life... Strategy to Integrate Locally
"Focusing More on Mindshare than Market Share"
A man in his 70s living in Kyushu, Japan, recently purchased an electric vehicle, the Ioniq 5. Hyundai Motor Company re-entered the Japanese market last year, selling exclusively online locally. The man liked the Ioniq 5 at first sight but was initially worried because he was not accustomed to buying cars or other products online. He visited Hyundai's Customer Experience Center (CXC) in Yokohama, listened to explanations from the staff, and decided to buy the car.
Since it was his first electric vehicle, he received detailed explanations about features not found in other cars and charging methods. After returning home and a few days later, the man wrote a letter directly to Cho Won-sang, head of Hyundai Motor Japan (CEO of Hyundai Mobility Japan). The letter expressed how thrilling it was to spend 60 million yen online and how buying the car brought vitality to his overall life. Cho said, "I was touched as if he appreciated Hyundai's unique omotenashi (hospitality), so I replied with a handwritten letter."
Hyundai Customer Experience Center (CXC) in Yokohama, Japan. A Hyundai Kona electric vehicle is fast charging near the entrance.
[Photo by Korea Automobile Journalists Association]
Hyundai CXC Yokohama, visited on the 26th, is a complex hub established as Hyundai restarted its business in Japan after 12 years. It is a space where customers can handle the entire process from vehicle purchase consultation to delivery and maintenance. Cho said, "We wanted to ensure that customers do not feel resistance or burden in the initial stages before buying a car, and to be meticulous in the backend processes like vehicle management and maintenance," adding, "The goal is to provide a comprehensive 'journey' related to the car, both before and after purchase."
CXC Yokohama reportedly retained the building previously used as a warehouse with only minor renovations inside and out. The showroom walls on the first floor use materials recycled from cypress wood. Hyundai has mainly introduced eco-friendly vehicles such as the dedicated electric Ioniq 5 and hydrogen fuel cell vehicle Nexo in Japan, and the customer experience space also emphasizes an environmentally friendly impression. Inside, a local famous perfumer created a subtle scent centered on cypress wood, reminiscent of a forest.
Electric vehicles Ioniq 6 and Kona displayed in the showroom on the first floor of Hyundai CXC Yokohama. The ceiling is filled with lighting, making the exhibited vehicles stand out even more.
[Photo by Korea Automobile Journalists Association]
Hyundai CXC Yokohama vehicle maintenance area. The maintenance process can be observed from the side. From the second-floor lounge, maintenance work can also be viewed through transparent glass windows.
[Photo by Korea Automobile Journalists Association]
The vehicle maintenance area is also far from the usual dull scenes. Since there are no emissions and the space was designed from the start so customers can fully observe the entire maintenance process, the structure allows a direct view from the first-floor showroom and the lounge on the second floor. Additionally, cameras are installed at each work bay to show maintenance status in real time up close.
One of the carefully designed spaces is the delivery area, where customers receive about an hour of explanation and congratulations when taking delivery of a new car. This considers the local culture, which appreciates detailed explanations. Uchida Yuji, a sales specialist in charge of local guidance, said, "Other brands do not have such a place, but this dedicated space and the unique, meticulous approach result in high customer satisfaction," adding, "Some customers even come from 2 to 3 hours away after seeing it on social media to enjoy the delivery ceremony."
Hyundai CXC Yokohama Delivery Space. This is a space where customers receive about an hour of explanation and congratulations when they take delivery of their new cars. It is said that customers come from afar due to word of mouth on social media.
[Photo by Korea Automobile Journalists Association]
Cho, a marketing expert who has worked worldwide including Korea, the U.S., Europe, and China, has lived in Japan during his childhood and now oversees local business after Hyundai's re-entry. He views Japan as one of the most demanding markets globally. It is full of unfavorable conditions for foreign cars, including various tariff and non-tariff barriers, narrow roads and parking lots, and conservative consumer tendencies.
In the first year after re-entry last year, the Ioniq 5 was recognized by experts as the import car of the year locally. However, the stubborn Japanese consumers were reluctant to open their wallets. Sales for about a year since August last year were around 700 units. Cho said, "Upon re-entering Japan, I decided to focus more on 'mind share' rather than 'market share,'" adding, "Being recognized as the 'Hyundai' brand among Japanese customers is the value we can gain representing Korea locally."
He continued, "With a diverse lineup including dedicated electric vehicles, derivative models, and high-performance electric cars, we are creating a halo effect and building a premium image," adding, "Our business approach, such as expanding local partnerships and dealer networks without aggressively advertising to increase immediate sales, is a strategy to naturally 'blend in' with Japanese society." Among Japanese people, the approach called najimu (馴染む), meaning becoming familiar or accustomed to each other, is considered effective.
Jowon Sang, Head of Hyundai Motor's Japan Branch, is speaking with reporters from the Korea Automobile Journalists Association on the 26th about the characteristics of the local market.
[Photo by Korea Automobile Journalists Association]
Suzuki vehicles exhibited at the recently opened Japan Mobility Show 2023. The Japanese complete vehicle market is known for its conservative tendencies, making it a challenging place for foreign complete vehicle brands.
[Photo by Korea Automobile Journalists Association]
Rather than just selling cars, it is closer to proposing a new lifestyle. Cho said, "Introducing programs where customers can directly experience electric vehicles through car sharing or rentals, or where the company covers costs for vehicle inspections and minor maintenance, is in the same vein," adding, "(To be recognized by local consumers) it is a process of building the foundation step by step."
Since the business model of selling eco-friendly cars exclusively online has never been tried elsewhere, the experience in Japan could become a strategic asset for the entire company in the mid to long term. Just as many used to buy plane tickets through travel agencies but now mostly use applications, new car purchases are also expected to change in the future, and Hyundai is gaining experience in advance.
Cho said, "Car sales will also be digitized, and managing the entire customer purchase journey in that context is a major challenge," adding, "Since we are selling online in the difficult Japanese market, I am not overly concerned about criticisms that our sales are sluggish compared to other companies."
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Hyundai CXC Yokohama 2nd floor lounge space. It is a space to buy character goods or relax while drinking coffee.
[Photo by Korea Automobile Journalists Association]
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