OREANDA-NEWS  In 2018 Hyundai company is going to open mono-branded dealer centers for its new Genesis premium brand, Alexei Kalitsev, Executive Director of Hyundai Motor CIS, informed Vedomosti.

The company plans to create a separate dealer network of 40-45 Genesis salons in major cities by 2020. At the moment, two Genesis models (G80 and G90) are sold in Hyundai dealerships jointly with the cars of the parent brand, and their zones are delineated, but Genesis plans to sell six models in Russia by 2020.

Separating of Genesis and Hyundai brands is a global strategy, which is increasingly being talked about in the media by other Hyundai executives, citing the fact that Genesis is a premium brand and its separation is necessary to promote and for the further service of the models.

Let's remind that many manufacturers of mass brands, having left a premium-segment, have created separate brands. "So, Honda has created a premium brand Acura, Toyota - Lexus, Nissan - Infiniti, Groupe PSA - DS. Thus, companies separate "mass" and "premium" customers, as in the premium segment the demand is more stable, brand loyalty is higher, and business is more profitable due to high margin ... ", - says the executive director of the analytic agency "AUTOSTAT", Sergei Udalov.

However, the interviewed by Vedomosti Hyundai dealers react very cautiously to the initiative of their partner. Now sales in the premium segment are declining and growing in mass, so the expediency of opening a Genesis single-brand showroom is questionable. It is unlikely that due to the opening of a mono brand center, the brand will have a surge in sales.

On the one hand, segmentation is necessary, as the connection under the same roof of cars of different price category is problematic: the audience has different needs for service, interior. On the other hand, for Hyundai this is a big challenge: whether the margins, the range and technological solutions will be sufficiently provided, whether the marketing strategy will be developed, the history and status of the brand will be conveyed to the audience.

In Russia, Hyundai brand cars are sold today by 172 dealers, 37 of them also sell Genesis models.