CarGO! and market development - industry in the eyes of an expert (part 2)

It's nice to hear from a wise (and experienced) person, so... it's time for the second part of the interview with Witold Tłuchowski, a well-known and respected expert who manages CarGO on a daily basis! Pomerania . Today we talk about trailers, rental companies and disturbing phenomena in the industry. We invite you to read!

Hobby caravans in CarGO! Pomerania

You are known nationally for your extraordinary knowledge of RVs, especially trailers. What is the origin of this knowledge? How does it translate into vehicle sales?

There are certainly many specialists in the field you mentioned on our market. My knowledge results primarily from practice and interest in this industry: for over 20 years I have been traveling in camping vehicles, mainly trailers, but also campers. This hobby of mine started with HOBBY - a brand that in Poland is practically synonymous with a caravan . At the factory, they laugh that I know perfectly well what year the furniture, carpets and glass colors were... and they really appreciate this knowledge. I could conduct training in this area.

I have been observing this market closely for many years, and for several years now I have been able to use it in business. It gives me great satisfaction. Thanks to this knowledge, I can confidently advise our clients on interior layout, factory equipment, and retrofitting options for each vehicle. The key to success on the market today is not sales as forcing the customer to buy what we have on the market. The key is cooperation and building a good relationship with the client. This involves determining his needs, expectations, dreams, identifying the goals of his future trips, selecting a trailer for the tow truck, etc. Each camping vehicle is a second home for the customer. The customer appreciates such service and always comes back, recommending us to others.

Many people come back to me during periodic vehicle services and thank me for my advice. They call for advice on many vehicle related issues. You can see that they are happy and fulfilling their dreams - for me this is the best reward for my work. I get particular satisfaction when I manage to convince a customer who is making his first purchase to choose and purchase a specific model of trailer or camper . This is where practical knowledge comes in handy: which model to choose, wider or narrower, heavy or light, and further: where to go on your first trip, how to equip yourself, what is worth taking with you and what is not worth taking with you. People really appreciate such conversations and advice. And they trust me. They know that I used to travel and still travel privately with a trailer - the kind they buy. Meetings at campsites are particularly special, where it suddenly turns out that my clients are staying on many plots - it is very pleasant, although sometimes difficult...

In my opinion, only a professional approach to the client guarantees success on the market today. The entire CarGO Group! that's how it works. I try to pass on the principles of such customer service to other young salespeople entering this market. The same also applies to the website, which today is the foundation of this business.

New products from the Hobby brand

What new products in the caravan segment are, in your opinion, particularly noteworthy in this and subsequent seasons?

Unfortunately, due to the pandemic and limited opportunities to purchase components, many manufacturers have significantly limited the number of new products for the 2021/2022 season. It's hardly surprising. The fair in Düsseldorf showed that the industry has good prospects and interesting new solutions in store. In my opinion, a very interesting solution and a future-oriented solution are auxiliary motors - electric self-drive for caravans. Taking into account the electrification of towing vehicles, i.e. passenger cars, any solution that reduces the load on the vehicle when towing will be very effective - it can significantly improve the range of an electric vehicle . Work in this area will progress quickly. We already have many SUVs on the market with very good and efficient electric drives. However, when towing a trailer, their range decreases dramatically. This reduces the comfort of traveling - you have to constantly think about charging.

However, it is difficult for me to imagine, for example, campers with purely electric drive. However, hybrids will probably be a transitional stage. Personally, however, I believe that hydrogen drive has a greater future than electric drive - especially in the case of delivery vehicles, which are the basis for the production of campers. In general, it is clear that the industry focuses on development in the field of design. New projects such as ADRIA ASTELLA win a number of awards and are immediately appreciated by the customer. In today's reality, changes in appearance, interior layouts, selection of finishing materials, playing with LED lighting inside and outside trailers - these are activities available to most manufacturers who try to refresh the range of their models every year. This year, the new version of the ALPINA series from ADRIA and the MAXIA series from HOBBY deserve special recognition - although in this case only 2 models were presented.

Hobby has again presented something completely new - BEACHY trailers - simple, small, light, minimalistically equipped and relatively cheap - so that everyone can start their adventure with caravanning. It's a return to the 1950s and 1960s, when trailers were small and light. and people could drive them almost or exactly to the beach and enjoy the proximity of the sea, forest or river. Will the Beachy series be a success? Time will tell - the first signals are very positive.

Camper manufacturers also showed many new interior layouts - in my opinion there are no revolutionary solutions, but it is interesting. Pilote presented a new model of the semi-integrated PILOTE P696U with an interior layout resembling a trailer rather than a camper - a very comfortable solution with a living room in the back of the camper with a bed lowered at night. Space and comfort are the features of this vehicle. In turn, HOBBY in the field of campers showed a completely changed DE LUXE line with a HYGGE interior. We will also notice changes in other brands: new lights, new bumpers, LED backlighting, LED headlights, etc. Everyone does something - everyone is looking for the little things that attract customers to a given brand.

Your clients are many Polish rental companies. Do you think it is still worth investing in this business, starting now? What are the opportunities and threats?

This is a difficult topic. I believe that this market will ultimately strive for consolidation. Today's market fragmentation is a transitional stage. Small rental companies that have a few vehicles are still alive and doing well today. In my opinion, however, this is a side activity to other activities run by the same owners. You simply can't make a living from a small rental company. Due to the fact that camping vehicles are becoming more expensive and their residual values are very high (small decline in value over time), many entrepreneurs treated opening a rental company as a capital investment and a way to make a good investment in difficult and unpredictable times. I think that in many cases these small rental companies will cease operations after the lease agreements are closed, i.e. in two, three, maybe four years. Some will stay, but I have the impression that only those who took this type of business seriously from the beginning and have plans for development. Let's look at the German, Dutch or French markets. This is an indicator of what awaits us on the rental market in the coming years.

CarGO! in Poznań and CarGo! he has been running a rental company in Warsaw for many years and has knowledge and extensive experience in this field. Next year we plan to launch a rental service as CarGO! Pomerania in Wejherowo. This is a difficult and demanding market. Today we have a fleet of 20 vehicles and we plan to expand it, both in terms of campers and trailers. From the customer's point of view, only serious, large rental companies that offer the best service before, during and after the rental are able to ensure the safety and comfort of traveling in a rented vehicle. I am 100% convinced of this. The market will quickly verify this.

Due to the boom in the industry, many sub-dealers or ordinary intermediaries selling campers and trailers have appeared. What should a potential customer pay attention to when planning purchases to avoid unpleasant surprises?

I have noticed this development since the beginning of 2021. The market boom has provoked many owners of auto-trade companies to "enter this business". Everyone wants to get a piece of this market cake. Authorized dealers of vans and passenger cars of FORD, FIAT, CITROEN and other brands also try to sell camping cars or even trailers. Honestly, I don't understand the policy of authorized dealers of some caravanning brands who resell their vehicles to such companies on minimal margins. This is madness and simply spoiling the market.

Why is your opinion in this regard so negative?

It's easy. The customer will only be fooled once, often the only criterion will be that a given vehicle is available and standing on the lot, and it cannot be purchased elsewhere. What do I get with my purchase apart from vehicle availability? Practically nothing: no professional advice, no professional service, no possibility of retrofitting the vehicle with many typical accessories dedicated only to camping cars. etc. And there is no after-sales service in the field of camping equipment. I have many examples from this year. Customers bought "bare" new vehicles from a sub-dealer or from an ordinary car dealer and asked us for professional retrofitting: installation of air conditioning , awnings, bicycle racks, satellite dishes and other elements. During the peak season this was impossible. Every dealer respects its customers and their service is a priority. With the current volume of vehicles sold and serviced per month, we are unable to serve such customers.

In my opinion, these seasonal businesses will disappear as quickly as they appeared. Again, I will refer to developed markets: has anyone seen a Ford dealer in Germany who sells the Chausson or Benimar brand, or a Citroen dealer who sells ADRIA or Dethleffs? The current situation on our market should be considered not entirely normal. Once the economic situation weakens, everything should return to normal.

Another important aspect is the development of a professional RV dealer network. Both the CarGO! Group and other companies are planning to open new branches - as long as the industry entities have the know-how and experience, this type of development is highly recommended and beneficial for the end customer. Manufacturers already notice this aspect and are giving up the artificial and strange trend of opening new authorized sales and service points based on small, unknown companies and only because they have capital and will place the first order for a dozen or so vehicles paying in cash. Fortunately, this time is now passing. The market boom will certainly support the development of large, experienced companies that know this business inside out and are able to reach a higher level of development, i.e. building a network of their own branches under one strong brand.

You mentioned development plans. What are your plans for 2022?

CarGO Group! will develop dynamically. CarGO! Pomerania, on the other hand, will begin a very large investment at the beginning of the year. We have everything ready. If everything goes according to plan, in September 2022 we will invite our customers to our new headquarters in Gościcin near Wejherowo - on the main S6 route. Our investment is truly impressive. I will not hesitate to say that the largest and most professional Camping Center in the northern part of Poland will be created, which will offer the full portfolio of CarGO! Group brands. There will be a service hall with 4 stations with an area of over 800 m2, along with office facilities and a shop. The exhibition area is over 6,000 m2. We also plan to open a professional service point for campers on the road. Further plans concern the construction of a new headquarters in Poznań and the development of CarGO! Warsaw - it's all in preparation. We have a lot of work ahead of us and a very interesting period. The most important thing is that these plans do not interfere with our daily work - our clients can feel well taken care of.

More about the CarGO group! on the website cargogroup.pl
Link to a well-equipped online store: https://akcesoriakempingowe.pl/

And what little and big tigers like the most, i.e. currently available vehicles: https://cargo-group.otomoto.pl/inventory