Scion sales are down, brand image in flux
08-05-2008, 12:22 AM
#1
Scion sales are down, brand image in flux
From Autoblog:
http://www.autoblog.com/2008/08/04/s...ge-is-in-flux/
Hopefully this is only temporary...
http://www.autoblog.com/2008/08/04/s...ge-is-in-flux/
Originally Posted by Autoblog
My older brother Brian drives a Scion xD. He's 39 years old, and probably considered anything but cool by 18-24 year-old standards. He bought his little xD because he was tired of filling up his AWD 2001 Chevy Astro conversion van, and he's gone from getting 12 mpg to about 30. While that's a big-time win for Scion sales, the brand's marketing arm has to cringe. Scion was built to be Toyota's youth-oriented brand, with cars that would finally bring younger buyers into the Toyota showroom. The early days of Scion were a boon, with 80% of Scion buyers having never shopped Toyota before. Young people were clamoring for the xB and tC, and 100-200k online shoppers flocked to the Scion site each month.
Only a year after the redesign of the xB and xD, the Scion site is seeing less than half the traffic. Overall, year over year sales fell for 17 strait months until March, when gas prices skyrocketed. Even then, sales were back down by June, which was the peak of high fuel prices. The problems began to surface when the redesigned Scions were little more than larger versions of their former selves. A larger xB became more attractive to the mother of two, while losing some of the edginess that made it a smash hit with teens and early-20-somethings.
Scion's leadership would like to turn the tide by creating a fourth member of the Scion family that exudes cool for under $20k. It could be an SUV or a hybrid, but Scion execs want it to be free from the grasps of the parent company. The current models also have to be refocused to once again attract the coveted 18-30 crowd. That's a tall order, and a lot of work for a brand that's only five years old.
Only a year after the redesign of the xB and xD, the Scion site is seeing less than half the traffic. Overall, year over year sales fell for 17 strait months until March, when gas prices skyrocketed. Even then, sales were back down by June, which was the peak of high fuel prices. The problems began to surface when the redesigned Scions were little more than larger versions of their former selves. A larger xB became more attractive to the mother of two, while losing some of the edginess that made it a smash hit with teens and early-20-somethings.
Scion's leadership would like to turn the tide by creating a fourth member of the Scion family that exudes cool for under $20k. It could be an SUV or a hybrid, but Scion execs want it to be free from the grasps of the parent company. The current models also have to be refocused to once again attract the coveted 18-30 crowd. That's a tall order, and a lot of work for a brand that's only five years old.
08-05-2008, 12:31 AM
#2
It's not really their fault that people are buying Scions for their efficiency. I mean, it's a good thing... even if it isn't their intention.
A lot of their future will hinge on the new "tC" ... if they mess that up, it's all over.
A lot of their future will hinge on the new "tC" ... if they mess that up, it's all over.
08-05-2008, 12:37 AM
#3
This is true, our region is experiencing the lack of participation buyers, and just the gas saving buyers....
I agree with the tC replacement, it better be cool enough to save Scion, but not cool enough for me to upgrade...
I agree with the tC replacement, it better be cool enough to save Scion, but not cool enough for me to upgrade...
08-05-2008, 12:38 AM
#4
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Old people love the new xb. Old people hate the old xb. This is a stereotype as I am sure there will be people who disagree with me on here. but from experience, every new xb i have seen around town are driven by 50< and 90% of the gen1s i see are driven by 40>. the new xbs arent as...... "daring". softer on the eyes. same with the xd. build something that shocks us and young people will buy it.
08-05-2008, 12:40 AM
#5
I don't know... from a lot of things I've seen, older people really liked the 1st gen xB. My grandmother even wanted one (couldn't find one when she bought her Camry - was in between generations and they stopped making them). And the first gen was very easily accessible and easy to drive for them.
08-05-2008, 12:46 AM
#6
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I remember when I first got my xb. I was sitting there looking at it at the dealer waiting from him to bring out my keys and temp tag. This old guy walks up to it and starts looking at it and says "these things are so hideous why would anyone want it" to my face. I replied because I was born after Vietnam and walked away. Maybe its just a sour taste, but i think they hate the xbs gen1.
08-05-2008, 01:00 AM
#9
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Maybe if they stuck to their roots and promises they wouldn't be in the slump. This may be speculation, but they did lie about having an "underground" car feel, and they also promised not to remake the same car (for example, the xB). I do hope Scion can bounce back by making the cars better, but again not good enough for me to upgrade. I wish Toyota the best.
Kids don't forget like older people do.
Kids don't forget like older people do.
08-05-2008, 01:06 AM
#10
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Most (like over 65%) of the 1st gens I see are driven by people over 40. I have talked to a few people (also over 40) that have gen 2s but wanted gen 1s and they just waited too long. I also had a 70+ year old woman say how she loved my car (and mine is slightly modded and not all all darling or cute).
I also see kids like 12 years old loving the 1st gen boxes so scion should wait like 8 years and build the same car again and they'd sell a ton of them again.
As far as the sales drop-everybody's sales are way down. The car dealers are not taking SUVs anymore on trade (not even for ridiculously low amounts) and so people are not buying like they were even 3 months ago (this is a what I am being told by the dealers I know).
Gas has also been dropping in price the last months so people are less panicked about it and having a car that is great, or even better, on mileage.
I totally agree that Scion could shoot themselves in the foot if they are not careful. The Toyota BB (the new gen) from Japan is silly looking but the more I have seen it the more I like it (just like the 1st gen xB). The Hako is butt ugly. The Fuze concept would be a cool tC replacement IMO.
What would really help Scion (again IMO) is something similar to the 3 door Yaris but a little more quirky, with Scion add on parts and a TRD supercharger as an option to make it fast for those who wanted a more powerful 1st gen xB
I also see kids like 12 years old loving the 1st gen boxes so scion should wait like 8 years and build the same car again and they'd sell a ton of them again.
As far as the sales drop-everybody's sales are way down. The car dealers are not taking SUVs anymore on trade (not even for ridiculously low amounts) and so people are not buying like they were even 3 months ago (this is a what I am being told by the dealers I know).
Gas has also been dropping in price the last months so people are less panicked about it and having a car that is great, or even better, on mileage.
I totally agree that Scion could shoot themselves in the foot if they are not careful. The Toyota BB (the new gen) from Japan is silly looking but the more I have seen it the more I like it (just like the 1st gen xB). The Hako is butt ugly. The Fuze concept would be a cool tC replacement IMO.
What would really help Scion (again IMO) is something similar to the 3 door Yaris but a little more quirky, with Scion add on parts and a TRD supercharger as an option to make it fast for those who wanted a more powerful 1st gen xB
08-05-2008, 01:12 AM
#11
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Originally Posted by ack154
I think that's just the love it or hate it idea of some people... not necessarily "old" people. 
Anyone wanna race to say that to me?
By the way....if I lose...I'll make sure the re-match doesn't go that way. I have the money to do it....cause I'm OLD!
LOL
08-05-2008, 01:15 AM
#12
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There's a lot of hate on that blog for Scion, and not just from the blogger.
And yet no one points back to the 2006 article about how Scion was going to limit sales in 2007, to 150,000.
I like the idea of a company created for experimentation.
By the way, did anyone notice the Rumion Mayuko Iwasa Style Concept from the Tokyo Auto Salon this past January?
Article here
And yet no one points back to the 2006 article about how Scion was going to limit sales in 2007, to 150,000.
I like the idea of a company created for experimentation.
By the way, did anyone notice the Rumion Mayuko Iwasa Style Concept from the Tokyo Auto Salon this past January?
Article here
08-05-2008, 02:19 AM
#15
Yea the xb2 is different. But i like it. I do like the first gen although it took a while for me to like it. I like the extra features the new one has and the added room and bigger engine. I think they should do a retro xb in 2010 and that would boost sales for sure. I just dont like the low power on the xb1 and the one giant gauge. Other than that they are pimp. I see old people driving scion, i see youn people driving scions. The way the stock market has been after 9/11 older people who had money in the stock market took big hits. My grandma for instance. But thats why you see them buying scions. They are cheap and have standard features that most small cars dont have. There are also older people who like to be different. Every generation has people who think different or outside the box. thats why some like the xb1 and some like the xb2.
Anyways Scion is at a point where they can make or break thereself with the tC replacement. I wish them luck cause i love the brand. I would rock any scion and i would argue for the cars in there lineup anyday. Just dotn make me take that back.
Anyways Scion is at a point where they can make or break thereself with the tC replacement. I wish them luck cause i love the brand. I would rock any scion and i would argue for the cars in there lineup anyday. Just dotn make me take that back.
08-05-2008, 02:21 AM
#16
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the thing about limiting sales was lame attempt to add some cachet to the brand. It's a <20k mass market car, not a Ferrari.
Scion's whole problem is the decided to focus on "cool" instead of focusing on the Product. Listening to the focus groups didn't make the xB2 cool and neither did the styling. Putting the gauges in a weird spot does not make a car cool or edgy.
Now add in that their marketing has been abysmal - "Scion - for people that try too hard"
"cool" does not last - like any other trend, Scion has risen, peaked and is now fading away. They need good product to make it stay. You know, the same things everyone else says - RWD tC replacement and new version of the original xB. Cars that would be cool on their own merits.
Scion's whole problem is the decided to focus on "cool" instead of focusing on the Product. Listening to the focus groups didn't make the xB2 cool and neither did the styling. Putting the gauges in a weird spot does not make a car cool or edgy.
Now add in that their marketing has been abysmal - "Scion - for people that try too hard"
"cool" does not last - like any other trend, Scion has risen, peaked and is now fading away. They need good product to make it stay. You know, the same things everyone else says - RWD tC replacement and new version of the original xB. Cars that would be cool on their own merits.
08-05-2008, 02:34 AM
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Originally Posted by wibblywobbly
"cool" does not last - like any other trend, Scion has risen, peaked and is now fading away. They need good product to make it stay. You know, the same things everyone else says - RWD tC replacement and new version of the original xB. Cars that would be cool on their own merits.