The clockspeed dilemma 9
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through
complexity” are registered trademarks or trademarks of KPMG International. NDPPS 404853
Changing consumer
behavior and a
transforming competitive
landscape
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered
trademarks or trademarks of KPMG International. NDPPS 404853
The Sexy Dynamic Experience is not
simply for smartphones. The auto
industry now faces it in multiple areas.
Changes in consumer behavior and
changes in the competitive balance
are together accelerating the pace
of innovation in the auto industry,
especially in the key areas of mobility-
on-demand, autonomous vehicles, and
connectivity.
In each of these spaces, an
accelerated pace of innovation is
occurring at different rates, forcing the
auto industry to address a number of
faster clockspeeds, from affordable
upgrading of sensors, actuators,
and displays in 18 to 36 months to
quarterly over-the-air upgrades of
software.
Image provided courtesy of Mercedes-Benz
The clockspeed dilemma 11
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through
complexity” are registered trademarks or trademarks of KPMG International. NDPPS 404853
Consumers want one trillion
miles of more mobility
Focus group results
In previous papers, we described how innovations in
autonomous vehicles, connectivity, and mobility-on-
demand are affecting consumer behavior and creating
new unmet consumer needs. We haven’t changed our
perspective. Those innovations are producing changes
in consumer behavior that lead them toward the Sexy
Dynamic Experience, creating the faster clockspeeds that
the auto industry must satisfy—especially when it comes
to mobility options.
One thing is different, however: We are floored by how
much the pace of change has accelerated in just one year.
When we look at focus groups and our modeling, we
understand why.
Two roads to the same place: An increasing desire for
mobility options
Two generations will largely drive consumer demand in
the future, the millennials and the “baby boomers plus”—
those ranging in age from 45 to 75 years. Both groups are
changing their behaviors but in wildly different ways. The
boomers are moving into cities and holding onto their cars,
at least for now. Millennials’ income and debt levels restrict
their buying power and reduce their brand loyalty. The
boomers and millennials share one interest, however: They
already like mobility-on-demand services. We think their
like is going to turn into love.
MOBILITY OPTIONS
FOR SENIORS
CHICAGO
TOTAL
ATLANTA DENVER
79
%
OVERALL, 79% OF PEOPLE ASKED IN
FOCUS GROUPS WOULD WANT
MOBILITY OPTIONS FOR SENIORS
MOBILITY OPTIONS
FOR KIDS
82
%
OVERALL, 82% OF
PEOPLE ASKED IN
FOCUS GROUPS
WOULD WANT
MOBILITY OPTIONS
FOR KIDS
92
%
64
%
82
%
79
%
TOTAL
DENVER
ATLANTA
CHICAGO
83
%
91
%
73
%
82
%
Source KPMG focus groups and analysis
12
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through complexity” are registered
trademarks or trademarks of KPMG International. NDPPS 404853
Mary Anne, 37 (Atlanta)
“My dad is in his early 80s. We have had
problems. We actually moved him from
San Diego to here a year ago. None of us
can get in a car with him. We all get sick.
He’s hit stop signs. He killed a tree. He
will not stop driving. It’s nerve-wracking.
Mobility-on-demand would be perfect.”
Ron, 67 (Denver)
“I happen to live in a retirement
community. There’s an awful lot of
people there who shouldn’t be driving.”
Lenny, 71 (Denver)
“My mother had dementia for years.
She’d have loved this because she would
have loved me not showing up all the
time telling her what to do.”
Antoinette, 53 (Atlanta)
“Both my parents have Parkinson’s. My
dad does not drive at all. My mom does
not drive at night anymore. Mother is
very active. She plays bridge all over the
city. She’ll come visit me. Her driving is
always an issue. This would be great.”
Lesley, 56 (Chicago)
“The auto parts store used to keep
sideview mirrors for Mom’s car in stock
because she knocked them off all the
time. I’d walk in, and the guy at the auto
parts store would tell me, ‘by the way,
we have three extra mirrors for you.’”
Focus group participants:
Aging/Parents
The 45-to-75-year-olds
Among the boomers plus, people are living longer, delaying
retirement, and moving to cities. Sixty-five is the new 45.
In this demographic, many are still working in their sixties
because they are healthier than past generations.
Older boomers, however, have concerns about the safety
of their driving as they age. So do their children. They are
not going to stop being active, however. Some of them will
continue to work well beyond the typical retirement age, all
the while traveling on the weekends. Some will slow down
but still join their friends and families for weekly activities,
whether card games, concerts, sports events, or the
activities of their children and grandchildren. Others may do
far less, but over the next decade, the 45–75 year olds will
still be healthier than in the past and more tech savvy. They
won’t be intimidated by mobility options.
We have changed the images of our participants to protect their privacy.
About our focus groups
KPMG held focus groups in three locations: Denver,
Colorado; Chicago, Illinois; and Atlanta, Georgia. We
selected the locations to achieve both geographic and
cultural diversity. Denver is an up-and-coming millennial
city with relatively little in the way of public transportation
and higher vehicle ownership. Chicago has a clearer center
of gravity and is far better served by public transportation.
It is possible to live in Chicago without owning a car
although a majority of residents do, in fact, own a vehicle.
Atlanta, Georgia is a large city with relatively little in the
way of public transportation, a high vehicle ownership
and attachment to vehicles, and high commute times.
Participants in our focus group were at least 18 years of
age. All had completed some college or vocational school.
All had family incomes over $25,000 per year.
65 is the new 45.
“I don’t have to take the keys away from my dad.”
The clockspeed dilemma 13
© 2015 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with
KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in the U.S.A. The KPMG name, logo and “cutting through
complexity” are registered trademarks or trademarks of KPMG International. NDPPS 404853