Innovation often takes a backseat in markets where a single dominant player takes centre stage, writes Simon Withey,director of the Hudson Kapel group of companies.
The motivation to disrupt or improve weakens when a business is confident it can retain its position without challenge.
This pattern is not new. History is full of examples, from Blackberry to Kodak, where market leaders have failed to adapt because the risk of change seemed greater than the cost of inertia.
It’s a view that holds particular relevance in the vehicle remarketing sector today. As complexity grows, the danger of slow or stagnant innovation becomes more acute.
Every additional day a vehicle spends idle between defleet and resale adds cost, weakens residual values and constrains fleet operations. The sector must remain agile and forward-looking, yet if market consolidation increases, that dynamism could erode.
It is not simply about faster turnaround times, although reducing days in stock remains a critical KPI. It is also about smarter decisions. With more vehicles returning to market on shorter cycles due to leasing and PCP agreements, traditional auction models alone no longer offer the flexibility required.
Volume through a single channel can cause oversupply, depressing values. A blended approach is multi-channel and technology-led to match stock with real-time demand and prepare vehicles to the right standard for each route. It’s simple and efficient.
It is here that data makes the difference. Systems that can anticipate where vehicles will be needed, and in what condition, enable dealers to begin marketing before the vehicle even leaves the refurbishment centre. It allows fleet operators to plan more effectively and OEMs to protect brand and residual value. Efficiency is not just about speed, but about removing avoidable cost and waste from the system.
There is also a deeper structural argument for innovation in a more open market. When competition thrives, companies are driven to improve. When it weakens, the incentives shift.
Economic theory, notably Arrow’s replacement effect, tells us that dominant firms often resist disruptive change. They fear cannibalising their own profits or prefer to absorb potential rivals rather than out-innovate them. The result is incrementalism at best, stagnation at worst.
It’s essential to build choice and capacity across the vehicle supply chain. Smaller operators can provide an alternative benchmark for refurbishment and remarketing services and drive innovation through greater agility.
The future must remain open and agile
The technology exists to redefine expectations for speed, quality and transparency. It is precisely the kind of pressure the sector needs to keep evolving.
As residual values face renewed volatility and margins tighten, the pressure is on every part of the supply chain to do more with less. Fleet operators can no longer afford to wait weeks for vehicles to re-enter the market. Dealers need greater stock visibility and readiness.
Manufacturers want to avoid the reputational damage of distressed values. Innovation and investment in the systems that enable it are the only way to meet these combined pressures.
If the past decade has shown anything, it’s that remarketing cannot afford complacency. In a competitive market, innovation thrives. And when innovation thrives, the whole industry benefits.
Simon Withey, is a director of the Hudson Kapel group of companies