The Contradiction in the Used Car Sales Industry and the Sensibility of Gulliver's Founder, Kaneshi Hatori

The Contradiction in the Used Car Sales Industry and the Sensibility of Gulliver's Founder, Kaneshi Hatori

In every industry, there are contradictions that insiders tend to overlook. However, those who can confront these contradictions head-on often possess a unique sense of sensibility. It is from these contradictions that excellent strategies are born.

One such industry is the used car sales industry. While it may seem like a straightforward business, there are underlying complexities that require a keen eye to decipher. One individual who has demonstrated exceptional business acumen in this field is Kaneshi Hatori, the founder of Gulliver, a prominent used car dealership in Japan.

Hatori's success can be attributed to his ability to identify and address the contradictions within the industry. He understood that customers were often skeptical about purchasing used cars due to concerns about quality and reliability. To combat this, Hatori implemented a rigorous inspection process and offered extended warranties on all vehicles sold through Gulliver. By directly tackling the contradiction of trust in the used car market, Hatori was able to build a reputable brand known for its reliability.

Another crucial aspect of Hatori's business strategy was his focus on the core action of the used car sales industry - the actual sale of vehicles. He recognized that merely attracting customers to browse through the inventory was not enough. Instead, he emphasized the importance of completing the sale, as it is the foundation and essence of the business.

This concept of the core action can be applied to various industries. Sarah Tavel, a renowned growth expert, explains the concept of core actions in her article titled "Engagement Hierarchy: Core Actions." Tavel states that growing the number of users without ensuring they complete the core action is akin to empty calories in terms of growth. It may provide a temporary boost, but it lacks substance in the long run.

To illustrate this point, Tavel uses examples from popular social media platforms. Pinterest, for instance, revolves around the core action of pinning. Without users actively pinning content, the platform would cease to exist. Similarly, Twitter relies on users tweeting and engaging with other people's tweets. Without this core action of interaction, the platform loses its purpose.

Hatori's success with Gulliver aligns with Tavel's insights. He understood that attracting customers to visit the dealership was not enough; they had to complete the core action of purchasing a used car. While optimizing for the total number of visitors may initially seem like a victory, it becomes meaningless if these visitors do not convert into buyers.