Although Toyota ’s youth-oriented Scion brand launched with a bang in 2003, the funky brand has been on the skids for the last two years or so. Scion is now coming to the first crossroads in its short existence, with no clear path laid out before it.
Many industry experts speculate that Scion’s sales slide could be the direct result of the brands original claim of being a ‘youth’ brand. While Scion successfully targeted the 18 to 24 year old demographic for the first three years of its existence, Scion’s average buyer age has been steadily increasing since 2006.
Before gas hit $4 a gallon, Scion had experienced 17 straight months of declining sales. April and May saw sales improve dramatically – by 41.5 and 28.4 percent, respectively – but sales once again dipped in June.
The probable cause for Scion’s lackluster sales? It is turning into a mainstream brand. By labeling itself as a youth brand, Scion has basically painted itself into a corner. It’s very difficult to keep up with the latest trends and when 18 to 24 year olds see grandparents driving the same car they are, it tends to turn them off to the brand. “If we could relaunch Scion, I wouldn’t ever have called it a youth brand, because it’s a kiss of death,” Brian Bolain, a former Scion corporate manager, told Automotive News. “It creates problems when you start labeling.”
During the last three months alone, the Scion xD ’s average buyer age has increased from 37 to 42 – likely a direct result from rising fuel prices. Scion’s boxy designs also aren’t winning over younger customers. While the xD and xB are seeing their average buyer age climb, the sportier tC is maintaining its 24 year old average.
While there is no specific recipe to get back Scion’s original hipster image, a wider product range could help the brand gain some ground in the youth segment. “A fourth product is essential,” Jack Hollis, Scion’s vice president, said. “It could be an SUV. It could be a hybrid. We want a fourth product that buyers of the other three Scions don’t like.” The upcoming Toyota Yaris five-door should also attract some of the older buyers away from Scions showrooms.
However Toyota decides to handle its youth brand, Scion will likely be going through significant changes in the coming years.
