The motor industry generally accepts that consumers will drive up to an hour to purchase their chosen car, and fewer, large regional flagship showrooms, providing an exciting experience for those who want to visit, could act as a hub for multiple smaller aftersales centres, Magma suggested. Technology could also allow for showrooms to become smaller and fit back into high footfall shopping areas.
It may not be a far-off fantasy. According to AMi data, most manufacturer networks have remained quite stable. However, Mercedes-Benz UK, which adopted a market area policy, has streamlined from 218 franchised outlets in 2004 to 178 in 2014.
In light of rapidly changing consumer behaviours, some expert advice on property investments could prove critical in the years ahead.
As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
Ian Webber - 19/11/2014 14:33
The term “Digital Dealership” is becoming widespread, although the concept may not be. But what is a digital dealership? My view is that it’s a retail space in urban or high traffic shopping areas that can engage and inspire potential customers early on in their purchase journey. These types of car brand retail spaces are not commonplace, but are starting to gain traction, as your article suggests. Since Audi launched its hugely successful Audi City store in July 2012 and Tesla opened its first retail store in the UK at London’s Westfield Shopping Centre in White City, there has been little else on the horizon in this space. Nissan Innovation Station in the London O2 is another example of brands engaging with and inspiring potential buyers in a high footfall area. It seems to now be the case that other brands are starting to move into digital dealerships, with the announcement that Hyundai is to open a digital store at the Bluewater Shopping Centre in Kent. Bluewater has a footfall of 27 million people each year, so it makes perfect sense. Ultimately, car brands need to be where people are to engage with and inspire car buyers.