I recently bought a new car. Having researched the car I wanted, I drove to the nearest dealership to check one out. Great salesman, great test drive, great experience. This place had it figured out. Not one salesperson was over the age of 40. All of them had “hip” names like Zane and Chanston, yes, Chanston. They had the cool hair, the cool clothes, the cool vibe.
I began to wonder if this was the “dealership experience of the future.” Turns out, I wasn’t even close.
A little research has revealed that, like other types of retailers, auto dealerships are indeed changing with the times in order to combat Internet sales, younger buyers and changing preferences.
The New Yorker recently ran an article called, “Warren Buffet, Elon Musk, and the Future of Car Sales.” The article cites a study by McKinsey that states that “new dealership formats – pure test-drive centers, small urban showrooms, pop-up stores, and more online selling – would mesh with consumer demand.”
Nissan is testing a new dealership prototype in Europe and, if successful, plans to roll it out in other countries including the U.S. This article in Automotive News states, “Among the key changes: the removal of dealership offices, reception counters and cubicles; a concierge approach to tending to shoppers; and greater sensitivity to the female shopper.”
Forbes contributor Sarwant Singh prognosticated, “Forget your brick and mortar suburban dealership, displaying 150 cars in the forecourt…Dealerships are changing in format, size and concept – there is an increased emphasis on developing flagship or completely digital retail stores in the heart of city centres, where the brand meets the customer in his own living and work environment – the city.”
Singh lists examples of urban showrooms such as Daimler and BMW in London and Paris and experience stores like a Lexus store in Tokyo. But the Audi City stores in London and Beijing are really cutting edge.These digital showrooms have less than 500 square meters of display space for a handful of car models and boast some incredibly futuristic technology.
“Although physically displaying only three to four cars, these future dealerships will have a virtually unlimited retail space: aided by digital tools, such as interactive, full-sized powerwall configurations…Furthermore, as with the virtual vehicle on-board experience, comes the reality of driving these customized cars through virtual landscapes,” wrote Singh. Virtual test drives? Never say never.
By Janie French, Director of Business Development.