The new car makers are piling up in shopping malls, why don't the traditional car companies go for the land?

By    22 Sep,2022

In May this year, his car company decided to site shopping centers in Guangzhou, Shenzhen, Chengdu and other cities to build city showrooms in the form of direct operation to "meet" the long-established car-making new forces.


"Two years ago, most traditional OEMs looked down on this business model of the new forces, which is not in the mall and big brand cosmetics to grab the counter well." Li Yue said frankly, in the eyes of traditional car companies, the new forces lack of technology, experience, channel precipitation, the only way to do only alternative, extreme marketing methods.


Abandon the traditional 4S store, choose to build a showroom in the first floor of a large shopping center is one of them.


For the traditional car companies sitting in a mature, stable sales network, certainly will not be similar to the "small techniques" in the eyes, "but after the development of the past two years, many of the development of new channels of car-making new forces, sales are catching up."


Because of the rising sales of new brands, and even with the strength of traditional car companies "hard", traditional car companies have to start looking at the marketing methods and business models of the "upstarts", and even put down their stance, imitation and test the water.


The research report released by Cheung Kong Securities shows that in 2021, the annual sales of the head of the new force "Wei Xiaoli" exceeded 90,000 units; while in 2020, the annual sales of the three "Wei Xiaoli" were only 43,728, 27,041 and 32,624 units respectively. In 2020, the annual sales of the three "Wei Xiaoli" were only 43,728, 27,041 and 32,624 units respectively. Among them, Xiaopeng car year-on-year growth is the fastest, up to 263%.

In 2020, there will be 177, 209 and 86 stores respectively; in 2021, the three brands will have 289, 259 and 165 stores respectively; and in 2022, there will be 350, 349 and 209 stores.


Most of the stores of the new forces are mainly concentrated in first-tier, new first-tier and second-tier cities. As the new forces continue to expand their stores in shopping centers and complexes in cities to create high-end city showrooms, the sales of these new energy vehicles are rapidly surging. In June this year, the sales of the mainstream new power "Wei Xiao Li Wei which" have exceeded 10,000.


"Before that, the team researched other traditional car brands that had laid out city showrooms, and the sales were really good." Li Yuet told Know It All that compared to traditional 4S stores in suburban and downtown fringe areas, showrooms in downtown shopping centers can increase daily traffic tenfold and orders three or four times.


In his opinion, if traditional car companies remain indifferent, it is believed that some of the target car buyers will soon be eaten up by the new forces. Therefore, traditional car companies have to change their thinking, follow the layout of major shopping centers city showrooms, to join the "rob store" in the volume.


In Shenzhen and Guangzhou, Geely's new energy sub-brand, Krypton, has opened its city showroom, Krypton Space, in shopping centers such as One City, Coastal City and Yuehui City. In Guangzhou Yuehui City, there are also BYD Dynasty Store, Ola, and Ean, etc. in a prominent position on the first floor.


So, what are the advantages of auto showrooms in shopping centers and complexes compared to traditional 4S stores?


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