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

"It can be said that the car showrooms opened in busy shopping areas, shopping centers, is the signboard of car companies in the crowd, all the time to remind consumers shopping malls, it is time to buy a car to replace the car, some customers casually look at, but can not help but be moved, so compared to a few years will not visit the 4S store, customers are easy to see in the city showrooms often impulse spending. "


Zhang Chen also stressed that because the city showroom is usually located in the busy shopping district, mature shopping mall, therefore, the pure lookers are also dozens of times more than the ordinary 4S store, the pressure on the sales consultant service is huge, "orders (than ordinary 4S store) several times higher, in fact, a large number of people into the store, are not the target customers."


It can be seen that the new energy car showroom in the complex and shopping center, although the visiting consumer group is not as accurate as the traditional 4S store, but it is better to penetrate into the consumer's life circle, creating a consumption scene, and always provoking the desire to buy a car. Therefore, the effect of boosting the order quantity of single store is also obvious.


Since this is the case, will traditional car companies gradually shut down the traditional 4S stores and focus on large shopping center city showrooms?


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"City showrooms open more, in fact, many car companies, dealers can not stand, so traditional car companies will not be a brain to follow the trend."


Liu Ning (a pseudonym) is the head of the marketing department of an auto trade group in Guangzhou and Shenzhen. According to him, as the agent of new energy car brands plan to "landing" in large complexes and shopping centers, so as a regional agent, had to start layout of similar city showrooms.

However, the showrooms in the complexes and shopping centers are quite expensive. He revealed that the large complexes in busy shopping areas, shopping centers, the first floor store rent is open in the suburban plots, car city several times, or even a dozen times.


Liu Ning cited the rent of the group's new energy vehicle 4S store and city showroom in Guangzhou as an example: a 4S store in the suburbs, with an area of 1,000 square meters, rents for 36,000 yuan per month; a 250-square-meter showroom in a downtown shopping center rents for 90,000 yuan per month.


On a real estate rental and sales platform, we also see that the rent for a store suitable for 4S stores in an auto city in Bantian, Longgang, Shenzhen, is only 1.5 yuan/㎡/day. But in the large complex in the center of Baoan, the store rent is as high as 12.67 yuan/㎡/day, which is nearly 8.5 times higher. And in the central Futian district of Shenzhen, some of the mature shopping center store rents, but also up to 30 yuan / square meters / day.


Commercial Real Estate Watch has reported that the rent of a car showroom in a benchmark project in an emerging business district in Beijing is 600~1000 yuan/㎡/month, while the rent of a large shopping center in a core business district is as high as 1000~3000 yuan/㎡/month, much higher than traditional businesses such as gold jewelry and electronic digital.


"So that many suburban auto 4S stores are renting an entire building, but the showroom that opens in the complex may be smaller than a western restaurant because the rent is just too expensive and there is no way to set up a warehouse." Liu Ning admits that some of the second-tier car-making new brands have city showrooms that are only big enough to place one car.


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