Seize the mall, car brand volume can not move?
Photo @ vision China | deep way (shentucar), the author | Zhou Jifeng, edit | dawn of major cities in China, even two or three line city shopping center, the core section of the standard of starbucks at the same time, the increasingly standard on new energy automobile brand.In the past few years, new car brands have flocked to urban malls in order to gain visibility and reap the benefits of traffic.Core rents have also risen.With more car brands racing around, new problems are coming: there is no enough shopping mall, five or six brands are crowded together, and it is hard to get a shop in the core area;Car enterprises spend a lot of money to rent the store, the actual market effect is not satisfactory…Deep way visited several core business circles in Beijing and found that this enclosure game with money and flow as the core has a new way: some brands give up the bold, began to pursue cost-effective;Some stores have rewritten the rules of the game, and money alone is hard to please them…Robbing stores, new power no more?Now on the first floor of Joy City, Beijing Chaoyang, there is a new energy brand “handle” at every entrance and elevator entrance. Walking from the west to the east, you can see five brand cars on display: Ideal, Xiaopeng, Kr, Lantu and Cadillac.”There are no stores available in Joy City now, so we are doing an outreach, but it is also direct,” an aspiring salesperson told Shentu.Outreach is to create an empty space in the lobby on the first floor of the mall with a car and a few chairs, which becomes a simple “experience center.”But even then, such outreach is in short supply.Cadillac Outreach was originally a long-term lease of SAIC Feifan, which was quickly replaced by Cadillac after the lease was withdrawn.In the past few years, new energy vehicle brands have spent millions of dollars to rent hundreds of square meters of space in popular locations in high-end business districts.In 2017, NIO’s first NIO House appeared on Chang ‘an Avenue before its cars were mass-produced.People’s understanding of pure electric brand is not much, but the decoration style of modern sense, especially attract eyeball.Four years later, Xiaopeng also splashed out, renting 500 square meters of space in Beijing’s Sanlitun district to open the city’s only flagship store.This shop has also become the “front” of Xiaopeng Automobile.But these days, less money is being spent.In Sanlitun, one of China’s most famous fashion districts, there are only two neV brands: Xiaopeng, which has signed a long-term lease, and Jihu.Polar Fox’s sales staff told Shentu that the company’s annual rent in Sanlitun is now around 20 million yuan.”Not many brands have enough money or resources to set up shop here. After all, it’s a money-losing business.”He said.People seem to be getting pragmatic.Wilma Motors closed its experience center in Joy City, chaoyang.China Business News reported that Tesla closed its Joy City in Beijing’s Chaoyang district after three years due to high rent, water and electricity costs.Many brands choose to replace their fixed retail outlets with mobile stands or pop-up stores.In Beijing Heshenghui, a pop-up shop of Weimar Automobile, the open space of nearly 3,000 square meters on the fifth floor of the atrium is now divided into small pieces of dried bean curd, densely populated with nearly 10 new energy vehicle brands.Next to the small peng next to Ne Zha, LAN diagram, LAN diagram is extreme krypton, ideal, there are wei Ma, sky, extreme fox.Once competitors, the booths were shoulder to shoulder and foot to foot.After visiting one store, consumers can move on to the next.Instead of renting hopson’s stores, the brands built temporary showrooms on the fifth floor.Wang Lei, head of savills North China shop department, has helped ideal, NiO, Zhiji and many other new energy vehicles choose sites. In her opinion, from 2021, the whole industry has changed: many new energy vehicle brands no longer simply seek to be big and attract attention.In the past, the new forces of car manufacturing, including Ideal and NIO, mainly pursued brand exposure and brand image display when choosing sites, and the site area was relatively large.”In the past two years, these brands have become more pragmatic and tend to look for stores that are economical and practical.Factors such as brand positioning, customer diversity, and actual conversion rates are all taken into account.””The location area has also become relatively small, with stores of two or three hundred square meters now becoming the mainstream,” Wang said.Many brands will not even directly rent fixed shops, but choose to open pop-up shops, booth test water, if the market performance is good, will consider renting fixed shops.In the view of Zhang Junyi, managing partner of Oliver Wyman consulting, this is almost an inevitable phenomenon: “New energy vehicle brands will compete crazily for business circles when they first gain brand recognition.But it’s really an attention-grabbing act.When you have a certain brand awareness, sales are up, these brands will dynamically adjust the number of stores, stores with high conversion rate will continue to open, the conversion rate is not high, cost-effective stores will be closed.”Car companies are not the only ones that have changed.Three or four years ago, only Tesla, NiO, Xiaopeng and Ideo entered the high-end shopping malls.Now the market situation of new energy vehicles is good, the major brands like bamboo shoots after a spring rain.For core stores, there is a wider range of partners to choose from.But for carmakers, competition has become more intense.”In Beijing, the heart of the core business district is still hard to find,” wang said.Also, the criteria by which owners choose their partners have changed.”In the early years, brand and price could be the deciding factors.The highest bidder may grab the core store.Now, the market will be brand delivery ability, product research and development ability, technology research and development ability, capacity and other factors into a comprehensive consideration.”You even have to think about how far the brand can grow in the future and how far it can go in making cars.”Wang Lei pointed out.Not all shopping malls welcome a large number of new energy vehicle brands to enter.A few years ago, due to the impact of the epidemic, the vacancy rate of shopping malls was very high, and many shopping malls welcomed car companies to enter.However, when the impact of the epidemic gradually fades away, different shopping malls have different attitudes towards new energy vehicle brands.Beijing Hesheng hui intends to gather up new energy vehicle brands and create a market.On the deep way observation, Hesheng hui shopping mall, in addition to NIO, United stores in the first floor, the rest of the new energy vehicle brands gathered to the fifth floor.”Basically all the new power brands are here now,” a salesman told Shentu.”There will be a lot of car brands there in the future,” he said, gesturing to the other side of the vacant lot on the fifth floor. “BMW and Mercedes are also said to be coming.”The west gate of Beijing’s Blue Harbor is also home to several car brands.Saic Volkswagen ID.Storex (urban digital showroom) moved in quickly after Tianji withdrew.Its next door is the Extreme Fox space, Xiaopeng experience Center.Only a handful of VW electric cars are displayed in saic Volkswagen’s stores.Sales staff said: “SAIC oil car is not in fact need of publicity, we all know.But electric cars are still unknown to many people, so we really need such stores to promote.”These three new energy vehicle brands are not the only ones in Blue Harbor.In addition to SAIC Volkswagen, Jihu and Xiaopeng, there are Ideal, NiO, Gaohe, and Huawei, which sells mobile phones and cars at the same time. The other four are distributed in different places in Langang.The rest are likely to gather at the West gate of Blue Harbor.”In the future, Ideal and NIO are ready to move here.””It is estimated that more car brands will move here, and the place is ready to become a car market.It’s like a mini auto show. You don’t have to run around, but you can learn about all kinds of new energy vehicle brands in a mall.”But Sanlitun is clearly controlling the number of new energy vehicle brands.At present, there are only two brands in Sanlitun.The car is a low-frequency consumer product.Objectively speaking, such as Tesla, Xiaopeng, ideal these car brands will not bring much popularity flow, they need to ride the popularity of the mall.”A lot of stores want brands like Starbucks and Heycha to enter because they can bring people into the market.But in the shop rental environment, the new force of car can consume a larger mall area, the rent ability is strong, coupled with science and technology, fashion, intelligent brand positioning, also let some business circle willing to accept, investment smart car brand.Zhang Junyi pointed out.Shopping malls are also changing dynamically. Some shopping malls will limit the number of car brands to a certain number in order to maintain the brand tonality and profits of shopping malls.But some malls are embracing the new power of car making, trying to bring together brands and create new attractions.And eventually go back to the 4S store?Car companies to seize the market, starting with Tesla.In the days of the traditional car, there were two groups of people making cars and selling them.Most of the 4S shops selling cars are built in the suburbs of the city, away from people.However, Tesla came out of nothing and completely overturned the traditional model of car sales. The traditional 4S stores were divided into three: directly operated experience stores, responsible for pre-sales consultation and test drive;Service center, responsible for delivery and after-sales;All vehicles are sold in the official website online orders, the implementation of the national unified price.It is Also Tesla that has directly opened its experience store in the mall.People were surprised to find that they could look at their cars while visiting the mall.Following the footsteps of the top flow, the new forces of car manufacturing and the car brands created by traditional car manufacturers have focused their eyes on the downtown with more traffic, such as shopping malls and other prosperous areas.But this madness won’t last long.For new energy vehicle brands, the cost performance of the store is not high.Shen Hui, founder of Weimar, told the Economic Observer: “The rent of the stores is high, and maybe half of the rent is spent on advertising.Most stores don’t make money.”And core locations don’t come cheap.According to media reports, niO is located in Wangfujing, Beijing, and the annual rent of the niO Center, which covers an area of 3,000 square meters, is as high as 70-80 million yuan.Nio’s offline stores are mainly for advertising.Zhang Junyi said.Brand recognition is relatively low, the establishment of a short time of new energy brands, but also crazy enclosure.For example, on February 18, gekrypton’s global flagship store officially opened in the Shanghai Tower.According to gekrypton’s plan, the number of stores nationwide will exceed 300 by 2022.Tesla, which has enough brand awareness, has been the first to retreat.Tesla intends to reduce the number of supermarket experience stores in first-tier cities and instead build more outlets in the form of traditional 4S stores in traditional automobile business districts to improve its exhibition and after-sales service capabilities, China Business News reported.In many people’s opinion, new energy vehicle brands will eventually open 4S stores.Shen Hui once put forward such a point of view: “When brands have enough popularity, in fact, many brands will go to 4S shops.Because of the high brand awareness, the conversion rate of 4S stores is also high.”In Zhang Junyi’s opinion, after the vehicle ownership in the market is more, the owner certainly needs to strengthen repair and maintenance.So when these new energy vehicles have a certain market share, they will certainly open some service sites similar to 4S shops around the city.”In the long run, the most profitable part of the auto industry is not selling cars but selling services.A car still has a long life cycle after delivery, and car companies can earn money from repair, maintenance, insurance and other aspects.””But one thing is, these new energy brands will definitely not return to the original 4S store model.The 4S stores they will open in the future will be self-supporting.To put it bluntly, I want to earn my own money, and I control the users.”