The redesigned store was opened to generate leads, and after a year in operation, it has been successful in generating 70-80 leads per month, with three to five of those leads resulting in a sale. The store offers customers an opportunity to interact with the brand without feeling pressured to make a purchase decision on the spot. While test drives are available, paperwork and after-sales services are handled at a nearby dealership.
Mercedes-Benz USA CEO, Dimitris Psillakis, said, "We are moving away from traditional big locations to add small, lifestyle formats where people can walk in, see a product, and get some information. You show products, but it's not a place where you go and kick tires. There is no aftersales."
David Ellis, General Manager at RBM of Alpharetta, said, "We get our name out to people who wouldn't know that our dealership is 2 miles away. People walk into that store wanting to know what it is."
The store has been launched in response to changing consumer habits, with more people shopping for cars online, as popularized by Tesla, and wanting to learn about potential new cars and brands without committing to a purchase immediately. Porsche has also opened a series of studios globally in recent years, including several temporary pop-ups, while Lucid has announced plans for less permanent pop-up showrooms in America to promote its Air sedan without incurring the costs of traditional dealerships.
Automakers have also been encouraged to create leaner dealership environments, especially with the pandemic causing supply shortages, and more customers conducting research online. BMW is set to implement a direct-sales model in Europe, but not in the US, although this approach could change in line with customer tastes.
Source: Automotive News
