We’ve all heard that Apple is the most successful retailer onthe planet; that it changed the way retail is delivered; and thatit’s responsible for many innovations we’re starting to take forgranted, like hands-on displays and hand-held EFTPOS.
But what’s the next big thing in retail?In LA this week on the Westfield World Retail Study Tour,the buzz amongst shopping centre execs was about a newsensation: an electric-car maker called Tesla.
Like Apple, thecar maker has reinvented both its product category and theway it is sold.Right now, it sells just one model – the Model S. (Tesla had alimited edition roadster, but that has been discontinued, anda crossover SUV is on its way).
The family-oriented Model Sstarts from US$70,000 and can travel up to 480km on a singlecharge (depending on the battery configuration purchased).
Consumer Reports magazine dubbed the Model S as the bestcar it has reviewed since 2007, with a rating of 99 out of 100.Unlike its fugly electric car competitors, the Tesla is sleek and desirable – it is about form and fashionas much as function, which is an Apple quality in itself.
In stark contrast to the way cars are wheeledand dealed in stand-alone showrooms, Tesla has established a fixed-price policy, and set itself up in150sqm shops in higher-end US malls.
Tesla founder Elon Musk snagged former Apple heavy George Blankenship as his VP retail development,and it shows in the showrooms.
Polo-shirted employees are as far away from the typical car salesmanas you can get, and the vehicle itself sits in simple but sophisticated surroundings along with a gooddose of digital technology.
When shoppers want to test-drive the car, they are taken to the centre’s car park, where demo vehiclesare kept alongside a charging station.
When you decide to buy, there’s no haggling. You jump online, customize your car, and it’s deliveredin 30 to 60 days.
I first saw the flagship Tesla store at Santana Row outside of San Francisco two years ago. But nowthey’re starting to spread, and it’s no wonder.
One senior US shopping centre executive who spoketo our group called Tesla “phenomenally successful” and quoted some Apple-like productivity figures(albeit, of course, with a much higher average sale.)
Another categorised Tesla alongside Tiffany andCartier as a “luxury” brand for centres, not just another car marque.Tesla is bound for Australia, and undoubtedly will be coming to an upscale centre near you.
For bothshoppers and mall-owners alike, it will breathe life into the retail mix and the way cars are presented,sold, and run.
USA Today said Tesla’s shares “zoomed 14 per cent” this Monday, with it “sizzling” due to “hot profitand hotter reviews”.
Sounds a little like a certain Cupertino-based electronics maker? In its own way,and Tesla indeed is the new Apple.
* Jon Bird is CEO of specialist retail marketing agency IdeaWorks (www.ideaworks.com.au),and chairman of Octomedia, publisher of Inside Retail. Email: jon.bird@ideaworks.com.auBlog: www.newretailblog.com Twitter: @thetweetailer
Inside Retail managing editor, Carla Bridge, will feature an expanded report on Tesla, complete withphotographs, in the August/September special edition of Inside Retail Magazine, which will highlight the2013 Westfield World Retail Study Tour.
