Savills plc
Savills plc
07/30/2021 | Press release | Distributed by Public on 07/30/2021 02:34
Why it’s full throttle in the global electric vehicle retail market
The retail sector is, by its very nature, always evolving, providing us with new concepts and brands as retailers reinvent themselves over time. Naturally, some develop and adapt, while sadly some fall away, never to be seen again.
This variety creates progress and excitement within the industry, with all brands sharing a common goal of stimulating consumers into buying their products traditionally through stores and now increasingly online.
However, it is exceptionally rare for one specific category of retailer to come along and make such an impact as the electric car market, which has quickly become one of the most exciting and most vibrant sectors across global retail.
Within Savills we have seen the sector expand at an exponential pace, with many manufacturers claiming that by 2030 most, if not all, of their vehicles will be electric. This, of course, is set to have a significant impact from a sustainability and ESG perspective, but it is also expected to boost international retail markets, forever changing how we purchase cars.
Deciding to buy an electric vehicle is arguably as much of a lifestyle decision as it is a practical one, and it is for this reason that the general retail market and the car market are beginning to converge. Many EV (electric vehicle) brands are focusing their showroom strategies not on traditional motor malls and dealerships, but instead on retail and lifestyle-led locations, from prime shopping centres to popular high streets.
We have seen the likes of Tesla, which was the first mover in the European market, focus on premium high street locations such as Oxford Street in London, P C Hooftstraat in Amsterdam and Calle de Serrano in Madrid, while Polestar has sought to differentiate itself and its brand values by choosing slightly more unusual or emerging retail locations such as Hackescher Markt in Berlin. We have also seen Chinese and Korean manufacturers NIO and Genesis acquire show-stopping prime retail sites in Shanghai with NIO taking its first step into Europe with a major new 2,000 sq m flagship store on Karl Johans gate in Oslo.
However, regardless of the specific retail pitch, what is most crucial is being in a location focused on brand visibility, as manufacturers seek to raise their recognition globally in an increasingly competitive market.
Additionally, many EV brands also have the capital needed to invest in the highly innovative, ultra-modern showrooms that are setting them apart from traditional car dealerships. Standout designs are beginning to push the boundaries of technology, setting a new standard in retail. Hence all EV brands have very detailed technical and operational requirements when searching for new sites meaning sectoral experience is key in delivering the right property solutions.
It's safe to say that the opportunity in this market is huge, and opening up showrooms in high profile locations is becoming key. Stores are forming part of significantly substantial marketing budgets, breathing new life into retail destinations with state-of-the-art fit outs and providing new and engaging experiences for consumers. You could say it's just what the retail market needs.
Further information
Contact Anthony Selwyn or Larry Brennan