We’ve all heard that Apple is the most successful retailer on the planet; that it changed the way retail is delivered; and that it’s responsible for many innovations we’re starting to take for granted, 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 new sensation: an electric-car maker called Tesla. Like Apple, the car maker has reinvented bot
h its product category and the way it is sold. Right now, it sells just one model – the Model S. (Tesla had a limited edition roadster, but that has been discontinued, and a crossover SUV is on its way).
The family-oriented Model S starts from US$70,000 and can travel up to 480km on a single charge (depending on the battery configuration purchased).
Consumer Reports magazine dubbed the Model S as the best car 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 fashion as much as function, which is an Apple quality in itself.
In stark contrast to the way cars are wheeled and dealed in stand-alone showrooms, Tesla has established a fixed-price policy, and set itself up in 150sqm 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 salesman as you can get, and the vehicle itself sits in simple but sophisticated surroundings along with a good dose of digital technology.
When shoppers want to test-drive the car, they are taken to the centre’s car park, where demo vehicles are kept alongside a charging station.
When you decide to buy, there’s no haggling. You jump online, customize your car, and it’s delivered in 30 to 60 days.
I first saw the flagship Tesla store at Santana Row outside of San Francisco two years ago. But now they’re starting to spread, and it’s no wonder.
One senior US shopping centre executive who spoke to 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 and Cartier 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 both shoppers 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 profit and 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.au Blog: www.newretailblog.com Twitter: @thetweetailer
Inside Retail managing editor, Carla Bridge, will feature an expanded report on Tesla, complete with photographs, in the August/September special edition of Inside Retail Magazine, which will highlight the 2013 Westfield World Retail Study Tour.