Luxury Mall Showrooms Pivotal For Luxury Electric Cars
Luxury cars and luxury malls sound like a match made in luxurious Heaven and that's because they are. China's electric-car makers are lining up and reaching deep into their pockets for showroom space in some of the most affluent shopping centers in the world.
The market is more competitive than most might realize and, as electric car interest has risen, over half of Shanghai's malls feature at least one electric-vehicle showroom with more on the way, according to real-estate service provider Jones Lang LaSalle Inc. In fact, these showrooms are now considered “standard configuration” for all shopping centers in medium-to-large cities, according to a recent Jones Lang LaSalle report.
This new approach to car sales is sending many manufacturers out to scout prospective spaces for areas they can show off their goods. By allowing customers to view their vehicles firsthand, these brands can ensure that what they have to offer can be appreciated and, most importantly understood. The prices reflect the need as a 2,150-3,230 square foot showroom in some of China's top locations can run as pricey as $1 million per year.
“They pay big rent because they want to be seen,” Zino Helmlinger, head of retail in eastern China at real estate firm CBRE Global Inc told Gulf News. “In China, you have many EV brands competing for a still very small market share, and every two-to-three months there's a new car released. It's crazy.”
This new income has given mall owners a shot to the arm as locations like theirs have been suffering a COVID downturn in the last year. Now, as they search for a new wave of tenants in light of the shift most typical stores had made to an online model, luxury cars could be those very tenants. Making matters even better is that car dealers are mostly interested in space on the first floor of these shopping malls. Those floors are usually the most expensive for their appeal to shoppers. It makes for a high-priced renter looking for space where they can find it.
Experts expect electric-vehicle demand to soar in future years with research firm Canalys citing China's potential for growth at 50% for this category. As the technology advances and consumers begin to embrace this new direction of automotive initiative. Cleaner cars and cost-efficient fuel give these cars an advantage with the younger, more economically and environmentally friendly crowd than ever before. Hopefully they can revive the mall industry just as they have the automotive one.
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