Automotive News Europe - September 2011 - 116

A NEW KIND OF DEALER
Peugeot expands city center showroom program
BERTRAND GAY
autonewseurope@crain.com

A

fter opening a new kind of dealership in the heart of Paris last year, Peugeot is expanding the awardwinning retail initiative to other European cities, as well as to South America and the Middle East. Like all automakers, Peugeot finds it hard to attract entrepreneurs willing or able to finance the investment needed to establish showrooms in city centers where real estate costs are high. But the French brand was unwilling to abandon selling and repairing cars in downtown locations because there are lots of potential customers working in offices or retail outlets. The fact that two-thirds of the world’s population lives in cities, and urban populations are rising rapidly, was another reason why Peugeot decided it could not afford to have a reduced presence in cities. The brand took a fresh look at the problem and came up with fresh ideas. These included: ■ Showroom displays of just a few cars in smaller showrooms that are cheaper to rent than larger premises ■ Late opening hours so people can visit the dealer after work ■ Using virtual reality technology to highlight the brand’s full product range and customization deals. “We asked ourselves how we could fulfill the needs of young urban professionals living in city centers,” said Xavier Peugeot, the brand’s marketing director. The French carmaker calls its new downtown stores Peugeot City dealerships and will add six more this year. The first opened recently in Riyad, Saudi Arabia. Others will follow in the coming months in Warsaw,

Poland; Istanbul, Turkey; Genoa, Italy; Ixelles, near Brussels, Belgium; and Buenos Aires, Argentina. Currently there are no plans to expand the program to other key markets such as China and Russia. Normally only luxury brands can justify the high costs of renting expensive city center property for showrooms. Mercedes-Benz and Audi have also opened huge so-called “brand palaces” in prominent locations in metropolitan areas close to city centers. Private investors are establishing large multibrand car retail outlets close to city centers, such as the Automeile in Dusseldorf, Germany, where more than a dozen brands have showrooms in separate premises that are grouped together. Tackling high real estate costs Peugeot says most car brands are underrepresented within the Paris city limits. “Real estate costs in cities and local opportunities are key factors,” a company spokesman said. Peugeot City dealerships offer employees in office blocks or retail outlets a convenient place to browse for a new car or have their current model repaired. In Paris, real estate prices have risen so much in the past 10 years that private investors are now unable to maintain large retail premises. City showrooms don’t need to be as big as those in towns or country areas, Peugeot concluded. So real estate costs can be reduced by opening small showrooms that still offer a full service to potential buyers and existing customers. “Nowadays, nearly 75 percent of the customers gather information on the Internet about the car they want to buy,” Xavier Peugeot said. “When they arrive at the dealership, they already know what they want.” The Peugeot City showrooms have just

enough space to display a few of the latest models. A potential buyer can view the brand’s full range on a virtual-reality computer screen. They can also look at and choose colors, interior trim and materials such as cloth and leather while using the screen. The minimum space needed for a Peugeot City dealership is 160 square meters, a quarter of the usual showroom surface area for the brand’s retailers. Although repairs and maintenance are offered, they are not done on site. Cars are ferried to workshops outside the center. Customers can also have their cars collected at their homes or workplaces. The Peugeot City dealerships remain open until 9 p.m., allowing customers to order a new car, get information about new products, set up financing and use some options included in the so-called “Mu by Peugeot” mobility service such as renting an electric bicycle. The dealers have no common theme, except that their stores are in a city center. In Paris, the Peugeot City showroom, which opened in April 2010 on the rue de Chateaudun, is in an historic part of town, near many offices and a few minutes’ walk from a main boulevard where the famous Galeries Lafayette department store is located. In Riyad, the Peugeot City outlet is in a shopping mall close to a restaurant. The Paris showroom won the French Design Institute’s Janus du Commerce award for the best retail practices with a particular emphasis on customer experience. ■

At top: Peugeot is using key features from its award-winning downtown Paris dealership at stores in Europe, South America and the Middle East. Right: Marketing director Xavier Peugeot says the Peugeot City dealers meet the needs of young urban professionals.
116

ANE EXECUTIVE EDITION

SEPTEMBER 2011



Automotive News Europe - September 2011

Table of Contents for the Digital Edition of Automotive News Europe - September 2011

Automotive News Europe - September 2011
Letter from the Editor
Contents
Letter from the Publisher
Decade of dominance
Market meltdown
Share shift
Clash of the titans
Dr. Z’s attack plan
Gaining ground
Defending the crown
Product fireworks
Dealership delight
Leaner, greener, more high-tech
Double test
Ahead of plan
Russian revolution
Management makeover
The ‘other’ Carlos
Europe’s biggest suppliers
Bosch gets stronger
Steering to success
Big business with safety
Cheaper carbon fiber
Shifting gears
Conti’s challenges
Suppler innovations
People on the move
Meet the Eurostars
French face-lift
So far, so good
Little cars, big battle
SUVs, premium cars rise
Chevy’s centennial
Happy 15th
Legends on wheels
New kind of dealer
MG’s fresh start
Missing in action
Automotive News Europe - September 2011 - Automotive News Europe - September 2011
Automotive News Europe - September 2011 - Cover2
Automotive News Europe - September 2011 - Letter from the Editor
Automotive News Europe - September 2011 - Contents
Automotive News Europe - September 2011 - 5
Automotive News Europe - September 2011 - Letter from the Publisher
Automotive News Europe - September 2011 - Decade of dominance
Automotive News Europe - September 2011 - Market meltdown
Automotive News Europe - September 2011 - 9
Automotive News Europe - September 2011 - 10
Automotive News Europe - September 2011 - 11
Automotive News Europe - September 2011 - 12
Automotive News Europe - September 2011 - 13
Automotive News Europe - September 2011 - Share shift
Automotive News Europe - September 2011 - 15
Automotive News Europe - September 2011 - 16
Automotive News Europe - September 2011 - 17
Automotive News Europe - September 2011 - Clash of the titans
Automotive News Europe - September 2011 - 19
Automotive News Europe - September 2011 - 20
Automotive News Europe - September 2011 - 21
Automotive News Europe - September 2011 - 22
Automotive News Europe - September 2011 - 23
Automotive News Europe - September 2011 - Dr. Z’s attack plan
Automotive News Europe - September 2011 - 25
Automotive News Europe - September 2011 - Gaining ground
Automotive News Europe - September 2011 - 27
Automotive News Europe - September 2011 - Defending the crown
Automotive News Europe - September 2011 - 29
Automotive News Europe - September 2011 - Product fireworks
Automotive News Europe - September 2011 - 31
Automotive News Europe - September 2011 - 32
Automotive News Europe - September 2011 - 33
Automotive News Europe - September 2011 - 34
Automotive News Europe - September 2011 - 35
Automotive News Europe - September 2011 - 36
Automotive News Europe - September 2011 - 37
Automotive News Europe - September 2011 - 38
Automotive News Europe - September 2011 - 39
Automotive News Europe - September 2011 - 40
Automotive News Europe - September 2011 - 41
Automotive News Europe - September 2011 - 42
Automotive News Europe - September 2011 - 43
Automotive News Europe - September 2011 - Dealership delight
Automotive News Europe - September 2011 - 45
Automotive News Europe - September 2011 - 46
Automotive News Europe - September 2011 - 47
Automotive News Europe - September 2011 - 48
Automotive News Europe - September 2011 - 49
Automotive News Europe - September 2011 - 50
Automotive News Europe - September 2011 - 51
Automotive News Europe - September 2011 - 52
Automotive News Europe - September 2011 - Leaner, greener, more high-tech
Automotive News Europe - September 2011 - 54
Automotive News Europe - September 2011 - 55
Automotive News Europe - September 2011 - 56
Automotive News Europe - September 2011 - Double test
Automotive News Europe - September 2011 - Ahead of plan
Automotive News Europe - September 2011 - 59
Automotive News Europe - September 2011 - 60
Automotive News Europe - September 2011 - 61
Automotive News Europe - September 2011 - Russian revolution
Automotive News Europe - September 2011 - 63
Automotive News Europe - September 2011 - Management makeover
Automotive News Europe - September 2011 - 65
Automotive News Europe - September 2011 - The ‘other’ Carlos
Automotive News Europe - September 2011 - 67
Automotive News Europe - September 2011 - Europe’s biggest suppliers
Automotive News Europe - September 2011 - 69
Automotive News Europe - September 2011 - Bosch gets stronger
Automotive News Europe - September 2011 - 71
Automotive News Europe - September 2011 - Steering to success
Automotive News Europe - September 2011 - 73
Automotive News Europe - September 2011 - Big business with safety
Automotive News Europe - September 2011 - 75
Automotive News Europe - September 2011 - Cheaper carbon fiber
Automotive News Europe - September 2011 - 77
Automotive News Europe - September 2011 - 78
Automotive News Europe - September 2011 - 79
Automotive News Europe - September 2011 - Shifting gears
Automotive News Europe - September 2011 - 81
Automotive News Europe - September 2011 - Conti’s challenges
Automotive News Europe - September 2011 - 83
Automotive News Europe - September 2011 - Suppler innovations
Automotive News Europe - September 2011 - 85
Automotive News Europe - September 2011 - People on the move
Automotive News Europe - September 2011 - 87
Automotive News Europe - September 2011 - Meet the Eurostars
Automotive News Europe - September 2011 - 89
Automotive News Europe - September 2011 - 90
Automotive News Europe - September 2011 - 91
Automotive News Europe - September 2011 - 92
Automotive News Europe - September 2011 - 93
Automotive News Europe - September 2011 - 94
Automotive News Europe - September 2011 - 95
Automotive News Europe - September 2011 - 96
Automotive News Europe - September 2011 - 97
Automotive News Europe - September 2011 - 98
Automotive News Europe - September 2011 - French face-lift
Automotive News Europe - September 2011 - So far, so good
Automotive News Europe - September 2011 - Little cars, big battle
Automotive News Europe - September 2011 - SUVs, premium cars rise
Automotive News Europe - September 2011 - 103
Automotive News Europe - September 2011 - 104
Automotive News Europe - September 2011 - 105
Automotive News Europe - September 2011 - Chevy’s centennial
Automotive News Europe - September 2011 - 107
Automotive News Europe - September 2011 - Happy 15th
Automotive News Europe - September 2011 - 109
Automotive News Europe - September 2011 - 110
Automotive News Europe - September 2011 - Legends on wheels
Automotive News Europe - September 2011 - 112
Automotive News Europe - September 2011 - 113
Automotive News Europe - September 2011 - 114
Automotive News Europe - September 2011 - 115
Automotive News Europe - September 2011 - New kind of dealer
Automotive News Europe - September 2011 - MG’s fresh start
Automotive News Europe - September 2011 - Missing in action
Automotive News Europe - September 2011 - Cover3
Automotive News Europe - September 2011 - Cover4
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