Expanding Audi thinks small

An ever-expanding model range could prompt Audi Australia to adopt a radical strategy: Smaller digitally-driven showrooms.

Not across the board mind you -- which will be good news for the dealers who have invested tens of millions of dollars in Audi’s distinctive ‘Terminal’ showroom architecture in recent years -- but in inner-city locations where space is limited.

The new retail concept, dubbed Audi City, which has debuted in London’s Piccadilly has space for only a couple of cars but offers customers the ability to configure any model in the range via iPad-style tablets and project the final result life-size onto large single-frame powerwalls.

New Audi Australia managing director, Andrew Doyle, is a fan of Audi City, which is soon expected to be replicated in China, Russia and the USA.

While no concrete plans exist to bring Audi City to Australia, Doyle says the concept makes sense for inner-city locations in our capital cities, where real estate is expensive and a high proportion of potential Audi customers work and often live.

It also overcomes the challenge of presenting an adequate cross-section of a range that will expand from 44 to 60 models globally over the next few years, as well as adding a retailing innovation to help Audi Australia achieve its aim of becoming the local luxury brand sales leader by 2020.

“You can order a car at Audi City if you want to, or leave there with the spec for a car that you have decided you want which you can then take to another dealership,” Doyle explained.

“It is infinite what cars you can highlight in a virtual way. You can have all the colour chips and samples there so you can get the best out of it.”

Test drives could be conducted out of traditional dealerships linked to the digital showroom, by using vehicles warehoused close to the inner-city location or in demonstrators delivered directly to the client.

The tablet and powerwall concept is also suitable for traditional dealerships and one has opened in Dubai recently featuring the technology.

“It is scalable, you can have both private viewing rooms or a public area where people can build their car and push it onto the powerwall,” Doyle explained.

“There will always be a place for the traditional dealership,” he added.

An Audi City site would not be cheap because the technology -- especially the powerwalls -- is expensive, suggesting that, at least initially, Audi Australia would have to co-invest with dealers in such a venture.

Doyle suggested commercial sites with good floor traffic such as shopping centres, or even airports, would work well for the time-poor white collar audience that Audi primarily targets.

“Everyone is busy, and time is of the essence, so if someone has 30 or 45 minutes that gives us a good opportunity to speak to them,” he said.

While Doyle contemplates the Audi City concept, investment continues in the company’s 37 dealer line-up.

An eight-car showroom was opened in Toowoomba in June at a cost of $2 million, a $3.5 million 12-car showroom opens in Wollongong in August, while Audi Centre New England, an eight car showroom, opens in September at a cost of $1.5 million.

Audi Centre Melbourne is also being completely rebuilt with a 2014 opening date as a 40-plus car showroom with 26 service bays at a cost of $25 million. Audi Centre Doncaster is also being refurbished with an investment of $5.5 million.

The Sydney service centre is adding 54 service work bays as part of a new facility being developed next door to its existing headquarters in Zetland, NSW.

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