
Auto giants such as Toyota Motor and Nissan Motor have been turning to so-called experiential stores in Tokyo, offering everything from activities for children to fresh coffee for adults in a bid to engage visitors with their products and slam the brakes on a shift away from driving and vehicle ownership among younger people.
Brand and marketing experts say such moves are key as the industry works out how to adapt to the challenges of the rise of mobility-as-a-service, or MaaS, the concept of integrating multiple forms of transport into a single service.
Toyota Mobility Tokyo, a subsidiary of Japan’s largest car company, in December opened an experiential store called Ariake Miraie in a shopping mall in the bay area of Tokyo’s Koto Ward.
Unlike other shops operated by the dealer, it doesn’t have any real cars inside – just toy vehicles displayed along the wall.
The around 140sq m space contains a playpen and a couple of large tables, with local residents gathering for daily activities ranging from programming for kids to flower arranging.
Up to 130 people join each day, according to the store.
“Miraie” means “toward the future” in Japanese, and Toyota offers a fuel-cell car called the Mirai.
“This place serves as a community space for local residents. Our purpose here is not to sell them cars but to make them fans of Toyota,” said store manager Takahiro Arata.
The main targets are homemakers and dual-earner “power couples” in their 30s and 40s from the neighbourhood’s high-rise condominiums.
“Toyota and Lexus are not the first brands that come to mind” when those couples want to buy cars, said Arata, adding that foreign luxury car models are popular there.
He believes that building daily connections with potential customers could change that.
A 30-year-old Tokyoite visiting the store said she was glad to have a local place to bring her two small children, who like cars.
“I cannot enter dealers unless I have a very strong feeling that I will buy a car. But here I find it welcoming,” she added, noting that she doesn’t currently own a car.
Meanwhile, Nissan from November to December displayed its first all-electric crossover sport utility vehicle, the Ariya, in part of an experiential store run by retailer b8ta Japan in Tokyo’s trendy Shibuya district.
The site gives guests the chance to touch and use a diverse selection of products from different companies.
Cameras on the ceiling monitor people’s movements and record how long they stay in front of each item.
Staff watch visitor reactions and send feedback to companies, rather than trying to sell products.
“We aim to help the car brand reach out to those it hasn’t been able to approach before, such as young people in their 20s and 30s, who love to try state-of-the-art things,” said Hiroki Hada, b8ta Japan’s chief operating officer.
Shibuya is a great location as it is a hotspot for youngsters and tech companies, he continued, noting that while visitors may not immediately become Nissan customers, such displays could ultimately prompt them to choose the brand in the future.
Two Tokyo residents in their 30s said the Ariya on show was the first electric car they had ever actually touched.
Tazawa and Fujioka, who only gave their surnames, said they were excited by the vehicle, despite rarely driving themselves.
“We thought that electric cars were something far away that we would never use. But the Ariya will come into our minds from now on when we hear about electric cars,” Tazawa said.
“Through the experiential store, we can have a touch point with young people who are not necessarily interested in cars,” said Tomo Kosaka, senior manager in Nissan’s brand and media strategy department.
“By letting people experience first-hand how much cars have evolved, we want to leave people an image that Nissan is trying something new.”
A survey by research company MyVoice Communications found around 74% of Japanese households owned a car in 2019, down from 82% in 2010.
And a 2021 survey by Japan Trend Research showed just 55% of people in their 20s or younger with driving licences actually own a car.
Masahiro Yoshikawa, car marketing expert and professor at Kumamoto Gakuen University, said auto companies are turning to experiential stores as they are “eager to win over young people before they even obtain a driver’s licence”.
Indeed, car companies around the world are increasingly offering “experiences” to nurture business.
German automaker Audi has been rolling out Audi City stores in key locations globally, using technology such as virtual reality to help visitors test cars.
“Audi City offers a special brand experience, with no pressure,” the company said in a news release.
Another German carmaker, BMW, in 2019 showcased the first fully-electric Mini Cooper model at b8ta Mission Bay in San Francisco.
Masahito Namiki, CEO of branding consultancy Interbrand Japan, said building up fans among non-users will be crucial for many carmakers.
A recent customer experience survey by the firm found that companies with high powerful brands are supported by many “non-user” consumers who have never used their services or products.
This suggests that those who do not drive or own a car can have a customer experience and like the brand.
“The auto industry is in a time of change and carmakers will probably not just be selling cars in the future as the industry seeks to shift to MaaS and become a provider of services,” Namiki said.
“Fostering more fans or potential customers among nonusers today will be key to thriving in the future.”