Omotenashi is the Japanese art of hospitality: not just responding to a guest’s requests but anticipating their needs. A proper host must not wait to be asked but be ready. Likewise, a luxury car company can’t stand around hoping customers will just walk through the door, ready to purchase. You have to reach out and be prepared. In a new concept space in Burnaby, that’s just what Lexus is doing.
The luxury automaker is currently celebrating its 35th year in Canada, and to say the company takes a methodical approach to change would be an understatement. Talk to salespeople who worked for Lexus in the early 1990s, and they’ll tell you all about the rather moderate growth before business really started booming. But that was the plan all along: a slow burn that lasts, not a flash in the plan.
Nevertheless, in the car retail business, it’s adapt or die. Potential clients have never before had so much information available at their fingertips, and some luxury rivals have moved to selling entirely in the virtual space. The appeal of doing so is obvious, especially taking into account the cost of setting up a bricks-and-mortar traditional dealership in the heart of a city.
Burnaby in particular has a rapidly growing population, and it’s not like you can just plonk a car lot in between all those new highrises. Where would you even put the inflatable dancing guy? But those luxury apartment towers are full of well-heeled buyers with active lifestyles, looking for what’s going to get them up the Sea-to-Sky to Whistler. And further, people like to actually experience such a potentially expensive purchase in person, check the seating ergonomics, measure trunk space, check out the ride quality. There’s a major gap between traditional and virtual.
This new concept space, dubbed Lexus Studio, might be the solution. Built by Regency Lexus, it’s a 3,900-square-foot space in the heart of the Metrotown area, with space for five vehicles inside. There’s a concierge and a valet, four Lexus product experts, and no salespeople. No high-pressure sales tactics. No Glengarry Glen Ross-style “always be closing” pitch. Just a chance to experience the Lexus model that might interest you in the sheet metal.
Because it’s not a traditional dealership, Regency has been allowed a little freedom from the usual corporate restraints. Generally speaking, any car company expects its franchisee dealers to conform to a homogeneous look. The style of the Lexus Studio is more flowing and Japanese-accented, with tongue-and-groove maple panels and a back wall inspired by traditional paper-and-lattice room dividers.
Because Regency’s mascot is a panda bear, two multipurpose rooms have a bamboo motif applied to the glass. There’s also a bar at the end of the room for coffees and other light refreshment.
The idea is roughly equivalent to one of Apple’s Genius Bar stores, where potential clients can book a time to look over the features of an NX 300, or schedule a test drive of a plug-in RX 450h+ hybrid. On a global scale, Lexus previously operated flagship stores in New York and Tokyo, but those were high-concept galleries intended to act as beacons showing what the brand stood for. This Studio is specifically about the vehicles and creating an experience to help familiarize potential customers with the current range in a zero-pressure setting.
While there is only space for five vehicles inside the Studio, 12 parking bays are reserved nearby to show most of the rest of the Lexus portfolio. Each is fitted with a charger, as Lexus currently offers two plug-in hybrids and a full EV, with more on the way.
But you can also set up an appointment to have a product expert talk you through the various offroad capabilities of a rugged GX or LX. Lexus offers sleeker models suitable for urban environments, but if you live in a luxury penthouse, maybe you’re looking for something that’ll transport you into nature over the weekend.
The Lexus Studio is currently the only one in Canada, and while it is tied to a dealer, it is also being closely scrutinized by planners from the head office. At a high level, brand management is a bit ethereal. On the dealership level, sales results are key, and given the rapidly increasing densification of Canadian cities, this could be the template for the future of automotive sales.
Because it’s not enough to wait for your future customers. A luxury brand must offer a luxury experience. It has to act like a good host, and clients need to feel like guests. The traditions of omotenashi emphasize service first, more than just a warm welcome. In Burnaby, Lexus is reaching out, with hands prepared.
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