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Taking Stock: High-tech HK showroom key pillar of Volkswagen’s South China strategy

Volkswagen Hong Kong’s brand new 11,000-­square-­foot flagship showroom on Gloucester Road in Wanchai district showcases 14 cars on a single floor, definitely one of the largest in the territory. But it is not just about the impressive expanse; it is also about innovation and creativity.

Gloucester Road is known as Hong Kong’s motor belt and in this haven for car enthusiasts, Volkswagen is introducing five groundbreaking technologies that will bring a different interactive experience for customers to a new level.

Keith Chan, Volkswagen Hong Kong’s Finance & IT Director, said that enhancing the customer experience in car purchase to the next dimension is the ultimate objective.

The 5 Vs

Here is a look at the five technologies that company says is a key component of its South China strategy:

Swipe Motion Technology
Choosing a car will never be the same again with the multi-screen and multi-touch 92-­inch display monitor mounted on a 110-inch supersized TV wall. Here, two people can simultaneously browse the catalogue in an interactive way. Imagine flipping through different car models, colors and specifications, without having to touch the monitor. Sensors that read the motion of the users activate the video clips and other information.

Chan said the technology was first introduced in the company’s headquarters in Germany. With the huge screen, the stunning effect delights the customer, but at the same time leave their hands free and allow them to discuss the information offered on-screen with friends.

Interactive Projection Wall Technology
To learn more about the Volkswagen brand story, the company created a "projector corridor" where customers can walk through to get to know the company’s history. When customers walk through this corridor, called the V-tunnel, their movement will trigger the sensors to display videos.

"Microsoft Kinect motion sensors are utilized to detect and track customer’s steps when enter the 20-feet long V-Tunnel. When customers walk through the V-Tunnel, the Kinect motion sensors will trigger the three short throw projectors, and then will automatically play various flash videos according to customers various positions inside the long V-Tunnel. Customers can immerse themselves in a cozy and embedded environment to enjoy learning more about VW brand’s history and core values," Chan explained.

Ultrasound Pointcast Technology
Tablets installed with pioneering Ultrasound Pointcast Technology and intelligent Digital Vision (iDV) technology are offered to customers in the showroom. When a customer carrying the tablet approaches the different car models, the relevant car information and galleries will pop up onscreen.

Chan said his is a new concept in retail that enables indoor navigation. Through interactive detect vision – iDV technology, customers can use the tablet’s camera function to take snapshot of various parts of vehicles. The images will be sent to server for image recognition and after that push back relevant car information and videos. Such complicated process finishes in a fraction of second.

Multi-touch Technology
Multi-touch refers to a touch sensing surface’s ability to recognize the presence of multi-points of contact on a large screen. Two tables using this technology are situated in the waiting area.

"Customers can use the V-Tables to learn more information about Volkswagen Think Blue concept, perform car selection, our workshop locations, our YouTube channels in a very comfortable and relaxing environment, which will them prolong their length of stay in our showroom," Chan said.

Touch-foil Window
The VMHK showroom also extends its services beyond operating hours to cater to customers who live in a city that "never sleeps." Through a touch foil technology on a large interactive screen, customers can browse various car information, leave contacts and obtain car brochures outside the showroom after it closes.

People can browse the information through the window and send email to sales consultants for further enquiry if needed.

Chan revealed that VWHK has invested more than HK$10 million ($) for the showroom renovation and technology accounts for a significant portion of the investment.

Good market outlook

In the first five years since Volkswagen’s entry in Hong Kong in 2008, the company said it has tripled it sales and posted an all-time record of 4,900 units sold in Hong and Macau in 2012. Last year, market share climbed up to 12 percent. In the first 10 months of this year, sales grew 9 percent.

"Volkswagen’s long term goal is to be the number one brand in Hong Kong. The new showroom is definitely one of our key strategies in our long-range plan, as showroom is our first encounter with customers in person and want to impress them positively. We understand there is “no second chance to give people their first impression,” Chan said.

The company sees the local car market will grow modestly overtime, along with economic growth. To date, its most popular model is Golf, which won the title as the “World Car of the Year” in 2013.

"Volkswagen brand with its German heritage and quality and its core brand values of valuable, responsible and innovative. We think these values fit well in the Hong Kong market and should help us win our customers in long term," Chan said.

Taking Stock is Retail in Asia’s fortnightly column dedicated to showcasing opinions from experts in the retail industry.