Directly-Operated Store

Core Operating Model and System Characteristics

An automotive directly-operated store (Company-Owned Store / Direct-to-Consumer Store) refers to a retail and aftersales outlet directly funded, managed, and staffed by a vehicle manufacturer (OEM), standing in stark contrast to the conventional franchised dealership model (such as the traditional 4S dealership network). Its defining characteristic is the elimination of multi-tiered distributors and middlemen, allowing the brand principal to directly control retail pricing, inventory allocation, customer touchpoints, and aftersales service standards.

In terms of operational characteristics, directly-operated stores offer the key advantages of "transparent nationwide fixed pricing, direct-to-consumer digital engagement, and standardised service quality". By removing intermediary markups and dealer price bargaining inherent to traditional channels, these stores deliver full price transparency. Meanwhile, through the seamless integration of official mobile apps and physical city showrooms, carmakers can directly capture and manage end-user lifecycle data, driving highly efficient customer retention and continuous product development feedback.

Global Market Application and Evolution

The direct-sales retail model was first popularised globally by Tesla with remarkable success, before being widely embraced by emerging electric vehicle (EV) manufacturers and dedicated new energy sub-brands from legacy carmakers. This approach has reshaped the automotive retail landscape that stood for decades, serving as the primary sales channel for carmakers to build a direct-to-consumer ecosystem and streamline vehicle deliveries throughout the electrification transition.

With escalating competition across global automotive markets and the ongoing rationalisation of distribution costs, the direct-sales model is evolving. It now leans towards "the coexistence of pure direct sales alongside agency or hybrid models partnering with established dealer groups, a clear division between asset-light experience centres in prime commercial hubs and comprehensive delivery/aftersales hubs in suburban areas, alongside dynamic cross-regional inventory pooling". Modern automotive retail networks are progressively moving away from aggressive pure direct sales towards a more resilient, multi-format hybrid distribution strategy.

Operational Norms and Management Constraints

Direct-sales networks must strictly avoid unregulated, predatory price undercutting or unauthorised heavy discounting across regional markets, online channels, and physical outlets. Any disruption in the pricing structure directly erodes brand equity, compromises the nationwide unified pricing policy, and triggers widespread mistrust among existing owners.

Carmakers are equally cautioned against aggressive direct-sales expansion into remote or secondary markets without robust supply chain infrastructure and reliable local aftersales support. Because the direct-sales approach demands heavy capital expenditure and carries high fixed overheads, any disconnect between showroom expansion and service workshop capacity will inevitably spark customer complaints and inflict lasting damage on the brand's aftersales reputation.