Since the opening of its first showroom just 45 days ago, Liverpool has received 60 orders. The largest seller of electric cars in Mexico, JAC, delivers about 140 cars a month.

Liverpool's foray into car sales began at a suggestion from its China office. The office, which oversees analyzing trends and making purchases of thousands of products sold in Liverpool's 128 stores in the country, under its own brands, realized that cars were already being sold in shopping malls in China.

"Then they said: why not do it in Mexico too," explained David García, director of the automotive division of El Puerto de Liverpool.

The company then decided to carry out a survey to see how willing Mexican consumers would be to buy a vehicle in a shopping center. After all, it is the most expensive good that 75% of Mexicans have access to, since only 25% can buy a house. It is a purchase that is not made lightly.

Internal Liverpool statistics showed that most people in Mexico (75%) still prefer to buy their car from a traditional dealer. The responses of the remaining 25% are split between malls, online shopping, and department stores. “But surprisingly 70% said they would be willing to buy a vehicle when the possibility of the department store being Liverpool was mentioned.” This data encouraged the Mexican retailer to take the step.

Garcia says that Liverpool carried out an "exhaustive analysis" of different brands before making the decision to partner with BYD. In China there are about 100 local car brands, but only about 15 have managed to go international. "We wanted to find a brand that met the quality standards and the demands of the Mexican market." That was BYD.

The Hong Kong-listed company, which counts tycoon Warren Buffett as one of its investors, sold 1.85 million electric and hybrid vehicles in 2022, a year-on-year increase of 211%, putting it well ahead of Tesla with 1.31 million units.

Liverpool created a new business vertical and hired a sea lion of car sales, David Garcia, who had led Kia to be the best-selling brand in the country in just five years. "We were working in secret for about eight months, you know? I signed a non-disclosure agreement (NDA) and when they would call me, asking where I was, I would say: 'No, I'm in a retreat,'" he recalls.

The announcement was made in November 2022. Liverpool would be one of BYD's sales channels. “When it finally went public, people in the industry started contacting me and saying, 'What's up, what's going on?' I don't think anyone saw it coming," says García.

Credit, Service, and Display Capacity

Some 14 years earlier, in 2008, Grupo Elektra had tried to sell cars in its stores. It had reached an agreement with the Chinese brand FAW and would have created an automotive division. But, the project failed, and some 1,000 customers were left stranded, with no one to take responsibility for parts or warranty.

Not to repeat the same story, Liverpool recognized the need for executives from the automotive industry to be able to develop a complete ecosystem that included dedicated spaces for display and sales and after-sales service, with an offer of credit and spaces for testing handling and recharging units.

Liverpool is the second credit card issuer in the country, which gives it a privileged position to offer attractive financial products in terms of credit. Currently, the company has launched financing with a down payment starting at 20%.

In a few months BYD will be the number one brand of electric cars in the country says David García, Manager of the Automotive Division of El Puerto de Liverpool

In addition, Liverpool has extensive display capacity with 128 stores strategically located throughout the country, allowing it to have coverage that virtually no dealer group can boast. Showrooms are spaces that vary in size but generally cover between 250 and 300 square meters, with enough capacity to display between four or five vehicles. In Perisur, which is the flagship of its showrooms, there are one thousand square meters with ten units on display, as well as a service center and the possibility of conducting test drives in the adjacent parking lots.

In addition to showrooms, Liverpool has built display islands in some of its shopping centers, such as Galerías Coapa, where customers can get a closer look at a car on display and have access to a demo car.

The retailer seeks to integrate electromobility into the customer's shopping experience. "We want to offer a comprehensive experience where the customer can access credits and leave their vehicle in service while they watch the new Spiderman movie, tour the store or eat at our restaurant." The advantage of electric vehicles -says García- is that maintenance is less demanding compared to other types of vehicles.

The company also seeks to have a differentiator in the service. Some 60% of the trained advisors come from the company's stores and boutiques, who are prepared to provide detailed explanations about the products and answer any questions customers may have. “The spirit of retail is attention. The advisors smile. I had to certify myself as a Liverpool seller”, says García.

The Largest Seller of Electric Cars in the Country

Liverpool is looking to become the biggest seller of electric cars in the country. Since the opening of its first showroom just 45 days ago, Liverpool has received 60 orders. The largest seller of electric cars in Mexico, JAC, delivers about 140 cars a month. "I believe that in a few months BYD will be the number one electric car brand in the country, and consequently Liverpool will be the largest electric car study in this country," concludes García.