DS Cars and Coffee Shops: Chen Guozhang’s Unconventional Sales Plan

When traditional car dealerships struggle to draw crowds and turn profits, one executive is looking for better foot traffic—and he’s found it in an unlikely place: the corner coffee shop.

Chen Guozhang, president of PSA DS China and general manager of Chang’an PSA DS, plans to move DS car sales into urban coffee shops. Why? More people, lower rent, and built-in convenience. It’s part of a broader shift to digital sales, experiential retail, and cost-efficient brand-building.

Strong Start: DS Sales Ahead of Schedule

In the first half of 2015, DS sold as many cars as it did all of the previous year. The brand launched the new DS5 and 2016 DS6 at the Chengdu Auto Show, featuring two new colours—Fantasy Sand Gold and Champagne Gold—along with red interiors. The new DS5 also received a redesigned “DS Wings” front grille and a more efficient 1.8THP engine. To mark its 60th anniversary, DS began a 14-city tour that month, with plans to import more DS3 models through a new partnership in Zhangjiagang, aiming for competitive pricing.

The 4321 Strategy: Doubling Down on Growth

Chen outlined a clear 4321 strategy at the start of the year:

• 4x more effective dealers: From 16 at the beginning of 2015, DS grew to 40 dealers—more than double—and aimed for 4x growth overall.
• 3x retail volume: Monthly sales rose from 1,500 to over 3,000 units, with a target of 4,500.
• 2x marketing efficiency: Just 18% of the annual marketing budget was spent in the first six months, yet DS matched all of 2014’s annual retail sales—17,000 units. The remaining 82% was reserved for a heavy second-half push.

This included a 60th anniversary roadshow, a new compact hatchback launch at the Guangzhou Auto Show (like an Audi A3), a tie-up with Virgin Racing forming the DS Virgin Racing Team, and a December plan to race 15 modified DS5s driven by celebrities in Shanghai to boost visibility.

Electric Dreams and Ride-Sharing Realities

DS also embraced alternative sales channels. Partnering with Uber, DS delivered 100 cars with Beijing licence plates. In September, the brand planned to put 4,200 vehicles into China’s rental car market to increase exposure and build brand trust. “In cities with licence plate restrictions, we need new ways to get cars on the road,” Chen said. Drivers became brand ambassadors, promoting DS through word of mouth and vehicle decals.

Coffee Meets Cars: The DS Café Concept

Rather than pushing deeper into lower-tier cities with costly 4S stores (often costing around RMB 20 million to build), DS aims to go urban. “We’re moving from the suburbs to the city centre,” Chen explained. A coffee shop in central Beijing, Shanghai or Chengdu might cost RMB 60,000–300,000 in monthly rent—but draws far more foot traffic than a suburban dealership.

The concept? A café that breaks even selling coffee, with car sales as an added service. “The Chinese coffee market is growing. We can operate a cross-border space,” Chen said. The coffee shop model would be internet-enabled: customers scan a QR code to become VIPs, with test drives and cars ready for immediate use. A fleet of DS5 and DS6 models would be parked outside. The store could also arrange airport transfers, financing via Alibaba’s Alipay, and home delivery—all reducing the need for distant, traditional dealerships.

“You can buy a car in the morning, park it at the café, and have staff park and even wash it for you—for just RMB 40 a day,” Chen added. First-phase investors would be existing 4S store owners, with future outlets functioning like secondary showrooms. Final after-sales service would remain with 4S dealers, but the initial sales touchpoint would shift to these urban, coffee-infused hubs.

Frequently Asked Questions

What is DS planning to sell through coffee shops?

DS plans to use urban coffee shops as new sales touchpoints to sell cars, especially in city centres. These locations offer high foot traffic and lower rent compared to suburban 4S dealerships. The coffee shops will also serve as spaces for test drives, brand interaction, and even financing options.

How does DS’s 4321 strategy work?

The 4321 strategy is DS’s growth plan for 2015: quadruple the number of effective dealers, triple retail sales volume, double the efficiency of marketing spend, and achieve a series of related sales targets including 4,500 monthly sales. By mid-year, DS had already matched 2014’s full-year retail performance.

What role does e-commerce play in DS’s sales strategy?

E-commerce is a critical channel for DS. The brand plans to use online platforms to promote harder-to-sell, higher-spec models, reduce dealership inventory pressure, and generate leads. DS also aims to build a more flexible and cost-effective dealer network through digital tools.

What is the DS Virgin Racing Team?

The DS Virgin Racing Team is a partnership with Virgin Racing announced in mid-2015. It includes a new compact hatchback model similar to the Audi A3, set to debut at the Guangzhou Auto Show. This move is part of DS’s strategy to boost brand appeal through motorsports and youth-oriented marketing.

How will DS support car buyers who purchase from a coffee shop?

Initially, coffee shop investors are also 4S store owners. After purchasing a car at a DS café, buyers will receive after-sales service through connected 4S dealers. The café handles the sale, test drive, financing (including Alipay), and delivery logistics, creating a seamless, city-based customer experience.

Recommended FrontStreet Beans for Urban Coffee Shops

For a DS-branded coffee shop concept, FrontStreet Coffee’s Ethiopia Humbera offers vibrant floral and citrus notes with a juicy body—perfect for engaging urban clientele. Pair it with the Yirgacheffe, which delivers bright berry and stone fruit flavours for a lively cup. Both single origins highlight specialty coffee quality, aligning with DS’s premium positioning. Freshly roasted within 5 days · Orders placed before 17:00 ship the same day · Next-day delivery across most of Guangdong Province.