Car brand Tesla is just 13 years old, yet its electric sports cars have made a big impact on the global automotive industry.

The Silicon Valley-based company has set the gold standard for zero-emission electric cars and with the 2017 launch of the Tesla Model 3, its first mass market model, it looks set to further transform the car industry.

Here are the five things that retailers can learn from Tesla.

Vertical Integration

Undoubtedly, one of Tesla’s biggest assets is its vertically integrated business model, which allows it to set ambitious production targets.

According to the investment bank Goldman Sachs, Tesla is now 80% vertically integrated, a feature that is rare in an industry in which car brands are typically only involved in the design, engine manufacturing and assembly stages of the car-making process.

Tesla’s differentiated business model drives innovation, produces a steady stream of components and maintains control of the production costs. Moreover, through developing highly specialised parts such as car batteries in-house, Tesla is helping to establish a wider ecosystem for electric vehicles, in which it is the clear leader.

Retailers too should ensure that the setup of their supply chains give them a competitive advantage. Zara and H&M are good examples of highly integrated supply chains capable of quickly responding to changes in season and fashion.

Store experience

Unlike traditional car manufacturers that use dealerships to sell units, Tesla sells direct to customers through its website and more than 250 stores worldwide. Tesla is expanding its store network and plans to have 440 by the end of 2017.

Its retail approach is a move away from the sales-focused environment of conventional car showrooms. Tesla showrooms, which are found in busy shopping destinations such as London’s Westfield and Oxford Street, are mainly conceived to educate people on electric mobility and increase brand awareness.

They offer a relaxed environment where customers can browse with ease, see the latest models and chat with product experts in an interactive environment.

In an era when many consumers visit retail stores to see and feel products and then purchase online, retailers should invest in their in-store service and use the store as a place for inspiration and advice.

Innovative use of technology

Tesla has adopted much disruptive technology to further both its sustainable credentials and customer experience. Innovations include launching cars with 3G wireless and Wi-Fi connectivity, affordable car battery packs and supercharger stations enabling drivers to quickly recharge their vehicles at parking stops such as shopping centres. The car manufacturer has topped Forbes’ list of most innovative companies for two consecutive years, in 2015 and 2016.

Retailers might not end products as sophisticated as Tesla’s, however, it is important to adopt a technology-driven approach. From supply chain to multichannel and marketing, retailers should constantly rethink the ways in which new technology can bring innovation to their business practices and help them stand out relative to the competition.

Long-term vision

In 2014, Tesla removed patents on its advanced electric car technology in an effort to promote further product innovation across sustainable transport.

Having set his vision as challenging the century-old fossil fuel-based automotive industry, Tesla chief executive Elon Musk said: “Our true competition is not the small trickle of non-Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world’s factories every day.”

The company has since focused on developing two other types of electric vehicles, namely heavy-duty trucks and buses, as well as fully self-driving cars. While these will take many years to be released into the market, they are likely to redefine people’s lives once achieved.

The lesson to be learned for retailers is to define a clear long-term vision that can keep all stakeholders motivated and aligned to the same goals while providing customers with a consistent image of what the brand stands for.

Authentic CSR initiatives

Consumer demand for environmentally-friendly vehicles continues to grow. The number of low-emission car registrations rose 2.9% in the UK between January 2015 and 2016, according to the Society of Motor Manufacturers and Traders (SMMT).

While Tesla is obviously well positioned to take advantage of strengthening green sentiment, its honest dedication to sustainability ensures it remains a popular choice for eco-conscious consumers.

Retailers should opt to pursue genuine and change-focused steps over publicity-oriented ones if they wish to be genuinely recognised for their corporate social responsibility initiatives.