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Mercedes announces the industry-first ‘direct to customer’ model in India. Mercedes has shifted to a more customer-centric ‘direct to customer model and they are calling it ‘Retail of the Future.’ According to this new business model, Mercedes India will own the entire stock of cars, sell them via appointed Franchise Partners, then invoice the new cars to the customers directly and then finally process the order.
Commenting on this Mr Martin Schwenk, Managing Director and CEO, Mercedes-Benz India said, “Reimagine Excellence is our motto for 2021, and a key reason for introducing Retail of the Future is to create an enhanced luxury buying experience for our customers. This long-term strategic move will strengthen our customer focus by introducing a fundamental transition in the retail business in the market. It also will deliver a win-win solution for both customers and Franchise Partners, underscoring our clear vision for a future that is sustainable, empowering and digital. The advent of a new sales channel has brought sweeping changes in customers’ aspirations and requirements and being a customer-obsessed brand, we have adapted our current business models to meet our customers’ aspirations and needs. Retail of the Future is yet another pioneering effort from Mercedes-Benz for Indian customers.”
As for what changes this could bring, if we take a look from the customer’s point of view, then they would be able to avail the best price directly from Mercedes-Benz and transparent price comparison across the product range. All the cars will be invoiced directly by Mercedes-Benz India and not by Franchise Partners. Overall, this would help simplify the purchase process.
This new ROTF business model would only be applicable for the sale of new cars. There will be no change in separate business lines including Customer Services, Pre-owned Cars and Accessories business when ROTF will be used.
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