German premium carmaker Mercedes-Benz has come out with a new sales model called ‘Retail of the Future.’ With an aim to improve the buying experience for their luxury cars, this new program implements a ‘Direct to Customer’ sales model wherein it is the company that will own the entire stock of new Mercedes-Benz cars in India and will sell it directly to their customers through showrooms and online sales portal. In practice, this is different from the current model where a dealers first purchase new Mercedes-Benz cars and then sell it to the customers. The company has said that this program will be implemented across India by the end of this year.
Additionally, this centralised stock of cars – that Mercedes-Benz India will own – established a franchise model for their services. Subsequently, it is Mercedes-Benz that will now be responsible for taking orders and fulfilling them in the country and also be able to have a standard price for all their customers.
Key customer benefits:
There are certain benefits that the customer receives through this practice, like a larger pool for selection of cars available through Mercedes-Benz Franchise Partners, best prices directly from Mercedes-Benz India without having to negotiate, easier price comparison, seamless and simplified purchase process, complete transparency, sale and delivery of cars facilitated though Mercedes-Benz India Franchise Partners, savings of time and effort.
Key Mercedes-Benz Franchise Partners benefits:
On the other hand, as per the company, there are benefits for the franchise partners too, like better financial health, zero inventory carrying, no market facing risk, hassle-free sales process, improved customer relationship, focused local market development and growth.
The company has clarified that this new model will be applicable on new car sales. The separate business including customer service, pre-owned cars and allied businesses remain unchanged. In a statement released, the company has said that all Franchise Partners of MB India have collaborated in implementing ‘ROTF’ in India, sharing the company’s ‘customer centric’ outlook and co-creating this business model.
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What doesn’t change however, is that the dealership will continue to represent the brand in the market, will be responsible for developing customer relationship, handle customer interactions and continue lead generation and management. Hence, the current showroom infrastructure requirements do not change.
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