To boost its sales in the country, Mercedes-Benz India Wednesday announced its plans to launch 15 new vehicles in the country and a unique direct-to-customer (D2C) sales model for the future to offer a better buying experience to its customers.
Under this new business model named the ‘Retail of the Future’ (ROTF), the brand will own the entire stock of cars, sell them through appointed franchise partners, invoice the new cars directly to customers, process and fulfill orders, and provide customers with one transparent price and purchasing experience, the company said in a media release.
Martin Schwenk, MD, 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.”
With the advent of digitization and changing dynamics of retail business the world over, the ROTF model is expected to be a beneficial proposition for customers, franchise partners, and the brand. The franchise partners have to establish and maintain customer contacts, develop the market and facilitate the sale of Mercedes-Benz cars, the release added.
ROTF will offer customers a transparent price range and comparison across the product portfolio, a simplified and hassle-free purchase process, and direct invoice from Mercedes-Benz India.
The franchise Partners will have the advantage of being the ‘direct to customer’ retail partners of MB India for new car sales, direct compensation by MB India, and the availability of a larger pool of stock of cars at reduced risk and no inventory, the release said.
The selling process, the company said, would not change as the franchise partners will continue to be the brand representatives and they will have to handle customer interactions and develop local market requirements. They will continue the local retail marketing activities, and manage the present showroom infrastructure, the release added.