Mercedes-Benz India today announced a fundamental transition in its retail business in India, by shifting to the futuristic and more customer-centric ‘direct to customer model, called ‘Retail of the Future’ (ROTF). According to this new business model, Mercedes-Benz India will own the entire stock of cars, sell them via appointed Franchise Partners, invoice the new cars to the customers directly, process the order and fulfil them, offering one transparent price and purchasing experience for customers.
The primary roles and responsibilities of the Mercedes-Benz Franchise Partners include establishing and maintaining customer contacts, developing the market and facilitating the sale of Mercedes-Benz cars. The customer-oriented and futuristic ROTF model promises to be a beneficial proposition for customers, Franchise Partners and the brand, with the advent of digitization and changing dynamics of the retail business the world over.
Changes in effect due to ROTF implementation:
Customers:
• Can avail the best price directly from Mercedes-Benz and transparent price comparison across the product range
• Cars will be invoiced directly by MB India and not by FranchisePartners
• A much-simplified purchase process that is seamless and hassle-free
Mercedes-Benz Franchise Partners:
• Transitions to ‘direct to customer’ retail partners of MB India for new car sales
• Compensated by MB India directly
• Availability of a larger pool of stock cars
• Reduced risk and no inventory
Mercedes-Benz India:
• Responsible for centrally managing the selling price of all new cars
• Responsible for owning and managing the entire stock of new cars
• Responsible for order processing and fulfilment
ROTF is only for new car sales:
ROTF business model is applicable only for the sale of new cars. There will be no change in separate business lines including customer Services, Pre-owned Cars and Accessoriesbusiness when ROTF will be implemented.
What will not change due to ROTF implementation:
• Cars will be sold via Franchise Partners
• They continue to remain brand representatives in the market
• Responsible for developing customer relationship
• Franchise Partners will be managing operational handling of customer interactions
• Responsible for developing local market requirements
• Franchise partners will continue local retail marketing activities
• Responsible for lead generation and management
• Current showroom infrastructure will continue to remain the same
