Benz It was announced today that a new “direct-to-customer” sales model will be launched in India, called Retail of the Future (ROTF). This new model aims to increase transparency between luxury car manufacturers and their customers, and to help Mercedes-Benz’s franchise partners.
- Mercedes-Benz will now have full vehicle inventory
- Sales model only applies to new car sales business
- Customers will buy cars directly from Mercedes
- Distributors can now have zero inventory and face reduced risks
- It plans to implement ROFT throughout India by the fourth quarter of 2021
Mercedes ROTF sales model: what is it?
Essentially, through this new sales model, Mercedes will own all of its car inventory and sell directly to customers through its showroom and online sales portal. This is different from the current sales model, where dealers buy inventory from Mercedes and then sell it to customers. The German luxury car manufacturer said that this new model will be implemented in various parts of India by the end of this year (the fourth quarter).
This new sales model will affect customers and distributors in different ways. We have summarized the changes that everyone will face below.
Changes in Mercedes-Benz customers
For customers, the most significant change is that they will buy cars from Mercedes-Benz, which means that their cars will be invoiced directly from the car manufacturer instead of the dealer. This also means that all customers across India will get the same price without negotiating with distributors to match each other’s prices. Since Mercedes will have all of its car inventory, they can also use a considerable number of cars to choose from. However, the sales and delivery of cars will still be facilitated by local dealers to increase the convenience factor for customers.
Changes in Mercedes-Benz dealerships
For distributors, the biggest advantage is that they do not need to buy and stock models, and at the same time they can provide customers with more models and specifications. In turn, this reduces the risk that dealers take, especially if the current lockdown prevents them from transferring inventory.
Nonetheless, these benefits are accompanied by a slight change in their roles, as their main responsibilities now become to establish, maintain and develop relationships with customers, as well as enable and simplify the sales and delivery process of Mercedes cars. They will also continue to carry out local marketing activities and initiatives.
ROTF’s impact on the services of other Mercedes dealers
This new sales model is only applicable to the sales of new cars, and will not change the operation of other businesses, such as customer service, used cars and parts businesses.
Mercedes-Benz India Program
The luxury car manufacturer recently launched a new, The second generation GLA SUV, A-class limousine with Updated E-Class in India.It also plans to launch many other models in the country during the year, such as New S class followed by Maybach S 580, And track-centric AMG GT Black Series.
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