- Mercedes-Benz to own the entire stock of cars and sell them via appointed franchise partners under ‘Retail of the Future’ (ROTF) sales model
- ROTF business model will be implemented in India from Q4 2021, onwards
- The franchise members will be compensated directly by Mercedes-Benz India
In an effort to enhance the car buying experience, Mercedes-Benz India has undertaken the ‘direct to customer’ sales model, called ‘Retail of the Future’ (ROTF). The initiative is expected to offer a better luxury car buying experience to customers. According to the new business model, Mercedes-Benz India will own the entire stock of cars and sell them via appointed franchise partners. Moreover, the new cars will be invoiced to the customers directly, the orders will be processed and fulfilled, thereby offering a transparent price and purchasing experience for customers. The ROTF business model will be implemented in India from Q4 2021, onwards.
It is worth noting that the ROTF business model will be limited to the sale of new cars. There will be no change in operation for separate business lines including customer services, pre-owned cars, and accessories business. Mercedes-Benz India will centrally manage the selling price of all new cars.
Post the implementation of the ROTF sales model later this year, customers can expect the following benefits –
- Avail the best price directly from the company and benefit from a transparent price comparison across the range.
- Mercedes-Benz will directly invoice the new cars to customers instead of its franchise partners.
- Customers can choose a colour of their choice without worrying about agreeing with the existing colour options at the franchise. Under the ROTF sales model, the process will be simplified and car with the customer colour preference can be arranged. The entire process will be seamless and hassle-free.
The following are the benefits for Mercedes-Benz franchise partners –
- Transition to ‘direct to customer’ retail partners of Mercedes-Benz India for new car sales
- The franchise members will be compensated directly by Mercedes-Benz India
- Availability of a larger pool of stock cars
- Reduced risk and no inventory
Although Mercedes-Benz will own the entire stock of cars, the vehicles will continue to be sold via the franchise partners and they will continue to remain brand representatives in the market. They will also be responsible for developing customer relationship and manage operational handling of customer interactions. Moreover, the franchise partners will be responsible for developing local market requirements, continue with local retail marketing activities, and will be responsible for lead generation and management. The current showroom infrastructure will not be altered and will continue to be the same.
