Mercedes Introduces Direct-To-Customer Sales Model

Mercedes Benz India introduces a “Direct to customer” sales model, terming it “Retail of the Future” (ROTF) offering a better buying experience to its customers and financial viability to its franchise partners.

According to this new business model, Mercedes-Benz India will own the entire stock of cars and sell them via appointed Franchise Partners. The whole process of new car ordering, fulfillment, and invoicing will be handled directly by the company, offering one transparent price and purchasing experience for customers.

The primary roles and responsibilities of the Mercedes-Benz Franchise Partners include establishing and maintaining of customer contacts, developing the market, and facilitating the sale of Mercedes-Benz cars.

Mr. Martin Schwenk, Managing Director, and CEO, Mercedes-Benz India commented, “This long-term strategic move will strengthen our customer focus by introducing a fundamental transition in the retail business in the market. It also will deliver a win-win solution for both customers and Franchise Partners, underscoring our clear vision for a future that is sustainable, empowering, and digital. The advent of a new sales channel has brought sweeping changes in customers’ aspirations and requirements and being a customer-obsessed brand, we have adapted our current business models to meet our customers’ aspirations and needs. Retail of the Future is yet another pioneering effort from Mercedes-Benz for Indian customers.”

The new 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 Accessories business.

Mercedes- Benz India has the largest network spread amongst any luxury carmaker in India, with a presence in 48 Indian cities with close to 100 outlets. Through the exclusive AMG Performance Centres located in six cities including New Delhi, Mumbai, Hyderabad, Bangalore, Kochi, and Pune, the AMG performance sub-brand of Mercedes-Benz also boasts of a strong retail network presence in the country.