Under ROTF, the brand will sell its cars directly to customers, while its dealerships will deliver the cars while ensuring servicing and other deliverables.
see photos(LR) Santosh Iyer, VP Sales & Marketing MBI, Mohan Mariwala MD Autohanger, Martin Schwenk MD & CEO MBI
Mercedes-Benz India has officially launched its new ‘Direct to Customer’ sales model called Retail of the Future (ROTF) in the country. The German luxury auto giant first announced its plans to move to a new sales program in June this year and aims to bring more transparency between the company and the customer as well as the automaker’s franchise partners. Under ROTF, the brand will sell its cars directly to customers, while its dealerships will deliver the cars while ensuring servicing and other deliverables, called franchise partners.
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With ROTF, Mercedes-Benz will sell its cars directly to customers, while its dealerships will take care of delivery, servicing and other deliverables.
Under ROTF, mercedes benz Own the entire stock of your cars and sell them to the customer directly online or through your showroom. The automaker’s dealerships remain intact and so do their service centers. Till now, the company’s dealerships used to buy cars in bulk from the manufacturer, which was then sold to the customer. That component has been removed from the equation. With this change, Mercedes-Benz India not only promises to offer better prices to all customers, but also reduces the inventory cost and warehousing burden of stockpile on the dealers.
Martin Schwenk, Managing Director and CEO, Mercedes-Benz India said, “With ROTF, we have created a fully integrated customer journey experience with several industry-first initiatives. For the first time in India, there is no accidental or extravagant customer experience. Customers now have direct access to the national stock of Mercedes-Benz India with a wide variety of inventory options. ROTF is a step in the right direction of getting closer to our customers, and is the result of listening to their wishes. Requirements.As the most trusted luxury brand in the country, we have set a new benchmark in customer centricity, set a new benchmark in the profitability of Franchise Partners and introduced a new culture of competing only for the best customer experience. “
While vehicle pricing, offers, invoicing and payments will be taken care of by Mercedes-Benz India, insurance, registration and other formalities will be handled by the franchise partners.
For the customer, the shopping experience will be almost the same. But they will now buy the car directly from Mercedes-Benz India. Therefore, the invoice raised will not be of any dealer but of the company itself. This removes little room for negotiation in terms of prices that the dealer can offer from his end. However, now they will have access to the entire Mercedes-Benz carpark in India, and will be able to choose their designed model, variant and color without any hassle. To work seamlessly on this new retail programme, Mercedes-Benz India has registered with RTOs at 35 locations across India and GST registration in 22 states. Mercedes-Benz will also offer customized offers for specialized working professionals, existing Mercedes customers, corporate discounts as well as others, which can be opted for at the time of quotation generation.
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Customers will now get uniform and transparent pricing, availability of large stock to choose from and better customer service as this will become a major focus area for dealerships.
However, the dealer will have access to a larger pool of cars from Mercedes-Benz India’s stock. The dealer will also facilitate delivery of the vehicle to the customer for added convenience. Given that dealerships are not required to buy stock in bulk, they don’t block a lot of money to buy vehicles, which can be used elsewhere in terms of business growth.
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The dealer or franchise partner will also be responsible for streamlining the installation, maintenance and development and delivery process to customers. They will continue with marketing and engagement activities as well as servicing the vehicle. The business of used cars and accessories will also remain with the dealer.
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