Mercedes-Benz introduces 'direct to customer' sales model

'Retail of the Future' (ROTF) is claimed to offer a better buying experience to customers.

Mercedes-Benz has introduced a new 'Direct to Customer' (D2C) sales model in India. The company calls it 'Retail of the Future' (ROTF) and claims that it will offer a better buying experience to customers.

Here are the highlights of ROTF:

• One Customer, One Price
• Offered by Mercedes-Benz India directly via established franchise network and online
• Centralized stock now owned by Mercedes-Benz India
• Centralized ordering and fulfilment now by Mercedes-Benz India
• Better financial health of franchise partners due to lower cost structure and zero inventory

Mercedes-Benz India will own the entire stock of cars that will be sold through franchise partners. The new cars will be invoiced directly to customers. The selling price of all new cars will be centrally managed by the carmaker, offering the best price to customers.

Franchise partners will focus on maintaining customer contacts, developing the market and facilitating the sale of cars. The new model is expected to reduce the risk for franchise partners. They will be compensated directly by Mercedes-Benz India.

ROTF will be applicable for new car sales. Other verticals like customer service and pre-owned cars will continue unchanged.