Back in June this year, Mercedes-Benz had introduced its direct-to-customer sales model called 'Retail of the Future' (ROTF) in India. And after successfully examining it under the beta testing phase, it has been finally implemented for its entire new sales model. As of now, the dealer used to buy the car from the OEM and then sell it to the customers.
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What is Retail of the Future (ROTF)?
Under the new Retail of the Future (ROTF) model of the Mercedes-Benz, customers will now be able to purchase a car directly from the manufacturer, eliminating the role of the dealership. That means a customer will no longer have to depend on the dealer stock. That said, the complete inventory of the new vehicles throughout the country will now be owned and managed by the carmaker itself, not by the individual dealers. With this, Mercedes-Benz will be able to provide customers with the VIN (vehicle identification number) at the time of the booking. Customers will be able to book a car online by paying an amount of Rs 50,000.
This model will also ensure uniform pricing and offers across the country. It will also help to bring down the waiting periods for some of the models. However, it is important to note that the ROTF model will not be applicable to its pre-owned car business and aftersales service. That means, the going dealerships network of the Mercedes-Benz will continue to operate and they will still be responsible for test drives, vehicle deliveries, and services. Mercedes claims that this model will help in the better financial health of the franchise partners due to its low-cost structure and zero inventory.
The luxury carmaker has also revealed that they have received over 1,700 orders during its testing phase.
Commenting on its latest move, Martin Schwenk, MD, and CEO of Mercedes-Benz India said –
Today, we are proud to implement the ‘Retail of the Future’ in India. With ROTF, we have created a completely unified customer journey experience with many industry-first initiatives. For the first time in India, there are no incidental or extra charges for the customers. Customers now have a direct access to Mercedes-Benz India’s national stock with a wide variety of inventory choices. ROTF is a step in the right direction in getting closer to our customers, and a result of listening to their wishes and evolving requirements.
