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Mercedes-Benz implements 'Retail of the Future' in India

Mercedes has already received over 1,700 customer bookings through the ROTF.

Mercedes-Benz has implemented its 'direct to customer' sales model called 'Retail of the Future' (ROTF) in India.

ROTF was first announced in June 2021. It has been launched after the successful completion of the beta testing phase, during which, the carmaker received over 1,700 customer bookings through the ROTF. India is the first CKD and fourth worldwide market to implement the new business model.

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

Here are the 5-steps of the offline Sales Transaction System:

  • Quotation: Utilizing the visibility of the ‘National Stock’, customers can connect with the franchise partner after checking the 'National Stock'.
  • Order Booking: Customers can book a car by paying an amount of Rs. 50,000. The order completion should occur over the next 14 days. The VIN will be confirmed with order booking.
  • Order Finalization: An instant e-mail confirmation will be sent once the documents are verified and confirmed with Mercedes-Benz. This process will be followed through end-to-end data security.
  • Invoicing: The invoice will reach the customer within 7 days after payment realization.
  • Handover: The franchise partner will deliver the car at the customer’s doorstep or at the showroom.

Key customer-oriented initiatives:

  • National stock visibility along with the production pipeline
  • No incidental charges for the customer
  • VIN confirmed during order booking
  • Mercedes to offer 14 days for order confirmation

Franchise partners will continue to remain brand representatives in the market. They will be responsible for developing customer relationships and local market requirements as well as deliveries. The current showroom structure will remain the same.

Mercedes-Benz has invested more than Rs. 600 million in ROTF. Over 200 individuals across India, Singapore and Germany spent 24 months setting up this project.

 
 
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