India is the first CKD and the fourth worldwide market to implement Retail of the Future (ROTF)

 

With ROTF, there will no longer be any incidental or any other charges* levied to the customer across the product portfolio  

 

Mercedes-Benz already received 1,700+ units of customer booking through the ROTF in the beta phase

 

Key changes implemented with Retail of the Future (ROTF) model:

 

Mercedes-Benz will sell the cars directly to the customers | Mercedes-Benz India now nationally sets the ‘best price’ | Higher stock visibility and endless choice for customers with ‘centralized’ national stock | ‘Central order management’ by Mercedes-Benz India | Complete transparency in the purchase process| Zero stock and no liability for the Franchise Partners  

 

Key industry-first customer oriented initiatives:

 

• First manufacturer to offer national stock visibility transparently along with the production pipeline
• For the first time in Indian automobile industry: No incidental charges for the customer
• For the first time in India, VIN number confirmed during order booking
  
• First manufacturer to offer 14 days for order confirmation

 

Pune: Mercedes-Benz the country’s largest luxury carmaker, today implemented the futuristic and highly customer-centric ‘Retail of the Future’ (ROTF) business model, ushering in a fundamental transition in the luxury retail landscape in India. This ‘direct to customer’ model which was first announced in June 2021, was launched after the successful beta testing phase, by Martin Schwenk, Managing Director & CEO, and Santosh Iyer, Vice President- Sales & Marketing, Mercedes-Benz India, from the company’s Metro Auto Hangar dealership located in South Mumbai.

 

With ‘Retail of the Future’, Mercedes-Benz India will retain the ownership of the entire stock of cars and retail them via appointed Franchise Partners, by invoicing them directly to the customers. Mercedes-Benz will also be responsible for processing and fulfilling customer orders. With ROTF, there will be one nationally set price by the company, which will be uniform across the country.

 

Industry first practices:

Focused entirely on customer convenience, ROTF brings to the Indian customers a bouquet of industry-first practices, creating a new benchmark in transparency and customer convenience, aimed towards offering the best customer experience. With ROTF, customers will not have to pay any incidental charges for their purchase anymore. In addition, the customers will now have direct access to national stock giving them higher visibility to select their desired products from across markets. Mercedes-Benz also for the first time will now offer the VIN number to the customer even during the order booking stage.

At the announcement of Retail of the Future in India, Martin Schwenk, Managing Director, and CEO, Mercedes-Benz India commented, “In June 2021, we announced a disruptive retail business model which is highly customer-centric and promised a seamless, Omni channel and transparent experience to our customers. Today, we are proud to implement the ‘Retail of the Future’ in India after successfully establishing a robust digital backbone, which will support this significant transition in our retail business. ROTF is a unique customer-centric business model, which caters to the evolving trends of our customers while empowering our Franchise Partners by significantly reducing their financial and operational risks in the market. ROTF further supports our quest toward creating customer excellence as the Franchise Partners will now solely compete on providing a superlative customer experience.”

 

“With ROTF, we have created a completely unified customer journey experience with many industry-first initiatives to its credit. For the first time in India, there are no incidental or extra charges for the customers. Customers now have 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. As the most trusted luxury brand in the country, we have set a new standard in customer centricity, a new benchmark in Franchise Partners’ profitability, and introduced a new culture of competing only for the best customer experience.” Mr. Schwenk elaborated.

• Quotation: Utilizing the visibility of the ‘National Stock’ customers can conveniently interface with the franchise partner of their choice for the purchase of a Mercedes-Benz car
  
• Order Booking: Customers can book a car by simply paying an amount of INR 50,000 and then the order completion should occur over the next 14 days. For the first time in India, the VIN number will be confirmed with order booking thus ensuring complete transparency
  
• Order Finalization: An instant e-mail confirmation will be sent once the documents are verified and confirmed with Mercedes-Benz, as the car makes its way to the franchise partner. This process will be followed through end-to-end data security
  
• Invoicing: Customers can avail a wide range of payment choices at their fingertips in a smooth and secure environment. Upon payment realization within seven days, the final invoice from Mercedes-Benz will reach the customer
• Handover: The franchise partner will deliver the car at the customer’s doorstep or delivery at the showroom

• The company has launched an exclusive Digital Commerce Platform or DCP, which is an Online Store. DCP ensures a seamless online journey for customers where they can book a Mercedes-Benz car by themselves

• Search from the available stock, with product specifications and a detailed, transparent pricing
• Finance options presented upfront to customers
• Thorough booking process

• Avail the best price guarantee
  
• Experience a seamless omni channel purchase process
• Witness complete transparency and enhanced visibility of products
• Enjoy the best customer service from Franchise Partners
  

• Have better financial health
• Have zero inventory
  
• No market-facing risk
  
• Compete for best customer experience and not for price
  

• Responsible for selling cars to customers
  
• Responsible for centrally managing the selling price of all new cars
• Responsible for owning and managing the entire stock of new cars
  
• Responsible for order processing and fulfillment

• Total working hours: 99,210 hours
• No. of people involved in the project: More than 200 across India, Singapore, Germany
  
• Total time taken until implementation: 24 Months
• Total investment for ROTF: INR 600+ mn.

What does not change due to ROTF:

• Cars delivered only through Franchise Partners
• Franchise Partners continue to remain brand representatives in the market
  
• Franchise Partners responsible for developing customer relationship
  
• Franchise Partners will be managing operational handling of customer interactions
• Responsible for developing local market requirements
  
• Current showroom infrastructure will continue to remain the same
  

Mercedes-Benz India pioneered the luxury car market in India. Set up in 2009, Mercedes-Benz India’s world-class production facility is spread over 100 acres in Chakan near Pune. Since June 2015, Mercedes-Benz India also commenced production from its new expanded production facility located in the same premises. Mercedes-Benz India is part of Mercedes-Benz’s Global Production Network and plays an important role in the CKD/MVP production network in Brazil, Indonesia, Malaysia, Thailand, and Vietnam.  

 

At these locations, Mercedes-Benz produces vehicles in various extension levels for domestic markets. The production facility carries an investment of more than INR 2600 crores and has the largest installed production capacity for any luxury carmaker in India. Mercedes- Benz India also has the largest network spread amongst any luxury carmaker, 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. Mercedes-Benz India now boasts of the entire portfolio having ‘connected cars’. Mercedes-Benz India product portfolio comprises the locally produced Mercedes Maybach S 560, S-Class, E-Class Long Wheelbase, A-Class Limousine, C-Class and the GLA, GLC, GLC Coupé, long wheelbase GLE G350d and GLS luxury SUVs. Mercedes-Benz also locally manufactures three AMG models; the AMG GLC 43 4MATIC Coupe, the AMG A 35 4MATIC saloon, and the AMG GLA 35 4M SUV. Completely Built imported cars portfolio includes the EQC, V-Class, CLS, C-Class Cabriolet, the G 350d, the EQC, and the exciting AMG range.

 

In 2021 Mercedes-Benz’s motto is to ‘reimagine excellence’ and offer discerning customers the most desirable and sustainable products and services. Mercedes-Benz introduced the 2021 Mercedes me connect (Mmc) which is now equipped with new features deployed Over the Air (OTA) to all India customers with connected cars: Alexa Integration, Google Home Integration, and Parking Solution POIs in Navigation. The company started 2021 with the launch of the S-Class ‘Maestro Edition’, it introduced the 2021 GLC, the New E-Class FL, A-Class Limousine, AMG A 35 4M saloon, all-new GLA and the AMG GLA 35 4M, the Mercedes-Maybach GLS 600 4MATIC and S 400 d 4MATIC and S 450 4MATIC and S-Class CKD version. Mercedes-Benz India sold 4857 units in H1 2021 with a 65% growth compared to H1 2020. MBIL has sold 8958 units in January- September 2021 period. In 2021 Mercedes-Benz announced the futuristic and more customer-centric ‘direct to customer’ model, called ‘Retail of the Future’ (ROTF). According to this new business model, Mercedes-Benz India will own the entire stock of cars, sell them via appointed Franchise Partners, invoice the new cars to the customers directly, process the order, and fulfil them, offering one transparent price and purchasing experience for customers.