Mercedes-Benz reportedly plans to roll out its direct-to-customer retail strategy in 15 global markets by 2025. This would reduce the company’s global dealer network by 10 percent, and in Germany alone by 20 percent. Traditional showrooms by 2025.
see photosMercedes-Benz plans to implement its direct-to-customer retail strategy in 15 global markets by 2025
Mercedes-Benz is focusing on increasing the number of direct sales to customers around the world. According to a recent report by Automotive News Europe, the company is reportedly planning to roll out its direct-to-customer retail strategy in 15 global markets by 2025. The report said that about 80 percent of the company’s volume could be acquired in Europe. Direct selling by 2025. If that happens, we’ll see a 10 percent reduction in the company’s global dealer network by the middle of this decade, and 20 percent fewer traditional showrooms in Germany alone.
Mercedes predicts that online sales will increase in the coming years to such an extent that by 2025, one in four buyers will buy their next car online.
Now, this is not a new concept at all. American electric car maker Tesla is selling directly to customers around the world and many other brands are adopting this strategy. However, among the mainstem premium/luxury car manufacturers mercedes benz It has been one of the first brands to adopt it. Right now, there are about five markets where Mercedes-Benz sells its cars directly to customers through online channels, and India is one of them. The Indian arm of the company introduced its direct retail strategy dubbed as ‘Retail of the Future’ in October 2021And since then, it has sold over 11,000 vehicles through direct sales.
Read also: Mercedes says more than 11,000 cars sold through future retail sales
Right now, there are about five markets where Mercedes-Benz sells its cars directly to customers through online channels, and India is one of them.
Now, this model proves to be more beneficial for the company globally as it not only enables Mercedes-Benz to have more control but also reduces the delivery cost. Automotive News Europe says the company needs fewer large dealerships in mature markets, according to Bettina Fetzer, Daimler AG, head of global communications Mercedes-Benz cars. Fetzer says that “customers are getting younger, wealthier, and more digital.” As a result, they are more inclined to shop online rather than going to one of the 6,500 dealers around the world. The company has around 1,000 outlets in Germany alone. Mercedes predicts that online sales will increase in the coming years to such an extent that by 2025, one in four buyers will buy their next car.
Read also: Mercedes-Benz C-Class Review
Mercedes-Benz is foraying into the luxury space with the creation of the Mythos lineup of Maybach SL, electric G-Class and ultra-limited special cars.
Having said that, the company is expanding its sales network in China by adding new outlets, and is also looking at dedicated AMG, Maybach and G-Class showrooms. As part of its growth strategy, the carmaker aims to focus on its more premium products rather than compact and entry-level cars. In fact, the company has decided to invest more than 75 per cent in the vehicles in the upper C-class segment. Additionally, the company is foraying into the luxury segment by producing the Maybach SL, an electric G-Class, and a mythos lineup of ultra-limited special cars.
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Source: Automotive New Europe Via motor1
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