Mercedes-Benz is taking a leaf out of its Indian unit’s playbook, with plans afoot to implement in a number of markets a novel dealership ecosystem that was efficiently carried out by the corporate in India.
Not simply that, the India unit additionally served as a benchmark for Mercedes-Benz when it wished to develop its meeting operations to different rising markets and likewise as an inspiration for the corporate’s new state-of-the-art factory in Germany.
Referred to as ‘Dealership of the Future’ in India, on this system all of the car stock is owned by the automaker and gross sales are made by means of a centralised system reasonably than sellers buying the shares after which promoting to clients.
The advantages are multi-fold. For the reason that shares are centrally owned, shoppers should buy a mannequin with their desired specs and color even when it isn’t obtainable at their nearest showroom however listed by a showroom in one other a part of the nation. For the reason that mannequin is owned by the corporate, it can merely ship it to wherever the closest showroom to the client is.
Furthermore, value transparency from a centralised system will assist clients be relaxation assured that they’re getting the most effective deal on the automobile they usually could not go to a number of showrooms attempting to find the most effective discount.
There are advantages for the corporate too, because it will get a greater management over the value that clients pay. This not solely removes competitors amongst sellers over costs, but in addition lets the corporate have a greater management over discounting, extra of which can damage the model in the long run.
In the meantime, sellers profit from not having to borrow costly working capital from banks to fund the acquisition of their stock. They get a flat fee on gross sales and competitors amongst sellers shifts from value to customer support.
To make certain, the mannequin was first carried out by Mercedes-Benz’s items in South Africa and Sweden, from the place Schwenk drew inspiration. However the curiosity of executives again at Stuttgart piqued final 12 months when the India unit determined to implement this mannequin, given the complexity of the Indian market.
“We put a extra standardised template and India is a extra advanced market. So, if it really works right here, it is a stable proof of idea,” Schwenk instructed ET. “We additionally took a really aggressive timeline.”
Executives on the headquarters keenly adopted the progress, and after a 12 months of Mercedes-Benz India efficiently operating enterprise on this mannequin, it can quickly be carried out in Europe and different markets by the luxury-car maker.
One other occasion of Mercedes-Benz drawing upon the expertise of its India unit displays in its futuristic and distinctive Manufacturing unit 56. The manufacturing unit has set the benchmark in versatile manufacturing, placing collectively the corporate’s top-of-the-line electrical, hybrid and combustion-engine pushed limousines all on the identical manufacturing line.
“We learnt this flexibility from our meeting crops (like in India). India additionally produces a number of fashions on the identical line,” stated Jorg Burzer, international head of manufacturing and provide chain administration and a member of the board of Mercedes-Benz Group AG.
When the corporate wished to arrange meeting operations in Brazil, it drew upon the expertise of executives from the India unit.