Mercedes-Benz, as part of a global reform of its business, intends to reduce the number of dealerships and rely on direct sales of cars.
Most of the brand's dealers will switch to an agency model of work by 2025. It involves earning in the form of a commission on the sale of each car, while the car dealership is freed from the need to create stocks of popular cars at its own expense and independently invest in advertising and promotion (the manufacturer fully assumes these costs). Under the agency scheme, dealers will have lower revenues from the sale of their own cars, but they will be able to compensate for the losses through after-sales service, Automotive News notes.
Another innovative distribution channel is through the official website. Mercedes-Benz expects to bring the share of online sales of its cars in the world to 25% by 2025.
By reducing the role of dealers, Mercedes-Benz will be closer to the customer and have better control over product pricing, said CFO Harald Wilhelm.
In Germany, which is native to the brand, the number of Mercedes-Benz showrooms will be reduced by 20% over the next three years, while 10% of car dealerships will be abandoned in other “mature” markets. The company emphasizes that the age of the average buyer of Mercedes has become lower in recent years - and these people are “more connected” (they prefer to buy via the Internet). At the same time, in China, the company intends to expand the geography of physical points of sale.
Today, the Mercedes-Benz sales network includes 6,500 car dealerships worldwide, of which 1,000 are in Germany.
Mercedes-Benz will reduce the number of dealers and switch to direct sales of cars
