Mercedes-Benz Korea said the direct sales system to be implemented on the 13th is a concept of providing customers with the "Best Price" and delivering cars on the date customers want.
Benz Korea executives held a press briefing with reporters from the Korea Automobile Journalists Association in Jung-gu, Seoul, on the 9th ahead of the implementation on the 13th of the new sales method, Retail of the Future (RoF).
Until now, Benz Korea consigned sales by handing vehicles over wholesale to dealers and delegating authority over pricing and service. Under the RoF system, Benz Korea will directly manage inventory and sell vehicles. Benz Korea will set integrated online-offline prices at least monthly. Dealers will change into a kind of agency that explains vehicles to consumers at these prices and handles delivery and after-sales service (AS).
Many expect prices could rise, as dealer-by-dealer discounts will disappear and prices will be the same nationwide. In response, Benz Korea plans to carry out promotions tailored to market conditions and demand and to disclose several months of promotions in advance to help customers make decisions.
Park Ji-seong, Benz Korea's RoF process Director General, said, "Even if you want to buy a car in May, with other brands you have to wait until May 1 to know the promotion," adding, "We can provide promotions now for cars to be delivered in May, June and July, and even for cars currently on ships. We have opened transparency on promotions for about three to four months."
Benz Korea said that even if the discount policy changes before delivery after signing with an advance discount, customers will still purchase the vehicle at the best price. Executive vice president Lee Sang-guk, who oversees digital, marketing and communications, said, "If the promotion (discount) goes up at the time of delivery after signing, the increased promotion will apply, and even if the promotion disappears, the promotion at the time of signing will still apply," adding, "The best terms being given to customers is a very innovative part."
They also said additional discounts are possible depending on the situation. Lee said, "In addition to official discounts, there will be areas where repeat customers and bulk buyers can receive additional discounts through various official programs such as the VIP program," adding, "You can check by meeting a salesperson."
A strength of the direct sales system is that the delivery time of vehicles can be predicted more accurately. Previously, dealers held inventory individually, so delivery timing varied even for the same model, and it was hard to know the exact timing. If the balance payment was delayed, customers were often pushed back in the queue.
Park said, "For customers who want a car in May, we will match them with cars prepared in May," adding, "Providing transparency to customers is the biggest strength of our system."
However, various variables can arise in the field. These include cases where a defect is found in a vehicle ahead of delivery or when a customer cannot prepare the balance even at the promised time. On this, Park said, "We have organized the process—such as slightly delaying the contract and delivery—through smooth communication with partner companies."
Customers can also easily check the vehicle purchase process on the website and receive related information via KakaoTalk. Park said, "Through the website's 'manage my vehicle order,' you can check where the car is, how it is being prepared, and what you need to prepare going forward."
He added, "Until now, most salespeople called customers at each purchase stage, but we prepared a system so customers can receive KakaoTalk messages through smooth communication."