How BMW will revamp its retail network for digital age

Where by do you see the most significant issues at the start out of the company product?

When we launch at Mini on Jan. 1, 2024, Mini will be totally prepared. Mini is not a guinea pig for anything that we could then do better at BMW two years later. All matters regarded as, we are presently very far along in terms of IT advancement and the new structures. From our stage of look at, nonetheless, it still makes additional sense to start off with Mini and then convert the BMW brand. Which is why we’re taking our time, so that we can then go into the start-up phase in levels.

Will all countries commence at the exact time on Jan. 1, 2024?

There will be a few waves. Germany’s transform will come in the 1st fifty percent of the calendar year. I can not say now how points will be at BMW in 2026.

Would the company also be conceivable for the U.S. in the potential?

No, unquestionably not. That would not be suitable with the normal conditions in the U.S.

Your competitor Audi, like other brand names in the Volkswagen Team, to begin with will only promote its electrical vehicles with an company model. Why are you carrying out points in different ways?

I believe it is particularly crucial to only introduce an agency design with the entire auto portfolio. Just about anything else will not get the job done in my view, due to the fact you then begin competing inside of your personal product range.

What do you mean?

If we introduce an company product for our electric autos only and a customer arrives to 1 of our dealerships since he/she wishes to get an i4, then below these types of an method it could occur that he/she leaves the dealership with a 4-sequence coupe. What I am stating is that we do not want our clients to be pushed in any way at the dealership just mainly because the dealership has yet another auto in stock. That is why I assume these types of a move is fundamentally improper. There will be no this sort of separation with us.

Is this a lesson learned from the agency design for your electrified automobiles that you released in 2013 and dropped by 2018?

The product labored properly in alone for the i3 and i8. In truth, the rationale we folded it again in in any case was mainly because of the opposition with the typical income technique. At BMW, the customer and his or her requires are in the foreground, not what the vendor at this time has on offer. The changeover now impacts the whole brand. That is unique. And that is why it will function.

Stellantis CEO Carlos Tavares desires to reduce distribution costs at his models by 40 % by 2030. Do you also see opportunity price savings in the company model?

For us, the company product is not a expense-slicing plan. Of study course, new efficiencies will result from a additional data-driven administration of our profits. We will be delighted to get that on board. But we are using this action to boost the consumer working experience and the brand knowledge. In the long term, the shopper will get the exact same provide and the exact same rates all over the place. That is particularly critical for us as a premium brand. We do not want the shopper to experience that they are staying quoted a distinct value everywhere.

But providing the exact same selling prices almost everywhere can also be a danger. For illustration, a auto that is marketing well in an place this kind of as Tegernsee in southern Germany can bring about desire to collapse in other locations of the place if stores have no scope for reductions. Would you accept a loss of income right here?

No, absolutely not. We have a pretty clear progress method at BMW, and we are also getting industry share throughout the world. In 2021, BMW was as soon as all over again No. 1 in the international premium section, and we want to remain in that spot. There are even now opportunities to reply with prices, even in the agency design. Just potentially not as locally as is at present the circumstance. Even the pricing now may possibly certainly not be ideal in all places, but in the new product there will at the very least be uniform costs.

But then you could get rid of a client to Mercedes or Audi for the reason that of 500 euros…

I do not see that going on. We generally have techniques of reacting, for case in point as a result of our younger employed automobiles. There are possibilities that we have now and will keep on to have.

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