The BMW Group is taking a step towards direct-to-consumer (D2C) sales, starting with its Mini brand. On Wednesday (Oct. 18), the luxury vehicle company announced that it will begin selling the brand’s automobiles in Italy, Poland and Sweden on Jan. 1, 2024, with more countries to follow. The company also intends to introduce D2C purchasing for BMW-brand products in 2026.

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“The new sales model will enable us to communicate directly with our customers and give the BMW Group a direct customer interface,” said Pieter Nota, member of the Board of Management of BMW AG, Customer, Brand, Sales, in a statement. “The aim of our new sales model is very clearly to increase customer satisfaction and offer the best premium customer experience in the industry.”

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The move towards D2C sales has been in the works for some time. Last year, BMW’s then-CFO Nicolas Peter told German newspaper Münchner Merkur that the company was in the process of “constructive talks” with the dealers that typically sell its vehicles, according to Reuters.

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Other car brands have already adopted the D2C model, such as Tesla. The move has caused car dealers to go digital in order to keep up. Seez, a company that helps dealers become online marketplaces, has shifted its focus to two products to help dealers move into the digital age, according to Seez CEO and Co-founder Tarek Kabrit in an interview with PYMNTS Karen Webster.

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However, online car sales are currently on the decline. Vroom, an eCommerce car-buying platform, reported that unit sales were down as much as 55% year over year in its most recent earnings report.

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According to findings from “The Key To Satisfied Car Buyers Is Digital Disbursements,” a PYMNTS and Onbe collaboration, 72% of automotive customer interactions are already digital. The report also revealed that 78% of online car buyers were highly satisfied with the experience, and only 3% would not purchase a car online again.

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In an interview with PYMNTS earlier this year, Alec Hartman, co-founder and CEO of D2C homebuilding startup Welcome Homes, spoke to the niche demand for purchasing houses directly from the brand via eCommerce channels. Hartman noted that the company is focusing on bringing value to smaller segments of customers at the moment.

The BMW Group’s move towards D2C sales is the latest example of the auto industry increasingly integrating eCommerce. As the industry continues to evolve, it will be interesting to see how the D2C model affects the car-buying experience.

Sources: https://www.pymnts.com/news/ecommerce/2023/bmw-tapping-d2c-as-auto-companies-turn-to-omnichannel/