Distribution Strategy

BMW’s sales and distribution channels are 80% offline, i.e., the cars are available in stores, which the respective showrooms can provide on customers' visits. The other 20% of purchases are made online in a virtual showroom where customers can customize their cars and later pay for and obtain the cars.

The company does not appoint automobile distributors; it directly contacts authorized showroom dealers to sell cars to customers. It is to keep the sales less aggressive and to maintain their luxurious image in the market.

But distributors and stockists are at strategic locations for the distribution of spare parts, which helps maintain brand reliability.

Currently, BMW’s distribution is organized according to the "fi-fo" principle ("first in, first out"), taking into account the capacity of vehicle compounds and transport modes to create an efficient flow through the network.

The worldwide distribution of BMW’s vehicles costs $1.3 billion per year, with 60% of the output transported by rail, and the company is looking to increase this proportion for sustainability reasons. At the same time, to improve efficiency, BMW is using smart networks, data analytics, virtual reality, camera systems, and paperless operations.