Value of E-Commerce Tools Shifts Online Retailing of Automotive Parts and Services to Full Throttle

Transcription

1 Value of E-Commerce Tools Shifts Online Retailing of Automotive Parts and Services to Full Throttle Research PREVIEW for Future of Parts and Service Retailing in the Automotive Aftermarket

2 Key Highlights Ten to 15% of all global parts revenue will be generated online by Developed economies such as North America, as well as some developing economies such as China and Brazil, will see high growth in the next 10 years. OEMs and suppliers will increase direct retailing via digital platforms. Upstream participants will position themselves better in downstream activities such as service, aggregation, and retailing, especially in Brazil, Russia, India and China (BRIC) markets. Many pure eretailers and aggregators will be acquired by traditional participants. Aftermarket participants such as distributors, retailers, suppliers, and original equipment manufacturers (OEMs) will acquire startups and competitive threats to grow business. 4 China will be the most attractive market for revenue growth in digitization. A perfect combination of high connectivity, strong sales and aftermarket growth, and overall attitudes toward ecommerce will bring revenue opportunities through new business models. 5 By 2020, 2 out of every 5 parts sold in North America will be a private label. OEMs, in particular, will use private labels and value brands to expand into the aftermarket as they face greater pressure to increase profitability through dealership channels. Key: OEM = Original equipment manufacturer; BRIC = Brazil, Russia, India, and China; VIO = Vehicles in operation analysis.

3 Aftermarket 2025 Key Impact Areas and Trends Convergence of business models from various impact areas will create the strongest value propositions for customers in the future. 1 Channels 2 Technology 3 Service ecommerce Marketplaces Aggregators In-vehicle Sales Telematics / Connected Car 3-D Printing Augmented Reality Big Data In-store Technology Subscription Remote Mobile/Express Participatory 4 Geography 5 Customers 6 Products Urban Store Formats Glocalization (Expansion to BRIC markets) B2B (for eretailers) Women Drivers Gen Y Electronics/ Software Private Labels

4 New Entrants and Disruptive Models in the Aftermarket Traditional participants will need to invest or acquire new entrants in order to survive and grow. Parts eretailing Connected Car New Service Models Marketplaces: Amazon, ebay, Alibaba, Tmall, MercadoLibre Remote Servicing: Tesla Mobile Services: GO Tire Supplier Direct estores: Bosch (Tmall) OEM Direct estores: BMW, Suzuki (ebay) Prognostics: General Motors In-vehicle Retail Interfacing: General Motors, Continental Mobile Vehicle Service: yourmechanic.com Click n Collect Stores: Halfords Aftermarket Connectivity Solutions: Delphi (OBD-II) Quick Service: Ford Quick Lane, Kwik Fit Tires eretailing Participatory Services Aggregator Mobile Fulfillment: Allopneus Augmented Reality: AUDI, BMW, Volkswagen Parts Aggregators: finditparts.com Suppliers Direct selling: Goodyear Service Aggregators: Whocanfixmycar.com, autobutler.de, Allogarage.fr

5 The Connected Parts Store in 2025 The integration of available technology, to aid customer purchase pathways, and of evolving service channels will help realize the retail store of the future. Future of Automotive Parts & Service Retailing: Future Auto Parts Retail and Service Centre, Global, 2025 Self-service options with clear directional guidelines Attractive signage, social media feeds with customer feedback Electronic display of parts/virtual screens with real-time information on pricing, offers, availability Secure payment options, self checkout, pay-by-phone Relaxed space for female customers, single mothers, particularly at service centers FUTURE PARTS RETAIL & SERVICE CENTER In-store technology inclusion such as virtual assistants Self-serving kiosks, especially for merchandising, DIY customers Trained female staff targeting the increasing number of female customers Conveniently dedicated pick-up space for click and collect customers On-call support, designated relationship managers for premium customers especially at service centers Customized order fulfillment options with details available both online and in-store

6 The Full Analysis Features the Following Contents Section Slide Executive Summary 3 Research Scope, Objectives, Background, and Methodology 27 Top Transformational Shifts in Retailing and Their Impact on Aftermarket 34 Aftermarket 2025 Impact Area Channels 43 Aftermarket 2025 Impact Area Technology 58 Aftermarket 2025 Impact Area Service 77 Aftermarket 2025 Impact Area Customers 84 Aftermarket 2025 Impact Area Geography 91 Aftermarket 2025 Impact Area Products 101 OES Channel Case Studies and Scenario Analysis 108 Independent Aftermarket Case Studies and Scenario Analysis 117 Component Suppliers Examples and Benchmarking 123 Conclusions and Future Outlook 131 Appendix 138

7 Key Questions This Study Will Answer Future of Parts & Service Retailing Aftermarket: Key Questions This Study Will Answer, Global, What are they key trends impacting the future of aftermarket parts and service retailing? 2 What are the current strategies for selling parts and services, among OEMs, suppliers, and independent aftermarket participants? 3 What is the level of preparedness of each of the market participants in light of the evolving trends? 4 What are the value propositions, strengths, and weaknesses of key competitors across different channels? 5 What are the different dynamics of interest particular to each market across the globe?

8 Research Methodology Research Methodology: Frost & Sullivan s research services are based on secondary and primary research data. Secondary Research: This encompasses the extraction of information from existing reports and project material within the Frost & Sullivan database, and includes data and information gathered form technical papers, specialized magazines, seminars, and Internet research. Primary Research: More than 10 interviews have been conducted over the phone by senior consultants/industry analysts with original equipment suppliers, regulation authorities, and distributors. Primary research accounts for 80% of the total research. Future of Parts & Service Aftermarket: Key Industry Participants, Global, Company BMW Ford NAPA AutoZone Michelin Company Whocanfixmycar.com Federal Mogul Goodyear Allopneus EuroCarParts