4 Trends that are Shaping the Automotive Aftermarket

The automotive aftermarket is witnessing some dramatic changes, with online retailing, or e-tailing, slowly but steadily penetrating this sector. Consumer reliance on technology has prompted aftermarket service providers to broaden their range of offerings. It is expected that in the near future, a number of automotive aftermarket service providers will start e-tailing components and accessories. Let us take a look at 4 key trends that are shaping up the automotive aftermarket.

Direct Selling Gaining Traction among End-users

There are only a few things that have remained untouched by the wave of e-tailing. Automotive aftermarket, has for a long time, relied on dealers and garages, who stock the equipment and components from manufacturers, and fix them when the end-user brings his vehicle for repairs or servicing. However, the trend seems to catching in on the automotive aftermarket as well.

Bosch’s collaboration with Chinese online retail site TMall helped the company generate US$ 9 Mn in the very first year. Goodyear has already made its products directly available to end-users. Considering the positive reception to e-tailing of car accessories, it is expected that more suppliers will set up their shops online.

One key challenge for suppliers betting big on e-tailing is that unlike consumer durable products, fixing those new alloy wheels or changing the clutch wire requires some level of experience and knowledge. So, speaking strictly in B2C sense, e-tailing of automotive accessories runs the risk of being limited to only those who have the know-how.

Service Aggregation has a Huge Potential

As we discussed in the previous point, the challenge for online suppliers is that a majority of owners can’t fix their vehicles themselves. They rely on service centres for providing and installing new accessories or spare parts. In this scenario, online service providers can look to become service aggregators—they can provide the complete package, from product discovery to checkout.

Online retailers can display several quotations their aftermarket needs, and connect the consumer with the garage or dealer in his vicinity. The online retailer can then ship the accessory to the garage, who will do the final job of fixing it. This business model is already being incorporated, with U.S. based Openbay building an app which can even remotely diagnose the vehicles.

Higher Expectation of Service Levels in Emerging Nations

The service levels in emerging world aftermarket has always been lower than that of developed nations. However, the advent of digital age has brought in dissemination of information and customers are now focusing on higher service levels. Today, the expectations for service levels are between 95 to 99 percent, even in emerging markets.

Aftermarket companies in emerging nations have had to quickly adjust to the expectations, as start-ups are threatening to gain traction. The ASEAN automotive market, which includes Malaysia, Indonesia, Cambodia, Thailand, Singapore, Vietnam, and Cambodia, is already witnessing businesses make radical decisions to support these initiatives.

3D Printing is Making Inroads in the Aftermarket

The spare parts management market has got a new lease of life, owing to the innovation in 3D printing. Although the technology is still at a nascent stage, the future looks promising.

3D printing employs the use of on-site printing using the exact dimensions of the spare part that the customer is looking for. Instead of waiting for days for the spare part to be transported from the central facility to a dealer, customers now have the option to get their vehicle repaired quickly.

These were few trends currently shaping up the automotive aftermarket. Technology and e-commerce have made a massive impact on our lives, and it was only natural before it entered the automotive aftermarket realm. It is expected that in the near future, you will get to see a lot of technology involved when you take your vehicle for servicing.

Browse the full "Automotive Aftermarket: ASEAN Industry Analysis and Opportunity Assessment 2015 - 2025" market research report at http://www.futuremarketinsights.com/reports/details/asean-automotive-aftermarket