Driving through Automotive Aftermarket Challenges 2017-2020
Executive Summary
Aftermarket has been facing a lot of challenges which cannot be affected alone. Despite the steady growth of the capacity of the market in CIS and other Eastern European countries, the share of the premium spare parts suppliers is constantly decreasing due to growing competition and changes in economic and consumer preferences. One of the pain points is low culture of car repair with a lack of control systems and standards in the industry of mentioned regions. Moreover, over 60% of car owners keep buying spare parts for regular maintenance on their own. Therefore, online retail sales have been boosted which also means sales of counterfeit goods are up as well. It is easy to predict that under such trends and slow development of car repair industry the market will be focused on economy segments spare parts.
Over 2.5 years we have studied the keypoint changes and we came up with a solution which can give the most tangible results in a short period of time. The idea is to combine competence and resources of AGV agency and key manufacturers of spare parts to launch a joint platform of independent garages MOE-STO.com. This platform gives an opportunity to influence directly on the aftermarket at the both levels: garages and drivers, who will be using the platform for a quick and effective search of authorized garages.
“MOE-STO.com is the platform where we implement all modern innovative tools to create a system of mutually beneficial relations between all market players to keep the market share of top spare parts manufacturers in the long-term perspective”
2. Introduction
Describing a problem The market share of premium brands at Aftermarket declines due to several reasons: - economic downturn and decrease of purchasing power - increase in supply of low-priced Chinese brands - increase in supply of unfamiliar manufacturers “Made in EU” - increase in warranty period and prices decrease for OE parts.
3. Specific aspects of the problem. Counterfeit
DRIVERS face the following main OBSTACLES in making decision to purchase premium brand: - high price for spare parts - lack of transparent guarantee system - lack of professional points of sale and repair - growing number of counterfeits
Schaeffler Automotive Aftermarket has destroyed 26 tonnes of counterfeit and 2015 bearings worth more than €1 million
4. Solution
Solution we are proposing on Platform MOE-STO:
A) MOE-STO is the most convenient online platform for garages and extremely effective professional place, where GARAGES’ managers can improve their business using large list of progressive features, which can be reached in couple of clicks.
As example: it allows each GARAGE to open its own sub-site within a single system.
B) Mobile version of the service is a navigator in the car repair for CAR OWNERS. It provides: - quick search of the right GARAGE - effective search of good quality parts and compare prices - important data about car repair - notification of upcoming repairs. And more!
C) As a part of the service a CAR OWNER receives a recommendation on the most reliable manufacturer of spare parts and information where to purchase and install them with a GUARANTEE.
5. Results we hope to see on Platform MOE-STO
MOE-STO.COM is launched by an international marketing agency AGV-Aftermarket as a long-term project with an aim of promotion and strengthening the position of the leading manufacturers of Aftermarket spare parts.
With mutual cooperation we can improve business standards for the independent garages and develop all the market participants.