MOUNTAIN VIEW, California, July 7, 2015 /PRNewswire/ -- Growth in global sales of connected cars will create a large pool of aftermarket retailers that design products in line with the latest technologies. The parts and service retailing segment of the automotive aftermarket is also witnessing a wave of digitization as dealers recognize the value of e-commerce tools. Original equipment manufacturers (OEMs) are securing existing distribution channels through telematics while expanding aftermarket reach through new business-to-business (B2B) models and online stores.
Recent analysis from Frost & Sullivan, Future of Parts and Service Retailing in the Automotive Aftermarket (https://www.frost.com/ne4b), finds that manufacturer-level replacement parts revenue stood at $340.64 billion in 2013 and estimates this to reach $471.88 billion by 2020; 10 to 15 percent of all global parts revenue will be generated online by 2025. In fact, eRetail parts in emerging markets like China and Brazil is expected to grow 10 to 15 percent by 2020.
For complimentary access to more information on this research, please visit: http://bit.ly/1CWgYjZ
Big data for aftermarket analytics and in-store technologies will be used to engage the customer at all stages of the purchasing cycle. Predictive analytics enabled by data will work in tandem with telematics offerings, such as prognostics, smart alerts, and in-vehicle sales, to personalize the buyer experience.
"GenY trends such as augmented reality, gamification and telematics will redefine user experience and open new opportunities for remote support and logistics," said Frost & Sullivan Automotive and Transportation Research AnalystAnuj Monga. "Since 53 percent of GenY millennial car owners are women, the introduction of selling strategies and store formats to drive sales and loyalty among female customers will gather pace."
Though online stores have brought in various benefits to the consumer, the elusive component has been the 'touch and feel' experience of the product. Hence, brick and mortar stores are still preferred by most customers globally, especially if it is a trusted store. In the case of B2B or B2C clients, the challenge is to break existing contracts and enter into eRetail partnerships for the same parts.
Incorporating a brick and click model – where physical and web stores coexist – is the best way to ease the transition to full-fledged eRetail. Integrating smartphones, eRetail stores and parts providers could be the step forward to one-on-one and customized retailing. Solution providers can leverage data and social commerce to develop aftermarket applications that cater to individual requirements and preferences. Software updates and remote diagnosis using applications onboard the vehicle can deliver instant support services.
"The convergence of technologies will bring forth a plethora of applications from OEMs and established brands, enabling the integration of real-time data through telematics and complete remote support right within the vehicle," elaborated Monga. "This integration of available technology to aid customer purchase pathways and service channels will map out the path towards the retail store of the future."
Future of Parts and Service Retailing in the Automotive Aftermarket is a Strategic Insight that is part of the Automotive & Transportation (http://www.automotive.frost.com) Growth Partnership Service program. This research analyzes how evolving technology and consumer behavior will change the way vehicle owners shop for automotive parts and service. With a focus on bricks and clicks convergence and B2B eCommerce, the study explores products and service offerings, distribution channels, and various customer groups. It also includes a competitive benchmarking for various parts and service retailers and provides case studies to support key findings.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Contact Us: Start the discussion
Subscribe: Newsletter on "the next big thing"
Register: Gain access to visionary innovation
Future of Parts and Service Retailing in the Automotive Aftermarket
NE4B-18
Contact:
Clarissa Castaneda
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: clarissa.castaneda@frost.com
