News: Distribution

Search Autoparts/Aftermarket-business/News-distribution/

e-Tailing: Supplier Success Strategies

Wednesday, April 17, 2013 - 15:38
Print Article

E-tailing has grown rapidly over the last few years in the automotive aftermarket parts sector. While penetration in the aftermarket is still not large relative to some other industries, the importance of e-tailing to the automotive aftermarket extends well beyond just sales figures.

In a few short years e-tailing has begun to fundamentally change the business. The dramatic changes now underway across buying behaviors, brands, channels, prices and content are critical to understand. In turn, the changes to come in the future promise to be even more impactful. “e-Tailing: Supplier Success Strategies,” the AASA-exclusive analysis by Booz & Co. states, “The potential opportunities and threats from e-tailing are too great to not address.”

The Booz & Co. report includes an analysis of supplier strategies for success in this fast-growing segment of the aftermarket. Click here to download the strategic frequently asked questions (FAQs) from the report, and click here download the full members-only report.

Booz & Co. and AASA will discuss the report’s key findings and supplier success strategies in an AASA members-only webinar on Tuesday, April 23. Click here to register.

According to the study:

• “Remarkably, today, over half of all DIYers start their parts purchase process online; in another five years almost all DIYers will do so. The commercial market will be equally shaken, as Do It For Me (DIFM) consumers use the Internet in their buying process and exert greater influence over the service professionals’ parts decisions. These professionals in turn are also consumers, being heavily influenced by their own digital experiences and online immersion in information about products, brands, prices.”

• “E-tailing’s biggest potential value for suppliers is as a platform for engaging with customers and for developing a deep understanding of their behaviors along the ‘path to purchase’ – from research, to product and price comparisons and selection, to purchase and delivery. Indeed, across all product categories, the ‘offline influence’ multiplier is 4 to 6 dollars in traditional sales for every dollar of sales transacted via ecommerce. That is, while most customers engage online before they buy, the vast majority of sales lift from online engagement is from driving share gains offline.”

• “For suppliers who understand and leverage the Internet well, the prize can be great – better innovation, higher brand equity, faster and more profitable sales growth and more clout with channel partners. Suppliers can ill afford to pass up these opportunities, and at the same time they cannot take rash actions that incur the wrath of current customers. With sufficient planning and execution the channel conflict and pricing risks can be managed. Unlike the offline aftermarket, which changes at a fairly glacial pace in general, the disruptive effects of the Internet are much, much faster and more dramatic. Vastly different skills and capabilities are needed compared to the traditional business. Most aftermarket suppliers are behind and need to catch up.”

Article Categorization
Article Details
< Previous
Next >
blog comments powered by Disqus