Future of Parts and Service Retailing in the Automotive Aftermarket
5 Big Predictions for Future of Automotive Parts and Service Retailing
Ten to % of all global parts revenue will be generated online by 2025. Developed economies such as North America, as well as some developing economies such as China and Brazil, will see high growth in the next years.
OEMs and suppliers will increase direct retailing via digital platforms. Upstream participants are expected to position themselves better in downstream activities such as service, aggregation, and retailing, particularly in the BRIC markets.
Many pure eRetailers and aggregators will be acquired by traditional participants.
Aftermarket participants such as distributors, retailers, suppliers, and OEMs will acquire startups and competitive threats to secure and grow business.
China will be the most attractive market for revenue growth in digitization.
A perfect combination of high connectivity, strong VIO and aftermarket growth, and overall attitudes toward eCommerce will bring revenue opportunities through new business models.
By 2020, out of every 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.
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