digitizing the global automotive parts and service industry
TRANSCRIPT
Digitizing the Global Automotive Parts and Service Industry
Changing How Consumers Shop for Parts and Service
Stephen Spivey, Program Manager
Automotive & Transportation
August 25, 2015
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Today’s Presenter
Almost 20 years of combined experience in consulting, market research,
journalism and sales, including more than 10 years focusing on the
automotive aftermarket.
Successful market entry and strategic consulting engagements with Tier 1
automakers and suppliers.
Stephen Spivey,
Program Manager, Automotive & Transportation
Frost & Sullivan
Follow me on:
https://www.linkedin.com/pub/stephen-spivey/11/853/75a
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Register for this Webcast
Live Webcast
Wednesday, August 26, 2015
10:00am EDT/3:00 pm BST
https://www.brighttalk.com/webcast/5560/167315
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• Global vehicles in operation
• Top transformational shifts to shape the future of parts and service retailing
Focus Points
• Omnichannel retailing• Connected retailing• New business models• Engaging retailing• Last-mile logistics• Big Data retailing• Global eRetailing• Parts and service
aggregators
• Influence of Female Drivers on the Automotive Aftermarket
• Augmented Reality
• 3D Printing
• Future Stores
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Global Light Vehicles in OperationThe total vehicle population will increase by more than 20% between 2015 and 2020, driving growing demand for automotive parts and service across the world.
Total Automotive Aftermarket: Light Vehicles in Operation, Global, 2015 and 2020
Note: Asia-Pacific includes China, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Taiwan, Thailand, and New Zealand.
Eastern Europe includes Bulgaria, Bosnia, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Poland, Romania, Russia, Serbia, Slovakia, Slovenia,
Turkey, and Ukraine.
North America includes the United States and Canada.
Latin America includes Argentina, Bolivia, Brazil, Chile, Colombia, Equador, Mexico, Paraguay, Peru, Uruguay, and Venezuela.
Western Europe includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden,
Switzerland, and the United Kingdom.Note: Center graph depicts 2020 data. All figures are rounded. The base year is 2012. Source: LMC Forecasting; Frost & Sullivan
North America
277.1
Latin America
88.8
Western Europe217.5
Eastern Europe
81.8
Asia-Pacific315.7
Rest of World130.7
North America
297.2
Latin America
108.6
Western Europe226.7
Eastern Europe
89.8
Asia-Pacific471.2
Rest of World147.1
2015 2020
VIO: 1.11 billion
VIO: 1.34 billion
Remaining Part of World121.3
South Africa8.0
Australia17.8
Rest of Asia-Pacific
83.9
India43.9
China262.6
Japan65.1
Rest of Eastern Europe
23.6
Poland20.6
Turkey15.8
Russia45.2
Rest of Western Europe
48.1
Spain23.7
United Kingdom34.1
France33.9
Italy39.1
Germany47.8
Rest of South America
8.5
Brazil53.8
Mexico24.8
Argentina12.7
Chile4.6
Colombia4.2
Canada25.5
United States271.7
0
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100
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350
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N. America Latin America W. Europe E. Europe Asia-Pacific Rest of World
VIO
(M
illi
on
)
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Top Transformational Shifts to Shape Future of RetailingKey Focus Will be on Customer Convenience and Experience
Future StoresExpress Service Stores,
Mobile
Omnichannel Retailing‘Bricks and Clicks’ Models
New Business ModelsSocial Commerce
Connected RetailingGamification, LBS, in-
vehicle
Last Mile RetailingClick ‘n’ collect; one-hour
delivery
Engaging RetailingEra of customized
targeting, Peer reviews
Big Data RetailingFrom selling products to
selling information
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The Connected Parts Store in 2025Integration of available technology levers aiding customer purchase pathways, along with integrating the evolving service channels will help realize the retail store of the future
Customized order fulfillment options with details available both online and in-store
Conveniently dedicated pick up space for Click and Collect customers
Relaxed space for women customers, single mothers, particularly at service centers
Secure payment options, Self check out, pay-by-phone
Electronic Display of Parts/Virtual Screens with real time information on pricing, offers,
availability
Self-Service Options with clear directional guidelines
In-Store technology inclusion like Virtual Assistants
Self-Serving kiosks, especially for merchandising, DIY customers
Attractive signage, social media feeds with customer feedback
Trained women staff targeting Increasing women
customers
On-call support, designated relationship managers for premium customers
especially at service centers
Future of Automotive Parts and Service Retailing: Future Auto Parts Retail and Service Center, 2025
Source: Frost & Sullivan
FUTURE PARTS RETAIL & SERVICE CENTER
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5 Big Predictions for Future of Automotive Parts and Service Retailing
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China Will be Most Attractive for Revenue Growth in DigitizationA perfect combination of high connectivity, strong VIO and aftermarket growth, and overall attitudes toward ecommerce will bring revenue opportunities through new business models
Source: Frost & Sullivan
2OEMs, Supplier Will Increase Direct Retailing via Digital PlatformsUpstream participants expected to position themselves better in downstream activities such as service, aggregation, and retailing, particularly in BRIC markets
3Many Pure eRetailers, Aggregators Will be Acquired by Traditional Participants Aftermarket participants such as distributors, retailers, suppliers and OEMs will acquire startups, competitive threats to secure and grow business
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10%-15% 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 10 years
5By 2020, 2 out of Every 5 Parts Sold in North America Will Be a Private LabelOEMs, in particular, will use private labels and value brands to expand into the aftermarket as they face greater squeeze to increase profitability through dealership channel
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For Additional Information
Stephen Spivey
Program Leader
Automotive & Transportation
(210) 247-3845