PRESS RELEASES - AUTOMOTIVE AFTERMARKET
LOYALTY TO GENUINE CAR PARTS IN THE AUTOMOTIVE AFTERMARKET
The Diagonal Reports' Global Aftermarket Panel (1999) interviewed 170 marketing channel experts representing more than 30,000 outlets, and 60 million service visits in 18 countries. GAP 1999 reviewed industry parts/services demand, and brand performance.
In the fast-changing global aftermarket loyalty to genuine parts varies, by region, country, market channel and consumer segment. However, some common brand-related issues emerge. Here are some of the most important...
HIGH LOYALTY MARKETS
Globally, loyalty to genuine parts is highest in the most mature auto aftermarkets (e.g. the USA, Japan and Italy) and in the tied channel. This loyalty is due to strong brand image, a reputation for quality, and close buyer-supplier ties. Further, a "buy domestic"attitude maintains sales for local manufacturers in some markets.
However, even in mature markets genuine parts face strong competition in the fast growing service and retail franchises. In France and Australia own label brands are gaining share due to parts' quality, competitive prices, and in some cases better service (e.g. delivery and warranties) than genuine parts companies.
GENUINE AND NON-GENUINE: A DISPUTED DISTINCTION
Loyalty to genuine parts is low in some of the largest new auto markets such as South Africa, India, and China. Loyalty will be hard to establish because the sector insists that there are no real quality differences between genuine and non-genuined non-genuine parts.
South African experts are not alone in justifying the high, and open, usage of non-genuines. Like their counterparts in Spain, they argue that the distinction between genuine and non-genuine parts is false. They note that car maker companies outsource the production of their own "genuine" parts. Indeed some dismissed the term "genuine" as "a scam" by car makers to charge higher prices.
GENUINE AND SPURIOUS
In some markets, such as China and India, distinctions between genuine and non-genuine parts are less important than distinguishing authentic from spurious (counterfeit) parts. In these price-driven markets it will be hard for genuine parts to win market share because of the easy availablity of cheaper non-genuine and counterfeit parts.
Loyalty to genuine parts by country
High
USA
Japan
Italy
Medium
France
Australia
Spain
South Korea
Hong Kong
Low
Singapore
Taiwan
Egypt
Lowest
South Africa
India
China
Vol. 2.No. 8. MCMXCIX Copyright © 1999 Diagonal Reports Ltd
