PRESS RELEASES - AUTOMOTIVE AFTERMARKET
GAP 1999 NEW TECHNOLOGY AND THE SERVICE AFTERMARKET
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 trends, parts/services'demand, and company/brand performance in the global service aftermarket. Although trends in the fast-changing global aftermarket vary, by region, country, market segment and outlet type, some common issues emerge. Here are some of the most important...
A market in transition: NEW TECHNOLOGY
New technology in cars is changing the aftermarket.
However, servicing computerised and electronic components, and also complex safety and luxury accessories (e.g. airbags, air conditioning and audio systems) requires major investment by outlets in expensive equipment and tools, along with staff training.
Winners
Globally, large outlets such as dealerships and franchises, which can afford to invest in equipment benefit from the changes in the aftermarket.
Dealerships in the aftermarket
Dealerships affiliated to car-maker companies aggressively target the complex, high-profit service segments. This channel is the main beneficiary of extended warranties on cars and parts along with quick-service franchises in convenient locations.
and Losers...
Small, independent outlets, which still account for most of the market in many countries, are under intense pressure. They lack the capital needed for expensive equipment and staff training. However, consumers like the personal touch these outlets can offer.
Parts Proliferation
Parts proliferation, due to the diversification of the vehicle park, continues. This increases pressure on inventory, stock control and space in both service and distribution channels. Fast ("as-needed") delivery is becoming a leading purchasing criterion in every market.
Longer-Life Parts
Longer-life parts create parallel trends. They reduce the frequency of servicing requirements. But they increase the average age of the car park.The latter trend will grow service demand in the longer term.
Regulatory
The stricter enforcement of mandatory car safety tests, and more stringent environmental regulations, grow demand for test-related services and parts, especially in Europe and the USA.
Vol. 2.No. 7. MCMXCIX Copyright © 1999 Diagonal Reports Ltd.
