Table of Contents
Digital Purchases Likely to Account for Over 10 Percent of Total Sales by 2020
The online retailing market for automotive parts and services in North America has grown rapidly in North America since 2009. While lower online pricing has been the key growth driver, fulfillment and other convenience factors are increasingly becoming key value propositions for parts eRetailing. The research study analyzed the market through extensive interviews with market participants and consolidated secondary data. The research examines total online parts sales revenue, category analysis, competitive positions, and existing/emerging business models. The study period is from 2009 to 2012, with a forecast period of 2013 to 2020.
Executive Summary—Key Findings
Automotive parts eRetail revenues were an estimated $Xbillion in 2012 and is expected to cross the $X billion mark by 2020.
Automotive Parts and Service eRetailing Market: Key Takeaways, North America, 2012–2020
1. Online sales account for aboutX% of total aftermarket retail level sales. By 2020, eRetail sales are expected to reach about X% of aftermarket revenue with a CAGR of X%.
2. Marketplaces such as eBay and Amazon accounted for about X% of gross merchandize volume (GMV) in 2012. Increasing eRetailing through bricks and mortar retailers’ own Web site will lead to X% increase in GMV share for the direct channel.
3. Pure-play independent automotive eRetailers expected to lose market share, dropping from X% in 2012 to X% in 2020. Mass eRetailers and traditional automotive retailers/distributors will be neck-to-neck leaders with X% and X% shares respectively.
4. Exterior parts, performance components, braking, and filtration were the leading categories, accounting for nearly X% of all online sales. Tires, which is currently at about X% of overall sales, is likely to witness the strongest growth over the forecasted period.
5. Convenience factors such as fulfillment time and cost to customer will supersede lower online pricing as key value propositions for parts eRetailing.
The Automotive eRetailing Gap
Automotive participants are currently lagging in many areas, such as online penetration, mobile commerce, and fulfillment (shipping and delivery).
Automotive Parts and Service eRetailing Market: Automotive eRetailing Gap, North America, 2012
Key eRetailing Drivers: Bricks vs. Clicks
Overall eRetail: Close to X% penetration in certain segments, such as electronics, books, and entertainment.
Automotive eRetail: Only about X% penetration in parts sales; negligible market in service sales.
Gap Reduction Outlook: Participants are likely to target XX-X% online penetration.
Key eRetailing Drivers: Fulfillment
Overall eRetail: Free shipping; same-day shipping; emerging fulfillment modes such as self-collect locker boxes.
Automotive eRetail: Limited free shipping options; bricks retailers primarily relying on click ‘n’ collect models from own stores.
Gap Reduction Outlook: Bricks retailers are stepping up efforts but are unlikely to be able to compete with mass merchants and hypermarkets.
Key eRetailing Drivers: Social Commerce
Overall eRetail: Several retailers exploring full social commerce – actual purchases through sites such as Facebook.
Automotive eRetail: Primary focus on loyalty generation through dedicated Facebook pages, promotions and contests.
Gap Reduction Outlook: Full social commerce likely to be explored by established participants such as AutoZone.
Key eRetailing Drivers: Mobile Commerce
Overall eRetail: Nearly X% of North American retailers are offering full mobile commerce.
Automotive eRetail: Mobile commerce mainly restricted to product and location search; eBay and AutoZone are notable exceptions.
Gap Reduction Outlook: Full mobile commerce likely to be available from most key participants in the short term.
Key eRetailing Drivers: Digitization Models
Overall eRetail: Digitization Models
Automotive eRetail: Most participants are in early phases of digital integration.
Gap Reduction Outlook: Augmented reality, location-based services likely to be adopted in medium and long terms.
Key Questions This Study Will Answer
• What are the current factors driving the growth of the Internet sales channel for automotive parts and service channel? How does this growth impact market entities in traditional distribution channels?
• Which aftermarket channels are most threatened by the growth of Internet sales? Which competitors are expected to benefit from entry and participation in this channel?
• What are the limitations and drawbacks of the Internet channel?
• What are the value propositions, strengths, and weaknesses of key competitors in the Internet channel?
• What are the emerging opportunities in this channel? What strategies should competitors adopt to grow their market share and revenue in this channel?
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