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e-Retailing in the European Automotive Aftermarket
- ID: 2132117
- April 2012
- Region: Europe
- 71 pages
This report outlines the key considerations when implementing an online strategy and assesses how a number of Europe's leading aftermarket companies have executed their strategies. It covers online presence, delivery, payment, and other facilities.
Online sales have increased rapidly in recent years, fueled by web-enabled devices, improved payment methods, broadband connectivity, and improvements in online retail offerings. The past few years have seen major retailers increasingly taking advantage of the channel, using it as a cost-effective platform to enter new countries and to boost sales and brand penetration in existing markets.
Features and Benefits
- Develop entry strategies for the online market, by learning of the most successful strategies that competitors have chosen and have been implemented.
- Improve online activities and boost revenue, by gaining insight into what consumers expect from a transactional website and online delivery options.
- Make decisions about your online products and service proposition, by uncovering how companies have diversified when using the internet for sales.
- Establish which products fit with your existing online portfolio, by studying the strategies of Europe’s most successful online aftermarket retailers.
- Seize the gaps in the online market, by establishing what your competitors’ online activities are, and where they are not active.
The development of online services within the economies of developed and emerging countries points to a fundamental transformation of the aftermarket industry, where existing and new web platforms will become increasingly prominent.
Aftermarket companies should expect to see the following developments online: Product diversification by specialist retailers; Spread of service concepts using the co-operative network strategy; Cross-fertilization of aftermarket channels; Officially endorsed aftermarket channels for vehicle manufacturers.
Your key questions answered:
- Which countries have the highest penetration of Internet users?
- Which of your competitors or competitive distribution channels have no transactional websites in place?
- In which products should you consider diversification via an online medium?
- Where are the opportunities for you company in developing an online strategy?
- Who are the pureplay e-retailers and how are they succeeding?
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About the series
ONLINE RETAIL STRATEGIC CONTEXT
There are a number of key motivations for opening online stores
Global Internet usage is growing rapidly, although Spain and Italy are lagging behind northwestern Europe
Northwestern European countries show the highest broadband subscriber rate, but southern Europe is catching up
Attitudes to shopping online and online payment are changing, which is fueling the growth of online stores
There are a number of strategic and operational considerations when developing online
Having an existing retail presence demonstrates sufficient demand for an online sales platform
Legislation plays an important role when deciding which markets to target
A non-transactional website provides a suitable platform from which to trade in a new market
Retailers can enter other channels to complement their online stores
Innovative delivery and collection services are increasingly expected
Payment methods and types of cards used vary globally and are key considerations before market entry
Retailers need to consider investment in a site's core functions and display to attract shoppers
Currency is a growing consideration for retailers, but is largely left unaltered by many
The lack of direct customer interaction makes customer service an extremely important function
STRATEGIC IMPLICATIONS OF THE RISE OF THE ONLINE MEDIUM IN THE EUROPEAN AFTERMARKET
Domination of the online medium by pureplay e-retailers poses a threat to traditional automotive aftermarket players
Manufacturers and traditional aftermarket players are seeing their supply chains fundamentally altered
Low barriers to entry create a competitive environment
RETAILER COMPARISONS FOR SELECTED MARKETS
Most auto and fast fit centers have no transactional website in place
Hypermarkets' automotive product ranges are limited to accessories
None of the featured tire specialists has a transactional website in place despite strong competition from online tire e-retailers
Some wholesalers offer online portals to commercial customers
Pureplay e-retailers' offerings mainly concentrate on tires
Most vehicle manufacturers have no online sales channel
Online sales of tires are dominated by pureplay e-retailers
Summary of delivery times and charges for online sales channels in the automotive aftermarket
STRATEGY IN FOCUS: E-RETAIL IN THE AFTERMARKET
Black Circles (and Tesco Tyres)
eBay BMW Direct
Other online car services
STRATEGIC ACTION POINTS
Traditional aftermarket channels have to develop their online offerings
Aftermarket companies should further develop their online presence to take advantage of general commercial trends
Online services should support physical infrastructure
Create an online presence in markets with physical outlets
Develop a non-transactional web presence with as much detail as possible if a transactional site is not feasible
Provide information on the non-transactional site as to the range of services
Operational – localize websites and operations as much as possible
Ensure website navigation is as intuitive as possible
Localization should be a core strategy for all functions on a transactional website
Flexible returns options are equally as important as delivery options
Encourage staff to promote the online store
Payment and delivery – demonstrate cultural awareness in all payment and delivery options
Be flexible in terms of delivery destinations
Minimize the number of clicks from product choice through to close of sale
Accept alternative payment methods such as cash on delivery
Offer flexible delivery options to maximize customer convenience and reduce missed delivery dates
Choose a logistical service provider that will meet your brand's values and your customers' expectations
Integrate your delivery service with your customer relationship management systems
Marketing – public relations has become an important step before entering a new market
Make promotional banners visible online
Invest in public relations and marketing in crowded markets
How will the aftermarket be shaped by trends in e-retail and online platforms?
Internet access and broadband data
Data on Internet purchasing behavior
Ask the analyst
Datamonitor's Global Automotive Proposition
Component Insight reports
Channel Insight reports
Strategic Insight reports
Consumer Insight reports
Table: Online transactional presence – aftermarket channels, autocenters
Table: Online transactional presence – aftermarket channels, fast fit centers
Table: Online transactional presence – aftermarket channels, hypermarkets
Table: Online transactional presence – aftermarket channels, tire specialists
Table: Online transactional presence – aftermarket channels, wholesalers
Table: Online transactional presence – aftermarket channels, pureplay retailers
Table: Online transactional presence – aftermarket channels, vehicle manufacturers
Figure: Global Internet usage, by country, 2009
Figure: Global broadband subscriptions, by country,
Figure: Proportion of consumers that shopped online at least once in
Figure: Main reasons why customers have never made online purchases
Figure: Proportion of consumers stating concern about fraud as a reason for not shopping online, by country,
Figure: Payment methods as a share of online transaction values, by country,
Figure: Some key legislative considerations for online retailers
Figure: A Kiala collection point instore
Figure: Pneus Online offers multiple language options on its main site as well as links to individual country websites
Figure: Displaying of social media links by aftermarket companies (Norauto example)
Figure: eBay BMW Direct site
Figure: Wholesaler online portal for commercial customers (Trost example)
Figure: Amazon hosts car parts online company carparts-discount (UK example)
Figure: Porter's Five Forces Model applied to the automotive aftermarket
Figure: Autocenter range of delivery options (Feu Vert France example)
Figure: Fast fit mobile fitting option (Kwik Fit example)
Figure: Tesco Tyres/Black Circles venture
Figure: Euromaster offers a battery service
Figure: Example of a vehicle manufacturer offering price information but directing customers to dealer (Mitsubishi Accessories)
Figure: Physical store and online store presence for tire sales,
Figure: Indicative comparative costs and fulfillment times for delivery by selected automotive aftermarket companies,
Figure: Example of Delticom's discounted prices (Germany)
Figure: Example of Pneus Online search function (UK)
Figure: Example of Pneus Online tire comparison function (UK)
Figure: Example of Oscaro promotions (France example)
Figure: Example of etyres price comparison
Figure: Black Circles offers car servicing
Figure: Black Circles offers a fitting service with realtime slots shown on its website
Figure: eBay BMW Direct site
Figure: Autobulbs Direct price comparison tool
Figure: Tuning service (Demon Tweeks UK example)
Figure: Example of a Tesco product with added customer reviews
Figure: Example of prominent advertising on Autobulbs Direct website
Figure: Use of social media by aftermarket industry (Renault example)