The Asia Pacific e-commerce automotive aftermarket is poised to record substantial gains owing to increasing automotive part sales in the region. Vehicle filters, brakes and light replacement parts are some of the key products being purchased from e-commerce platforms.
Awareness regarding the benefits of automotive filters like enhanced engine performance and lower carbon emissions have led to its demand lately. Hub assembly sales via e-commerce channels that offer video tutorial guides for decreasing the probability of product damage, time consumption as well as proper part change could benefit business growth.
Several companies operating in the Asia Pacific e-commerce automotive aftermarket are reportedly witnessing extensive growth. According to a 2019 report, in India, Flipkart witnessed a 1.7 times growth in automotive component sales, whereas Amazon India also experienced substantial sales of auto accessories. Due to such developments, Global Market Insights, Inc., estimates that the APAC e-commerce automotive aftermarket may grow over USD 34.46 billion by 2026.
Elaborating on few of the major trends in the Asia Pacific e-commerce automotive aftermarket:
- Increasing demand from third-party retailers
The third-party retailers segment is projected to hold around 95% demand share by 2026 owing to bulk purchase by independent service providers and auto workshops. The availability of effective customer services and ease in ordering products using RFQ (Request For Quotation) is likely to drive this demand.
Third-party e-commerce retail includes franchisee repair shops, auto centers as well as authorized and independent repair shops. Transparency in pricing and growing customization are some benefits which are positively favoring overall industry expansion.
- High sales through B2C distribution channel
The B2C distribution channel is anticipated to register a CAGR (Compound Annual Growth Rate) of 15% over the forecast period. The rising trend of DIY (Do-It-Yourself) among consumers is fueling the sales of vehicle parts through e-commerce channels.
On the other hand, the B to Small B channel is expected to record a CAGR of 15.5% on account of quick delivery, superior profit margins and easy availability. This distribution channel in particular consists of the trading of basic automotive components, such as sub-assembly systems and electronic units between medium-sized firms and equipment suppliers.
- Use of lucrative business strategies
Several market players are undertaking different business strategies like strengthening their product portfolio and expanding geographical reach. Vehicle part manufacturers are setting up e-commerce sites which provide a connection with suppliers and service technicians. The offering of instant services, enhancements in consumer services and quote development are some other business efforts being practiced by such firms.
Manufacturers are also focusing on educating customers through informative brochures and visual aids for product replacement. They are also identifying customer buying behavior to cater to evolving needs. E-market placement and superior product promotion are improving the conversion rate and internet traffic for auto products. Other key business strategies include giving customers information about operating hours, nearest store location, ability to purchase products on mobile applications and product availability.
About the Author
With an MBA in marketing, Samikshya is on a journey to explore all facets of content marketing and writes articles of interest across distinct industry verticals. Meticulous and driven, she has a keen interest in the English language and literature, with a notable curiosity for technology, fashion and luxury markets.