Although the automotive aftermarket is growing rapidly, there are still many pain points in the entire industry, including high fragmentation, irregular competition, and slow improvement in industrial efficiency, and low consumer awareness and trust in aftermarket service companies. . Because OEMs and accessories manufacturers absolutely have the right to speak in the industry, Internet companies trying to enter the automotive aftermarket cannot avoid the problems of traditional 4S stores and supply chain management.
The process of digitization of the automotive aftermarket has improved the user experience, but it has also increased the survival pressure of traditional workshop-style “mom and pop shops”.
In a report released by Roland Berger, he pointed out that in the next 5 to 10 years, it will be a key stage of market transformation and reform after independence. The offline stores in the auto parts market will be integrated, especially the single stores, which will become the object of integration. The development trend of different channels is that national and regional chain stores will maintain rapid development and expansion; comprehensive maintenance plants will remain relatively stable; ” The mom-and-pop store market share will decline. Public data shows that in 2021 alone, more than 20,000 auto repair shops will be transferred on a certain city website.
“The digitalization process of the automotive aftermarket has accelerated, and the proportion of consumers who book online and obtain car maintenance services has increased significantly in the past two years. In addition, consumers are accepting standardized services, especially high-quality standard services. This has put a lot of pressure on individual auto repair shops and mom-and-pop shops that were scattered, fragmented, and single-handedly in the market.” Director of Shanghai Fuchuang Industrial Development Co., Ltd. (hereinafter referred to as “Futron”) Zeng Hongwei, general manager and general manager, recently told a reporter from China Business News.
With the increase in car ownership, the scale of the automotive aftermarket has grown rapidly, and has now reached a trillion-level scale. According to the CIC report, it is expected that the size of the automotive aftermarket will reach 1.7 trillion yuan by 2025, with a compound annual growth rate of 10%. However, the competition in the automotive aftermarket is becoming more and more intense. As Zeng Hongwei said, individual auto repair shops and mom-and-pop shops are under enormous pressure.
On the other hand, car dealers with 4S stores as the main body are also facing greater competitive pressure. In the past, due to the high price and opacity of after-sales service in 4S stores, many consumers began to choose to leave the 4S store for maintenance after the end of the vehicle warranty period. Although 4S shops have a user base, they are often criticized in terms of service and price, while individual auto repair shops are cheap but guaranteed in terms of quality and service quality, which provides opportunities for other players in the automotive aftermarket. In the face of this blue ocean market, Internet players including Tuhu Auto and JD.com have entered the game.
Post time: Mar-08-2022