Trends Transforming The Aftermarket Auto Parts Outlook in 2021
Each year, the Automobile Aftermarket Industry continues to grow. Consumers now have an abundance of choice: in auto parts and accessories in varying degrees of price points and quality, both online and in traditional brick and mortar establishments.
Worldwide, the Automotive Aftermarket Parts Industry is forecast to achieve $723 billion in sales by 2021. The US alone accounts for $296 billion. The industry includes both OE and aftermarket parts, equipment, service, and collision repair to name just a few.
At no time in history has there been such a diverse and technologically advanced line-up of cars, trucks and commercial vehicles options. New materials, advanced technologies, and e-commerce have captured the buying eye of every vehicle owner: each consumer wants better gas mileage, louder sounds, and shinier wheels. Exciting trends for the Aftermarket Parts Industry are coming into focus.
Hybrids on the Rise
Technology improvements in propulsion mean more opportunities for the aftermarket. Though gas engines remain in the lead, electric and diesel are gaining ground. The Aftermarket Industry must develop new injection systems and new breeds of turbochargers to reinforce these power plants.
Gas and Hybrids represent 3.6% of all new vehicle registrations, with diesel at 2.9%. While other power plant registrations have remained stagnant, hybrid registrations have increased by 64%.
The digital influence has transformed the way a consumer makes a purchase. Prospective aftermarket customers read everything possible, including reviews and videos. Year after year, consumers are besieged with online advertising, both on desktops and now their smartphones.
The Aftermarket Industry is catching up to the rest of the world by using smartphone and e-commerce technologies. Automakers are using mobile technology to make driving and owning a vehicle easier. Most automakers provide owners manuals and other essential information on their smartphone for easy retrieval.
94% of consumers head to a manufacturer’s website first to get product information and specific details on warranty. 84% wants to check and see if the part fits their vehicle, and 57% of consumers want detailed installation instructions.
In 2021 aftermarket e-commerce is expected to eclipse $12 billion in annual sales and over $19 billion by 2022. The online digital influence is projected to be 160 billion by 2022.
Auto Age is Going Up
A positive trend for the aftermarket industry, the average age of vehicles continues to climb. Passenger cars and the light truck segment, average age stands at 11.3 years. The older vehicles become, the more parts it requires to remain on the road. In the past six years, there has been a 14 percent increase in the age of automobiles, but manufacturers are also producing a better product with less need for mechanics and parts.
Consolidation of online and brick and mortar is now the name of the game.
Technology has leveled the aftermarket playing field. Major players once considered untouchable, are finding themselves in a fierce battle for market share.
- Niche markets: Only a few established online merchants are prospering under the new market paradigm. Customers are scouting for precisely what they need.
- Location is not everything: Businesses no longer require a physical address; technology has eliminated the need.
- Home solutions: Global supply chains exist for everyone who wants to set up a shop out of their garage.
No other entity on the planet has disrupted more industries than Amazon or eBay. Both online giants have aggressively pushed into auto parts. Mechanics use online retailers for accessing third-party and OEM product information along with shopping the best price. The DIY (do-it-yourself) market is in decline, mainly to the complexity of modern vehicles. Shopping and buying trends are moving online.
The Aftermarket industry is the most data-driven in the world so it’s not surprising that it is embracing digital transformation. Smart vehicles collect information on every facet of your experience, from detailed driver data to routes, traffic patterns and the type of oil used in your car.
In the not too distant future, autonomous vehicles will become technological marvels. Vehicles capable of guiding themselves offer a future of unmatched safety and driver comfort. Aftermarket players are working frantically to make the future happen now.
Parts suppliers and producers are finding imaginative ways to add value-added benefits to their product. Websites show what that new set of wheels look like on your vehicle or the performance boost of switching brands of oil.
Automotive Aftermarket Industry; Past & Future
Decades ago, automobiles, trucks, and commercial vehicles were simple systems with no computer. Buying a part meant heading to a dingy shop and greasy countertop. How times have changed.
Rather than an onerous task, buying a car or spotting that perfect performance part has developed into an exciting endeavor. The aftermarket industry is radically different thanks to an extensive array of emerging digital technologies.
READ MORE HERE: linchpinseo.com
Automotive Aftermarket E-Retailing Market to Grow by $ 41.86 Billion During 2020-2024
A recent report by Technavio projects the automotive aftermarket e-retailing market to grow by USD 41.86 billion by 2024, progressing at a CAGR of almost 19% during the forecast period.
As the COVID-19 pandemic continues to transform the growth of various industries, the immediate impact of the outbreak is varied. A few industries will register a drop in demand, whereas numerous others will continue to remain unscathed and show promising growth opportunities.
The automotive aftermarket e-retailing market has proven mostly COVID recession-resistant. The convenience of purchasing automotive products online has been the key driver for growth. With the availability of time spent at home to work on automotive projects during lockdown orders, the distribution of stimulus money earlier in the year, the desire to return to normalcy and rising car repair needs due to vehicles sitting at home more often, the pandemic has offered a lot of growth opportunity for the aftermarket.
Major Aftermarket Trends
The use of advanced analytical tools to revolutionize aftermarket e-retailing is a major trend driving the growth of the market.
The market is projected to grow at a CAGR of almost 19% and the incremental growth of the market is anticipated to be $ 41.86 bn.
The North America region will contribute to 35% of the market share. Some of the top players in the market include: Advance Auto Parts Inc., Alibaba Group Holding Ltd., Amazon.com Inc., AutoZone Inc., BuyAutoParts.com, eBay Inc., Genuine Parts Co., Icahn Automotive Group LLC, Parts Multiverse, and U.S. Auto Parts Network Inc.
READ MORE HERE: businesswire.com
Auto Parts eCommerce: Ways of Improving for 2021
In the United States, sales of new automotive parts and accessories will hit $16 billion in 2020. Hedges & Company predicts that over $10 billion of those sales will be on mobile devices.
The number of smart speaker consumers is expected to rise by 18% in 2021. A 2019 Adobe survey found that 85% of people surveyed use voice to control their phone and 39% were using voice on smart speakers.
Voice search is the signal of the future. It’s not just teens using voice. Voice search is used as well by those in the key 30 to 43 age demographic and even 38% of those 54 and older are relying on voice.
It’s becoming imperative for websites to be optimized for voice search. Voice search queries tend to be longer and more conversational and make frequent use of the query words such as who, how, and where.
Provide a Rich, Visual Experience
Denizens of the interwebs feed on rich, visual experiences. Gone are the days when they constantly grazed on giant walls of text.
An optimized automotive eCommerce website needs to be clean and loaded with eye catching graphics and visuals. Another trend that will continue well in 2021 is photography mixed with graphics.
Incorporate 360° Images
The eCommerce landscape is no longer limited to a flat, 2D view.
Rotating product technology is transforming the eCommerce industry. In the real world, buyers and researchers want to interact with a product from all angles. It’s the same in the virtual world as well.
When buyers can literally take the product for a spin, they see key details that provide better insight. Not only is this type of photography a delight to the eye, it has the capability to reduce your rates of return. Buyers clearly see the entire product from all angles. They know accurately what they are getting when they make the purchase.
Some sellers have reported higher conversion rates when site visitors can take products for a spin. These conversion rates vary from 10% to 40% over images on the same site that don’t rotate. So, in addition to reducing returns, there’s the ability to improve your conversion rates.
Leverage CRM for Targeted Marketing
If 2020 was the year for targeted marketing, 2021 will be the year for hyper-targeted marketing.
Buyers are looking for superior experiences, and targeted and personalized marketing approaches will pay off. 86% of customers are willing to pay more for a better experience, which can be achieved by forming the experience with highly personalized and targeted messages with live chat.
E-commerce technology and CRM technology go hand-in-hand. CRM gives you a 360° degree of your customer the way your customers take a 360° view of your products. This helps you know what products are being viewed, so you can follow-up with targeted messages.
Whether targeting by vertical, geographic market, or some other segment, your CRM offers the data and reporting you need to create campaigns and then evaluate their effectiveness.
Progressive Web Apps
Progressive web apps (PWAs) are bringing enhanced capabilities to any user in any location using any device. PWAs run in the browser, but act like they are an application running on the device. They provide excellent mobile experiences and have been used by corporate giants like Walmart.
Google says 53% of users will abandon a site if it doesn’t load in at least 3 seconds. PWAs are designed to be speedy and will provide fast response on low quality networks. That keeps users happy.
Users also like the anonymity of PWAs. Since no personal information is collected, there’s no reliance on email messaging. However, PWAs are masters of push notifications. And today’s users that are data security conscious will accept push notifications over providing information like an email address.
The Future of Automotive eCommerce is Bright
The marriage of automotive parts and accessories sales with eCommerce is providing a happy ever after ending for those who pick their partner wisely.
If you are looking to replatform your automotive eCommerce business, consider the following:
- Built for any business model. Many B2B solutions are just repurposed B2C platforms that can’t handle the complexities of B2B eCommerce. Make sure your platform will handle any business model you use, from B2B to B2C and marketplaces.
- Out of the box functionality. No solution comes out of the box perfect with everything you need. Look for a solution that gets you 80% there for the fastest ROI.
- Ecosystem and integration. Look at the solution ecosystem. What partners and community are available? You’ll find open source solutions have larger and more active communities and greater options for plug-ins, extensions, themes, and widgets. And of course, make sure your platform integrates seamlessly with your ERP, WMS, PIM and other business solutions.
READ MORE HERE: informationntechnology.com
What is next in Digital Marketing?: A 2021 Perspective
2020 has nearly ended and a new decade has arrived for both the world and for digital marketing strategies. The current COVID-19 pandemic is acting as an optimizer for digital marketing.
With social platforms like Tiktok and Instagram Reel revolutionizing the meaning of short video content and capturing the attention of generation Z, this year’s trends will spark a dramatic shift in marketing technology and customer behavior around the globe.
As a deep-rooted part of digital marketing, Pay Per Click (PPC) is well-known for providing a boost to ROI under the right circumstances. PPC users are 50% more likely to purchase than organic visitors as of 2019 and 40% of brands are willing to increase their PPC budget.
With PPC gaining more traction, Artificial Intelligence is also occupying an important role in digital marketing.
AI is no longer the next big thing in marketing, it is a big thing now. AI-powered tools are flourishing in the market now, with a drastic change in demand.
Changes that digital marketing agencies are adopting in 2021:
Using Multiple Platforms
This year, smart marketers are planning to test multiple platforms in order to decode whether a single platform will benefit their marketing strategy. With social media growing at an extraordinary pace, testing platforms such as Instagram Ads, Twitter Ads, LinkedIn Ads, and Amazon Ads offers the chance to experiment with new PPC networks, indulge in numerous targeting options, and reach millions of audiences globally.
PPC and SEO work together
By exchanging important keyword data and SEO ranking data, SEO and PPC teams will integrate to recognize position strategy and enhance Search Engine Result Page (SERP) coverage for all customers.
Thanks to smart devices like Apple’s Siri, Google Home (Nest), Amazon Alexa, etc. verbal integration with devices is on the rise. Talking has long been a preferred method of interaction, and now technology is integrating that preference in all the ways in which people want to search, shop, and find new things.
This presents some interesting challenges: conducting voice search is completely different from typing a query, particularly in the results. When an individual performs a text-based search, the screen displays the results one page at a time. When someone asks a smart device to conduct a search and the device answers verbally, it might give only limited choices at best.
Adopting a voice search strategy isn’t only about remaining relevant, it’s also about building a unique and optimized customer experience that will foster relationships and develop brand loyalty.
With so much being digitized out of necessity during this year’s pandemic, digital marketing has value in all industries. In the upcoming year voice search, AI technology, video and interactive content will be among the most prominent digital marketing trends.
READ MORE HERE: martechcube.com
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