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E-tail channels could bring pricing pressure


Consumers’ preference for buying aftermarket automotive products online is growing three times faster than that of the aftermarket overall, according to a new study from the Auto Care Association.

As a result, the auto care industry must adapt and evolve in order to win on the online superhighway, the ACA said. Disruption to traditional brick-and-mortar distribution and the growth of consolidated e-tail channels could bring pricing pressure and transparency, but also new opportunities for growth.

The study, “Disruptive Trends Shaping the Future of the Auto Care Industry: E-Tailing 2018,” does not include estimates for tires and accessories.

The study estimates the value of automotive products bought online in 2017 at $15 billion and forecasts a compound annual growth rate of 9 percent through 2020.

The new report provides a comprehensive analysis of do-it-yourself (DIY) and do-it-for-me (DIFM) customer behavior, the implications of the e-tailing penetration in the auto care industry and strategies to avoid price erosion and disruptions.

The report also includes research on:

  • Emerging trends in the auto care industry;
  • Auto care industry market size, growth and segmentation;
  • Key market trends;
  • Sales per channel;
  • DIY market size, growth, penetration and purchasing decision drivers;
  • DIFM market size, growth, e-tailer vs. retailer value propositions;
  • E-tailing penetration implications, strategies and comparative analysis; and
  • Case studies.

The report also touches on three additional digital disruptors that are projected to create a transformative $30 billion opportunity in the auto care industry by 2030. These disruptions will be detailed in future reports under the Disruptive Trends Shaping the Future of the Auto Care Industry series.

The digital report is available to ACA members for $499 and to non-members for $1,599. To learn more or to purchase this publication today, visit digital.autocare.org/etailing2018.

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