The aftermarket sector in the automotive industry is rising as consumers are personalizing their vehicles by exploring online stores. Thus, automotive players must build a strong online presence.
Fremont, CA: According to a study by Global Market Insights, the automotive industry is expected to grow at 4.4 percent CAGR from 2018 to 2023. In other words, the industry is expected to cross $680 billion by 2024. The reasons behind the growth are drivers hanging on to their vehicles longer, their desire to enhance efficiency through customization, and their inclination toward vehicle comfort. A different study by SEMA evaluates the consumers as who is buying what and their level of engagement with their vehicle. In the research, 20,000 drivers were surveyed, and out of the group, 5,000 people who accessorized or modified their vehicle were examined further.
Out of the surveyed commuters, 26 percent purchase parts to enhance comfort or attain vehicle personalization. 73 percent of the consumers, who accessorize their vehicle, use it every day. While 32 percent of consumers use their vehicles for pleasure driving, 27 percent use it occasionally, and 26 percent use it to commute for work. Consumers perform extensive online research; however, many customers prefer buying accessories from a physical location where they can feel the product.
With customers exploring the internet, more parts and services are expected to be sold online. Thus, aftermarket brands must have a robust online presence to attract buyers. Before buying or using search engines like Google or Bing, 73 percent of consumers visit online auto parts retailer websites, 47 percent visit automotive forums and 57 percent visit manufacturer websites. By 2021, the online activity of the consumers will influence nearly 152 billion in parts and accessory sales through all retail channels.
According to research commissioned by location intelligence company Cuebiq, 92 percent of retail marketers plan to increase their use of location data over the next two years. The study was conducted within four verticals such as automotive, retail, quick-service restaurants, and banking among the North American marketers and CRM managers. Out of all the researched retailers, 81 percent stated that the use of location data is essential in enhancing their marketing performance. 66 percent of retailers reported that understanding the competition is also a key driver for using location data. The rise of E-commerce has touched every industry, including the automotive aftermarket sector. Thus, brands have to adapt and optimize both their online and offline strategies.