Looking to succeed in the competitive auto parts market? Whether you’re starting an online store or expanding your brick-and-mortar business, selling auto parts can be highly profitable when done right. The automotive aftermarket industry generates billions in revenue annually, offering tremendous opportunities for entrepreneurs who understand the market dynamics and implement effective business strategies. This comprehensive guide covers everything you need to know about entering and thriving in the automotive parts industry, from market analysis to long-term growth strategies.
Color Trust New Market of Auto Parts
The automotive parts industry is still growing strongly due to an old car population and the rise in do-it-yourself repairs. The use of automobiles has increased significantly for not only is the average age of vehicles on the roads approximately twelve years, but there is a never ending market for replacement parts . This trend has been even enhanced by some economic facets pushing vehicle owners to keep on maintaining their cars for longer distant instead of buying new cars.
Primary research on the markets reveals that the global automobile aftermarket industry seems to be stretching new heights its in the coming years and can be a boon for companies in this segment. The advancement of e-commerce have shifted how auto parts are marketed and sold reaching the customers making the market competitive.
What Kinds of Auto Part Is It Possible to Offer
It is especially important to comprehend various classes of automobile parts in order to construct effective business plans. OEM stands for Original Equipment Manufacturer, and its parts are original like those used in building the vehicles. These parts tend to be much more expensive and are useful for consumers wanting to find precise replacemens for their cars. Although not always cheaper, OEM parts are original equipment manufactured parts that are recommended by dealers and consumers because they include manufacturer warranties.
However, aftermarket parts are cheaper and come in varied quality and the fit them perfectly across different models of cars available. All these parts run from economy class replacement up to performance enhancing replacement parts. The aftermarket sector has however improved and there are many companies in production of spare parts with attributes as that of original manufacturers and are comparatively affordable.
By its very nature, performance parts are in demand with the performance-oriented car owner and enthusiast. This segment comprises high-flow air filters, performance chip and custom exhaust systems. The performance market offers significant profit compared to the OE factor and buyers open for investing into higher quality improvements. This segment also consists of various specific installation and maintenance tools and equipment.
Another large market segment consists of remanufactured parts. These are normally restored to as good as new through intensive processes and most of these come with warranties that are nearly as good as new components. This is because as consumers look for cheaper and better quality remanufactured goods their market for remanufactured parts has expanded.
Let’s start by setting up your auto parts business.