The Emerging Internet Auto Aftermarket
2018-11-09 11:23 Friday
According to data from the Chinese Traffic Management Bureau, there are now over 300 million vehicles in China, of which 200 million are cars, and t 328 million drivers.The number of private cars in China has increased by an average of 1.64 million from the second half of 2016 through the present. The capital market has taken notice of these positive indicators, leading to a wave of investment in the auto parts, auto maintenance and auto insurance sectors.
As the market has grown substantially and become increasingly sophisticated, brick-and-mortar stores can no longer entirely meet consumer demand. Problems such as low efficiency, inconsistent management standards, poor service quality and opaque pricing still plague the industry.
At the same time, demand from the primary demographic for the automotive aftermarket, consumers aged 25- 35, has soared.
Attracted by promising growth, e-commerce giants have rushed headlong into the automotive aftermarket. The emergence of online automotive service platforms has provided new opportunities in the market, as well as facilitated transparency and standardization.
Due to fierce competition and unified maintenance standards found on online platforms, consumers have had access to quality service at fair prices.
Although many platforms have become profitable almost immediately, China's online automotive aftermarket is still far from mature, and a long way from replacing brick-and-mortar business.
Industry experts believe that collaboration between automakers, 4S shops and e-commerce platforms will become commonplace in the near future, indicating that online automotive service platforms are still in their initial development stage.
Internet-driven models make leveled the playing field in the automotive aftermarket, allowing customers to obtain quality service at lower prices while minimizing costs.