How to Thrive in the Evolving Automotive Aftermarket
2018-11-30 11:15 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. Due in large part to this, the automotive aftermarket has become one of the most promising industries in China, with a projected market value of 1.65 trillion RMB in 2021.
With the rapid development of online automotive service market, the capital market has taken notice of these positive indicators, leading to a wave of investment.
To capture market share and differentiate themselves, many online automotive service platforms have launched discount promotions to jumpstart their business. However, the developing automotive aftermarket is still plagued by problems such as poor service quality, imperfect supply chains, and overreliance on outside capital.
There are several important aspects that contribute to developing a successful platform.
To improve their market position, online auto platforms should draw from past successes and failures. Success can only be achieved by improving upon certain issues in the auto aftermarket, notably, service quality, technology and cost effectiveness.
Taking Advantage of Market Demand
Thanks to increased vehicle sales, the value of China's automotive aftermarket has grown at a consistent 25% annual rate. As the third fast-growing sector within automotive aftermarket, car washing is a notable example of a service area that has been profoundly affected by online platforms.
Open Application Programming Interface
For online platforms, the app user experience is the key to attracting and reinforcing online traffic. The best way to improve the user experience now is to utilize the open application programming interface.
Collaboration between brick-and-mortar aftermarket stores and online platforms can, and likely will, accelerate the restructuring of the auto market.
Such coordination can be mutually beneficial, helping both in more precisely target consumers, improve service quality and achieve sustainable growth.