Aftermarket Auto Parts e-Commerce Will Top $67 Billion by 2005
8 May 2000
Aftermarket Auto Parts e-Commerce Will Top $67 Billion by 2005 According to Lang MarketingWYCKOFF, N.J., May 8 Aftermarket auto parts e-commerce will exceed $67 billion at retail price by 2005 projects Lang Marketing Resources, a leader in vehicle aftermarket research and analysis (http://www.langmarketing.com). Business-to-consumer aftermarket product sales (B2C) will top $5 billion during 2005, with business-to-business (B2B) aftermarket product volume surpassing $62 billion by 2005. Aftermarket auto parts sales involve all products used in the repair, maintenance, and/or modification of cars and trucks. Business-to-Consumer (B2C) 2005 Aftermarket e-commerce Lang Marketing's $5 billion projection for 2005 aftermarket B2C product sales covers direct internet purchases. There are four primary ways the internet will drive consumer aftermarket activity, with only the first representing direct internet sales: 1) Purchases over the internet. (direct) 2) Store purchases influenced by the internet. 3) Service work scheduled over the internet. 4) Service purchases influenced by the internet. Lang Marketing estimates the total aftermarket impact (direct and indirect) of B2C e-commerce will top $20 billion by 2005, considering all the ways in which the internet will influence the aftermarket at consumer level. Accessories (products used in the modification of vehicle appearance, handling, and/or performance) will account for the largest share of direct 2005 B2C aftermarket retail sales (56%), followed by replacement parts (products used in the repair and maintenance of vehicles) representing over one-third share (36%) of 2005 B2C direct volume. All other types of products (chemicals, tools, gear, etc.) will comprise 8% of 2005 B2C direct aftermarket volume. Business-to-Business (B2B) 2005 Aftermarket e-Commerce Lang Marketing projects B2B aftermarket direct product volume will top $62 billion by 2005. B2B aftermarket volume will be many times greater than B2C sales because of the much larger size of the service-installed side of the car and truck aftermarket as well as the multiple sales levels of the many aftermarket distribution channels. B2B activity involves both the DIFM (do-it-for-me) and DIY (do-it-yourself) sectors of the car and light truck aftermarket since much B2B activity along the distribution chain will precede consumer DIY (B2C) purchases. Add to this sales mix heavy truck and other aftermarket product use (sectors generating nearly 30% of 1999 aftermarket product volume) and B2B direct aftermarket auto parts volume will total more than 12 times projected B2C direct sales for 2005. The indirect aftermarket impact of B2B e-commerce will be even greater.