Executive Briefings 2019
ICDP’s Executive Briefings - high-level summaries of our insights on the full range of programme topics - are available for all to read and download. If you make use of them in your own material, please remember to attribute ICDP as the source.
Executive Briefings from 2018 and 2017 are also available to download.
European sales and service networks – preparing for the big
shake-up
Pascal Haubenreißer EB 09/19
There is a broad understanding in the industry that many franchised sales and service networks require optimisation to reflect current and future pressures including the need to cater for an omnichannel customer journey whilst increasing viability. This angle of automotive distribution is a core part of ICDP’s annual research programme and gets reviewed constantly through our dedicated research streams, covering amongst others franchise networks, dealer groups, new retail formats, online channels or new business models. Together, these provide a holistic view on what the distribution model of tomorrow could look like. Based on current levels of over-representation of franchised outlets in many markets, and the resulting pressures on profitability of the business, we believe that major changes in the number of outlets within a network are inevitable, whilst new and more flexible formats at lower fixed costs will play an increasing role in catering for customer requirements. However, the transition to a new model.
Will parts producers reconsider their aftermarket strategies?
René Herrmann EB 08/19
Today, an original equipment parts supplier (OES) is involved in two aftermarket ‘worlds’, that of the OEMs (car manufacturers), and that of the IAM (independent aftermarket); each world brings with it its own set of challenges. OESs need to invest in research and development (R&D) to keep up with evolving OEM component requirements for their new cars, both for supply to the production line, and to the OEM-franchised aftermarket. In the IAM, OESs have to compete with other producers’ matching quality or budget spare parts, at the same time as being put under price pressure by the growing consolidation of the independent parts distributors (PDs). OESs need to handle these and other challenges all at the same time, as well as thinking about how to handle their customer needs in the future. In this Executive Briefing, we look at how parts suppliers might reposition themselves for future success.
Changing times: How the Block Exemptions will need to adapt to the ‘age of data’
Andrew Tongue EB 06/19
In Europe, a series of common EU-level competition regulations, the Block Exemptions, has defined how automotive and other franchise networks have operated for the past 34 years, giving guidance as to which ‘vertical restraints’ (so restrictions or requirements agreed between franchisor and franchisee) are seen as pro-competitive, and which are detrimental for markets. These regulations will be renewed again over the next 4 years, and the debate around what changes might be made is already well underway, with a particular focus on how the new dimensions of online competition are changing the traditional balance of power between suppliers, retailers, and third parties. This Briefing argues that this need to come to terms with the ‘age of data’ will drive a fundamental shift in the nature of European competition policy.
Launching into the European market with a ‘clean slate’ network – past approaches and lessons learned
Pascal Haubenreisser EB 05/19
Most OEMs over time have launched in their domestic market, and then expanded their operations over time into additional markets, appointing dealers and hiring staff as they roll out. They also follow an operating model of how vehicles are ordered, funded, stocked and delivered that drives their working capital and profit reporting. In the course of this, they have also created a legacy that can be a barrier to change, extending not only through their own organisation, but also through dealer investors and the expectations and behaviours of their customers.
2018 Guide to the world’s biggest dealer groups
Pascal Haubenreisser EB 04/19
Every year, ICDP tracks the evolution, fortunes, and strategies of the largest independent dealer groups across Europe. This research year, we have extended the scope beyond Europe to take in the largest independent dealer groups across the world, seeking to identify these operations, understand their performance and reveal differences in terms of the business model across markets and continents.
Will automotive third-party platforms consolidate?
Pascal Haubenreisser EB 03/19
Will automotive third-party online platforms follow the path seen in other sectors such as hotel/travel booking and consolidate into a small number of very powerful players?
Dealer group consolidation – a trickle or a flood?
Peter Bailey EB 02/19
Over many years we have witnessed increasing dealer group consolidation in the UK which has made its franchised networks the most concentrated large market in Europe.Is this trend specific to the UK, or are we about to see a wave of mergers and acquisitions amongst continental European dealers?
Large European dealer groups – can they take a leading role in OEMs’ network restructuring?
Pascal Haubenreisser EB 01/19
All OEMs are at some stage in the process of developing new network strategies for an omnichannel world. But does the growth of larger, more capable dealer groups open up new, and potentially more effective options for the future?