February 2022 ICDP webinar: Development of the relationship between OEMs, OESs, parts distributors, and repairers

We anticipate a range of pressures will change relationships across the entire aftermarket – along the franchised and independent channels and between channels.  We expect new relationship structures to be formed, and see some indications of this happening already, whilst some existing structures will be put under greater strain.  Besides resulting in changes of roles and responsibilities of the traditional players, of which some will have to refocus or exit, the developments will also accelerate the participation of new parties in the aftermarket ecosystem, trying to grab a share of a decreasing market.

The key pressures identified affecting aftermarket relationships at the 2030 time horizon include:

• Decreasing repair and maintenance operations per car (discussed in depth in our Aftermarket Projection Webinar 19th January 2022

• Higher technical content and complex

• Increasing direct OEM involvement in trade parts distribution

• Increasing digital services, functions on demand, and OTA updates/fixes disadvantaging the independent sector

• Digitalisation of the entire parts supply chain

• Shift of aftersales-related buying decisions to professionals

In the webinar, we provided an update on the evolution of repairer structures in the main markets, including emerging online channels, and comment on the ongoing consolidation of Parts Distributors.  We also highlighted the key levers driving current and future changes in supply chain relationships, illustrated by ‘new relationship’ case examples, and the views of senior executives from a range of players on the future evolution.  We commented on success factors, and outlined the new network relationships that are most likely to succeed and provide a ‘win-win’ for the parties involved through cooperation and ‘coopetition’.

The presentation shown is available below as a pdf and video recording

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