Cars Being Loaded With Accessories by OEMs - Challenges & Opportunities for Aftermarket Players in India
In the last couple of years, Indian auto accessories aftermarket has seen a lot of ups and downs and has been riding on a rollercoaster ride for quite some time now.
Image for representation.
A modern range of cars is fully loaded with technology-driven features and futuristic accessories that are enough to catch a large segment of potential buyers. With a versatile range of instant finance and car loan options within a few clicks, modern customers don’t hesitate to buy top end cars and models that are fully loaded with premium accessories and features. However, this sudden growth and development of modern cars have severely impacted the business of car accessories aftermarket. Along with that, there are some other reasons as well such as restricted market with uneven distribution, lack of knowledge for auto accessories among buyers etc. In the last couple of years, Indian auto accessories aftermarket has seen a lot of ups and downs and has been riding on a rollercoaster ride for quite some time now.
The major challenges for Indian auto accessories aftermarket
First of all, modern car manufacturers have started offering most of the car accessories to tempt car buyers. It has directly impacted auto accessories aftermarket to a great extent. To save money and time, most of the car buyers prefer to install accessories from the manufacturer’s showroom or dealership. And to gain profits from accessories car brands are also leaving no stone unturned to give a tempting deal to car buyers. In reality, it costs way more than aftermarket and causes a big dent in buyers’ pockets.
Most of the buyers are still not well informed about auto accessories. They hardly differentiate between superior quality and poor quality of accessories including seat covers, headlights, mats etc. To save a few bucks they are ready to buy an accessory from any retailer. It severely impacts the prominent auto accessories brands that sell high-quality accessories and offer warranty against manufacturing defects. Thus, lack of awareness or knowledge about auto accessories is a major roadblock for the finest auto accessories suppliers and retailers.
Another major challenge is the absence of leading auto accessories online stores to offer hassle-free online auto accessories shopping to buyers. At present, most of the car buyers have to visit offline stores or markets to purchase accessories. They face a lot of challenges while buying accessories. With the least level of knowledge and information offered by offline retailers, buyers have to compromise on prices, quality and other aspects. Thus, if they get a good online platform to buy car accessories, they can easily decide and pick what exactly they want without having to go anywhere.
Also, most of the modern car brands have launched their own accessories to gain maximum profits. It has created a storm in the auto accessories market as buyers are now inclined more towards OEM brands. However, some of the offline stores or retailers taking advantage and sell fake accessories on the name of prominent brands to the customers that is the biggest challenge in front of reputed auto accessories retailers.
Opportunities for auto accessories aftermarket
No doubt, the second-hand car market is one of the biggest opportunities for auto accessories aftermarket. In the last couple of years, the sale of pre-owned cars has increased to manifolds that directly contributed to the rise of the auto accessories aftermarket. The sales and profits have increased as a lot of customers prefer to install accessories from the aftermarket in order to transform their old cars into a brand new one. Those who can’t afford to buy luxury cars are now investing in used cars and transforming them into a brand new looking condition with the help of auto accessories aftermarket. Here, auto accessories play a vital role as a large number of pre-owned cars require a good amount of work before taking them to the roads. Thus, it comes as a boon for auto accessories retailers to sell their accessories and earn profits.
Most of the car brands don’t offer accessories in the mid-segment or entry-level models. Either you have to pay more or get them installed from the aftermarket. This is the biggest opportunity for auto accessories stores to offer high quality and a versatile range of accessories at competitive prices to buyers owing mid-range or entry-level cars.
As everything has gone online, auto accessories retailers should also go online in order to get maximum reach and customers. Most of the people don’t have time to visit offline stores or markets, and they prefer to get quality accessories online. Thus, this is one of the biggest opportunities for the auto accessories market.
Auto Furnish & its vision
Auto Furnish is not a brand new player in this industry. It started it’s online store way back in 2012 to offer tech-driven, high quality and hassle-free online auto accessories shopping experience to buyers. The Brand realised the need for an online store earlier than others. The buyers who used to hesitate in buying accessories from third-party stores are now happily ordering from the brand in a super convenient manner. With it’s a PAN-India presence and tie-ups with multiple retailers and distributors in India including major metropolitan cities, the brand owned accessories are easily available in the offline market as well.
Authored by Puneet Arora, CEO, Autofurnish
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