Forecasting Demand for Automotive Spare Parts - Ep 61

Описание: With around 80 million cars sold worldwide each year, the automotive aftermarket industry is expected to reach a global value of over $700 billion by 2020. In this episode we look into the range of challenges which have been introduced into the industry as consumers become more aware of the importance of preventative maintenance and regular services to maximize the lifetime value of their vehicles. We discuss the introduction of e-commerce players into an industry which has largely been dominated by garages and how the rising trend for DIY maintenance has resulted in a rising demand for aftermarket parts.

The automotive market exhibits demand patterns which are often sporadic and difficult to map. We discuss the importance of statistical stability to be able to forecast accurately and learn what makes the automotive parts aftermarket so particular when compared to other industries. Finally we expand on how pricing has a key role to play in relation to demand and the best way to approach competitive pricing strategies in a ‘cause-driven’ market where purchases are made due to a specific incident.

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Episode Map
0:00:00 - Introduction
0:00:34 - What is so special about the automotive aftermarket?
0:02:37 - How can you forecast the demand for such a wide range of options?
0:03:57 - The real challenge I can see here is the lifetime of a car part is dependant on factors such as driving style and weather. Can we really forecast for when someone breaks down?
0:06:40 - Let’s talk about some of the challenges, does having so many parts which are compatible not make a practitioners life easier?
0:08:28 - Has nobody created databases which makes use of the expertise of the practitioner and tells you which compatibility exists?
0:10:35 - What’s the best way to keep track of this then? How can we keep track of which components were used in the manufacture of a certain vehicle?
0:13:30 - What about pricing? How important is pricing when it comes to the demand for these components?
0:16:40 - If you’re not analysing what competitors are doing is there any way of analysing how aggressively you can price?
0:18:47 - How has the industry changed with the introduction of e-commerce players who are starting to compete with the more traditional garages?
0:20:50 - What are the key lessons to learn from today’s episode? Is it that data can give structure to what is a seemingly random activity?

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