Auto parts agencies are businesses that sell automotive components to both consumers and other businesses. They may operate either as physical stores in a mall or online shops.
Your products must meet strict quality requirements set by industry organizations.
Retail store
An auto parts agency operates a retail store that sells automobile accessories and services. Additionally, they repair vehicles for customers.
Revenue growth for the industry is forecasted over five years to 2020, as rising disposable income and improved consumer sentiment fuel demand for products. However, profit margins will remain constrained.
A major growth driver for the industry is an increase in personal consumption of automotive parts and accessories. This trend has been spurred by the sale of used vehicles and light trucks, leading to higher revenues across both brick-and-mortar stores as well as online shops.
An auto parts agency can utilize social media platforms to spread the word about their business and increase brand recognition. They may share content, announce new products, offer VIP sales and discounts in order to attract customers.
Online store
If you want to grow your business, creating an online store is one of the best strategies for increasing sales and gaining new customers.
The online store should provide a great user experience. It must include an intelligent filtering interface to help shoppers quickly identify parts that fit their vehicles perfectly.
Additionally, it should have a configurator feature to facilitate the search process. Doing so ensures that both customers and B2B partners are satisfied with the shop.
You can further enhance the shopping experience by offering free shipping, which will attract more potential customers. Doing so will enable you to sell more products and boost profits.
If you’re not sure how to approach this, hiring a marketing firm is your solution. They will create, optimize and post content on social media platforms targeted at mechanics and DIY enthusiasts searching for auto parts. Doing so will allow you to establish yourself as an authority figure and drive traffic to your website.
Specialty Equipment Manufacturers Association (SEMA)
SEMA is a trade association composed of manufacturers, distributors, retailers, publishing companies, auto restorers, street rod builders, restylers, car clubs and race teams. They are known for introducing and showcasing the newest products designed to improve performance, styling comfort convenience safety and fun in cars, trucks and SUVs.
Benefits of membership with SEMA include access to their Garages, which provide members with high-tech facilities that give their businesses the tools and equipment needed for success. Services offered at these garages include 3D scanning, 3D printing, ADAS testing, vehicle measuring sessions and fully equipped bays for emissions testing.
SEMA also organizes international events to connect U.S. specialty equipment companies with potential buyers in countries like China, the Middle East and Australia. At these gatherings, SEMA staff take measurements of foreign vehicles and use this data to create customized products for export into those regions.
Foreign countries
SEMA works with foreign governments to guarantee that they do not place unreasonable restrictions on specialty auto parts. These barriers may include the creation or acceptance of safety and environmental standards or regulations which differ from those in the U.S.
Another challenge lies in regulatory harmonization and lack of consistency and transparency between countries. This can hinder trade, since it becomes impossible to import or export parts or vehicles that comply with two different sets of regulations.
Auto OEM and aftermarket automotive part manufacturers are particularly challenged by the proliferation of different standards across many markets. This can significantly raise delivery costs, making it difficult to compete. Fortunately, new trade agreements are being worked on that aim to streamline regulations and lower tariffs and non-tariff barriers (NTBs) in key markets. Agreements like the Trans-Pacific Partnership (TPP) offer U.S. automobile companies exciting new chances to sell ‘Made-in-America’ parts within this region.