Market consolidation, imported product and the consequential rise of private label, as well as technology and new-to-range growth: these are some of the most significant changes to have influenced the automotive industry since he joined Autoelectro, says UK Sales Manager, Nick Hood.
In his latest ‘Nick Says’ column, he explains how the remanufacturer of starter motors and alternators has evolved to ensure the company continues to thrive. He also reveals what it has to be wary of in the future.
Nick claimed that, to a greater extent, market consolidation exists “outside of Autoelectro’s control” but the unique selling points that remain in its power are “quality products, range coverage, stock availability and excellent customer service” which must remain priorities.
He explained that market consolidation could have both positive and negative effects for the company: “The fact our customer base is consolidating could be a positive, as we have less people to impress to gain a larger amount of business.
“I realise this is over-simplifying the situation, as, without doubt, the larger consolidated customer will want to leverage their buying position; however, to some extent, this just means we have to do what we’ve always done – just maybe a little better.”
Imported product and private label
This is another development that is outside of Autoelectro’s influence, Nick said, as it’s a sector that the company is not currently a part of: “While there may be a pressure, as a result of the technological evolution of starter motors and alternators, as well as the ever-growing number of part numbers with shorter lifecycles, it is likely that the percentage of new imported units and private labels may decrease, accounting for only the high-volume pareto, faster-moving references.”
Technology and new-to-range growth
Bullishly, Nick believes technology and part number growth is the “backbone” of Autoelectro’s package and the remanufacturer “leads the market” in that particular department – he added: “We are investing and keeping pace with technology by leading the market on range introductions, and our coverage is already wider than our competitors, so, for us, it just means more of the same!”
In terms of staying on the right path, maintaining profitability and continuing to grow as a company, Nick said Autoelectrohas the foundations, direction – with the senior management trio of brothers Tony, Paul and Nicky Bhogal at the helm – unique selling points and ability to continue to deliver what its customers want.
He concluded: “We must maintain our creativity, through pioneering new ideas, so we continue to be easy to deal with. At the same time, we must observe the competition, but I am buoyant that we can overcome whatever the future throws at us.”