Stibo Systems - The Master Data Management Company

4 Trends in the Automotive Industry

Master Data Management Blog by Stibo Systems logo
| 6 minute read
August 11 2021

Fuel data-driven experiences to engage the empowered digital automotive customer

The road ahead is wide open. For automotive aftermarket companies, it means a strong shift into connected commerce, search, and expanded capabilities to reach consumers in digital channels. Product data has always been important but more comprehensive support of the customer journey and customer experience is needed.

For many, a road trip can be an exhilarating adventure as you can see new people and new places.For those like me who have been full-time remote workers over the past year, using our vehicles has been mostly limited to drives around town or an occasional trip to a nearby city. Longer road trips will undoubtedly put new stress on our cars which have not been driven very much, likely forcing each of us to think about our vehicle, getting ready for the trip, and for some, even generating renewed interest in a DIY repair. For those in the aftermarket space, that can spell a big opportunity.

Multiple pandemic-influenced trends are also combining to create an unprecedented shift in consumers’ perspectives on mobility. Work from home will morph from what had been a 5 day a week affair to hybrid work where employees are in the office a few days of the week, reducing miles traveled but still requiring a vehicle. Additionally, public transportation and rideshare services were negatively impacted and are likely going to have some health concerns carrying over well beyond the pandemic.

In the automotive aftermarket, the road ahead is paved in opportunities

Many consumers, and people in the auto industry, have realized we are looking at a much different business than what was envisioned just a few years ago. Below are a few of the biggest industry trends.

4 major trends in the automotive industry

1. Vehicle age increases in the west while aftermarket is poised for growth in Asia

According to IHS MARKIT, the average age of vehicles in the US reached an all-time high of 12.1 years, a number that has been growing consistently. European vehicles have aged in a similar fashion to 10.8 years. With consumers retaining vehicles longer, the industry needs to keep supporting the vehicle population with parts, and interior accessories to keep up vehicle appearance over a longer time horizon than ever before.

Meanwhile, Asian markets such as China and India continue to grow in vehicle sales as well as domestic production. China has been the largest car market in the world for several years, while India has grown continuously, becoming the 4th largest in the world in 2019. As these markets grow and vehicles reach the ripe old age of 4-6 years, we are also seeing the aftermarket expand rapidly, generating growth through wholesale, distribution, and aftermarket retail businesses.

2. Newly adopted digital shopping habits for auto parts are here to stay

Regardless of the market around the world, consumers increasingly turned to streaming to pass the time last year, and they also expanded their hobbies. Do-it-yourself (DIY) maintenance made headway, with consumers working on their commuter vehicles or classic car, jeep, or truck project sitting in the garage. This was made possible by ample downtime and improvements in the experience of buying parts online.

 

As a result, ecommerce auto parts grew 30% in 2020 to reach $16B in the US alone.

 

Many “Do-it-For-ME” (DIFM) consumers postponed needed service and repair. In the meantime, they may have also changed their mindset on how they research and buy vehicle repair services. Will they make a call, drive down to their go-to repair shop, or now decide to use an app? From a marketing perspective, it’s important to understand how much consumers changed their behavior in the early stages of buying parts and just how far they have shifted to digital. With 9/10 shoppers doing research online for their vehicle parts and service, it’s critical for automotive manufacturers and retailers to engage consumers early in the process. This means a seamless experience that delivers relevant information and offers to the customer.

3. Electric vehicle adoption also increasing

The European market has seen tremendous shifts to electric vehicles in the past year, while sales of diesel and petrol powered vehicles declined 20.1% and 16.9% in Q1 vs. prior year, respectively. Meanwhile, hybrid and other electric-powered vehicles increased market share. EV growth was also strong across other regions of the world.

 

With a potential 12-13x expected increase in the number of electrified vehicles in the global market (see below), there will undoubtedly be changes in what manufacturers/brands consumers are drawn to in the OEM and aftermarket distribution channels. Electric vehicles require less maintenance and have fewer overall parts than traditional vehicles with internal combustion engines.

 

Projection for EV vehicles 2020-2030

4. The connected car and autonomous driving

Connected vehicles are not only about having all kinds of digital integrations to the world around us and being able to shop from the car and manage your life. They are also about the ability of the vehicle to be aware of the surroundings, create alerts for the drivers, and even activate autonomous driving capabilities to protect the driver and mitigate the risk of a crash. While autonomous driving continues to be tested, progress is made every quarter as more is learned about the use of machine learning on test and fleet vehicles. As the technology improves and regulations ease, the promise is that autonomous features will be used more often, creating a loop of continuous learning over time. This will eventually lead to fewer collisions and injuries and ultimately, reduced demand for parts to replace those damaged in collisions around the world.

"Self-driving cars are the natural extension of active safety and obviously something we should do."
- Elon Musk

 

Regardless of your market, it will become more digital. Will you be ready?

As consumers and businesses become more digital in their parts purchasing and ongoing relationships with OEM manufacturers, retailers, and auto shops, there is a clear need to leverage online catalogs to better serve customers. It starts with the ability to ensure the fit is correct for a customer's vehicle make, model, and year. With an extensive catalog, companies need accurate, reliable systems that ensure parts are managed correctly and efficiently through workflows and that coverage gaps are identified and closed. That information then needs to seamlessly feed online product pages to include complete product descriptions, multiple images, and even instructional videos to accompany the basic product specifications.

With a safety-driven need to satisfy technical product information needs, a robust product master data management (or product information management/PIM) solution that works with industry standards such as ACES, PIES, and TecDoc is the starting point for being ready to scale to support new vehicle models and reach new markets. As globalization grows, parts manufacturers and retailers expanding into new markets, also need to convey the same parts information in a new language and appeal to the local market with accuracy, efficiency, and relevancy.

 

 

Great digital parts shopping experiences demand great data, end-to-end

Effective product management is just a starting point for effective digital commerce and won’t enable you by itself to be an industry leader. In an increasingly fragmented distribution market, both retailers and parts suppliers need a more transparent view of their warehouse, distribution partners, local resellers, independent shops, etc. By creating a single, robust, consolidated view of the entire B2B customer landscape, with details for each individual enterprise, you can ensure that communication is enhanced, and B2B customer experiences are stronger, enhancing trust across the entire distribution network.

Equally important is the ability to better manage end-consumer data, including vehicle type, store, and purchase preferences, loyalty information, etc. With a single customer view, marketing and digital commerce teams can provide more relevant messaging and offerings for the types of products consumers like, as well as to match a specific product to their vehicle type, model, or personal maintenance needs.

Location, location, location (it’s essential for parts buyers, too)

Retailers, suppliers, and wholesale distributors with vast store or operational networks also recognize the value of location data. Retail operations have changed in the past several years with more stores offering curbside or BOPIS delivery options. Backrooms have expanded as a share of store space and category size, and adjacencies and assortment have changed, too. Location data management helps retailers and distributors manage all this incredibly important operational data, creating a single point of truth that enables sharing in real-time. Organizations get a transparent view, enabling them to analyze their business with greater granularity and confidence. Furthermore, greater consistency and trust in the data will enable auto parts retailers and their suppliers to share that data via customer-facing websites with greater confidence to benefit the consumer to make decisions on store visits.

To be positioned to win in an increasingly digital market with many vehicle types, changing technology, and increased globalization, retailers and parts makers need to leverage the power of their data.

Customers across the core industries we serve, including retail, manufacturing, distribution, and CPG are increasingly expanding their digitalization scope to connect multiple data domains to create an insight enabling Digital Business Hub. Auto companies are pursuing this strategy, too, because they recognize the need for better data across the enterprise and business ecosystem. It can address the need to be more agile in response to meet the speed of innovation and remain relevant in the market.

A multidomain master data management strategy ultimately leads to better business outcomes, increased efficiency, and better customer experiences. Companies in the automotive space who wish to continue to navigate the road ahead in an increasingly digital market would find great benefit including multidomain master data management in their own journey.

With more than 25 years of experience working with OEMs, parts manufacturers, retailers, and distributors on their data management needs for this industry, we’ve been able to help leading companies around the world leverage the power of data to drive greater success.

To learn how we helped Europart, a major automotive parts retailer, accelerate their business by taking master data management to the cloud.


Topics: 
Master Data Management Blog by Stibo Systems logo

Brian Cluster is Stibo Systems’ Industry Strategy Director for the consumer packaged goods and retail industries. He has more than 25 years of experience collaborating on strategy, delivering analytics and developing business plans and digital transformation. At Stibo Systems, Brian is putting his varied industry expertise to good use, providing direction and strategy for field teams and helping to drive customer value for master data management solutions. He is a frequent contributor to The Consumer Goods Forum, and his articles have been published in Consumer Goods Technology, Multichannel Merchant, Total Retail, Footwear News, and Center for Data Innovation, among others.

Discover Blogs by Topic

  • MDM strategy
  • Data governance
  • Customer and party data
  • See more
  • Retail and distribution
  • Manufacturing
  • Data quality
  • Supplier data
  • Product data and PIM
  • AI and machine learning
  • CPG
  • Financial services
  • GDPR
  • Sustainability
  • Location data
  • PDX Syndication

Master Data Management Roles and Responsibilities

5/20/24

8 Best Practices for Customer Master Data Management

5/16/24

What Is Master Data Governance – And Why Do You Need It?

5/12/24

4 Common Master Data Management Implementation Styles

5/10/24

Guide: Deliver flawless rich content experiences with master data governance

4/11/24

Risks of Using LLMs in Your Business – What Does OWASP Have to Say?

4/10/24

Guide: How to comply with industry standards using master data governance

4/9/24

Digital Product Passports - A Data Management Challenge

4/8/24

Guide: Get enterprise data enrichment right with master data governance

4/2/24

Guide: Getting enterprise data modelling right with master data governance

4/2/24

Guide: Improving your data quality with master data governance

4/2/24

Data Governance Trends 2024

1/30/24

NRF 2024 Recap: In the AI era, better data can make all the difference

1/19/24

Building Supply Chain Resilience: Strategies & Examples

12/19/23

How Master Data Management Can Enhance Your ERP Solution

12/14/23

Shedding Light on Climate Accountability and Traceability in Retail

11/29/23

What is Smart Manufacturing and Why Does it Matter?

10/11/23

Future Proof Your Retail Business with Composable Commerce

10/9/23

5 Common Reasons Why Manufacturers Fail at Digital Transformation

10/5/23

How to Digitally Transform a Restaurant Chain

9/29/23

Three Benefits of Moving to Headless Commerce and the Role of a Modern PIM

9/14/23

12 Steps to a Successful Omnichannel and Unified Commerce

7/6/23

CGF Global Summit 2023: Unlock Sustainable Growth With Collaboration and Innovation

7/5/23

Navigating the Current Challenges of Supply Chain Management

6/28/23

Responsible AI relies on data governance

5/11/23

Product Data Management during Mergers and Acquisitions

4/6/23

Master Data Management Definitions: The Complete A-Z of MDM

3/14/23

4 Ways to Reduce Ecommerce Returns

3/8/23

Asset Data Governance is Central for Asset Management

3/1/23

How to Leverage Internet of Things with Master Data Management

2/14/23

Manufacturing Trends and Insights in 2023-2025

2/14/23

Sustainability in Retail Needs Governed Data

2/13/23

What is Augmented Data Management?

2/9/23

NRF 2023: Retail Turns to AI and Automation to Increase Efficiencies

1/20/23

What is the difference between CPG and FMCG?

1/18/23

5 Key Manufacturing Challenges in 2023

1/16/23

What is a Golden Customer Record in Master Data Management?

1/9/23

The Future of Master Data Management: Trends in 2023-2025

1/8/23

Innovation in Retail

1/4/23

5 CPG Industry Trends and Opportunities for 2023-2025

12/5/22

Life Cycle Assessment Scoring for Food Products

11/21/22

Retail of the Future

11/14/22

Omnichannel Strategies for Retail

11/7/22

Hyper-Personalized Customer Experiences Need Multidomain MDM

11/5/22

What is Omnichannel Retailing and What is the Role of Data Management?

10/25/22

Most Common ISO Standards in the Manufacturing Industry

10/18/22

How to Get Started with Master Data Management: 5 Steps to Consider

10/17/22

What is Supply Chain Analytics and Why It's Important

10/12/22

What is Data Quality and Why It's Important

10/12/22

A Data Monetization Strategy - Get More Value from Your Master Data

10/11/22

An Introductory Guide: What is Data Intelligence?

10/1/22

Revolutionizing Manufacturing: 5 Must-Have SaaS Systems for Success

9/15/22

An Introductory Guide to Supplier Compliance

9/7/22

What is Application Data Management and How Does It Differ From MDM?

8/29/22

Digital Transformation in the Manufacturing Industry

8/25/22

Master Data Management Framework: Get Set for Success

8/17/22

Discover the Value of Your Data: Master Data Management KPIs & Metrics

8/15/22

Supplier Self-Service: Everything You Need to Know

6/15/22

Omnichannel vs. Multichannel: What’s the Difference?

6/14/22

Digital Transformation in the CPG Industry

6/14/22

Create a Culture of Data Transparency - Begin with a Solid Foundation

6/10/22

The 5 Biggest Retail Trends for 2023-2025

5/31/22

What is a Location Intelligence?

5/31/22

Omnichannel Customer Experience: The Ultimate Guide

5/30/22

Location Analytics – All You Need to Know

5/26/22

Omnichannel Commerce: Creating a Seamless Shopping Experience

5/24/22

Top 4 Data Management Trends in the Insurance Industry

5/11/22

What is Supply Chain Visibility and Why It's Important

5/1/22

6 Features of an Effective Master Data Management Solution

4/30/22

What is Digital Asset Management?

4/23/22

The Ultimate Guide to Data Transparency

4/21/22

How Manufacturers Can Shift to Product-as-a-Service Offerings

4/20/22

How to Check Your Enterprise Data Foundation

4/16/22

An Introductory Guide to Manufacturing Compliance

4/14/22

Multidomain MDM vs. Multiple Domain MDM

3/31/22

Making Master Data Accessible: What is Data as a Service (DaaS)?

3/29/22

How to Build a Successful Data Governance Strategy

3/23/22

What is Unified Commerce? Key Advantages & Best Practices

3/22/22

How to Choose the Right Data Quality Tool?

3/22/22

What is a Data Domain?

3/21/22

6 Best Practices for Data Governance

3/17/22

5 Advantages of a Master Data Management System

3/16/22

A Unified Customer View: What Is It and Why You Need It

3/9/22

Supply Chain Challenges in the CPG Industry

2/24/22

Data Migration to SAP S/4HANA ERP - The Fast and Safe Approach with MDM

2/17/22

The Best Data Governance Tools You Need to Know About

2/17/22

Top 5 Most Common Data Quality Issues

2/14/22

What Is Synthetic Data and Why It Needs Master Data Management

2/10/22

What is Cloud Master Data Management?

2/8/22

How to Implement Data Governance

2/7/22

Build vs. Buy Master Data Management Software

1/28/22

Why is Data Governance Important?

1/27/22

Five Reasons Your Data Governance Initiative Could Fail

1/24/22

How to Turn Your Data Silos Into Zones of Insight

1/21/22

How to Improve Supplier Experience Management

1/16/22

​​How to Improve Supplier Onboarding

1/16/22

How to Enable a Single Source of Truth with Master Data Management

1/13/22

What is a Data Quality Framework?

1/11/22

How to Measure the ROI of Master Data Management

1/11/22

What is Manufacturing-as-a-Service (MaaS)?

1/7/22

The Ultimate Guide to Building a Data Governance Framework

1/4/22

Introducing the Master Data Management Maturity Model

1/3/22

Master Data Management Tools - and Why You Need Them

12/20/21

The Dynamic Duo of Data Security and Data Governance

12/20/21

How to Choose the Right Supplier Management Solution

12/20/21

How Data Transparency Enables Sustainable Retailing

12/6/21

What is Supplier Performance Management?

12/1/21

What is Party Data? All You Need to Know About Party Data Management

11/28/21

What is Data Compliance? An Introductory Guide

11/18/21

How to Create a Marketing Center of Excellence

11/14/21

The Complete Guide: How to Get a 360° Customer View

11/7/21

What is the Difference Between Master Data and Metadata?

11/1/21

How Location Data Adds Value to Master Data Projects

10/29/21

How Marketers Should Prepare for the 2023 Holiday Shopping Season

10/26/21

What is Supplier Lifecycle Management?

10/19/21

What is a Data Mesh? A Simple Introduction

10/15/21

How to Build a Master Data Management Strategy

9/26/21

10 Signs You Need a Master Data Management Platform

9/2/21

What Vendor Data Is and Why It Matters to Manufacturers

8/31/21

3 Reasons High-Quality Supplier Data Can Benefit Any Organization

8/25/21

4 Trends in the Automotive Industry

8/11/21

What is Reference Data and Reference Data Management?

8/9/21

What Obstacles Are Impacting the Global Retail Recovery?

8/2/21

GDPR as a Catalyst for Effective Data Governance

7/25/21

All You Need to Know About Supplier Information Management

7/21/21

5 Tips for Driving a Centralized Data Management Strategy

7/3/21

Data Governance and Data Protection, a Match Made in Heaven?

6/29/21

Welcome to the Decade of Transparency

5/26/21

How to Become a Customer-Obsessed Brand

5/12/21

How to Create a Master Data Management Roadmap in Five Steps

4/27/21

What is a Data Catalog? Definition and Benefits

4/13/21

How to Improve the Retail Customer Experience with Data Management

4/8/21

How to Improve Your Data Management

3/31/21

How to Choose the Right Master Data Management Solution

3/29/21

Business Intelligence and Analytics: What's the Difference?

3/25/21

Spending too much on Big Data? Try Small Data and MDM

3/24/21

What is a Data Lake? Everything You Need to Know

3/21/21

How to Extract More Value from Your Data

3/17/21

Are you making decisions based on bad HCO/HCP information?

2/24/21

Why Master Data Cleansing is Important to CPG Brands

1/20/21

CRM 2.0 – It All Starts With Master Data Management

12/19/20

5 Trends in Telecom that Rely on Transparency of Master Data

12/15/20

10 Data Management Trends in Financial Services

11/19/20

Seasonal Marketing Campaigns: What Is It and Why Is It Important?

11/8/20

What Is a Data Fabric and Why Do You Need It?

10/29/20

Transparent Product Information in Pharmaceutical Manufacturing

10/14/20

How to Improve Back-End Systems Using Master Data Management

9/19/20

8 Benefits of Transparent Product Information for Medical Devices

9/1/20

How Retailers Can Increase Online Sales in 2023

8/23/20

Master Data Management (MDM) & Big Data

8/14/20

Key Benefits of Knowing Your Customers

8/9/20

Women in Master Data: Kelly Amavisca, Ferguson

8/5/20

Customer Data in Corporate Banking Reveal New Opportunities

7/21/20

How to Analyze Customer Data With Customer Master Data Management

7/21/20

How to Improve Your 2023 Black Friday Sales in 5 Steps

7/18/20

4 Ways Product Information Management (PIM) Improves the Customer Experience

7/18/20

How to Estimate the ROI of Your Customer Data

7/1/20

Women in Master Data: Rebecca Chamberlain, M&S

6/24/20

How to Personalise Insurance Solutions with MDM

6/17/20

How to Democratize Your Data

6/3/20

How to Get Buy-In for a Master Data Management Solution

5/25/20

How CPG Brands Manage the Impact of Covid-19 in a Post-Pandemic World

5/18/20

5 Steps to Improve Your Data Syndication

5/7/20

Women in Master Data: Gwen Moilanen-Kollar

3/31/20

Marketing Data Quality: Why Is It Important and How to Get Started

3/26/20

Panic Buying: Navigating Long-term Implications and Uncertainty

3/24/20

Women in Master Data: Ditte Brix, IMPACT

2/20/20

Get More Value From Your CRM With Customer Master Data Management

2/17/20

Women in Master Data: Nagashree Devadas, Stibo Systems

2/4/20

How to Create Direct-to-Consumer (D2C) Success for CPG Brands

1/3/20

Women in Master Data: Anna Schéle, Ahlsell

10/25/19

Women in Master Data: Morgan Lawrence, Infoverity

9/26/19

Women in Master Data: Sara Friberg, Acando (Part of CGI)

9/13/19

Improving Product Setup Processes Enhances Superior Experiences

8/21/19

How to Improve Your Product's Time to Market With PDX Syndication

7/18/19

8 Tips For Pricing Automation In The Aftermarket

6/1/19

How to Drive Innovation With Master Data Management

3/15/19

Discover PDX Syndication to Launch New Products with Speed

2/27/19

How to Benefit from Product Data Management

2/20/19

What is a Product Backlog and How to Avoid It

2/13/19

How to Get Rid of Customer Duplicates

2/7/19

4 Types of IT Systems That Should Be Sunsetted

1/3/19

How to Use Customer Data Modeling

11/15/18

How to Reduce Time-to-Market with Master Data Management

10/28/18

How to Start Taking Advantage of Your Data

9/12/18

6 Signs You Have a Potential GDPR Problem

8/16/18

GDPR: The DOs and DON’Ts of Personal Data

6/13/18

How Master Data Management Supports Data Security

6/7/18

Frequently Asked Questions (FAQ) About the GDPR

5/30/18

Understanding the Role of a Chief Data Officer

4/26/18

3 Steps: How to Plan, Execute and Evaluate Any IoT Initiative

2/20/18

How to Benefit From Customer-Centric Data Management

9/7/17

3 Ways to Faster Innovation with Multidomain Master Data Management

6/7/17

Product Information Management Trends to Consider

5/25/17

4 Major GDPR Challenges and How to Solve Them

5/12/17

How to Prepare for GDPR in Five Steps

2/21/17

How Data Can Help Fight Counterfeit Pharmaceuticals

1/24/17

Create the Best Customer Experience with a Customer Data Platform

1/11/17
Did you like this blog post?

Sign up to get the latest blog content in your inbox.