With PartsAmerica and NAPA in B2C modes, two near-term bricks-and-clicks
developments have yet to materialize: the transition of PartsAmerica and
NAPA into full-scale B2B activity, and the e-commerce debut of AutoZone
(as well as other major retailers and program groups).
As predicted in the premiere issue of
eAftermarket™, B2B aftermarket
activity on the web will be many times (fifteen-fold at least) the
volume of B2C aftermarket transactions. To underscore this point, leading
virtual stores such as Wrenchhead.com and CarParts.com which launched as
B2C sites last year are now aggressively pursuing B2B strategies, which
link service outlets with suppliers. Presently there are at least ten such
electronic procurement programs being installed at Service outlets, with
more on the way.
A key question in the near-term development of aftermarket e-commerce is
how NAPA, PartsAmerica (Advance and CSK), and other brick-and-mortar parts
sellers will tackle the much larger B2B side of the aftermarket.
NAPA (6,200 stores) indicated they will have their B2B strategy up and
running early in 2001 (see May 15th eAftermarket™). In the meantime, NAPA
as an organization will not engage in any electronic procurement programs
which feature comparative pricing (although NAPA headquarters indicated they
could not control the activity of independent NAA stores).
Whether brick-and-mortar giants forge their own exclusive electronic B2B
connections with Service outlets and/or embrace the electronic procurement
programs of independent vendors will help determine the competitive landscape
of the aftermarket in the coming years.
The web intentions of other major retailers and programs (particularly AutoZone)
are also of strategic significance. While AutoZone's e-commerce plans have yet
to be announced, there are some indications of possible strategies AutoZone
will pursue.
For example, its ALLDATA division has forged a strong relationship with
MechanicNet, a leading e-commerce Service outlet enabler. Following
this avenue into the Service market, AutoZone could "leapfrog" its
brick-and-mortar competitors by forming an electronic bridge between service
installers and its own store/warehouse inventories, taking control of the
distribution/value chain all the way from manufacturers to installers. Using
this strategy and participating with independent providers of electronic
procurement programs, AutoZone could enjoy the best of all worlds by adding
its own bricks-and-clicks B2C e-commerce site to the mix.
As Lang Marketing has pointed out, e-commerce winners will be those who
control the critical links of the distribution/value chain, end to end,
through ownership or strategic alliances.
B2B e-commerce is in the very early stages of its aftermarket development
and it will take up to five years for the competitive landscape to fully
take shape.
- Lang Marketing Resources, Inc. /
WWW.LANGMARKETING.COM /
201-652-5220
