8

End customers represent the largest customer segment in the online

automotive aftersales market – Strong price sensitivity

Overview of customer segments and their reasons for purchasing online

Dimensions Addressed customer segments1) Main reasons to shop for auto parts online
Relevance Low High
Other2) 0 20 40 60 80 100
7%
Price
CUSTOMER 32% Workshops Convenience
Availability
Product portfolio
End customers 61% Delivery & return options
Transparency, usability
Advice e.g. via customer hotline

> No matter if B2B or B2C – Workshops End customers

online customers' key > Most online shops address B2C customers in the > Price, convenience, parts availability and a wide
purchasing criteria is cost online automotive aftersales market (61% share) range of products are the most critical reasons for
> Workshop segment is addressed by only ~1/3 of customers to shop online
online traders > All other factors are perceived as "nice to have"
> Evaluations by workshops and end customers differ
only slightly – convenience usually more important for
1) Scope: Germany, UK, France, Sweden end customers
2) Gas stations, dealerships, etc.
Source: VREI; 2hm; Roland Berger Roland_Berger_Study_Online_Automotive_Parts_Sales_Final.pptx
 9

Both B2B and B2C customers are buying automotive parts online

Distribution chain and customers of online parts sales

Traditional
Dimensions distribution First wave of online shops

1 Workshops (B2B)
OES OES > Workshops have technical know-how to
buy online as well as the required
equipment (tools, lift, diagnostic systems)
CUSTOMER to assemble even complex parts

2 DIFM (B2B2C and B2C2C)

PARTS PARTS Independent online > "Do-it-for-me" customers, who purchase
WHOLESALERS WHOLESALERS parts shops parts online but have them installed:
 B2B2C: at a professional workshop with
commercial purpose
 B2C2C: by an acquaintance outside
working hours/without commercial
1 purpose (gray market)
WORKSHOPS WORKSHOPS
> The first wave of online 3 DIY (B2C)
challenges has cut out the > "Do-it-yourself" customers, who have the
traditional distribution stage of technical knowledge and interest to
maintain and upgrade cars themselves
parts wholesalers in the case of
2 3 4
tech-savvy customers END CUSTOMERS DIFM1) DIY2)
STANDARD 4 Standard end customers (B2C)
END CUSTOMERS > Standard end customers without technical
know-how, who buy simple parts that do
not require complex installation
1) Do-it-for-me 2) Do-it-yourself
Source: Roland Berger Roland_Berger_Study_Online_Automotive_Parts_Sales_Final.pptx
 10

In-depth understanding of customer group demand is key to effectively

setting the right business model and support processes

Reasons for customer segmentation

Dimensions Typical return rates of online purchased products [%]

1 Work- 2 DIFM 4 Standard > Managing return rates is critical in determining

shops 3 DIY end customers profitability across industries:
 Each return costs EUR 15-20 on average
CUSTOMER 50+  Returned parts most often lead to a loss in value
of >20%
40+ > Low return rate of eBay motors indicates
 A high share of experienced DIFM and DIY
customers
 Scrapping of low value parts instead of
returning them
15-20 > Online shops have to customize their processes,
> To successfully run a business, (e.g. logistics, warehouses, return incentives) in
you need to know your order to minimize return costs
5-7
customers! > First initiatives have been already launched by
Zalando and Amazon (e.g. better product
Automotive eBay motors Fashion Zalando descriptions, shutting down accounts with
excessive return behavior)
wholesale industry
(average)

Source: Expert interviews; press research; Roland Berger Roland_Berger_Study_Online_Automotive_Parts_Sales_Final.pptx