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INTERNATIONAL EXPERT ADVISES OFFSHORE SUPPLIERS ON THE CHALLENGES OF THE AMERICAN AFTERMARKET
Las Vegas, Nev. -- The American automotive aftermarket is a large and tempting lure for foreign entrants, but a risky venture for the unwary. That was the theme of a breakfast seminar at AAPEX (Automotive Aftermarket Products Expo) for an audience of international suppliers of automotive products. Mr.David J.R.Ogilvie, Managing Director of Walden Consultants Ltd, was the featured speaker at the seminar, treating the attendees from Europe, Asia and America to insights learned during 30 years of consulting for foreign companies entering or competing in the American market.
"Non-American suppliers must answer some fundamental questions," said Ogilvie, "before thinking about investing time, effort and money in competing here. The size and complexity of the American aftermarket, and the ready access to business information in America, does not mean it is an easy market in which to gain inroads and make money."
Ogilvie, a native of England but resident in the USA, pointed out the importance of defining the available market for a product line, and to assess competitors. "It is relatively easy to find some customers for your product in America," he warned, "but whether they are the best ones for you is a completely different story." Evidence abounds that suggests that some foreign parts suppliers sharply limit their potential in the USA by choosing inappropriate partners too quickly.
The levels and channels of distribution comprising the American automotive aftermarket were portrayed in detail by Ogilvie. With market requirements varying among and between each sector of the market, it is sometimes difficult to know when an offshore supplier has balanced its delivered value package with those requirements in order to ensure optimal product selection and pricing for the US. One analysis showed how the apparent size of the US aftermarket is often significantly different from what is realistically available. Another pointed out, for the benefit of the non-American attendees, that aftermarket pricing is based on "discount off list" rather than the orthodox cost-plus-margins formulae familiar in most industries.
AIA (Auto International Association) produced the seminar program as part of its participation at AAPEX. Spectrum International Sales and Cofle of Italy are AIA members who sponsored the specific event.
Walden Consultants Ltd. regularly conducts corporate strategy, marketing, competitive analysis, and acquisition planning assignments for domestic and foreign clients. Automotive businesses are one area of specialization for the management consulting firm which has offices in Hopkinton, Massachusetts, and Brooklyn, New York.